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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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 ...
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-3 votes
1 answer
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How can I compare multiple cryptocurrencies on a single chart at once? [closed]

I'd like to compare the growth of multiple crypto-currencies, such as Bitcoin, Dogecoin, and Ethereum, on a chart at once. How can I do this? https://Coinbase.com, for instance, does single-charting (...
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-1 votes
1 answer
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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 ...
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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 ...
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1 answer
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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, ...
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2 votes
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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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-1 votes
1 answer
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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 ...
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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 ...
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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 ...
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1 vote
3 answers
185 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 ...
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  • 119
1 vote
1 answer
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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 ...
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1 answer
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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 ...
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0 votes
1 answer
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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, ...
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-2 votes
1 answer
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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 ...
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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 - ...
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Don't KYC - is it legal/legit to have a debit Visa/Mastercard without KYC checks?

I recently found out about this service, called "Don't KYC" (see edit revisions if you really want to find the link, but by the time of the edit the website is down) that has its own ...
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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 ...
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1 vote
0 answers
106 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 ...
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3 votes
0 answers
82 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?
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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 ...
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7 votes
3 answers
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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.
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1 answer
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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 ...
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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 (...
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1 vote
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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 ...
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0 votes
1 answer
291 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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1 vote
5 answers
590 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 ...
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1 vote
2 answers
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Crypto Transfers of Large Sums Overseas for Beginners

Total newbie here, with near-zero level of knowledge about cryptocurrencies. I'm seeking to transfer large sums from US bank account to European account for a home purchase and would like to avoid ...
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0 votes
0 answers
149 views

Are amounts of less than a cent legally valid amounts in currencies like EUR or USD?

The following can be applied to any currency but let's consider EUR/USD for simplicity. In the context of cryptocurrency exchanges, one can hold assets for the value of thousandths of a dollar or even ...
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1 vote
0 answers
62 views

Cryptocurrency exchange for US citizen living abroad

I am a US citizen born and living in Germany. I have never lived in the states. My father had been living in the state of New York before he moved to Germany (this seems to be important for ...
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43 votes
4 answers
21k views

How does this WhatsApp scam work?

I am trying to work out how this attempted scam on me could possibly work financially for the scammers as it just seems like the time and effort involved as well as the low potential for payoff isn't ...
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Tax liability when selling crypto received as a gift

I am a US citizen currently living in the US and my father who isn’t a US citizen and lives abroad plans to send me crypto as a gift. We are exploring stable coins such as USDT and USDC. From my ...
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0 votes
1 answer
107 views

Clarification of income tax rules for farm staking rewards (UK)

In the UK we have to pay Income Tax on crypto farm staking rewards. I'm unsure as to at which point I'm legally obliged to pay income tax on staking rewards. Is it: As the rewards clock up on my DeFi ...
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1 vote
1 answer
106 views

Does a resident alien need to pay taxes for cashing out crypto gained before moving to the US?

Let's assume that an alien who's never been to the US before moves there and becomes a resident alien for that financial year due to fulfilling their substantial presence. The alien owns crypto funds ...
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-2 votes
2 answers
215 views

Handing multiple people pooling money into a crypto that compounds

This might be an odd one, but I’m looking for some advice. I have a few people wanting to pool money together into a crypto that compounds. I’m looking for a good way to record the percentage that ...
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0 answers
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Money sent to suspended cryptocurrency account at an exchange

I have a cryptocurrency account at Binance account. However, as Binance no longer supports SEPA transfers, I recently opened another cryptocurrency account at advcash. Before opening the account with ...
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2 votes
2 answers
283 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 ...
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4 votes
1 answer
408 views

I bought crypto for a friend and now want to cash out for her

My friend and I live in Canada, Quebec. In 2018, she gave me $3000 to buy the same coins/tokens I am invested in. I bought these coins/tokens from Kucoin exchange. She is not tech saavy like I am, so ...
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-2 votes
2 answers
624 views

Someone asked me to log in into their bank account

For almost two months, I have been talking online to a guy who allegedly owns a mining company in Australia but works in NYC for his current job, gem dealer! Allegedly, currently, he is on a cruise ...
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0 votes
1 answer
57 views

Where can I find the stocks online/offline data? [closed]

I have 3 questions: 1- Where can I find the historical data of stocks and cryptocurrencies, etc. as .CSV file for free? 2- Where can I get online data of stocks/cryptocurrencies for free? I mean a ...
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Sugar daddy requested that I verify my bitcoin on Cash App — is it a scam? [duplicate]

A "sugar daddy" requested that I send him my Cash App tag (username) so that he could put me on his payroll. He told me that I would then need to verify my bitcoin and pay a small fee of $70 ...
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0 votes
1 answer
105 views

Can someone explain to me how does the AirTm work?

Can anyone explain to me how does the AirTm work? I understand the basics of it, but the entire process doesn't appear "smooth"..Basically just wanted to check can I get the money the ...
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-1 votes
2 answers
250 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:...
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0 votes
0 answers
51 views

Binance future executed volume is too low compare to % increase in price

I closed a ETHUSDT long position with leverage 1x. It gives below result. Executed:2013.65 USDT Trading total:2016.79 USDT Total PNL:16.54 USDT Total Fee:0.00164205 BNB I calculated the % increase in ...
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0 votes
1 answer
145 views

Is the Gold precious metal undervalued (towards the end of 2021)? [closed]

At the moment, money is being printed on a massive scale. The money is flowing into the stock markets and the younger generation is investing it in Crypto. Am I correct in assuming that Gold is ...
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1 vote
1 answer
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what does Yahoo Finance Open/Close price of bitcoin mean?

I have a question regarding the open and close price of historical bitcoin data. Do they make sense? The bitcoin market is 24/7 do we really have a close or open price. When does yahoo finance record ...
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0 votes
1 answer
149 views

What will be net profit/loss of all people if all people sell a given cryptocurrecy?

In crypto currency is another man loss is someone else gain and does sum of profit/loss of all person will be zero if every person decide to sell the crypto and no one hold any crypto currency (...
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3 votes
1 answer
208 views

Will IRS reimburse tax on interest earned from altcoin that loses its value?

Scenario: I have 100 of altcoins on Bl0ckFi. Every month, Bl0ckFi credits 1 additional altcoin in the form of interest. After a year I have 112 altcoins. Then the tax season comes. I pay dollars to ...
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0 votes
1 answer
160 views

Is it safe to share my id and a picture of my id with this website? [closed]

A website is asking me to take a picture with my id card and my id card to buy Bitcoin with it. Is it safe to do so? Not in the US.
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1 vote
1 answer
187 views

Tax loss-harvesting with Crypto

There are headlines floating around about enforcing wash sale rules for crypto capital gains and losses, this prompted me to look into tax loss-harvesting, and it turns out I don't understand it at ...
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2 votes
1 answer
669 views

Do I pay taxes on BAT (basic attention token) when using brave wallet?

Basically the title. I'm using Brave Browser because I heard it pays you to view ads, and it does. I have 30USD worth of BAT right now. I just went through all the verification stuff in GEMINI, now it ...
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