######################## Trading Cryptocurrencies ######################## Gains and losses from virtual currencies are taxed as `capital assets`_. It are less complicated than :doc:`options ` because only the IRS' 8949 form is involved. .. _capital assets: https://bitcoin.tax/faq Wallet(s) and Mining ==================== A cryptocurrency wallet is used to store the virtual coins. It is preferred to keep this separate from the cryptocurrency exchanges in order to mine them. An example of a wallet is `MyEtherWallet`_, which is used to store `ETH`_. Mining ETH is only feasible by joining a mining pool (e.g. `ethermine`_). .. _MyEtherWallet: https://www.myetherwallet.com/ .. _ETH: https://coinmarketcap.com/currencies/ethereum/ .. _ethermine: https://ethermine.org/ Another example is `LTC`_ and `LiteVault`_, but it's much more complicated to mine it. One needs to have :doc:`CUDA installed `, compile `ccminer`_ (possibly modifying the `nvcc_ARCH`_ flag), and then choosing a `mining pool`_ that has not been hacked. .. _LTC: https://coinmarketcap.com/currencies/litecoin/ .. _LiteVault: https://www.litevault.net/ .. _ccminer: https://github.com/tpruvot/ccminer/blob/linux/INSTALL .. _nvcc_ARCH: https://github.com/tpruvot/ccminer/wiki/Compatibility .. _mining pool: https://github.com/tpruvot/ccminer/blob/windows/README.txt It is important to know what coins are still `worthwhile to mine`_ i.e. the `mining probability`_. .. _worthwhile to mine: https://whattomine.com/ .. _mining probability: https://bitinfocharts.com/ Exchange(s) =========== There are many `cryptocurrency exchanges`_ to choose from. `GDAX`_ allows the purchase of virtual currency with fiat while `Bittrex`_ allows trading between virtual currencies. All exchanges have issues, but these are the best of the worst. .. _cryptocurrency exchanges: https://cryptocoincharts.info/markets/info .. _GDAX: https://cryptocoincharts.info/markets/show/coinbase .. _Bittrex: https://cryptocoincharts.info/markets/show/bittrex