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Should I enable "Tax crypto to crypto trades"?
Should I enable "Tax crypto to crypto trades"?
Carl Gärdsell avatar
Written by Carl Gärdsell
Updated over a week ago

Enable this option if your country treats all crypto to crypto trades (e.g. BTC for ETH) as taxable events. This means that the sent currency is treated as if it were sold and taxed accordingly.

How it affects your tax calculations

In most countries you are liable to pay taxes on gains or losses incurred when you trade crypto for crypto, such as when exchanging Bitcoin for Ether. As long as this option is turned on, Divly will do the heavy lifting and calculate your gains/losses for every crypto to crypto trade in your country's local fiat currency.

Divly will have set this automatically based on your country. Please do not change this setting unless you have a deep understanding of your country's tax laws.

Stable coins like USDC and USDT also count as cryptocurrencies. If you have this setting enabled, disposals of stable coins will also be treated as taxable events.

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