Tax laws vary based on your country/jurisdiction. Cryptocurrencies are considered to be capital assets in most countries, which are subject to capital gains taxes if the asset appreciates in value and you sell/trade/use it for profit. If you sell/trade/use the assets at a loss when the asset depreciates in value, you may be able to reduce your taxes by claiming the losses against other capital gains.
Note: Lumina is intended to serve as an informational and assistive tool only. Lumina is not intended to substitute for professional tax, accounting, audit, or legal advice. Information provided on Lumina is subject to change without notice. Lumina is not responsible for the accuracy of your tax, audit, or legal compliance. Please consult a licensed professional for financial, tax, and legal advice.