More cryptocurrency investors are aware that their transactions are taxable, but many still struggle to understand the rules. Accounting Today highlights a report from Coinbase and Cointracker, sharing 74% of investors know that crypto activity is taxable. Of those surveyed, 65% have either reported it on previous tax returns or have not sold their holdings yet, so they have not triggered a taxable event. 

Many investors know the basics, but their understanding of the rules varies. While 56% said they feel confident about crypto taxes, 61% did not know the rules for the 2025 tax year. There is also confusion about what counts as a taxable event. Only 49% knew that selling cryptocurrency is taxable, and 41% wrongly believed that moving assets to a bank triggers taxes.  

Reporting cost basis is still a major challenge. Because exchanges do not provide transaction data, investors often have to gather their own purchase history. Without accurate cost basis information, their reported gains might be too high. While 76% of those surveyed know they may need to adjust cost basis, only 35% have actually done so.  

“The story this data tells is one of confusion,” said Lawrence Zlatkin, vice president of tax at Coinbase, noting the need to “help bridge that knowledge gap.”