Questions tagged [cryptocurrency]

A cryptocurrency is a digital or virtual currency that uses cryptography to secure transaction records, to control the creation of additional coins, and to verify the transfer of coin ownership.

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37
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10answers
5k views

Why do NFTs have value?

I've seen dozens of articles on NFTs, and not comprehended a single one. So when someone made an NFT of the first Twitter posting, I didn't understand how that would be a means to generate any sort ...
0
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1answer
178 views

Why would a company buy and hold cryptocurrency as part of its strategy to accept payment in same?

News reports about companies buying and holding vast fortunes of a cryptocurrency because they will or might accept payments in the future in that cryptocurrency. I'm trying to understand why a ...
1
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2answers
215 views

How does the Robinhood app or any website know the price of Bitcoin at any given time?

How do they know the actual price if it's always changing every second? Is there an algorithm they use to calculate it, or is there an authoritative source that they all go to that tells them what it ...
0
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1answer
54 views

Open Interest vs Notional Value of Open Interest, what's the difference?

so in binance trading data, I came across with this where the open interest is falling but the notional value of OI is being steady. my understanding is that Open Interests represents the number of ...
10
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2answers
7k views

How do I avoid paying tax on a cryptocurrency gain that I have already lost?

I'm not sure if this question belongs here, but I'm super confused about how cryptocurrencies get taxed. I invested $10,000 at the end of 2020. I made about 30 or so short-term trades in 2021 and sold ...
-1
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0answers
47 views

What are the risks of staking USTD with high APR rather than saving money in the bank?

I've started reading about cryptocurrencies and want to invest some of my incomes in it. Beside the trading technics, I've read about staking. The question came to my mind when i saw that in some ...
0
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0answers
66 views

Calculations for my Portfolio

First excuse my maths and limited finance knowledge. I am testing investing in crypto and trying to calculate my ROIs, Profit/Loss etc and getting stuck a bit and was wondering if anyone can help! ...
-1
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1answer
6k views

What is MNEB Token?

I've loaded up my Metamask wallet today and was surprised to see it's value at over $50,000. Almost all of that value was a token that I'd never heard of before and certainly didn't buy. There's a new ...
4
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4answers
323 views

What is the technological problem that cryptocurrency solves? How does overcoming that technological problem help in the real world?

I have read a lot about cryptocurrency and am yet to find a good explanation of why the technology does or even might someday provide an improvement over the current monetary system. So, what is the ...
-1
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1answer
65 views

What does this blip on a chart indicate?

I noticed this on a chart I'm looking at. I'm curious what if anything it might indicate. Could be as simple as someone mis-clicking, or perhaps a new trader misunderstanding what they're doing? We'...
-1
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2answers
36 views

On balance volume indicator showing different signal on different time frames

I'm watching the OBV (tradingview) on my tickers, and I'm puzzled as to why it shows completely different trends and signals depending on the time frame I pick. I'm talking about forensics on a given ...
1
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1answer
142 views

What is the catch of getting 9.3% APY for USDC stacking?

I’m sure there is a catch . How is it possible that one can earn over 9% APY on USDC? There are many platforms offering this. Just on example https://blockfi.com/rates/ This looks too good to be true. ...
0
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2answers
88 views

What happens if Nexo defaults?

My question is if I deposited some crypto or fiat currency to Nexo, and Nexo defaults. How can I get my money back? I looked at their site and googled for the info but couldn't find the answer. I ...
1
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1answer
135 views

Accidentally sent cryptocurrency to wrong address

I was exchanging cryptocurrency with Changelly when I noticed after the fact that I put in the wrong address. I know I'm probably out of luck, but is there anything I can do to get it back? I have ...
-1
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1answer
106 views

Thoughts on the new announcement about reporting crypto transfers? [closed]

The Treasury Department announced today (5/21/21) that transfers of $10,000 USD or more to/from crypto accounts will have to be reported to the IRS, following the old pattern of requiring reporting of ...
1
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1answer
145 views

Is the cryptocurrency market determined by the market caps of each individual coin?

I think I simply saw outdated information, but I was curious whether or not the "cryptocurrency market" as in the total value of all cryptocurrencies on the market is equal to the sum of all ...
-2
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1answer
66 views

How to exchange US stock shares for crypto in other country?

