Coinbase has grown to be one of the largest and most prominently used cryptocurrency exchanges in the world. As of this writing, Coinbase boasts more than 25 million users on its platform. As impressive as this stat is, it comes as a bit of a shock that when it comes to Coinbase taxes, the exchange is unable to provide accurate documentation to millions of its users. This article breaks down why Coinbase taxes are so problematic and offers a solution to the problem.
Cryptocurrency exchanges like Coinbase make it easy for everyday consumers to buy and sell cryptocurrencies. By nature of the technology that these exchanges operate on (blockchain), users are able to send Bitcoin and other cryptocurrencies to wallet addresses outside of their own network. An example of this would look like you buying Bitcoin through Coinbase and then sending it to a Binance wallet address to acquire new coins and assets on Binance that Coinbase does not offer.