How the Tax Extension Affects Cryptocurrency Tax Reporting

Savvy investors have been on to cryptocurrency for a few years now. This mode of exchange, based on blockchain technology, offers investors a chance to speculate on its future value and benefit whenever this value increases. Those who caught on to the potential of cryptocurrency early on have made thousands, if not millions of dollars. Over the span of one year, the value of a given cryptocurrency can increase by 1,000 percent.

Although cryptocurrency markets have risen and fallen over the years, there is still a lot of room for investment. Cryptocurrencies are quite volatile, meaning there is as much potential for loss as there is for gain, but the same could be said of traditional money markets. If you have some savings put aside for investment, you can make a decent income from cryptocurrency if you play your cards right.

In light of the COVID-19 outbreak and associated financial crises, the U.S. federal government decided to extend the deadline for filing income tax returns and…