Questions tagged [cryptocurrency]

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

Filter by
Sorted by
Tagged with
0
votes
0answers
82 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 ...
0
votes
0answers
25 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
votes
1answer
299 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 ...
0
votes
1answer
29 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 ...
1
vote
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 ...
1
vote
1answer
71 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 ...
3
votes
2answers
150 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, ...
10
votes
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 ...
0
votes
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 ...
0
votes
0answers
31 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, ...
3
votes
1answer
116 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 ...
-1
votes
2answers
252 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 ...
0
votes
1answer
105 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 ...
0
votes
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 ...
2
votes
2answers
272 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 ...
3
votes
1answer
726 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 ...
2
votes
0answers
54 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. ...
1
vote
1answer
141 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 ...
0
votes
0answers
36 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 ...
-1
votes
2answers
280 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 ...
0
votes
3answers
187 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 ...
-3
votes
3answers
382 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 ...
0
votes
0answers
128 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 ...
0
votes
3answers
2k 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 ...
1
vote
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, ...
11
votes
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 ...
3
votes
1answer
245 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 ...
1
vote
2answers
331 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 ...
0
votes
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)...
0
votes
1answer
102 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 ...
1
vote
2answers
144 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 ...
1
vote
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 ...
1
vote
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 ...
1
vote
1answer
71 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 ...
1
vote
3answers
315 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
votes
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 ...
47
votes
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 ...
-4
votes
1answer
142 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
vote
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, ...
1
vote
2answers
182 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
votes
1answer
244 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
votes
1answer
162 views

Yahoo Finance's cryptocurrency volume

What is the definition of "volume" in Yahoo Finance's data on BTC-USD and ETH-USD?
6
votes
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
votes
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 ...
3
votes
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 ...
1
vote
1answer
140 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
votes
1answer
198 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 ...
1
vote
2answers
447 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 ...
0
votes
1answer
82 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
votes
1answer
104 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 ...