To contact him directly with additional questions, click this link Ernest L. Tomkiewicz, CPA
Moving tokens between exchanges is not a taxable event. An example of such a move is when you take Bitcoin and transfer it from a Coinbase account to a Binance account. The IRS does not consider crypto a currency but an asset akin to stock shares. It’s similar to moving shares of stock in Amazon between TD Ameritrade and Merrill Lynch accounts. There is no taxable trigger.
In a general sense, because it is an asset, it is taxable when disposed of, like the sale of Amazon stock or a property you own. Triggers of taxable events include selling, spending, earning, and sometimes giving it to another.
When you move a cryptocurrency from wallet to wallet, you have not sold or spent your asset, so capital gains taxes are not applicable. You should, however, keep solid records of your transfers, sales., and, yes, purchases. Remember, the IRS will always look at moves as potential transactions, and you may need to prove your transfers, sales, and the basis of the coin.