Capital gains tax is the tax you owe on the profit when you sell an asset for more than you paid, with rates often depending on how long you held it.
Capital gains tax is a tax levied on the profit, or capital gain, you make when you sell an investment for more than its cost basis.
Many tax systems distinguish between short-term gains on assets held briefly and long-term gains on assets held longer, often taxing long-term gains at lower rates to reward patient investing.
Only realized gains are taxed; simply holding an appreciating asset does not trigger the tax until you sell. Losses can often be used to offset gains, a practice known as tax-loss harvesting.
Rules vary widely by country, and crypto is increasingly treated as a taxable asset. This is general information, not tax advice, so consult a qualified professional about your specific situation.
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