Questions tagged [cryptocurrency]

A cryptocurrency is a digital or virtual currency that uses cryptography for security.

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1answer
345 views

Am I in trouble if in my taxes I didn't declare that I sold 1 bitcoin and immediately bought it back losing a little money?

I am a US resident and (a few years back while I was living in Europe) I bought 1 BTC for about 6,000 €. For the first time this year, I filed my 2019 taxes in the US and I used TurboTax. I asked ...
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2answers
54 views

Why do Grayscale's cryptocurrency trusts sell with large premiums to net asset value (NAV)?

Consider the Grayscale Bitcoin Trust (OTCQX: GBTC), which had a share price of $9.31 with $8.75 worth of Bitcoins per share on 2020-07-16: For a more extreme example, consider the Grayscale Ethereum ...
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0answers
24 views

Remittamce from Europe to India EUR - INR

Alright the problem is not as simple as it sounds. Let me explain. I closed my German bank account after moving to India. The bank said they wouldn't do the international transfer to my Indian ...
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1answer
100 views

Crypto-cashback debit card tax (UK)

I have a pre-paid VISA card with a 2% cashback paid in cryptocurrency in every purchase. I was wondering how this is taxed?
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2answers
267 views

Can you really make money with cryptocurrencies like Bitcoin?

I am new to cryptocurrency and I am wondering if I can make money with cryptocurrencies even if I am new to this. I am unemployed and can't really find a good job so I am thinking of taking a risk by ...
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0answers
83 views

Will employees paid in Bitcoin, etc be subject to capital gains upon transferring to fiat in the US?

A company is able to pay its employees either partially or at 100% in Bitcoin. The company reports and withholds the appropriate USD equivalent on the employee's tax return. If the employee holds the ...
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0answers
27 views

Personal wallet transfer fees in relation to UK tax on cryptos

Reading UK's official guidance on cryptoassets, I understand that pretty much anything that you do with your cryptos is classified as a disposal: Individuals need to calculate their gain or loss ...
2
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1answer
788 views

Bitcoin sugar daddy — is it a scam? [duplicate]

A guy on Instagram wants to be my sugar daddy and send me money through bitcoin. We've only been talking for about a week and he hasn't asked for any of my info. He just asked to sign up for a ...
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1answer
33 views

Is it foreign income when you sell cryptocurrency and realise a capital gain in the UK?

Crypto networks are not run by any specific government or group of individuals, compared to other securities like US shares. So what is the geographical status-quo of cryptocurrency for UK tax ...
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0answers
34 views

What exchanges allow funding by bitcoin and trading of stocks and commodities? [closed]

I have accounts at TDAmeritrade, BitFlyer, Bit2C, Toro, and Kraken and have been looking at a lot of 'how to fund your account' pages at other exchanges, but like bono have yet to find what I'm ...
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1answer
72 views

Who is your counterparty when longing / shorting on leverage?

I understand the basic cases of how longing/shorting works and how two parties with opposing price predictions can make a derivative contract to settle in cash when the price of an asset goes up or ...
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2answers
155 views

How can new cryptocurrencies form when the 51% attack exists?

Recently, I learned about the concept of the 51% attack which a malicious actor could perform on a cryptocurrency. Essentially, if you can control >50% of the hashing power for a given cryptocurrency, ...
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3answers
2k views

When Can Cryptocurrency Cease to Exist? [closed]

For stocks, it can cease to exist due to the firm's bankruptcy or merger. If possible, when and why can a cryptocurrency cease to exist? For example, is it possible for Bitcoin to suddenly become ...
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0answers
47 views

Are uninsured financial institutions riskier places to keep my wealth, now that cryptocurrencies make embezzlement easier?

Suppose that one or more high-level officers at a stock brokerage, or other retail financial institution, decide to embezzle most of the assets held there. The embezzlers liquidate the assets into ...
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0answers
34 views

How should lending in decentralised finance be handled for UK tax?

[UK tax only] My understanding is that any crypto asset, even if it's a stablecoin like DAI that is pegged to the US dollar, should be tracked in a pool. If the only thing done with DAI is trading, ...
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1answer
126 views

How are the earnings of a Crypto Interest Account taxed?

