How is cryptocurrency taxed?

Cryptocurrency is taxed as property, not as currency. This means that any capital gains made on cryptocurrency are subject to taxation. If a person holds onto their cryptocurrency for over one year, then any gains from selling or trading it will be subject to long-term capital gains tax rates. However, if the asset is held for less than one year, then any gains would be subject to short-term capital gains tax rates. Additionally, depending on the type of activity related to the cryptocurrency (such as mining or receiving cryptocurrency as payment for goods/services) there may be other taxes associated with the transaction.