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Something similar to cryptocurrency trading where you can sell and buy for small fee via stablecoins.

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    Even with cryptocurrencies, it is a taxable event when you trade one coin for another - including stablecoins. That means, you have to pay taxes if you made profit, and (as far as I am aware) can write off taxes if you realized loss.
    – Chait
    Commented Mar 15, 2022 at 19:31

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You cannot sell an asset without that being a taxable event. I.e.: every time you sell an asset, you need to recognize the capital gains and pay the capital gains tax.

There's a section in the Internal Revenue Code (Sec. 1031) that allows deferring the tax if you're selling and asset and buying a similar assets with the proceeds, under specific rules. Securities are specifically excluded from the Sec. 1031 treatment, i.e.: you cannot do such exchanges with stocks or cryptocurrencies. Sec. 1031 is most commonly used for real estate transactions.

Note that in the US, taxes are generally not withheld at source. The fact that you can sell and buy cryptocurrency for a small fee doesn't mean that there's no capital gains tax.

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  • TCJA'17 amended 1031 effective as of 2018 and now it is only for real property. Taxes on investments usually are not withheld (except for nonresident aliens), but on wages almost always are (at least approximately), and on some other things like unemployment, Social Security and pension often are.
    – dave_thompson_085
    Commented Mar 16, 2022 at 3:28
  • @dave_thompson_085 to the best of my knowledge taxes in the US are not withheld at source for US taxpayers. What you think of as salary withholding is not really "taxes withheld at source" as the rest of the world understands it. In any case, not really relevant to this answer, just a side note since you seem to be an American.
    – littleadv
    Commented Mar 16, 2022 at 4:09
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Outside of a retirement account when you sell the shares of stock, or the cryptocurrency, if you made a profit you will have to report the transaction to the IRS. The determination of the amount of taxes depends on the rest of your income, and other trades you make.

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  • To be clear, you will have to include it on your tax return for the year, and as you indicate compute and pay tax on the total(s). You don't make a separate report, or payment, for the/each transaction.
    – dave_thompson_085
    Commented Mar 16, 2022 at 3:28

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