How Much Tax Do You Have To Pay On Crypto?

In the US, profits on bitcoin are taxable at a regular income tax rate of 35%. That’s 15.3%. But what about gains from trade? Crypto trading is a highly speculative investment for most people, making it a truly risky proposition. Since you probably don’t have any experience in trading cryptocurrencies or even if you do it is highly likely that the current market will turn against you very quickly.

So, what to do? Well, this comes down to two things: Do not speculate with your money and hold! This means that only sell when the price has reached its peak. If bitcoin reaches $50,000 then what will happen next? Is it still really worth selling at $40,000 (which would be 10x your initial investment)? Or should you wait for another rally which may send prices up to 100x above your initial investment? Both seem like unrealistic scenarios given current conditions but during periods of volatility anything can happen because nothing is certain in any one moment in time except death and taxes;

Nothing can ever be certain about cryptocurrency investing however, so if you decide that trading cryptocurrencies seems like something you want to do then please take caution before diving into the deep end of crypto without knowing much about how it works. One last point I just wanted to make here…