Questions tagged [cryptocurrency]

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

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0answers
39 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
228 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
241 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
57 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
52 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
136 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
42 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
33 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
68 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
288 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 ...
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10answers
31k 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
20k 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
130 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 ...
1
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2answers
147 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, ...
1
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2answers
177 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 ...
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1answer
231 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 ...
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1answer
148 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 ...
13
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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 ...
2
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1answer
3k 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 ...
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1answer
127 views

How do transaction and transfer fees affect the ACB of cryptocurrency assets?

Currently cryptocurrencies are taxed as capital assets in Canada, which uses the ACB when calculating capital gains and losses. I understand how to calculate ACB adjustments when buying and selling ...
0
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1answer
63 views

What is the cost basis for stock bought/sold at different times?

Let's say I buy 10 shares of Google in April and then 10 more in May. If I decide to sell 10 of those 20 shares in June, what base share price do I use to calculate my capital gains? Can I choose ...
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2answers
311 views

Which is the best way to invest a small amount in Bitcoin?

From the answers to this question Are there multiple Bitcoin markets? I understood there are multiple platforms to trade Bitcoin (Coinbase and Kraken were mentioned). Suppose I want to invest a ...
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1answer
79 views

Is Coinbase safest exchange? [closed]

Because Coinbase is regulated more heavily in the US than other non-US or peer-to-peer exchanges, is it considered the safest exchange? Also, is it ok to leave USD and BTC in Coinbase rather than ...
0
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1answer
85 views

How is the implementation of stop-limit done?

I am building a cryptocurrency exchange, and having some trouble with the implementation details for a stop-limit order. I have a few scenarios I would like clarification on, along with any useful ...
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1answer
65 views

What is an Initial Token Offering?

Is it the same thing as an 'Initial Coin Offering'? What would the a-z of such a thing look like in plain terms?
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1answer
243 views

I have 10K to invest, what are my options with reasonable risk/income?

So I have 10K to invest. I did not do any sorts of investments before and I am really scared coz I don't know any information and risks and all that. I heard that mutual funds is something to look at, ...
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2answers
1k views

Are there multiple Bitcoin markets?

I have the (possibly wrong) suspect that Bitcoin questions are not received too well here, so I kindly ask you to go easy on me :-) According to this question we should categorize Bitcoin as a ...
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1answer
98 views

converted one cryptocurrency for another and immediately sold: 2 events or 1?

I converted X ETC to Y ETH, which I immediately sold (on Coinbase) for Z USD. For IRS purposes, are these one sale or two? If they're two sales, then the gain is the ETC->ETH, I think. (The ETH->USD ...
3
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1answer
1k views

Nonresident alien F-1 student in the US received 1099-K for robo-trading cryptocurrencies, which form to fill and send to IRS

I am an F-1 student in the US and I've been running a high frequency trading bot on GDAX. Coinbase notified me that they've filed a 1099-K form to the IRS on my behalf which contains astronomical ...
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4answers
2k views

Is the blockchain similar to double-entry book-keeping?

As far as I know, blockchains keeps transaction records from the beginning of time. This lets the blockchain retain a history of traceable transactions so it can maintain validity. Double-entry book-...
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4answers
206 views

Does my tax return need to report cryptocoins that I have received as donations?

I have received a relatively small amount of the IOTA cryptocurrency as a donation. A reason for this donation is that sending such transactions helps in testing the IOTA network and transaction ...
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1answer
97 views

How much money is fiat money? [closed]

How much or what amount/percentage of all the money in the world actually fiat money? I am not looking for an accurate estimate obviously, but a ball park estimate... even if that was possible. Also ...
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2answers
129 views

Understanding cryptocurrency buying and selling calculations

I need to understand how buying / selling works in crypto markets. I see an ask of amount: 44608.01, rate: 0.98 in the XRP/USD market in Kraken. Will the rate 0.98 be in USD or XRP? I'm assuming USD ...
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1answer
139 views

Tax on Profitable Crypto Transfers between the US & India

I am a non resident alien on F1 OPT living in the US, and have noticed an arbitrage opportunity when trading ETH [a cryptocurrency] between the US & India. Assume the following: I bought 5 eth ...
10
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3answers
2k views

What does “buyer is maker” mean?

