Bitcoin and other cryptocurrencies' official classification within a country will determine how they're taxed. Tax authorities commonly count crypto as a capital asset and not a currency. If your country hasn't passed specific crypto taxation laws, expect your crypto profits to be taxed according to their official designation (if any). Some jurisdictions take a much simpler approach. Germany, for example, has no tax on crypto held for over a year. Malaysia, Portugal, and Singapore also have very liberal crypto tax rules.

Your Bitcoin or crypto income may also count as income tax. If you're a full-time employee, freelancer, or crypto trader paid in crypto, you’re likely liable to pay income tax on your crypto earnings. Again, the income tax rate usually depends on the amount you earn.

Under a certain income threshold, you might pay no tax on your income. You'll typically find different income brackets, with increasing higher brackets paying higher tax rates. If your primary income comes from trading, find out if you're subject to capital gains taxes or income tax.