A new study on crypto taxation has shed light on the knowledge gap among investors. A survey of 3,000 US crypto users found that nearly half (49%) correctly understood that crypto assets are taxed at the time of sale.
However, the report also revealed widespread misconceptions about tax events. About a quarter of respondents believed that simple transfers trigger a tax event, which is not the case in the US. In reality, tax arises from sales, swaps, or certain uses, such as staking rewards.
The study also highlighted the challenges of tracking cost basis in a fragmented market. With an average of 2.5 wallets or exchanges used by each investor, users face difficulties in manually reconciling transactions, especially with the introduction of Form 1099-DA from brokers starting in 2025.