When you sell crypto capital gains, the profit you make from selling cryptocurrency after holding it for more than a year. Also known as long-term crypto gains, it’s what the IRS and other tax agencies care about when you cash out Bitcoin, Ethereum, or any altcoin. It doesn’t matter if you traded Bitcoin for Solana, swapped Dogecoin for a stablecoin, or sold NFTs for USDT—any time you convert crypto to fiat or another digital asset, you’ve triggered a taxable event.
Most people think they only pay taxes when they cash out to a bank account. That’s wrong. Buying coffee with Bitcoin? Taxable. Trading ETH for UNI? Taxable. Even gifting crypto can trigger a gain if its value rose since you bought it. The crypto tax reporting, the process of documenting all crypto transactions for tax authorities. Also known as crypto income disclosure, it’s not optional if you’ve made a profit. You need records of purchase price, date, sale price, and date. Without them, you’re guessing—and the IRS doesn’t accept guesses.
The crypto profit tax, the actual tax owed on gains from cryptocurrency sales. Also known as crypto capital gains tax, it varies by how long you held the asset. Hold less than a year? Short-term gains get taxed like your salary. Hold over a year? Long-term rates are lower—often half. But here’s the catch: if you live in the EU, UK, or Australia, rules change. The UK treats crypto as property. The EU’s MiCA rules are rolling out, and some countries are already requiring exchange data sharing. You can’t ignore this just because your exchange doesn’t send you a 1099. Many don’t.
And don’t get fooled by DeFi. Staking rewards? Taxable as income when you receive them. Liquidity pool fees? Taxable when you swap them out. Even airdrops are income at fair market value the moment you control them. The blockchain taxation, the application of tax laws to decentralized digital asset transactions. Also known as digital asset taxation, it’s not theoretical—it’s happening right now. People are getting audited. Some are paying penalties for not reporting. Others lost money because they didn’t track their cost basis.
Below, you’ll find real breakdowns of what counts as a taxable event, how to calculate your gains without spreadsheets, and which crypto platforms actually give you the data you need. You’ll see how people got burned by fake tokens like RONDA or DOGEGROK that never had value—but still triggered a tax event. You’ll learn why regulated exchanges like LCX or Sovryn make reporting easier, and why ignoring MiCA deadlines can cost you more than just taxes. This isn’t about getting rich. It’s about keeping what you’ve earned.
Crypto mining rewards are taxed as income when received and again as capital gains when sold. In 2025, IRS rules require detailed tracking, quarterly payments, and new reporting forms. Know your obligations to avoid penalties.
