Depending on what country you live in, your cryptocurrency will be subject to different tax rules. The questions below address implications within the United States, specifically, but similar issues arise around the world. As always, check with a local tax professional to assess your own particular tax situation.

Are My Cryptocurrency Trades Taxable?

Yes. Cryptocurrency is treated as property by the IRS in the United States. This means that it is subject to capital gains and losses rules similar to other forms of property like stocks, bonds, real estate and gold.

You need to file taxes for your trades when you trade one coin for another or whenever you sell your crypto. Simply buying and holding cryptocurrency is not taxable; you only realize your gain or loss when you sell it.

How Do I Calculate My Gains and Losses From My Crypto Trades?

To calculate your capital gains and losses on your crypto trades, apply this formula:

Fair Market Value – Cost Basis = Capital Gain / Loss

Fair market value is simply how much an asset would…

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Source: https://thebitcoinnews.com/op-ed-answering-10-common-questions-about-cryptocurrency-and-taxes/