Crypto Tax 2025: What You Need to Know

When dealing with Crypto Tax 2025, the set of tax rules that apply to cryptocurrency activity in the year 2025. Also known as crypto tax 2025, it decides how every trade, staking reward, or airdrop shows up on your tax return.

One of the biggest pieces of the puzzle is capital gains, the profit you make when you sell a crypto for more than you paid. In 2025 the IRS treats short‑term and long‑term gains much like stock profits, but the line between them can blur when you move tokens between wallets or use layered DeFi strategies. Accurate record‑keeping is a must – you need the date, cost basis, and fair‑market value at the moment of each sell. Many traders now rely on tax‑reporting software that pulls data straight from exchanges, saving hours of manual entry.

Key Areas to Master

Beyond simple buys and sells, DeFi lending yields, the interest you earn from protocols like Aave or Compound count as ordinary income in 2025. That means every reward, even if it’s paid in a different token, adds to your taxable earnings. The same rule applies to airdrop income, tokens you receive for holding a particular coin during a distribution event. The IRS looks at the fair‑market value on the day you receive the airdrop, so timing matters. Ignoring these sources can trigger surprise bills, while careful tracking can reveal deductions for transaction fees and even qualify you for lower rates on long‑term holdings.

Crypto Tax 2025 isn’t just a compliance checklist; it’s a roadmap for smarter trading. Below you’ll find a curated set of guides that break down hash‑rate impacts on mining income, explain how specific tokens like Ailey (ALE) are taxed, and walk you through the nuances of high‑volume trading pairs from a tax perspective. Dive in to see how each piece fits into the bigger tax picture and start building a strategy that keeps more of your earnings in your pocket.