I have some bitcoin in an interest saving account. I am not sure if I have to consider the interest earned as Tax on Savings Interests (which does not mention anything related to crypto) or ...
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2answers
392 views

How could I trust on bitcoin investment websites such as Amfeix

I have come across this investment site amfeixportal.com, they provide me with a wallet and I have tested that with a small amount. So far they have deposited logical interest rates to my account, but ...
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1answer
138 views

How should I treat my Proof of Stake (PoS) rewards on my tax return?

Let me know if I'm wrong, but I don't think the IRS really has any clear guidelines on how to report Proof of Stake rewards. Some resources say to treat it as dividends or interest, but just simply ...
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2answers
152 views

Crypto and forex…here’s the scenario..need to know I can’t gelegally [closed]

Some says to you... ”Ok cool 👍🏽...I’m a Bitcoin Investor lincense by SFOX .. I make my money off crypto investment and ForexTrading.. I Work online in the Social market. all I do is move commission ...
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2answers
277 views

What is moving the cryptocurrency market apart for speculators?

I would like to know if there is anything that moves the crypto market apart from the speculators, or are cryptocurrencies purely speculative? For example, in the oil industry there are hedgers who ...
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1answer
951 views

Sugar daddy bitcoin scam? [duplicate]

I met a sugar daddy online who claims he cannot use cashapp or paypal to compensate me and can only use bitcoins. I made a coinbase account and now he is asking for my coinbase login so he can "load ...
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0answers
55 views

How should stablecoins be treated in UK tax reports?

Stablecoins are digital tokens that stay pegged to the value of fiat currencies like USD or GBP. Two examples of stablecoins are DAI and USDC, which are both redeemable for $1 on various exchanges. ...
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1answer
151 views

Involuntary Account Closure due to Suspicious Activity (AKA BTC transactions)…When will I receive the funds from account closure?

I've been banking with U.S. Bank for about a year and a half. Around the beginning of January, I noticed some strange activity as it pertained to my U.S. Bank checking account. I often utilize Zelle ...
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0answers
38 views

Amending tax return to change cost basis of digital assets

I want to know if I can file an amended tax return to change the cost basis for cryptocurrency sold in 2018 ? I've used form 8949 prepared by a CPA to file my crypto related gains for 2017 and 2018 ...
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2answers
283 views

How do stocks work? (Cryptocurrency analogy) [closed]

I come from a cryptocurrency background (Bitcoin etc.). I have no idea how stocks work and how to invest into stocks. In cryptocurrencies for example, I am in full control my assets (private key) and ...
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3answers
188 views

US Tax Obligations for Multiple Trades of Stocks or Cryptocurrencies

Background I am trying to understand potential tax obligations for trading stocks and cryptocurrencies in the US. I was able to find the following information online: The IRS considers ...
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3answers
383 views

How to deal with Cryptocurrencies? [closed]

I'm not sure if this is the right place to ask but I figured I'd post here since it's for questions about Money and Investing. Lately I've been looking at cryptocurrencies and I want to speculate ...
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0answers
135 views

Algorithm to minimize capital gains tax

I've made thousands of cryptocurrency trades and have them in a CSV file with the necessary fair market values. I'd like to use the specific-shares cost basis method to minimize my gains. Is there a ...
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3answers
3k views

Sugar daddy allowance with Bitcoin [duplicate]

I met guys online as sugar daddies without sugar. I have never given my bank password but some guys request that I buy Google Play gift cards and I answered I wouldn’t use my cash for it. The guy said ...
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0answers
61 views

Daily spread measure for products in crypto exchanges?

I'm now trying to trade in crypto, and I want to get a measure of the liquidity of products listed in exchange. Trading volume is a good measure, and easy to obtain. Spread is also a good measure, ...
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2answers
5k views

Can dual citizens open crypto exchange accounts where U.S. citizens are prohibited?

I am specifically asking about the many crypto-currency exchanges which prohibit U.S. traders and would prefer if someone with first hand experience answered. Every exchange which offers derivatives ...
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1answer
249 views

Why take crypto profits when you can just set a stop order?

