How Is Crypto Taxed?
A plain-English overview, not tax advice. Rules vary a lot by country -- this leans on US federal concepts since they're the most commonly searched, but always confirm against your own country's guidance.
Is crypto taxed the same as stocks?
In the US, the IRS treats crypto as property, not currency -- so the same capital gains framework used for stocks generally applies: you owe tax on the gain when you sell, trade, or spend it, not when you simply buy and hold. Rules differ by country, so check your local tax authority's guidance.
What is the difference between short-term and long-term capital gains?
In the US, a gain is short-term if you held the asset for one year or less, and long-term if you held it for more than one year. Long-term gains are usually taxed at a lower rate than short-term gains, which are typically taxed as ordinary income.
Do I owe tax if I trade one crypto for another, without ever touching cash?
Generally yes, in jurisdictions that tax crypto as property (like the US) -- a crypto-to-crypto trade is treated as selling the first asset (triggering a gain or loss) and buying the second. Holding cash out of it isn't what triggers the tax event.
What is FIFO and why does it matter?
FIFO (first-in-first-out) assumes that when you sell part of your holdings, you're selling your oldest coins first. It's the default assumption many tax authorities use unless you specifically identify which lot you sold (specific identification), which usually requires detailed records at the time of each sale.
Does this calculator file my taxes for me?
No. It only computes gain/loss and holding-period classification from the buys and sells you enter, entirely in your browser. It does not calculate tax owed, doesn't know your income bracket or filing status, and isn't a substitute for a tax professional or filing software.