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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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189 votes
6 answers
44k views

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
101 votes
10 answers
33k 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 ...
King Wilder's user avatar
82 votes
7 answers
46k views

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
81 votes
12 answers
43k views

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
80 votes
6 answers
15k views

Why has bitcoin gained so much in the past year?

Over the past year, the value of bitcoin has gone from 1030.82 USD on 3 Jan 2017 to 10755.89 USD today. That's a price increase of 1000%. I'm only an amateur investor, but in my mind that increase is ...
stanri's user avatar
  • 787
62 votes
6 answers
21k views

Is it legal to photograph and test ATMs?

Some online company asked me do a job like this We have a special task for you! Our analyst department collects information regarding Bitcoin ATMs across different states and cities. In most ...
mikeAD's user avatar
  • 513
48 votes
10 answers
22k 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 ...
Emil Lazzaroni's user avatar
47 votes
9 answers
18k views

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
45 votes
5 answers
40k 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 ...
Arj's user avatar
  • 611
41 votes
3 answers
9k views

Tax implications of BTC for rent

I'm considering doing a trial run with my tenants and let them pay some or all of their rent in BTC. My motivations: BTC isn't considered a currency so it's taxed as an asset under capital gains tax. ...
DotNetRussell's user avatar
41 votes
10 answers
6k views

Why do NFTs have value?

I've seen dozens of articles on NFTs, and not comprehended a single one. So when someone made an NFT of the first Twitter posting, I didn't understand how that would be a means to generate any sort ...
Mike Serfas's user avatar
38 votes
12 answers
18k views

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
37 votes
2 answers
9k 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 ...
DNS_Jeezus's user avatar
31 votes
9 answers
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 ...
user102086's user avatar
  • 1,252
26 votes
4 answers
10k views

How do I report a gain in bitcoin that I received as reimbursement for buying a waffle iron?

In 2016 I was visiting a friend in another country and he asked me to bring him a waffle maker (~$35). He paid me back for the waffle maker in Bitcoin. I sold that Bitcoin in 2020 for ~$740. I believe ...
Michael's user avatar
  • 371
21 votes
7 answers
11k views

How can I fairly give the option to be paid in Bitcoin?

I'm a freelancer who bills per hour and invoices my clients at the end of the month. The total amount is represented in my local currency. I also give the option for my clients to pay in Bitcoin at a ...
NeRoboto's user avatar
  • 337
21 votes
4 answers
12k 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?
Kim Sun's user avatar
  • 259
19 votes
4 answers
17k 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. ...
Iliana's user avatar
  • 233
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 ...
John Doe's user avatar
  • 193
19 votes
7 answers
7k views

How can a retail investor check whether a cryptocurrency exchange is safe to use?

In the wake of the ongoing FTX debacle, I wonder the following: How can a retail investor check whether a cryptocurrency exchange is safe to use, at least minimize the risk? By safe, I mean no losing ...
Franck Dernoncourt's user avatar
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, ...
user3156459's user avatar
18 votes
4 answers
7k views

Bitcoin scam: how screwed am I? [duplicate]

I was sent contact information from an agency for a job. After a ton of emails, the person seemed legitimate, and they then sent me a check for the work and supposedly to book flights and such for ...
kevin N's user avatar
  • 191
18 votes
1 answer
6k views

Where can I report a cryptocurrency fraud?

I am positive that I have been taken in a wild chase to get my money back in a cryptocurrency advanced fee scam, and I have reported this to google, WhatsApp, ic3, Coinbase, etc., and I am not getting ...
JEPG's user avatar
  • 181
18 votes
2 answers
7k views

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
16 votes
3 answers
8k 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 ...
Eiffelbear's user avatar
16 votes
1 answer
6k views

10 Trading.com - Fake or not?

I invested small amount of money 5 years ago and then panicked and withdrew it all, 10Trading was the company and I believe they were closed down, however periodically I receive emails suggesting I ...
Lesley Hibbert's user avatar
15 votes
5 answers
13k views

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
14 votes
3 answers
8k views

If my account only sells crypto, will I get taxed?

