There are many ways to earn crypto, including mining, airdropping, staking your coins, or earning interest. When you earn crypto this way, you have ordinary income to report. The amount you report is the fair market value of the cryptocurrency you earned when you received it. You must report this income on your tax return on Schedule 1, as "Other income." From there, if you decide to sell your earned coins, you will have a capital gain or loss, depending on how the price of your cryptocurrency has changed since you earned it.(*3*)