I bought one Ethereum last year for around $350 and ended up selling it early this year for around $1350.
From what I'm reading, capital gains will be close to 40% on the $1000 I made.
Is there a way to reduce the amount of taxes that I'm paying on cryptocurrency trading or is there a certain amount you need to make before the trades become subject to taxes?
I understand that holding the coins for longer than a year would change the tax from short-term to long-term gains, but is there anything else I could do?
EDIT: I'm an Indiana resident, but I bought and sold the Ethereum while at school in Kentucky.