The sale or exchange of an asset (e.g. stocks, metals, crypto, etc.) on the Uphold platform results in a capital gain or capital loss that needs to be reported for US income tax purposes. A capital gain will result when the asset is sold for more than it cost (the tax basis). A capital loss will result when the asset is sold for less than the basis. In order to accurately report capital gains and losses, taxpayers must classify whether they’re short-term or long-term.
Generally, if an asset is held longer than one year before it’s sold or exchanged, then it’s a long-term capital gain or loss. If the capital asset is held less than a year it is a short-term gain or loss.