Short-term vs long-term: what it means for crypto tax
A distinction some jurisdictions draw based on the holding period. Short-term gains, on assets held for less than the threshold, are often taxed less favourably than long-term gains. The threshold and the treatment vary by country.
General information, not tax advice. Crypto tax rules differ by country and change over time, verify against your country's guidance or a qualified advisor.
An example
A coin sold within the short-term window might be taxed at your ordinary income rate, while the same coin held past the threshold could qualify for a lower rate.
Why it matters for your tax
Where this distinction exists, the type of gain can matter as much as the amount, and the timing of a disposal becomes part of tax planning rather than an afterthought.
CryptaTax handles this automatically across your wallets and exchanges, so the concept is applied consistently without you tracking it by hand. Try the crypto tax calculator →
Related terms
See the full crypto tax glossary for every term, or the crypto tax guides for how they fit together.
FAQ
A distinction some jurisdictions draw based on the holding period. Short-term gains, on assets held for less than the threshold, are often taxed less favourably than long-term gains. The threshold and the treatment vary by country.
See the crypto tax glossary for related terms, or the crypto tax guides for worked examples. Rules differ by country, so check your country's rules.