In such a volatile market as cryptocurrency, I have heard many people stress the importance of taking profits. For example, when a coin doubles in value, they sell 50% of their holding. This ensures ...
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2answers
339 views

Reporting crypto currency transactions to IRS

I have made 300+ crypto currency transactions in 2018. Do I need to report all these 300+ transactions to IRS? If yes, what is the procedure? My tax consultant is saying we need to report only ...
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1answer
60 views

Online Investing and Trading Cryptocurrencies, Equities and Options in U.S. Markets [closed]

Would you be so kind and tell me which brokerage services might have fastest website and features (e.g., "limit orders", "stop limit orders", etc.) for trading cryptocurrencies (e.g., from BTC to DOGE)...
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1answer
113 views

Taxation of capital gains by USA from cryptocurrency of Russian student on an F-1 visa

I am from Russia and I currently study in the US on F-1 visa. Last year I did some cryptocurrency trading which is taxed as capital gains in the US. US-Russia tax treaty says that: Capital gains on ...
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2answers
145 views

money investment [closed]

I am trying to invest money because I have around 3218.45 USD which I could invest, and start generating money. I am out of ideas in how can I invest the money to start generating money from my money ...
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0answers
44 views

Holding Period Algorithms and the Blockchain

According to this interview, taxation holding periods in the United States for cryptocurrency can be determined by FIFO (First In First Out), LIFO (Last In First Out), or a more flexible option called ...
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1answer
34 views

required capital, commodity and trade volume given monthly target [closed]

I'm considering trading currencies or stock full time and would like to estimate required capital and required number of trades per day, given a monthly income of X US dollars after taxes. I'd also ...
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1answer
72 views

Lawful Permanent Resident of USA and cryptocurrency tax?

So I have the chance to purchase cryptocurrency from another country through a trusted friend, my questions are: Is this legal activity of any sort, will i be committing fraud? How would this be ...
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3answers
316 views

Is crypto an uncorrelated (or negatively correlated to traditional markets) asset class?

In preparation for an upcoming financial crisis, for instance, something of the magnitude of the 2008's capital C crisis, would crypto (given their current market size and state) be (part of) a good ...
101
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10answers
32k views

How is Bitcoin useful as a currency if so few services accept it?

I've done research on bitcoin and I know what it is and how it works, kinda. I've even built a small block chain app. What I don't understand, and I haven't been able to find the answer to, is if ...
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11answers
21k views

20% monthly mining vs 5% monthly trading

I recently meet a guy who invested his money in 2 systems. 1) The first one is mining. He gave 20.000 euros to this company ([redacted]) and they promised to give him back 20% a month. There are ...
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1answer
145 views

cryptocurrency and digital currenncy

I read some article about the definition of cryptocurrency and digital currency. Still I can not understand their differences. Can a digital currency omits cryptography? Does that make sense? Is ...
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2answers
163 views

Hedge against crypto currency / exchange risk

I have securities that have crypto-currencies (say, XBT/BTC) as a base currency and I want to avoid the tremendous volatility of this market. There are options for margin trading of sorts (shorts, ...
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2answers
183 views

Can my new technology reduce crypto taxes?

I invented a new technology that kills your gain taxes on crypto transactions and trades... or so I think :) I am hoping that this is the case but I am not really sure and I would like you to tell me ...
3
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1answer
245 views

What paperwork is needed when receiving salary through the cryptocurrencies?

Supposedly I got a short-term software engineering remote contract which was agreed to be paid by the cryptocurrencies or tokens on the task-basis (e.g. receiving a certain amount of EOS tokens for ...
3
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1answer
163 views

Yahoo Finance's cryptocurrency volume

What is the definition of "volume" in Yahoo Finance's data on BTC-USD and ETH-USD?
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3answers
1k views

Is Bitcoin investing wise? [closed]

Is Bitcoin or any other crytocurrency a wise investment? I have invested a little Bitcoin and Bitcoin Cash. They go up then down and back up. Is another crypto currency better or is this too risky for ...
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1answer
3k views

How can you minimize taxes on cryptocurrency trading?

I bought one Ethereum last year for around $350 and ended up selling it early this year for around $1350. From what I'm reading, capital gains will be close to 40% on the $1000 I made. Is there a ...
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1answer
4k views

Where can I find Bitcoin Misery Index?

There has been a lot written about Bitcoin Misery Index: The index is called the Bitcoin Misery Index (BMI) and was designed as a trading tool for investors to take advantage of volatility in BTC ...