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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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47 votes
9 answers

I believe this to be fraud — hired, then asked to cash check and send cash as Bitcoin

I have been "hired" by Nissan Motor as a key account specialist. My first assignment is to cash two checks that I have received. Both were written by a customer who has already received the engines. ...
john balint's user avatar
15 votes
5 answers

Possible Executive Assistant Job Scam to buy bitcoin

I was emailed by an HR representative about an executive assistant job for an up and coming wine company that was expanding to the U.S. I have administrative experience and am applying online, so I ...
Avajay's user avatar
  • 167
10 votes
2 answers

Where to categorize crypto-currencies

In Germany, crypto-currencies like Bitcoin are all over the news lately, making me aware of the fact I don't know much about them. A journalistic TV program I was watching yesterday even claimed ...
e-sushi's user avatar
  • 205
189 votes
6 answers

Found a heap of BTC but have no documentation. What do I do?

Many years ago, I bought around 400 BTC for a few hundred dollars (?) and stored them in a hard drive. Shortly after that, I lost this hard drive, wrote it off as an "Oh well" and didn't think ...
SomeGuy's user avatar
  • 1,699
81 votes
12 answers

A friend asks me all the time to pick up money for her (Western Union, Moneygram)

A friend of mine trades Bitcoin and often asks me to pick up money for her, i.e., someone sends money to me (on my name) and I just pick it up and give it to my friend. The amounts are usually around $...
ApexAdam's user avatar
  • 699
31 votes
9 answers

Why are cryptocurrencies not considered proper investments?

I plan to invest a portion of my savings in cryptocurrencies that I understand on a technical level (e.g. Bitcoin and Ethereum). However, otherwise prudent financial advice articles on the internet ...
user102086's user avatar
  • 1,252
18 votes
2 answers

Bringing bitcoin into US, what taxes should I expect?

My friend owns roughly $1M USD worth of Bitcoin. These coins are sitting on a (backed up and encrypted) hard drive in Brasil. He bought these coins legitimately, and has the paper trail to prove it. ...
Steven Smith's user avatar
11 votes
3 answers

When and how should I pay taxes on ForEx trades?

I am an Israeli citizen. I've bought BitCoin (let us agree for the sake of discussion it is a currency) using US dollars. Let's also assume I never convert the bitcoins to any other currency (but ...
ripper234's user avatar
  • 2,400
11 votes
4 answers

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 ...
Nicholas's user avatar
  • 2,871
5 votes
2 answers

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 ...
DeltaIV's user avatar
  • 717
2 votes
2 answers

U.S. tax on unsold mined Bitcoin

Suppose that John Doe mines 100 bitcoin at $0.11 each ($11) and doesn't sell them, but keeps them in a wallet. Does he pay taxes the year he mined them at the price he mined them for, or does he pay ...
user541852587's user avatar
2 votes
1 answer

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 ...
Zuri Petteway's user avatar
82 votes
7 answers

Is this work legal? Someone promises payment for converting money transfers to Bitcoin

An online company hired my friend as an account assistant. They told him they are a business consulting firm, and that they need an account assistant in every area. His job is the following: Some ...
ashif antor's user avatar
48 votes
10 answers

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 ...
Emil Lazzaroni's user avatar
38 votes
12 answers

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 ...
Sybil's user avatar
  • 694
21 votes
4 answers

Is this a Bitcoin scam?

Someone wants to e-mail me a check, take the check to my credit union's ATM, deposit it, withdraw a smaller amount in cash, and use the cash to buy Bitcoin to send to him. Is this a scam?
Kim Sun's user avatar
  • 259
19 votes
3 answers

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 ...
John Doe's user avatar
  • 193
19 votes
4 answers

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. ...
Iliana's user avatar
  • 233
12 votes
2 answers

At tax time, what is the proper way to report cryptocurrency earnings and fiat income when you've started with "nothing"?

Back in 2011 I started mining Bitcoin. I earned no more than .75 BTC. At that time, it was worth no more than $0.75. I began to trade my bitcoins for alt-coins. Regarding taxes and cryptocurrencies ...
RLH's user avatar
  • 835
10 votes
4 answers

Is there any way to reduce the taxes on my capital gains?

I made ~100k investing in Bitcoin. Afterwards, I learned that I needed to pay capital gains taxes on it in the amount of ~23k (according to Bitcoin and Crypto Taxes). What are my options in terms of ...
Kevin Beal's user avatar
10 votes
2 answers

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 ...
왕뚜껑's user avatar
  • 149
9 votes
1 answer

Assuming 1031 Doesn't Apply To Cryptocurrency Trading

See this relevant link for a brief synopsis of what 1031 is in relation to cryptocurrencies. For the sake of this question, let's assume that 1031 does not apply at all, meaning that every trade from ...
StartUpDev's user avatar
8 votes
1 answer

Bike to Nigeria

I have listed my bike on sale on Polish site (so expected audience are Poles only). One guy contacted me that he wants to buy bike and I should send it to Nigeria. At this point, I have instantly ...
spam's user avatar
  • 323
4 votes
2 answers

Bitcoin Cost Basis Purchases

Suppose that a client purchases 10 BTC over a price range of $180 to $290 and transacts twice with his BTC for a total purchase of 2.7BTC. Two questions: Based on this, the IRS taxes bitcoin like ...
user541852587's user avatar
3 votes
1 answer

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 ...
Antonio Andrés's user avatar
3 votes
1 answer

Buying cryptocurrency for a friend at exchange

Registering and buying currency (bitcoin) at an exchange is not a smooth experience for most. If I am registered at an exchange, can I buy for people (friends and family)? I think it might involve ...
jiggunjer's user avatar
  • 191
2 votes
1 answer

Income At the Sell or Reception?

See this from the IRS: The character of gain or loss from the sale or exchange of virtual currency depends on whether the virtual currency is a capital asset in the hands of the taxpayer. Scenario ...
JugiChibor0's user avatar
2 votes
2 answers

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 ...
Flux's user avatar
  • 17.1k
1 vote
1 answer

Tax implications of virtual currency that cannot be exchanged for money

Backstory: Over the past two years, I've been in an ongoing battle with a phone provider over a promotion they failed to honor in a reasonable amount of time. I had posted a few questions on the Law ...
Xrylite's user avatar
  • 322
1 vote
1 answer

GNU Cash Stocks - Using smaller than 0.01 in "Buy" and "Sell" transaction column

How can I set the value in the "Buy" or "Sell" columns to less than 0.01 in GNU Cash? I'm trying to see if GNU Cash can be used to track forex trading of cryptocurrency pairs. ...
qualityfreckle's user avatar
0 votes
2 answers

How do Bitcoin futures acutally affect the underlying spot market?

Lets say when the futures expire today on settlement date, does the seller of the future actually literally sell BTC on the open market so he can pay the cash to the Future buyer/holder? I was told ...
omega's user avatar
  • 1
0 votes
2 answers

In a maker/taker structure, do takers move the price?

I've read about the fee structure for makers/takers here but I am trying to understand how the price moves. Since the makers put orders in the orderbook and takers essentially take those out, is it ...
Nik's user avatar
  • 109