How is interest earned monthly on cryptocurrency / cryptoassets balances taxed & reported to the IRS?
Considering investing with crypto brokerage firm that offers earned interest on balances, which is paid out monthly in the same currency / asset of the balance (BTC earns more BTC, ETH more ETH, etc). Before I do, however, I'd like to better understand how it's taxed and should be reported the following year.
I know capital gains would only kick in if I sold or used the crypto to purchase something, etc. but, my question is outside of selling or using it, and more specifically surrounding the acquisition of the currency / asset as earned interest - would it be considered income that would be added to my AGI? Would I receive a 1099-INT comparable to a checking or savings account, etc.?
If anyone is familiar or has direct experience with this any insight would be appreciated.
Thank you.
