The withdrawals are considered taxable whereas I found online that transferring crypto into a cold storage isn't a taxable event.
Moving cryptocurrency between wallets that you own is not a taxable event. Your cost basis and holding period do not change when you exercise a wallet - to - wallet transfer. Your cost basis will be your original cost for acquiring your cryptocurrency. Your holding period will be whenever you first acquired your investment.
Unlike wallet - to - wallet transfers, cryptocurrency - to - cryptocurrency transactions are considered taxable. With cryptocurrency - to -cryptocurrency transactions, one cryptocurrency is traded for another.
Because you are disposing of cryptocurrency in a cryptocurrency - to -cryptocurrency trade, you will incur a capital gain or loss depending on how the value of your coins has changed since you originally received them.
Cryptocurrency A was acquired at an original cost of $100 US dollars. Cryptocurrency A was traded for cryptocurrency B. At the time of the transfer, cryptocurrency A was valued at $150. There is a gain of $50 realized on the sale of cryptocurrency A. Cost basis of cryptocurrency B becomes $150 US dollars.
Long-term or short-term is based upon how long you held cryptocurrency A investment. Short-term gains come from the sale of property owned one year or less. Long-term gains come from the sale of property held more than one year.