Thank you for answering my questions @DavidT0202 . After reading your response I have a few more, though.
As I understand it, the brokerage I use should store and automatically send me all of the necessary information at the beginning of the year, as well as the 1099-B form I need to fill out, which I may be able to send directly from the brokerage to my TurboTax account. However, I should still document how much I pay in dollars for every individual purchase of crypto I make, how much was bought, the date it was bought on, and the exact time it was bought. Every time I trade crypto I should also keep track of what the current USD price of the amount I'm trading is in the cryptocurrency I'm trading into at that time. So for example, if I was trading bitcoin for US dollar tether I would document how much US dollar tether was purchased in that trade, and the amount of bitcoin that was traded for that amount of USDT, as well as the date and time the trade went through. I should also keep track of any amount of USD I withdraw from the brokerage (including any fees added on to what I withdraw) and the date and time when I posted that transaction or the date and time it goes through. I should put all this information into an excel spreadsheet or a QuickBooks account, and store it there. I don't need to document any other information besides that. Is all of that right? If any of it is wrong in any way, please tell me.
My other question is related to the capital gains tax rate. The page you provided says "Note: Net short-term capital gains are subject to taxation as ordinary income at graduated tax rates." Does that mean I will also need to file my total capital gains from trading as income, or at a different tax rate? Or does that not apply in my case? Also is there any other information I need that I am missing in everything I have written in this reply?
