I had a chance to talk to a CPA recently, and most of the things I was told have already been mentioned in this thread. Such as the difference between short term and long term capital gains (1 year), the max possible tax rate (42%), and the IRS considering crypto as property.
Some things I haven't seen mentioned is exactly how your losses are handled. Your investment amount is deducted from how much you earned. Meaning if you spend $5,000 on buying crypto, and end up depositing $25,000 in your account. Only $20,000 of that will be taxable since the 5k will be deducted from it. So if you put 30k in and only come out with 15k (a loss) you shouldn't have a tax liability associated with that. (I'm assuming you might actually get money back in that scenario but I don't know that for sure).
Also, I was told that if you do it the "right" way, you would not be able to use a LLC to get a lower tax rate. Obviously you could do that if you wanted to, but you might have trouble getting an accountant to help you with that unless you mischaracterize how you got the money.
