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Is there regulation and penalty on how long the period is between buying and selling Ethereum. Say I sell within a week of buying, then I have to pay much higher taxes and a penalty fee?

What is the minimum amount of time between buy and sell without incurring extra penalty?

I am using Coinbase by the way, not sure if that makes a difference.

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Where are you at in the world? You're going to want to do research on capital gains if you're in the US. From https://turbotax.intuit.com/tax-tools/tax-tips/Investments-and-Taxes/Guide-to-Short-term-vs-Long-term-Capital-Gains-Taxes--Brokerage-Accounts--etc--/INF22384.html

Short-term capital gains

Short-term capital gains do not benefit from any special tax rate – they are taxed at the same rate as your ordinary income. For 2016, ordinary tax rates range from 10 percent to 39.6 percent, depending on your total taxable income.

If you sell an asset you have held for one year or less, any profit you make is considered a short-term capital gain. The clock begins ticking from the day after you acquire the asset up to and including the day you sell it.

Long-term capital gains

If you can manage to hold your assets for longer than a year, you can benefit from a reduced tax rate on your profits. For 2016, the long-term capital gains tax rates are 0, 15, and 20 percent for most taxpayers. If your ordinary tax rate is already less than 15 percent, you could qualify for the zero percent long-term capital gains rate.

If you're not buying and holding onto the asset for over a year, you need to treat all gains/losses as normal income when it comes time to do taxes.

Each state may have different tax laws as well.

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