Will I get taxed if I do this? Purchase $1000 USDT on Binance Transfer to a crypto exchange outside the U.S., or transfer to a wallet address and use decentralized exchange. Buy bitcoin, earned $1000,...
Eugene's user avatar
  • 175
14 votes
1 answer
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 ...
Jake Steele's user avatar
13 votes
8 answers
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?
user avatar
13 votes
2 answers
8k 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 ...
user5389726598465's user avatar
13 votes
1 answer
4k views

How is double-spending prevented in traditional banking?

I have been getting familiar with crypto currencies and, in particular, with the double spending problem. This has brought up the question of how double-spending is prevented and controlled in ...
fons's user avatar
  • 233
13 votes
4 answers
57k views

Can I place a stop loss and a limit sell at the same time?

Let's say I bought 100 shares of company XYZ at 10$ a share. I think that the market price will rise to 12$, so I would like to sell ALL MY SHARES at 12$ (that's the limit sell order). On the other ...
RandomGuy's user avatar
  • 131
12 votes
2 answers
937 views

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
11 votes
3 answers
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 ...
Frank Swanton's user avatar
11 votes
4 answers
4k 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 ...
Nicholas's user avatar
  • 2,871
11 votes
3 answers
2k views

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
2 answers
1k views

How To Report Cryptocurrency Earnings?

I invested in a decentralized bitcoin business and earned about BTC 0.4 this year in interest from it, but there is no official business - it's purely autonomous (very hard to explain). I also "mined"...
Dred Rigoch's user avatar
10 votes
3 answers
3k views

Is thomastradingservices legit? [duplicate]

I have invested in a company called thomastradingservices (link removed) and got profit. Now to withdraw they say I need to buy bitcoin worth 20% of the profit and send it to their wallet to receive ...
Ivar's user avatar
  • 111
10 votes
4 answers
2k views

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
7k views

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
10 votes
4 answers
2k views

How should I handle a request for payment from a bitcoin investment company to recover coins they sent to me that are "stuck in limbo"?

I made a bitcoin investment with a company online. The first return sent back to me was fine but the second has issues. They sent me an email like the first time stating that the money was sent but I ...
Ada's user avatar
  • 117
10 votes
4 answers
9k views

When the market cap goes down, does that mean people are taking money out? [duplicate]

My question is about the market cap figure on coinmarketcap.com and dealing with crypto currencies. So yesterday the market cap was at 720 billion dollars. Today it's below 600b$. Does this mean ...
Peter's user avatar
  • 211
10 votes
2 answers
1k views

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
9 votes
3 answers
5k views

Someone on Instagram is offering to buy art I posted as NFTs. What is my risk?

I have an Instagram account where I post some content from time to time. Recently, I've been posting some images I created via AI, which I indicate in every post. Today, I received a message where ...
Tarish's user avatar
  • 93
9 votes
3 answers
3k views

Will a BitCoin purchase be affected by GBP->EUR pre-exchange

I live in the UK, and am trying to find a site that allows purchase of BitCoin using GBP; our local currency. Of all the sites I've tried so far, even though they provide flashing banners saying 1 ...
EvilDr's user avatar
  • 193
9 votes
1 answer
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 ...
Kai Qing's user avatar
  • 1,217
9 votes
1 answer
588 views

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
9 votes
2 answers
5k views

Why do Ethereum and Bitcoin have very similar charts?

I have noticed today that Bitcoin (BTC) and Ethereum (ETH) charts look almost the same. Why are they so correlated?
Slava Fomin II's user avatar
8 votes
5 answers
3k views

Can a contractor convert a cryptocurrency payment into money? [closed]

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 — ...
George's user avatar
  • 117

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