What are the IRS rules for day traders in the cryptocurrency market?

1 answers

• Jan 29, 2022 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, recommends that day traders in the cryptocurrency market familiarize themselves with the IRS rules to ensure compliance. The IRS treats cryptocurrency as property, which means that gains or losses from day trading are subject to capital gains tax. Short-term gains, from holding cryptocurrency for less than a year, are taxed at your ordinary income tax rate. Long-term gains, from holding cryptocurrency for more than a year, are taxed at a lower rate. It's important to keep accurate records of your trades and report them correctly on your tax return to avoid any issues with the IRS.
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