Capital Gains Tax

When you sell crypto for more than you paid, the profit is a capital gain and is taxable in most countries. In the US, short-term gains (held less than a year) are taxed as ordinary income (10-37%). Long-term gains (held over a year) get preferential rates (0%, 15%, or 20%). Every trade, swap, and sale is a taxable event. Losses can offset gains (tax-loss harvesting). Keep records of all purchases with dates and amounts to calculate your cost basis accurately.