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Yes, unfortunately each transaction is taxed as a gain or loss based on the US$ conversion rate on the day of the transaction.
For example.
2/1/17 buy BTC for $1000.
3/1/17 trade for Etherium when the BTC is worth $3000 = $2000 profit to report as income.
4/1/17 trade etherium for lite coin when the etherium is worth $4000= $1000 profit to report as income.
5/1/17 trade lite coin for bitcoin when the lite coin is worth $3000 = $1000 deductible loss.
12/31/17 still holding the bitcoin (no tax impact, but whenever you sell or trade it, your basis is $3000).
This is reported in Turbotax Premier or higher under Income from sale of stocks and other investments.
Stock brokers are required to issue form 1099-B summarizing these trades. Cryptocurrency exchanges are not required to report on a 1099-B but some of them are starting to offer this information. If not, you need your own good records.
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