At a certain point, I deposited a certain cryptocurrency from my offline wallet onto an exchange, then withdrew the amount BACK to my offline wallet, only days/weeks later, (and the price was relatively the same,) but now Koinly is showing that I incurred a “profit” of many thousands of dollars?! I haven’t sent this crypto to anyone but myself, and I STILL have it! (I haven’t sold it.)
Therefore, how can I incur a sales profit with a cost basis etc etc?
Can someone help me understand this? I will only pay a tax on “profit” when I sell…
Side note: (I am a citizen of the US but a permanent resident of an EU country where we don’t tax on “unrealized capital gains.”)