What types of taxes need to be paid when trading cryptocurrencies?

1. Capital Gains Taxes: When you make a profit from the sale of cryptocurrencies, it is considered a capital gain and must be reported to the IRS on your taxes.

2. Income Taxes: Any income earned from trading cryptocurrencies is subject to regular income tax rules. If you are in a higher tax bracket, you may pay as much as 37% in income tax.

3. Self-Employment Taxes: If you trade cryptocurrencies as a business, you may have to pay self-employment taxes.

4. Sales/Use Taxes: Depending on the laws of your state, you may be required to pay sales or use taxes when you purchase cryptocurrencies.

5. VAT & GST: Some countries, such as the UK, may require you to pay value added tax (VAT) or goods and services tax (GST) on your cryptocurrency transactions.