What You Might Not Know About The Tax Implications Of Using PayPal

The US treats crypto as property. This means that every time you sell, exchange, or buy something using crypto, there’s a taxable event that must be paid.

This means if you were to pay a PayPal merchant through crypto, you will incur a capital gain (or loss). Here’s an example of how it works.

Just know that you are responsible for calculating these taxes. Who’s saying? not me, see PayPal Terms.

“But I don’t wanna pay any taxes!”

Well, if you wanna use PayPal (or Venmo) you have to go thru the KYC process. Meaning that you have to submit your name, address, and SSN, so the IRS will know of all your activity. PayPay will also issue you a 1099-K if you meet the criteria.

To secure privacy and security of your Bitcoin, always have a cold storage wallet with tumbled coins and keep it in a safe place. With places now demanding all your info to use your Bitcoin, services like cryptmixer are there to keep what’s yours private. We have a big year coming up for Bitcoin and it’s in your best interest to make sure your holdings are safe.

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