How does cryptocurrency tax work?

Could you elaborate on the intricacies of cryptocurrency taxation? Specifically, I'm interested in understanding how taxes are applied to crypto transactions. Do they vary based on the type of cryptocurrency or the type of transaction? Are there specific thresholds that trigger taxation? Additionally, how are crypto gains taxed? Is it treated similarly to traditional investment income, or does it have its own unique tax treatment? I'd appreciate a concise yet comprehensive explanation that covers the key aspects of cryptocurrency taxation.