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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1answer
99 views

0 commission Crypto exchanges? [closed]

I’ve been trying to find a cryptocurrency exchange other than Robinhood (because I don’t trust them) that has no commissions. I would also like it to be possible to not to give them my bank account ...
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2answers
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What would qualify as capital gains to be taxed on in this scenario? [closed]

So I have recently gone into investing crypto and have made good money on it. However I recently started thinking about the taxes on my investments. I'm not a day trader but I do sell and buy the same ...
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1answer
251 views

How to calculate cryptocurrency future price required market capitalization?

How do I calculate if a selected crypto coin (Eg: Cardano) needs to reach USD X (eg USD 100), how much market capitalization required? I want to know this because of the quora.com following answer. ...
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3answers
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Taxes on stocks/cryptocurrency day trading

I understand that stocks and crypto are treated as capital gains when a net profit is made, and taxed as such in the United States. My question is what happens when a particular stock or set of stocks ...
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3answers
311 views

How can such a thing as a "fully collateralized" Bitcoin loan exist?

Let's say I want to buy a house, but I don't want to spend any of my 10 BTC. So I want to borrow 1 BTC. In order for me to not be able to scam whoever lends me that 1 BTC, I have to "fully ...
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12answers
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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 ...
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1answer
155 views

Rapids (RPD) cryptocurrency: 3190500% increase in 1 hour

I noticed that the price of Rapids (RPD) cryptocurrency increased by 31,915,000% (market cap: $400bn) in 1 hour yesterday on 8th May. Shortly after (5-10 minutes), the price dropped by 99.6% (market ...
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1answer
212 views

Is it legal and possible for me to start a "tax haven" account in some distant country while still living in Sweden?

I have just realized that if I ever sell my Bitcoin for fiat, the Swedish government is going to tax 30% of it. Yes, it's "only" on the "gains", but since I primarily bought them ...
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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 ...
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2answers
118 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
116 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 "...
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0answers
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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 ...
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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?
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3answers
416 views

If I have 10 BTC in total and zero fiat, how can I calculate how long can I "burn" my BTC for my survival?

A naive approach would be to take the current Bitcoin price times 10 and then divided by 12 divided by 50. That would currently get me to a little over a thousand USD monthly for 50 years, assuming ...
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0answers
51 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 ...
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3answers
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 ...
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4answers
630 views

How should I pay tax for Bitcoin arbitrage?

I have a good friend in South Korea. He's been my friend for 15 years and I trust him more than I trust my own family. We even lived together once. My friend in South Korea is asking me if I'm willing ...
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2answers
73 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 ...
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0answers
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Bitcoin exchange fees [closed]

Where would you go to sell a large quantity of Bitcoin? The major exchanges (such as Coinbase, Gemini, etc.) charge exchange fees in the neighborhood of 1.5% of the amount being exchanged. Are there ...
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0answers
151 views

Is this new job a scam? [duplicate]

Hi so I was applying for online jobs and randomly received an email for a Personal Assistant job from JRN Financial Solutions, everything went by super quick and I got the job which I don't feel I was ...
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4answers
2k 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 ...
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1answer
66 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 ...
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1answer
186 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:...
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2answers
217 views

Have I correctly understood the logic of lending money to a bank? [closed]

Let's say that I am able to convince my local bank to borrow 1 Bitcoin from me today, with them allowed to hold it for at least a year before I am able to ask them to give it back. After a year, if I ...
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3answers
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 ...
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1answer
131 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 ...
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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 ...
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1answer
119 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 ...
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1answer
159 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 ...
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0answers
38 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, ...
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3answers
332 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 ...
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1answer
141 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 ...
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1answer
219 views

Bought coin for $30k, sold at $40k, and buy more in $46k. Makes sense? [closed]

Numbers are for example. Does it makes sense to engage in such day trading? (For bitcoin)
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1answer
150 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 ...
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3answers
315 views

A man had a friend send me cash to convert to Bitcoin to send him to pay for medical expenses [closed]

I am an underwater pipeline engineer and I run a small contracting firm in Dallas. We are contracted or hired for services like full installation and maintenance of heavy duty pipeline offshore and ...
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2answers
448 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 ...
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0answers
118 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 ...
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2answers
175 views

Is this "theoretical Bitcoin income" a meaningful number in any way?

I have made a little calculation in my computer which does this: $total_theoretical_profits_in_USD = $my_current_Bitcoin_fortune_in_USD - total_amount_in_USD_that_I_have_ever_spent_on_buying_Bitcoin; $...
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1answer
183 views

Does "market manipulation" apply to Bitcoin and other cryptocurrencies?

Let's say I own a popular Twitter account with millions of followers. Would it be legal according to US law to engage in blatant market manipulation designed to trigger the price of Bitcoin to go up ...
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1answer
70 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 ...
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1answer
386 views

Do rich people never have to pay back what they borrow with their wealth as security? Does the same apply in my case?

I heard something very interesting today. Apparently, people who are the descendants of early New York City plot owners, never sell their land. Instead, they borrow money from banks (or some entity) ...
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4answers
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 ...
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1answer
96 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 ...
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2answers
179 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 ...
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2answers
244 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
405 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 ...
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1answer
87 views

Why are derivatives markets the most fragile in times of correction?

I read an article about bitcoin derivatives which has been skyrocketing lately. The author wrote at the end of the article: Derivatives markets are the most fragile in times of correction, triggering ...
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1answer
140 views

What is this action? (Bitcoin Group SE)

As I am using Degiro, I have no access to cryptocurrencies. However, when looking for "Bitcoin", I found this action: Bitcoin Group SE It looks like the chart of this action is following the ...
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1answer
64 views

Should spouses filing together, who both have traded bitcoin, mix transactions when calculating FIFO cost basis?

Or should the two sets of transactions be kept separate for calculating cost basis and gains/losses? On a related note, what if one person filing alone has accounts at multiple exchanges, should the ...
2
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1answer
168 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 ...