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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9
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1answer
2k views

Robinhood, daily buying and selling, and cryptocurrencies… What tax concepts to expect?

Robinhood has plenty of docs explaining the tax concepts with trading, and this is not particularly mysterious. But what I am wondering is what sort of documents to expect them to provide come tax ...
0
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2answers
101 views

Long term capital gains on SOME not all cryptos?

What happens if you daytrade some cryptos, while keeping others for a year? Will the CoinBase report to the IRS that you owe short term capital gains on some but long term on others?
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0answers
42 views

Market neutral strategy with leverage and perpetual swaps?

What is a "perpetual swap"? In cryptocurrency exchanges, there is a financial product called "perpetual swap". (It is also called as "perpetual futures" or "...
1
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0answers
28 views

How to calculate the capital gains with cryptocurrencies, to be correctly taxed in France?

I have been investing recently in cryptocurrencies, and if I were to make any profit, the capital gains will have to be taxed. If I have losses, I must also declare them properly. I am located in ...
13
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8answers
4k views

Is it safe to invest in cryptocurrencies such as bitcoin? [duplicate]

How safe is it to invest in cryptocurrency? I see bitcoin going up almost every time I look at its market value. How can anyone be sure it wouldn't crash in the future?
3
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0answers
45 views

Can I reduce the capital gain on which I have to pay taxes if the previous year I had big losses?

Suppose this year I have a capital gain of 200 thousand pounds, but last year I had a loss of 50 thousand pounds... this year can I pay taxes only on 150 thousand pounds of capital gain? And what if ...
15
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3answers
7k views

If I short cryptocurrencies, why don't I get the money immediately?

The academic definition of shorting is to borrow someone else's asset such as stocks, sell it now and repay it later. So I assume that when I short the stocks, money is credited to my account from a ...
0
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2answers
66 views

What type of orders fit my strategy in a way that two triggers might be needed?

As a newbie on trading cryptocurrencies, I found Stop-Limit Order does no longer fit my strategy in a situation like this: Ater a huge price pump, the market price has stabilized at around $450 now. I ...
11
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4answers
1k views

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 ...
1
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1answer
52 views

How to calculate tax on crypto currencies

Suppose I buy some bitcoin for $100. Some time later, it is worth $200. I sell half of it for $100. Do I have to pay tax? On one hand, "on paper" I gained $50, since the half that I sold was ...
-3
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1answer
85 views

How do you calculate the break even price point for a crypto trade with fees?

Consider the following problem: LIMIT BUY Total: €1,000 (starting balance) BTC Price #1: €50,000 Fee: 1,000 * 0.5% = €5 Amount: 1,000 - 5 = €995 Purchase BTC: 995 / 50,000 = ₿0.0199 LIMIT SELL Amount:...
1
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1answer
98 views

How can crypto exchanges avoid sending a 1099-B?

A friend of mine is looking to trade crptocurrencies and I subsequently warned him that he'll have to keep careful track of all of his transactions throughout the year because he would have a lot of ...
8
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1answer
4k views

What is the likelihood I get in trouble for forgetting to file cryptocurrency taxes? What should I do?

PayPal had a promotion without fees a long time ago, they also did it December 2020 and I just sold crypto again through paypal. This time they mentioned some sort of tax form, which somehow I was ...
0
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1answer
112 views

How my money be lost in an investment in shares or bitcoin? [closed]

I have no real life experience of investment world. I have read many books on investment but I don't understand how shares value could become zero and could lose all my money. I know I'm not able to ...
4
votes
1answer
140 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 ...
1
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0answers
28 views

How do companies' Bitcoin (or other proof-of-work cryptocurrencies) holdings impact their ESG ratings?

When I land on the Morningstar page for a fund, for example Legal & General Future World Climate Change Equity Factors Index Fund, or a Blackrock iShares ETF page, for example iShares MSCI World, ...
-4
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3answers
275 views

Why do people refer to Bitcoin as currency when it is not classed as tender from a taxation perspective?

Bitcoin is often referred to as cryptocurrency. In this article from the BBC the headline is "Digital currency Bitcoin has risen to a new record high of more than $50,000" It can be used to ...
0
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1answer
72 views

How to calculate unrealized gain/loss on your entire crypto portfolio

I read a lot of places where it takes the following steps to calculate unrealized gain/losses: step1: Multiply the price you paid per share by the number of shares purchased to calculate your cost for ...
0
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1answer
132 views

In crypto exchange website, is it possible for the sell price of a coin to go higher than the buy price?

I am using a website to buy/sell crypto currency on instant basis. I don't know how the buy and sell price is calculated. Although the question might sound stupid but out of curiosity, is it possible ...
0
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0answers
96 views

Cryptocurrency Exchange: Does coinbase charge you for gas fees?

I'm reading this article which says coinbase could charge you for gas fees. However, when Ethereum gets congested, Coinbase will charge you for gas fees too. When it comes to gas, Uniswap and ...
1
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1answer
61 views

PayPal now offering some sort of crypto connection?

I just saw on an ad that PayPal now do "something" with "cryptocurrency". In spite of searching around everywhere on my PayPal account, I just cannot fathom what connection they ...
1
vote
1answer
89 views

How permissable is it to declare a summary of trades (verses detailed) when creating a tax return?

In a scenario where I have invested £10k in an *asset class over 5 years, in this time I have done 1000s of transactions on different exchanges and bought and sold many different assets, a lot of ...
1
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2answers
92 views

How to calculate cost basis for cryptocurrency gift?

