Crypto Taxes Explained: How to Report Your Gains Legally

Confused about crypto taxes? Learn how to report your Bitcoin and Ethereum gains legally, avoid penalties, and stay compliant with tax laws

Photo by Towfiqu barbhuiya on Unsplash

So, you made some money in crypto? Nice. But before you start celebrating your financial freedom, here’s the thing: the taxman wants his cut, too.

Yep, whether you’re HODLing, trading, staking, or flipping NFTs, your crypto transactions are taxable in most countries. And if you don’t report them properly? Well, let’s just say you don’t want the IRS (or your country’s tax authority) knocking on your door.

But don’t stress. Crypto taxes aren’t as scary as they sound, and I’ll walk you through everything you need to know to stay compliant, avoid penalties, and maybe even reduce your tax bill.

• Crypto is taxed as property (like stocks), meaning you owe taxes when you sell, trade, or earn it.
• Buying and holding (HODLing) is not taxable — you only pay when you sell or swap.
• Different types of crypto income have different tax rates (capital gains vs. income tax).
• Tracking your transactions…