
Navigating DeFis Tax Maze: A Liquidity Providers Guide
Cryptocurrency's decentralized nature and increasing adoption have opened exciting new avenues for investment and financial innovation. However, this digital frontier also presents unique challenges, particularly when it comes to navigating the complex world of crypto taxes. Understanding your tax obligations surrounding cryptocurrency is crucial to ensure compliance and avoid potential penalties. This guide aims to demystify crypto tax, providing you with a comprehensive overview of key concepts, rules, and practical tips to help you stay on top of your crypto taxes.
Understanding Cryptocurrency as Property
Why Crypto is Taxed as Property
The IRS classifies cryptocurrency as property, not currency. This distinction significantly impacts how crypto transactions are taxed. Since it's class...