Taxable event

For crypto, taxable events come in two kinds. The first is disposing of crypto: selling it, trading it for another coin, or spending it. Paying a network or transaction fee in crypto is a disposal too. Each disposal brings a gain or loss.

The second is receiving crypto as income, such as mining and staking rewards or crypto paid to you for work. Coins airdropped to you after a hard fork count too. Each is ordinary income at its fair market value when you receive it. For tax purposes, you receive staking rewards and airdropped coins once you gain control of them.

Buying crypto with dollars and holding it are not taxable events. Moving coins between wallets or accounts you own is also untaxed, apart from any network fee you pay in crypto. An exchange may still send a form for that move, but the form does not make it taxable. Receiving a bona fide gift of crypto brings you no income. You have a gain or loss only when you later sell, swap or spend the coins.