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How to Trade Crypto TAX-FREE? (Ultimate Guide for Beginners!) - Crypto IRA Retirement AccountsThe IRS classifies cryptocurrency as property, and cryptocurrency transactions are taxable by law, just like transactions related to any other property. Taxes. Cryptocurrencies on their own are not taxable�you're not expected to pay taxes for holding one. The IRS treats cryptocurrencies as property for tax purposes. 1. The Revenue Department currently exempts the collection of 15% withholding tax.