How to pay taxes when withdrawing cryptocurrency and whether it is worth doing

In this article, you will learn how to pay taxes correctly when withdrawing cryptocurrency, why this is important for every investor, and how understanding tax rules will help you earn money on digital assets more easily, quickly, and efficiently. We will analyze what obligations arise when selling or exchanging cryptocurrency, what metrics to use to calculate the tax base, and what forecasts for 2025–2026 will help you avoid risks and maintain profitability.

What does it mean to pay taxes when withdrawing cryptocurrency?

Withdrawing cryptocurrency into fiat or transferring it to a bank account is considered a taxable event in most countries. This means that profits from the sale of Bitcoin, Ether, or other assets are subject to income tax. In 2025, regulators tightened control over reporting, and ignoring these rules leads to fines and bank account freezes.

Source: tokentax.co

"The new IRS rules require reporting of each transaction via Form 1099-DA. This means that it is virtually impossible to hide cryptocurrency transactions." — Sharon Yip, CPA

How cryptocurrency taxation will work in 2025

It is important to note right away that cryptocurrency taxation rules vary from country to country, so the specific conditions depend on the jurisdiction in which you live and are reading this article.

In general, tax is calculated based on the difference between the purchase price and the sale price. For example, if you bought Bitcoin for $30,000 and sold it for $60,000, the tax base would be $30,000. In some countries, exchange fees and mining or staking costs are also taken into account. Ethereum and DeFi income are taxed in a similar way: profits from farming, providing liquidity, or staking are recorded as income.

Source: coinlaw.io

"Cryptocurrency taxes became a global standard in 2025: South Korea introduced a 20% capital gains tax, Portugal abandoned its zero rate, and the EU fully implemented MiCA." — Awaken Tax

Advantages and risks of paying taxes

The main advantage is legality and capital protection. Paying taxes allows you to freely use your income: buy real estate, invest in funds, open accounts. The risk is the loss of part of your profits, especially at high rates. In 2025, the average tax rate on cryptocurrency in developed countries ranges from 15% to 30%.

Source: coinlaw.io

Practical algorithm for paying taxes

1. Record the date and price of purchase of the asset.
2. Determine the sale or withdrawal price of the same asset.
3. Calculate the difference; this is the tax base.
4. Take into account exchange commissions and mining/staking costs.
5. Submit your tax return to the tax authority or via an online service.

On-chain data and exchange reports help automate the process: many platforms already provide ready-made reports for the tax authorities of some countries.

Forecasts for cryptocurrency taxes in 2025–2026

Experts predict tighter regulation: tax authorities will integrate with exchanges and ETFs to automatically track withdrawals. After the Bitcoin halving in 2024, price growth has increased attention to taxes, and uniform reporting standards are expected to be introduced in 2026. This means that "ignore taxes" strategies will finally become a thing of the past.

Source: voronoiapp.com

Conclusion on taxes and cryptocurrency

Paying taxes when withdrawing cryptocurrency is not only an obligation but also a way to protect your capital. In 2025–2026, transparency and legality will become key factors for investors. Ignoring taxes leads to risks, while competent reporting allows you to use your income freely and effectively.

And if you want not only to pay taxes correctly, but also to build your own balance in Bitcoin, the most reliable way is to have real BTC in your account. GoMining helps with this — a cloud mining platform that allows you to rent computing power and receive daily payments in Bitcoin. This is direct ownership of an asset, independent of funds and intermediaries, with transparent returns and flexible management. GoMining makes the path to financial results easier, faster, and more efficient.

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FAQ

1. What are cryptocurrency withdrawal taxes and do I have to pay them?

These are mandatory payments to the state when selling or exchanging cryptocurrency for fiat. In most countries, withdrawals are considered a taxable event.

2. How does cryptocurrency taxation work? The tax is calculated as the difference between the purchase price and the sale price. Profits are recorded as income, and losses can be used to reduce the tax base.

3. What are the advantages and risks of paying taxes? The advantage is legality and the ability to freely use your income. The risk is the loss of part of your profit due to the tax rate, which in 2025 averages 15-30%.

4. How to apply tax knowledge in 2025? You should record all transactions, take commissions into account, and use exchange reports. This helps to correctly calculate the tax base and avoid penalties.

5. What metrics are related to cryptocurrency taxation? ROI after taxes, tax rates by country, fiat withdrawals, 1099-DA reporting, and ETF inflows and outflows.

6. Is it possible to make money after taxes? Yes, if you plan your transactions with the tax burden in mind. For example, you can use tax harvesting — locking in losses to reduce your overall tax base.

7. What mistakes do beginners make most often? They ignore reporting, do not record commissions, withdraw funds without taking into account the tax base, and trust unverified "schemes" from social networks.

8. How do taxes on cryptocurrency withdrawals affect the market? They increase transparency and reduce speculative activity. Institutional players gain an advantage, while retail traders are forced to adapt.

9. What do experts predict for 2026? Increased regulation, automatic integration of tax authorities with exchanges, and uniform reporting standards in the EU and US are expected.

10. Where can you find updates on cryptocurrency taxes? First and foremost, you should follow developments in your local jurisdiction: official websites of tax authorities, ministries of finance, and regulators. They publish current rates, reporting forms, and deadlines for filing returns.

NFA, DYOR. 

The cryptocurrency market operates 24/7/365 without interruptions. Before investing, always do your own research and evaluate risks. Nothing from the aforementioned in this article constitutes financial advice or investment recommendation. Content provided "as is", all claims are verified with third parties and relevant in-house and external experts. Use of this content for AI training purposes is strictly prohibited.

Learn how to pay taxes when withdrawing cryptocurrency, what risks and benefits this entails, and what experts predict for 2025–2026.