I have shares of stock with US Etrade, but I no longer live in the US and no longer have a US bank account. I want to cash out those shares and use that cash to invest in cryptocurrency and possibly ...
1
vote
1answer
88 views

0 commission Crypto exchanges? [closed]

I’ve been trying to find a cryptocurrency exchange other than Robinhood (because I don’t trust them) that has no commissions. I would also like it to be possible to not to give them my bank account ...
0
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2answers
69 views

What would qualify as capital gains to be taxed on in this scenario? [closed]

So I have recently gone into investing crypto and have made good money on it. However I recently started thinking about the taxes on my investments. I'm not a day trader but I do sell and buy the same ...
0
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1answer
131 views

How to calculate cryptocurrency future price required market capitalization?

How do I calculate if a selected crypto coin (Eg: Cardano) needs to reach USD X (eg USD 100), how much market capitalization required? I want to know this because of the quora.com following answer. ...
2
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3answers
170 views

Taxes on stocks/cryptocurrency day trading

I understand that stocks and crypto are treated as capital gains when a net profit is made, and taxed as such in the United States. My question is what happens when a particular stock or set of stocks ...
38
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12answers
17k views

I bought my first shares in life and they dropped 25% in a very short time. What to do?

I bought Coinbase stocks shortly after IPO. Now my loss at 25%, however, I am in the fortunate position of not being dependent on the invested money. I would like to know in retrospect what I and ...
0
votes
1answer
146 views

Rapids (RPD) cryptocurrency: 3190500% increase in 1 hour

I noticed that the price of Rapids (RPD) cryptocurrency increased by 31,915,000% (market cap: $400bn) in 1 hour yesterday on 8th May. Shortly after (5-10 minutes), the price dropped by 99.6% (market ...
9
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1answer
2k views

Robinhood, daily buying and selling, and cryptocurrencies… What tax concepts to expect?

Robinhood has plenty of docs explaining the tax concepts with trading, and this is not particularly mysterious. But what I am wondering is what sort of documents to expect them to provide come tax ...
0
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2answers
111 views

Long term capital gains on SOME not all cryptos?

What happens if you daytrade some cryptos, while keeping others for a year? Will the CoinBase report to the IRS that you owe short term capital gains on some but long term on others?
0
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0answers
89 views

Market neutral strategy with leverage and perpetual swaps?

What is a "perpetual swap"? In cryptocurrency exchanges, there is a financial product called "perpetual swap". (It is also called as "perpetual futures" or "...
1
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0answers
37 views

How to calculate the capital gains with cryptocurrencies, to be correctly taxed in France?

I have been investing recently in cryptocurrencies, and if I were to make any profit, the capital gains will have to be taxed. If I have losses, I must also declare them properly. I am located in ...
13
votes
8answers
4k views

Is it safe to invest in cryptocurrencies such as bitcoin? [duplicate]

How safe is it to invest in cryptocurrency? I see bitcoin going up almost every time I look at its market value. How can anyone be sure it wouldn't crash in the future?
3
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0answers
49 views

Can I reduce the capital gain on which I have to pay taxes if the previous year I had big losses?

Suppose this year I have a capital gain of 200 thousand pounds, but last year I had a loss of 50 thousand pounds... this year can I pay taxes only on 150 thousand pounds of capital gain? And what if ...
15
votes
3answers
7k views

If I short cryptocurrencies, why don't I get the money immediately?

The academic definition of shorting is to borrow someone else's asset such as stocks, sell it now and repay it later. So I assume that when I short the stocks, money is credited to my account from a ...
0
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2answers
69 views

What type of orders fit my strategy in a way that two triggers might be needed?

As a newbie on trading cryptocurrencies, I found Stop-Limit Order does no longer fit my strategy in a situation like this: Ater a huge price pump, the market price has stabilized at around $450 now. I ...
11
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4answers
1k views

How do you best explain cryptocurrency to an 8 year old

Background I have a family friend with two kids. When the kids were 1 I bought them shares of stock that were transferred into a UTMA for them, figuring they had enough toys and wouldn't remember ...
1
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1answer
56 views

How to calculate tax on crypto currencies

Suppose I buy some bitcoin for $100. Some time later, it is worth $200. I sell half of it for $100. Do I have to pay tax? On one hand, "on paper" I gained $50, since the half that I sold was ...
-3
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1answer
122 views

How do you calculate the break even price point for a crypto trade with fees?

Consider the following problem: LIMIT BUY Total: €1,000 (starting balance) BTC Price #1: €50,000 Fee: 1,000 * 0.5% = €5 Amount: 1,000 - 5 = €995 Purchase BTC: 995 / 50,000 = ₿0.0199 LIMIT SELL Amount:...
1
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1answer
115 views

How can crypto exchanges avoid sending a 1099-B?

