Types of Taxes on Crypto
Capital Gains Tax: This is the most common form of taxation and applies when you sell your crypto for more than you paid.
Income Tax: If you earn cryptocurrency through mining, staking, or as payment for services, it's considered income.
Transaction Tax: Some jurisdictions even tax individual crypto transactions.
Legal Frameworks You Should Know About
Regulatory Compliance: Always make sure to use platforms and services that adhere to the financial regulations of your jurisdiction.
Security Laws: Certain tokens may be considered securities under the law, requiring special compliance measures.
International Laws: Trading with entities in other countries can expose you to foreign regulations.
