Hi,
Does anyone have an understanding of how taxes work with cryptocurrency?
I read about capital gains tax, but what if the BTC i have was donated to me at first?
It depends only on laws in your country, but as far as I know whenever you exchange any kind of cryptocurrency to your local currency and withdraw that money to bank you have pay tax, how much tax you will pay is something you should research directly in your local tax office. This is not only for crypto, for everything that you sell you need to pay tax.