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amy.stevens943Great question, it trips up a lot of people. In most cases, simply holding isn’t taxable, but selling, swapping one crypto for another, earning staking rewards, or getting paid in crypto are usually considered taxable events. Definitely worth double-checking with a tax professional since the details can vary.
amy.stevens943Yes, it is possible to earn passive income with crypto, but it’s not as straightforward or risk-free as it may sound. Many people use methods like staking coins such as Ethereum or Cardano to earn rewards, while others turn to lending platforms that offer interest in exchange for their crypto. Some also provide liquidity to decentralized exchanges, earning fees in return, though this comes with the risk of price fluctuations. A few tokens even share profits with holders, much like dividends. While the opportunities are real, the income is never guaranteed and market volatility can impact your earnings. That’s why it’s important to research carefully and only invest what you can afford to lose.
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