Cryptocurrency tax policies are confusing people around the world.
This guide breaks down specific crypto tax implications within the U.S., but similar issues arise in many other countries.
Cryptocurrencies like Bitcoin have gained significant popularity over the past few years and into 2019. This rise in popularity is causing governments to pay closer attention to the asset. Recently, we’ve seen the IRS release new cryptocurrency tax guidance and start sending thousands of warning letters to non-compliant cryptocurrency investors. The question everyone is asking: How is cryptocurrency handled for tax purposes?
According to official IRS guidance, Bitcoin and other cryptocurrencies should be treated as property for tax purposes — not as currency.
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The U.S. Internal Revenue Service (IRS) has published its first guidance in five years for calculating taxes owed on cryptocurrency holdings.
Industry members have been eagerly awaiting the update since May 2019, when IRS Commissioner Charles Rettig said the agency was working on providing fresh guidance.
There is a difference between buying/selling cryptocurrencies on an exchange and trading cryptocurrency CFDs on a CFD platform. Both activities are undertaken with the intention of making a profit by trading in the crypto market, but the processes involved are very different. This article describes how to buy and sell cryptos, as well as how to trade cryptocurrency CFDs.
Buying and selling digital cryptocurrencies is basically all about using one cryptocurrency, such as Bitcoin, to exchange it for another cryptocurrency, such as Ethereum, on a buy or sell basis, working on a cryptocurrency exchange. The process involves looking for a cryptocurrency pair in order to perform a crypto-to-crypto exchange or exchanging crypto for fiat or fiat currency for cryptos.
The first steps in the world of cryptocurrencies are always complicated and beginners quickly have to choose how they will buy their first asset. There are different options available to meet specific needs and investor profiles. It is possible to have pure peer-to-peer exchanges, to use specialised marketplaces, or to use facilitators such as Coinhouse. We look at the characteristics of these different services.
The first marketplaces for Bitcoin started in 2010. They provide an interface that connects buyers and sellers of cryptocurrencies. In exchange for this service, they take a commission on each transaction.