If you exchange one mutual fund for another, you pay capital gains (this is one reason IRAs are so tax advantageous). Typically during bartering, you also owe c

If you exchange one mutual fund for another, you pay capital gains (this is one reason IRAs are so tax advantageous). Typically during bartering, you also owe capital gains even if you never receive USD. It therefore seems possible that you may owe capital gains taxes when you buy Litecoins with Bitcoins. There's generally no "this must become USD" rule before you owe capital gains tax. I am not an accountant or tax lawyer.