Decoding DeFi: A Crypto Tax Maze Unveiled
Navigating the world of cryptocurrency can feel like stepping into the future, but the moment the taxman knocks, reality sets in. Understanding crypto tax implications is crucial for any investor or user of Digital currencies. Failing to report crypto gains can lead to penalties, so let's dive into the essential aspects of crypto tax and equip you with the knowledge to stay compliant.
What is Crypto Tax?
Crypto tax refers to the taxes you owe on profits made from buying, selling, or trading cryptocurrencies like Bitcoin, Ethereum, and other digital assets. Just like traditional investments such as stocks and bonds, cryptocurrency transactions are subject to capital gains tax. It's important to track all your crypto transactions, including purchases, sales, trades, and even airdrops, to acc...