1. What is Crypto Staking? Staking is the process of participating in a blockchain network’s consensus mechanism by holding and “staking” tokens. In proof-of-stake (PoS) and similar consensus models, users who lock up their tokens to validate transactions earn rewards, typically in the form of additional cryptocurrency. 2. Is Staking Income Taxable? Yes, staking rewards … Read more
1. Understand Cost Basis The cost basis is the original value of your cryptocurrency at the time of purchase, including any associated fees. This is the amount you paid for each crypto asset, and it will be used to calculate your gains or losses when you sell or trade. 2. Identify the Sale Price When … Read more
Crypto Taxes 101: A Beginner’s Guide to Understanding Cryptocurrency Taxation With the growing popularity of cryptocurrencies, tax authorities worldwide are increasingly interested in how digital assets impact tax liabilities. Whether you’re a casual investor or a seasoned trader, understanding the basics of crypto taxes is crucial to staying compliant and avoiding potential penalties. Here’s a … Read more