Understanding the tax rules for buying and selling cryptocurrencies is crucial for every investor. Unlike traditional assets, digital currencies like Bitcoin and Ethereum are treated differently by tax authorities, and failure to comply can lead to penalties. In this article, we break down the key tax obligations for cryptocurrency transactions, including how capital gains are calculated, reporting requirements, and the distinction between short-term and long-term holdings. We also cover the tax implications of converting crypto to fiat, trading between different cryptocurrencies, and how to keep accurate records to simplify your tax filings. Whether you’re a casual investor or an active trader, knowing these rules ensures you stay compliant and avoid unnecessary surprises during tax season.