Yes, you will recognize a gain or loss if you exchange your virtual currency for other property.
The gain or loss is calculated as the difference between the fair market value of the property you received and your adjusted basis in the virtual currency exchanged. If the virtual currency is held as a capital asset, the gain or loss will be a capital gain or loss. If the virtual currency is not a capital asset, the gain or loss will be an ordinary gain or loss.
For more information on capital gains and losses, you can refer to IRS Publication 544, "Sales and Other Dispositions of Assets."
Sources:
Rev. Rul. 2019-24
Notice 2014-21
Publication 544 (2023)
