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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How to know increasing open interest indicates new short contracts or longs contracts?

I trade on crypto market and recently I have learned that there is a tool or something named open interest which tells you the amount of long and short open contracts at any time. It is really helpful ...
0 votes
1 answer
44 views

Does calculating Crypto taxes need previous year numbers?

During 2020, I did 100 crypto trades: buying/selling many type of crypto currencies. I used an online service (Bitcoin.tax) to calculate my tax liability for 2020 tax year. It processed all my trades ...
0 votes
0 answers
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Are my trades business income or capital gain?

I am a Canadian and I spend a lot of money on cryptocurrencies and I want to know if my gains/losses are considered business income/loss or capital gain/loss. My primary source of income is from the ...
0 votes
1 answer
120 views

How to send money into someone's paypal anonymously ? Read further

I am an Indian and i want to send a Japanese friend some money. The friend uses Paypal and is not familiar about Crypto. I want to do it anonymously as i can't let anyone know about it. Here in India, ...
-3 votes
2 answers
91 views

Are smart contracts meant to be "updateable"? Is it up to the creator to secure whatever terminal or codes are necessary to update the contract? [closed]

I'm looking into creating a smart contract on Ethereum or Solana, just for fun for now. I know in practice how to create a smart contract, but at this point I have a dilemma: In the one hand, it ...
3 votes
0 answers
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Do I need to declare capital gain when buying BTC to trade for another coin?

In 2017, I wanted to by XRP. There was no way to buy XRP with fiat, only with BTC. So I first bought 1 BTC for $20,000 I immediately sent that 1 BTC to an exchange so I can trade it for XRP. The ...
1 vote
5 answers
712 views

Trader I met online is asking for more money as a transaction fee to process withdrawal of my gains [duplicate]

I met a trader on telegram and after discussion I was convinced to invest $300 and then after 24 hours I got a message to increase the investment to $500 otherwise trading will not be done. After 2 ...
1 vote
1 answer
95 views

How do I calculate capital gain when I bought at different prices?

I bought 2 BTC in 2019 for $4,000 each I bought another 2 BTC in 2020 for $10,000 each In total, I bought 4 BTC for $28,000 I sold 1 BTC in 2021 for $40,000 How do I calculate the capital gain for the ...
-2 votes
0 answers
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how to determine the maximum reasonable volume for crypto scalping?

I'm interested in scalping cryptocurrencies and now I have come up with an important question. how to determine the maximum reasonable volume I can scalp on a specific exchange? suppose I want to ...
5 votes
2 answers
587 views

Tax implications of receiving Bitcoin as a gift from abroad

What kind of taxes I would need to pay for receiving bitcoin gift (>100k USD) from foreign relative (Russia -> USA)? As I understand, I would not need to pay any tax at the receiving date, as ...
0 votes
1 answer
69 views

How does tax on stocks/crypto work? How are they calculated?

I am wondering how tax is calculated on stocks or cryptos esp if you buy them in batches or sell them in batches. Here is my example Jan - I spend 3000$ to buy CRO coin for 0.6$ each (buying 5000 ...
-1 votes
1 answer
403 views

Don't KYC - is it legal/legit to have a crypto card without KYC checks?

I recently found out about this service, called "Don't KYC" that has its own cryptocurrency promises to provide customers with cryptocurrency Visa/Mastercard debit cards (i.e. charge your ...
17 votes
4 answers
16k views

Sugar daddy prepaid card scam

For a couple of weeks, I have been talking to a sugar daddy. He sent me a “prepaid” card, which is now activated, and he requested that I withdraw a large amount and deposit into his Bitcoin wallet. ...
3 votes
2 answers
1k views

Can one earn only converting assets with different spread?

Can one earn only converting assets with different spread? Example: buy asset Y with asset X (i.e. BUSD/BTC) buy asset Z with asset Y (i.e. BTC/BNB) buy asset Y with asset Z (i.e. BNB/BUSD) and get ...
0 votes
0 answers
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Company is asking me to send my personal info so they can send Bitcoin to my personal account in order to pay customers using my personal account [duplicate]

I added a screenshot of an email that a company I applied for this week. They are asking for my Name, Number and Bank name so they can send Bitcoin currency to my personal account in order to “buy ...
19 votes
3 answers
4k views

Do I have to pay short-term capital gains tax on crypto currency if I only withdraw the principal and not the profits?

