For federal income tax reasons, cryptocurrency is considered "property." It's also a capital asset for the common investor. When it comes to cryptocurrency taxes, they're no different from any other capital gains taxes you'd have to pay if you sold or exchanged an asset. Capital Gain vs Capital Loss You establish a basis equal to the cost of acquisition when you buy a capital asset - whether its a property, stocks, bitcoin, eth, or any other investment. When you sell, you calcu...