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When Is Cryptocurrency Taxed? · You pay taxes on cryptocurrency if you sell or use your crypto in a transaction. This is because you trigger capital gains or. Consequently, the fair market value of virtual currency paid as wages, measured in U.S. dollars at the date of receipt, is subject to Federal income tax. A profitable trader must pay taxes on their earnings, further reducing any potential profit. Additionally, day trading doesn't qualify for. PAYBACK LIKES LOUNGE COUCH POTATO INVESTING

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