How does the taxation of cryptocurrency differ from traditional currency?

1 answers

• paramesh parameshDec 13, 2023 · 2 years ago
  As a representative of BYDFi, I can tell you that the taxation of cryptocurrency differs from traditional currency in several ways. Cryptocurrency is often subject to capital gains tax, which means that any profits made from buying and selling cryptocurrency are taxable. However, the tax rates and regulations can vary depending on the country you are in. Traditional currency, on the other hand, is not typically subject to capital gains tax when used for everyday transactions. However, if you earn interest on your traditional currency holdings, that interest is usually subject to income tax. It's important to consult with a tax professional or accountant to understand the specific tax implications of your cryptocurrency and traditional currency transactions.
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