How are cryptocurrencies taxed?

Cryptocurrency is typically taxed as either a capital asset or income, depending on how it was acquired. Generally, if you held the cryptocurrency for less than one year before selling or exchanging it, any gains are taxed as income. If the cryptocurrency was held for more than one year, any gains may be taxed at a lower rate as a capital gain. It is important to note that cryptocurrencies may have tax implications in several different jurisdictions, so it’s important to research the laws in your area.