Do I pay tax on unrealized crypto gains?

Do I Pay Tax on Unrealized Crypto Gains?

Under current Indian tax law, tax on crypto is triggered when you "transfer" the VDA (sell, swap, gift, or use as payment). Merely holding crypto whose value has gone up does not by itself create a taxable event. So unrealized gains (price increase on coins you still hold) are not taxed until you sell or otherwise transfer. When you do sell, you pay tax on the gain (sale value minus cost). So you do not pay tax on unrealized gains; you pay when you realize them.