The first Bitcoin transaction occurred in 2009. Since then, virtual currencies have grown to over 1,500, and a number of taxpayers trade the currencies multiple times each day (similar to a day trader). Your client tells you that he would like to start trading in virtual currency and wants to know what he should know about it. Find 1) a reliable article on investment strategies for virtual currency and 2) a software tool that can help the investor track the basis, fair market value, and dates of the trades. You are to use reliable websites and blogs of the IRS and other government agencies, media outlets, businesses, tax professionals, academics, think tanks, and political outlets to research their answers.
