Dispelling Myths About Cryptocurrency

When you get paid for a job in cryptocurrency you don’t have to pay taxes on that income, right? Wrong. When you buy into cryptocurrency when it is low and cash out when it is high you don’t have to pay taxes on those capital gains, right? Wrong. You can do pretty much anything you want with cryptocurrency because it’s all anonymous, right? Wrong again. There are many pervasive myths out there about cryptocurrency, but when you strip it down to its basic parts it’s actually pretty straightforward.

Cryptocurrency isn’t recognized as actual currency by the government, but it is recognized as a type of property. So when you get paid with crypto it’s like bartering for goods, which, yes, is actually also taxable. When the value of that property goes up and you sell it, you are responsible for paying capital gains taxes on that property, even though it is not physical.

Learn more about the myths and realities of cryptocurrency from this infographic!

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About the Author: 

Brian Wallace is the Founder of NowSourcing, the top rated infographic agency in the nation. Connect with him on LinkedIn, Twitter, and if you're really into what he does, Book a time to chat.