Like any documented income, the gains obtained through cryptocurrencies are taxed, these are calculated according to the date on which the taxpayer receives them.
Receiving cryptocurrencies as payment for the provision of a service, mining them, betting with them, obtaining rewards and even making loans from which interest is generated and then reflected in your account, are some of the examples that are considered income and therefore require tax obligations and therefore the payment of taxes, just as when acquiring shares in the financial markets or any type of property in the real estate sector.
The general and mandatory rule among the developers of cryptocurrencies such as Bitcoin, Ether or Dogecoin, is that individuals and entities that adopt them as an investment alternative must record their profits and losses, report them accurately and of course pay their taxes. Only, in this last point, the key to generate a higher profit lies in trying to deduct the tax burden as much as possible.
Tips to deduct
Trying to keep successful cryptographic investments for more than a year before selling or using them is a great alternative so that at the time of declaring taxes, these are lower, since those who bet on making sale operations when their currencies go up in value, are generally penalized with the imposition of a higher tax in relation to those who are inclined to long-term investment exercises.
Another alternative for diversified financial operations in the field of cryptocurrencies is to establish a balance between those that have shown better performance and those that unfortunately generated losses, then divest both cryptocurrencies and thus at the time of paying taxes, these will be lower.
Opening an Individual Retirement Account (IRA) in the cryptocurrency sector represents an additional alternative to try to pay less taxes, since the account allows you to make tax-deductible contributions and you only pay taxes when you withdraw the funds.