How to calculate profits/losses from holding cryptocurrencies

If you buy a cryptocurrency with the intention to hold it for the long-term, it will still have a real-time "paper profit/loss" based on the current market rate. However, in most jurisdictions a paper profit/loss would not be taxable.

Generally, cryptocurrency holdings are only taxable if/when you:

(This list is not exhaustive and may vary based on your jurisdiction.)

Disclaimer

IMPORTANT: Countries differ on how cryptocurrency transactions, trades, and holdings are taxed (if at all) and how they view cryptocurrencies in general (e.g. as money, as property, as a commodity, etc). Please consult a local accountant, tax lawyer, and/or government official for advice.