Say that I bought $5000 USD worth of Bitcoin, and a month later its value grows to $6000 USD. Now, if I were to withdraw only my $5000 USD principal worth of bitcoin, while keeping $1000 USD worth of ...
19 votes
3 answers
4k views

What is crypto deleveraging?

This excerpt says: Multiple crypto company failures shouldn’t be surprising given huge price declines among tokens, and entities that used higher leverage in the past are the most vulnerable, ...
0 votes
1 answer
217 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 ...
0 votes
0 answers
66 views

52 week price range for USDC

I am looking at the 52 week price range for USD Coin and it shows 52 Week Range: 0.9874 - 2.3496 Since it is pegged 1:1 to USD, how did it go all the way to $2.3496?
2 votes
3 answers
449 views

Why would anyone invest in a stablecoin (e.g. TerraUSD)?

Some stablecoins (a type of cryptocurrency) try to tie their value to another currency. For example, the TerraUSD stablecoin was pegged to the U.S. dollar, at least it was before it collapsed last ...
-2 votes
1 answer
178 views

NFT's may be a new money laundering horizon [closed]

I made some experiments with the creation of NFTs on various platform like open sea and mintable. No one reacted on the NFTs and it's not strange because they clearly suck! But i saw some ridiculous ...
2 votes
1 answer
670 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 ...
3 votes
6 answers
4k views

Cryptocurrency: What happens to coin value when it's transfered from one blockchain network to other?

I am very new to cryptos and trying to understand how transferring of a coin from one blockchain network to another works. For example, let's say that: The Bitcoin blockchain has X coins in ...
-2 votes
2 answers
228 views

What are the use cases for cryptocurrencies? [closed]

I am trying to make sure that I have all the use cases for cryptocurrency. Whether or not a cryptocurrency is optimal in any sense is a different issue from this question. Also, whether or not a ...
-1 votes
1 answer
59 views

How do I determine the division of cost basis for multiple NFTs minted in a single transaction?

I understand (I think) how to assign cost basis (for income tax) to ordinary minted NFTs: Convert the minting price (including gas, fees, etc.) in cryptocurrency to dollars using the market rate at ...
0 votes
1 answer
101 views

Using Sharpe ratio to compare bitcoin investments?

I want to compare investment strategies in bitcoin. So far I was using the money weighted rate of return and was comparing it between two different investors. The investor that has the biggest rate of ...
2 votes
2 answers
288 views

How do cold wallets know how much money you have so quickly?

From my understanding, you have to recheck most of the blockchain just to see if people have sent money to you. Outgoing transactions would just be remembered on device right? So how can wallets like ...
-1 votes
1 answer
143 views

Where should I put my take profit in this crypto trade?

Let's say we want to buy BTC at price 45000.00 USDT (and we have $15 to buy BTC). The commission is 0.1%. Since we will pay for a commission, so What will be our break-even point for that trade? I ...
4 votes
3 answers
345 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 ...
0 votes
1 answer
69 views

Cryptocurrency mining/transfer fees as a taxable exchange for a service?

There's an FAQ for virtual currency on the IRS website. There's a question, Q38, indicating that transfers between your own wallets or accounts are not taxable: Q38. Will I have to recognize income, ...
2 votes
0 answers
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Does asset custodian matter when determining which capital gains lot you sold? (USA)

Say you bought N shares of some company at broker X on Jan 1, 2021. You bought N more shares of the same company at broker Y on Feb 1, 2021. Then on March 1, 2021, you sell N shares with broker Y. For ...
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How to submit self-competed 8949 form with TaxAct?

my wife and I are using TaxAct to file our US tax return for 2021. I have a handful of crypto transactions that I made last year - there are about 8 transcactions and the total volume is ~$600. I have ...
0 votes
1 answer
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Crypto Wash Sale rule

There are various sources indicating that in the United States, the Wash Sale rule does not apply to Cryptocurrencies as they are considered property rather than securities. Does that mean that it is ...
2 votes
3 answers
217 views

Real Estate vs Stablecoin Yield

My liquid (stocks, crypto, cash) net worth is $350K and Illiquid (startup stock) is around $1M. I'm 29, have no debt and live in a tax-free country, and have no taxes on income or cap gains. I make ...
1 vote
1 answer
71 views

How should I report income from DeFi crypto yield farms on my tax forms?

