CryptoCurrency : Question about crypto and taxes
I’ve recently been putting together an exit strategy for my crypto holdings. One question I have pertains to dates. I’ve been purchasing crypto (mainly bitcoin) since 2015, and I’ve moved money around a bit since then to diversify. I know once I sell, I’ll have to take capital gains into consideration. I’ve read about the difference between short term and long term capital gains tax, but I’m not sure which is applicable in my case. Yes, I bought bitcoin in 2015, but I liquidated a large portion of my holdings to invest in XRP this year. Would the tax rate be determined based on the date I bought XRP, or the date that I purchased the bitcoin used to buy XRP? If that makes sense….plz help. Lol
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