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Do I need to pay taxes if I withdraw the same amount as deposited by exchanging through multiple cryptocurrencies?

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@behiver
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These days I am trying to understand what exactly someone needs to pay taxes when investing in crypto. I have a simple plan and need some advice on whether someone needs to pay taxes or not. So, here is the below scenario that my mind thought of when trying to invest in HBD and later on withdraw the same amount. Basically, if I buy a stablecoin like HBD through additional hops like first buying Hive and afterward exchanging it for HBD, when I withdraw in the reverse order, do I need to pay taxes if the same amount reaches my account?

For example:

  1. I deposit $1,000 on Binance
  2. I buy USDT cryptocurrency on Binance ($1 USD = $1 USDT).
  3. I exchange USDT to Hive on Binance (1 Hive = $0.35).
  4. I withdraw Hive from Binance to my wallet.
  5. I exchange Hive for HBD using the internal market.
  6. I deposit HBD into savings.
  7. After a few months I withdraw HBD and exchange it in the reverse order to Hive (at a price of $0.40, thus less HIVE in order to get back my initial investment), USDT and USD in the same amount of $1,000 while keeping the interest in my wallet.

Considering that I have deposited $1,000 and withdrawn back also $1,000 while leaving my crypto proceedings in my wallet, do I need to pay any taxes on it?

I am summoning some of the knowledgeable minds on the Hive blockchain that could have some answers to this question: @nealmcspadden, @khaleelkazi, @taskmaster4450, @scaredycatguide, @jongolson, @dalz. Of course, anyone knowledgeable about the subject is invited to respond and provide his/her comments. Much appreciated!

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