What are the tax implications of earning cryptocurrency rewards?

Cryptocurrency rewards are typically taxed as ordinary income at their fair market value when received. This applies to staking rewards, mining earnings, and airdrops. You must report the USD value on the date received, not when you sell later. If you sell the crypto afterward, any price gains or losses create additional capital gains/losses taxes. Tax rates vary by country—the US treats it as income plus potential capital gains. Keep detailed records of reward dates, amounts, and values. Some countries have specific crypto tax frameworks, while others apply general income rules. Consult a tax professional familiar with crypto, as regulations continue evolving globally.