What does it mean to say that "buyer is maker" or "buyer is not maker"? If a trade happens where the "buyer is maker", does that mean that the trade happened as buyer bought a share? I am asking ...
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3answers
154 views

Calculate the number of coins for a trade with a fixed amount of total risk

I trade altcoins. Could someone tell me, how to calculate the total amount of coins for a trade with a fixed amount of risk (including fee). For example, my risk is $100 per trade I use this ...
3
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1answer
167 views

Is filling 1040NR sufficient for Crypto gains for an F-1 student?

On F-1 status since last 16 months. I have gains of less than $100 on Crypto. Transactions were made on Coinbase.com portal in the US. Other income sources include an Internship on my CPT. Is filing ...
0
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1answer
104 views

What causes Cryptocurrencies to Exhibit Similar Long Term Behaviour? [closed]

I am developing a cryptocurrency pairs trading strategy. To identify suitable pairs to trade, I looped through thousands of cryptos and tested whether they behaved similarly in the long-run (i.e., ...
5
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1answer
163 views

Do I need a Social Security Number?

I am a New Zealand citizen, and legal resident of Mexico (not the US - I have only B1/B2 visa for the US). I have funds in the US in an American bank account (in my name). Recently I have considered ...
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1answer
104 views

Are capital gains due on investments if none of the money can even be accessed?

I've been learning about cryptocurrencies, mostly from a technical stand-point to develop decentralized applications; however, to get started I purchased a few coins. When the prices rose so quickly, ...
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1answer
73 views

Can I rely on indicators like MACD if it uses my own dataset?

I'm playing around with algo-trading and started collecting candle data on my own. So far I have about 3500 candles on a single cryptocurrency. While playing with MACD, I noticed that the indicators' ...
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4answers
2k views

When the market cap goes down, does that mean people are taking money out? [duplicate]

My question is about the market cap figure on coinmarketcap.com and dealing with crypto currencies. So yesterday the market cap was at 720 billion dollars. Today it's below 600b$. Does this mean ...
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2answers
792 views

US Tax on cryptocurrency (Bitcoin and other altcoin) investments for Non-resident Alien student

I'm an non-resident alien student (on F-1 Student Visa) in the US. Starting in 2017, I invested in Bitcoin and other cryptocurrencies last year in the US via Coinbase.com. I'm holding on to most of ...
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1answer
300 views

Understanding the price value in coinmarketcap.com

How do we read the the value associate with a currency pair? For example CAN/BTC: In the standard currency world, isn't this supposed to be 1 CAN is equal to 927.63 BTC? Obviously this statement is ...
0
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1answer
172 views

Is there a cryptocurrency with transparent and clear ledger? [closed]

It seems that the current trend in the cryptocurrencies is to to strive for more anonymity and untraceability but since there is a danger governments to try to shut them down because of the money ...
3
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1answer
219 views

How to do Taxes on Cryptocurrency Profits/Losses

I got into Cryptocurrency and was wondering how the taxes would be addressed on profits and losses of trading cross currency. I have not converted my cryptocurrencies to any government backed fiat. I ...
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1answer
78 views

Taxes for selling at a profit and buying other altcoins with it?

Will I only be taxed on cryptocurrency once I cash out and deposit my profits back into my bank account? Or will I be subject to capital gains even when I sold something at a profit and simply bought ...
12
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1answer
2k views

How is double-spending prevented in traditional banking?

I have been getting familiar with crypto currencies and, in particular, with the double spending problem. This has brought up the question of how double-spending is prevented and controlled in ...