FRESNO, Calif. (KFSN) — From risk tolerance to financial stability, there are a number of factors to consider when deciding whether to get in on Cryptocurrency.<\/p>\n
“While it can feel like currency sitting in a wallet, especially given that they call it a digital wallet, it is considered technically a digital asset,” says AJ Flores with Portfolio Advisors.<\/p>\n
Crypto is a form of digital currency that you can buy to use for electronic\/internet based payments, treat it as an investment or sell it at a gain.<\/p>\n
Unlike traditional government-issued money, it operates without central banks.<\/p>\n
“There are new tax forms being phased in in 2026 by the IRS, so these accounts are intended to have 1099s,” Flores said.<\/p>\n
Holding cryptocurrency is not by itself taxable, but selling cryptocurrency or using it to purchase something and it’s appreciated in value that is taxable.<\/p>\n
That’s when you’ll receive a 1099-DA.<\/p>\n
“The IRS considers rules around them similar to capital gains rules, so what that means is if you’ve held the crypto for less than a year, it grows and then you use it to buy something, the taxable gain on that is ordinary income,” Flores said.<\/p>\n
Before getting into crypto, understand the risk you’re comfortable with as there are price swings.<\/p>\n
The core drivers of its value are supply, demand and market sentiment.<\/p>\n
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