No. Transferring cryptocurrency between exchanges or wallets does not constitute a taxable event. Capital gains and losses are measured by your “cost basis” (the value you paid for the cryptocurrency, and by the price you sold or traded the cryptocurrency for. If you don’t dispose of the cryptocurrency for fiat or another cryptocurrency then you don’t have a taxable event. For this reason users should ensure that they connect all of their exchanges. If users only held cryptocurrency in their wallet and did not dispose of it then it is not necessary to connect your hardware wallets. TaxBit accurately keeps track of your cost basis and tax liability for taxable transactions.

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