Are crypto losses tax deductible?

In the realm of cryptocurrency and finance, a question that often arises is whether losses incurred in crypto investments are tax deductible. The tax code is vast and complex, and the treatment of crypto losses can vary depending on various factors. For instance, are these losses considered capital losses or ordinary losses? Do they need to be itemized or can they be deducted from gross income? Additionally, does the investor need to meet certain criteria, such as being in the trade or business of crypto trading, to claim these losses? Understanding the nuances of the tax code and how it applies to crypto losses is crucial for investors seeking to maximize their tax efficiency. Therefore, the question remains: Are crypto losses tax deductible, and if so, under what conditions and limitations?