USA Taxes. Here are two possible scenarios: Purchase price is known. Jan 10, 2020 my brother purchases $1,000 worth of crypto (let’s say BTC). Jan 15, 2020 my brother gives me all that crypto (but ...
2
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2answers
201 views

How to anonymously donate cryptocurrency to charities which only support traditional online payments platform?

A lot of charities that I want to help support only traditional online payments system, such as GoFundMe, GoGetFunding, JustGiving, Patreon, Paypal, Payroll Giving, Stripe, ... Is there a way to ...
2
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1answer
95 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 ...
2
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1answer
155 views

UK taxes and cryptocurrencies

I live and work in the UK. I work at the company, so my employer handles the income tax. I also own some stocks but I keep them in stocks and shares ISA, so I don't have to pay tax on them. Now let's ...
3
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2answers
404 views

Why doesn't the GBTC premium get arbitraged away?

My understanding of how GBTC works is that all of the following are true: Accredited investors may provide BTC to Grayscale and receive shares of GBTC in exchange. After a six month lockup, the ...
0
votes
1answer
73 views

How are volume-based fee schedules applied to HFT crypto trading?

I am trying to understand how volume-based fee schedules would work with a high frequency trading algorithm. Let's say I am trading 1 BTC and I am averaging 1000 trades every 5 minutes. Does the fee ...
0
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0answers
66 views

What is the difference between Tether & USD Coin?

How are Tether (USDT) & USD Coin (USDC) different and what advantage is there to using one over the other or are they the same? Tether has a somewhat shady past & is no longer backed 1:1 by ...
2
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2answers
599 views

What is the time zone Yahoo Finance uses for crypto close prices?

I am using the yfinance (Yahoo Finance API) library to retrieve crypto prices (e.g. ETH-USD). I am trying to figure out when the next line (i.e. current day or previous day) will be available. In ...
1
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2answers
115 views

Is there a difference between “spot price” and “market price”?

I'm learning about buying crypto at "spot price" as buying in the price it is at "this moment right now on the spot". But isn't that the same as "market price"? If not, ...
-3
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1answer
334 views

Sugar daddy wants money returned to bitcoin for his son [duplicate]

I have been talking to a gentleman who says he’s a sugar daddy and would love to spoil me for a personal online connection because he is lonely. He has my banking information and is sending me a check ...
21
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4answers
10k views

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?
1
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2answers
131 views

Crypto Trading - advertised price vs actual price

I've bought some crypto, and it's sitting in my coinbase account. Let's say it's now worth x dollars. My question: when I click "sell" at that point, will I be sold exactly x dollars, or ...
31
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9answers
5k views

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 ...
0
votes
1answer
51 views

Are all cryptocurrency exchanges and financial lending institutions required by U.S. law to provide a 1099 form to the investor?

I am currently thinking of putting up a portion of my crypto assets on a reputable cryptocurrency lending platform. I asked them if they provided a 1099-INT for the interest that I would earn on my ...
17
votes
3answers
12k views

Sugar daddy prepaid card scam

I’ve been talking to a sugar daddy for a couple weeks now and he sent me a “prepaid” card which is now activated but he wants me to withdraw a large amount and deposit into his Bitcoin wallet. Is this ...
0
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0answers
66 views

How do you treat interest (both simple and compound) earned on cryptocurrencies?

Currently, on an exchange platform, I am pledging about 10 BCH (approx. $2800) which should earn interest p.a. of 8 % paid out every three months. The interest is paid in BCH, meaning that 8% of 10 ...
3
votes
2answers
1k views

Why would anyone borrow using a DEFI (Decentralised Finance) platform?

Introduction DEFI lending platforms like Aave are decentralised finance protocols which enable anyone to either lend their crypto-assets (usually ethereum) for high % interest, or lock up their ...
0
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0answers
39 views

How to set take profit when there is no position yet

I'm trading on binance futures and sometimes I see a nice (for example) resistance level. I then set a limit sell order so that if price reached that level I sell x coins. However I would also like to ...
0
votes
1answer
80 views

How to get fundamental analysis report for Cryptocurrencies similar to what we get for Stock market? [closed]

Before I invest in stock market, I take a look at the stock's fundamental numbers. I like to have a similar approach before my Cryptocurrency investment. Reading below article I learn that the ...
0
votes
2answers
101 views

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 ...
6
votes
5answers
3k views

Can a contractor convert a cryptocurrency payment into money?

Suppose that an overseas customer tells a contractor that she or he cannot pay for the job via common overseas payment options — such as an online payment, money order, payment card, bank transfer — ...
1
vote
1answer
512 views

Am I in trouble if in my taxes I didn't declare that I sold 1 bitcoin and immediately bought it back losing a little money?

I am a US resident and (a few years back while I was living in Europe) I bought 1 BTC for about 6,000 €. For the first time this year, I filed my 2019 taxes in the US and I used TurboTax. I asked ...
2
votes
2answers
780 views

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 ...
0
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1answer
41 views

Remittance from Europe to India EUR - INR

Alright the problem is not as simple as it sounds. Let me explain. I closed my German bank account after moving to India. The bank said they wouldn't do the international transfer to my Indian account ...
1
vote
1answer
506 views

Crypto-cashback debit card tax (UK)

I have a pre-paid VISA card with a 2% cashback paid in cryptocurrency in every purchase. I was wondering how this is taxed?
-3
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2answers
284 views

Can you really make money with cryptocurrencies like Bitcoin?

I am new to cryptocurrency and I am wondering if I can make money with cryptocurrencies even if I am new to this. I am unemployed and can't really find a good job so I am thinking of taking a risk by ...
0
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0answers
86 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 ...
2
votes
1answer
5k 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 ...