A friend of mine is looking to trade crptocurrencies and I subsequently warned him that he'll have to keep careful track of all of his transactions throughout the year because he would have a lot of ...
8
votes
1answer
4k views

What is the likelihood I get in trouble for forgetting to file cryptocurrency taxes? What should I do?

PayPal had a promotion without fees a long time ago, they also did it December 2020 and I just sold crypto again through paypal. This time they mentioned some sort of tax form, which somehow I was ...
0
votes
1answer
115 views

How my money be lost in an investment in shares or bitcoin? [closed]

I have no real life experience of investment world. I have read many books on investment but I don't understand how shares value could become zero and could lose all my money. I know I'm not able to ...
4
votes
1answer
148 views

Why isn't contango in crypto futures markets simply arbitraged away?

Currently (21-Feb-2021), bitcoin futures markets are in contango, with contracts maturing at the end of June trading at about a 9.1% premium to the spot price. My assumption is that one could purchase ...
1
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0answers
35 views

How do companies' Bitcoin (or other proof-of-work cryptocurrencies) holdings impact their ESG ratings?

When I land on the Morningstar page for a fund, for example Legal & General Future World Climate Change Equity Factors Index Fund, or a Blackrock iShares ETF page, for example iShares MSCI World, ...
-4
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3answers
322 views

Why do people refer to Bitcoin as currency when it is not classed as tender from a taxation perspective?

Bitcoin is often referred to as cryptocurrency. In this article from the BBC the headline is "Digital currency Bitcoin has risen to a new record high of more than $50,000" It can be used to ...
0
votes
1answer
111 views

How to calculate unrealized gain/loss on your entire crypto portfolio

I read a lot of places where it takes the following steps to calculate unrealized gain/losses: step1: Multiply the price you paid per share by the number of shares purchased to calculate your cost for ...
0
votes
1answer
141 views

In crypto exchange website, is it possible for the sell price of a coin to go higher than the buy price?

I am using a website to buy/sell crypto currency on instant basis. I don't know how the buy and sell price is calculated. Although the question might sound stupid but out of curiosity, is it possible ...
0
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0answers
104 views

Cryptocurrency Exchange: Does coinbase charge you for gas fees?

I'm reading this article which says coinbase could charge you for gas fees. However, when Ethereum gets congested, Coinbase will charge you for gas fees too. When it comes to gas, Uniswap and ...
1
vote
1answer
66 views

PayPal now offering some sort of crypto connection?

I just saw on an ad that PayPal now do "something" with "cryptocurrency". In spite of searching around everywhere on my PayPal account, I just cannot fathom what connection they ...
1
vote
1answer
92 views

How permissable is it to declare a summary of trades (verses detailed) when creating a tax return?

In a scenario where I have invested £10k in an *asset class over 5 years, in this time I have done 1000s of transactions on different exchanges and bought and sold many different assets, a lot of ...
1
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2answers
130 views

How to calculate cost basis for cryptocurrency gift?

USA Taxes. Here are two possible scenarios: Purchase price is known. Jan 10, 2020 my brother purchases $1,000 worth of crypto (let’s say BTC). Jan 15, 2020 my brother gives me all that crypto (but ...
2
votes
2answers
225 views

How to anonymously donate cryptocurrency to charities which only support traditional online payments platform?

A lot of charities that I want to help support only traditional online payments system, such as GoFundMe, GoGetFunding, JustGiving, Patreon, Paypal, Payroll Giving, Stripe, ... Is there a way to ...
2
votes
1answer
216 views

gnucash: How to set currency of a stocks account? Moving stocks from one stock account to another with different currencies

I am using gnucash for tracking my stocks, ETFs and cryptocurrencies. For the latter, I often heard the recommendation to treat them as a security. As such, I added a CRYPTO namespace in the ...
2
votes
1answer
161 views

UK taxes and cryptocurrencies

I live and work in the UK. I work at the company, so my employer handles the income tax. I also own some stocks but I keep them in stocks and shares ISA, so I don't have to pay tax on them. Now let's ...
3
votes
2answers
442 views

Why doesn't the GBTC premium get arbitraged away?

My understanding of how GBTC works is that all of the following are true: Accredited investors may provide BTC to Grayscale and receive shares of GBTC in exchange. After a six month lockup, the ...