Ever thought about how capital gains actually work when you're trading crypto? It's basically the profit you make when you sell an asset for more than you bought it. So if you grabbed Bitcoin at $40k and sold it at $60k, that $20k difference? That's your capital gain—and yes, it's taxable in most jurisdictions.

For 2025, the rates depend on how long you held the asset. Short-term gains (held under a year) get taxed as ordinary income, which can go up to 37% federally. Long-term gains (held over a year)? Those are more favorable—rates are typically 0%, 15%, or 20%, depending on your income bracket. Plus, some states add their own layer on top.

The takeaway: whether you're swing trading altcoins or holding your Bitcoin bags long-term makes a real difference tax-wise. Planning your exit strategy? Factor in these rates. Getting your portfolio sorted before year-end might save you serious money when tax season rolls around.