<prompt> Human: So Im a 22 year old full-time college student and I work part-time. Ive been saving consistently and I stumbled across cryptocurrencies online and long story short I decided to invest a little less than 7 grand on dogecoins and I plan on either holding them long-term or selling them in a few months when the price of dogecoin rises. Ive made a few back up copies of my digital wallet both online and offline as Ive heard horror stories of people losing their coins. My question is, does anyone have any experience in trading a cyrptocurrency and how will trading dogecoins affect my tax return?Edit: If I sell my dogecoins right now I would lose around 800, so I dont plan on doing so  <response>: Advice? Dont fucking do that.You are gambling. This is like asking for advice after putting 7k on the roulette wheel while its spinning. Luckily here you can pull this bet. Id get out of it and go read the FAQ: I have X, what should I do with it?Despite what anyone tried to argue, the IRS is very clearly that gains and losses on cryptocurrency should be reported as capital gainslosses on assets like stocks. 