Yes, You Have to Pay Tax on Cryptocurrency

Crypto is a HOT topic, and has seen quite a bit of growth in recent years. ⁠
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Now that many are on the crypto trend, what does this mean for their taxes? ⁠
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According to the ATO, you may have to pay capital gains tax or income tax (or both!) on your crypto earnings, depending on whether you're classified as an investor or a trader. ⁠
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If you're ensure which category you fall into, it's best to consult a tax professional to determine your obligations. ⁠
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"Investors" typically hold onto their cryptocurrencies for long-term capital gains, which "traders" buy and sell frequently to make short-term profits. ⁠
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The ATO takes both of these approaches into account when taxing crypto earnings, so you don't want to get this wrong! ⁠