Bitcoin and cryptocurrencies offer investors, traders, and HODLers the rare opportunity for asymmetrical gains. A little money can turn into a lot of money quickly. But the IRS wants its cut. You probably know by now that every purchase and sale using Bitcoin or any other altcoin is going to be taxed like a stock if you live in the US. This means if the value of your Bitcoin or altcoin increased at all before you sold it, you owe the IRS money. The addition of several thousand new cryptocurrencies in the last 2 years has complicated the issue, especially