A crypto yield farm basically lets you deposit two crypto products at a certain ratio. As the ratio changes trades are done to keep them in line, of which the smart contract gives you a cut, usually ...
-1 votes
1 answer
153 views

In which country bills could be paid in crypto? [closed]

Is there countries in the world where crypto could used as legal tender / means of payment, e.g. where a company could pay a bill in crypto? There are a few of news that different companies starting ...
0 votes
1 answer
70 views

Are financial trusts or cryptocurrency investments exempt from the SSI maximum resource limit?

As a recipient of SSI, I am not permitted to exceed a maximum resource limit of $2000. The SSA definition of "resources" is vague, but is basically liquid assets, including: bank accounts, ...
0 votes
0 answers
33 views

Order Book ASK - which BUY orders are serviced first at cryptocurrency exchange

New to trading. I came across the concept of an "Order Book". MY UNDERSTANDING My understanding (when going LONG) is that a trade ONLY takes place if the BID Amount >= the ASK Amount - ...
-2 votes
1 answer
91 views

Scratching my head about the modified dietz method

I'm trying to compute the money weighted rate of return for my crypto investments using the modified dietz method, as I believe this is the golden standard to measure investment. The formula is quite ...
37 votes
2 answers
8k views

How do I realize tax losses on a cryptocurrency I can't sell?

I have a bunch of dead coins that don't have any liquidity on exchanges anymore. Is there a way to sell them or report them to the feds somehow so I can harvest my tax losses? I read about a way that ...
0 votes
1 answer
236 views

HR Block Software reduces my tax return by $53 after entering crypto gain of $13

Some time this year I purchased 0.1 ETH for $260 and a few days later sold it for $273 which is a gain of $13. However, when I enter these amounts into form 1099 in HR Block software that reduces my ...
4 votes
1 answer
296 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 ...
3 votes
0 answers
86 views

Do any crypto exchanges still use traditional market making? [closed]

Do crypto trading platforms or DEXs still use traditional market making schemes? Or are there no more traditional market makers out there, only automated market makers that utilize smart contracts?
1 vote
0 answers
129 views

Trading Crypto With My Bank Account

I want to be a crypto trader and trade cryptocurrencies with my bank account. How it works is the seller would put his coins into an escrow account, the buyer will transfer him the money, and then the ...
7 votes
3 answers
7k views

When I trade Cryptocurrency for Cryptocurrency without cashing out how does taxation apply?

I'm assuming (Crypto to Crypto) is tax free until it's converted to fiat.
0 votes
1 answer
78 views

Is it possible to invest on stocks/cryptos with having no Social Security Number in US?

I am on F-2(student dependent) visa in the US. I want to know if it is possible to have a brokerage account and invest online on stocks or cryptos? I do not have SSN nor ITIN and some brokerage like ...
0 votes
0 answers
40 views

Can a delta neutral synthetic position on bitcoin contracts make money?

This may be a basic question, but I am not sure if its already been answered, If I have a delta neutral(long 10x leverage, short on 10x leverage at same entry point) consisting of bitcoin contracts (...
1 vote
0 answers
265 views

Did anyone has been recently hired by [redacted scammer name]? [closed]

Did anyone has been recently hired by [scammer name redacted] as J. payment Associate for converting money transfers to Bitcoin? We did contact the Florida corporation department to verify if the ...
-1 votes
2 answers
252 views

Why crypto price increases when market cap increases?

I'm trying to fully understand how market capitalization works and it's still a bit confusing. I know that market capitalization basically is how much money is currently spent on an asset. For example:...
0 votes
1 answer
306 views

Buffett believes Bitcoin has no value and no future. Isn't it the same with stocks? [duplicate]

Just listened to Warren Buffett's thoughts on Bitcoin and he claims that Bitcoin is a non-producing asset which has no value. Buffet also points out that it is just the hope that others will be ...

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