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7 years ago in #crypto by rok-sivante (77)
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This is a big problem with taxation..."pay double to support the government's wars, corporate subsidies, and other inefficient programs that probably don't align with your moral values." This is why I got into cryptos. Take the power away from the centralized, oligarchs and give it back to the people. Hopefully soon I won't have to cash out into fiat and I can avoid double taxation. I pay plenty of taxes from my salary, sales tax, etc. As of trading...they say 90 percent of people lose money day trading. I prefer mid term to long term holding, but sometimes if things line up properly, I will go for the short term day trade. Nice share
It's mad, I didn't see things like this. I'm a Business student in a United Kingdom University, making music and kind of trading/HODLing, and I don't pay taxes (yet) so I didn't even ask myself the question about this. I just pay all those fees from buying from X market or exchanging on Y exchange platform.. Buying BTC with fiat is such a pain.
Great value comment though!
participation will improve if it is taxed because it automatically gets the legal status
Great point!
Informative, thanks!
Thanks for sharing this great topic and i'm hoping to read more from you
Great article...
I just released the results from my FREE trading fund...
Benkalashnikov Trading Fund Is +22% This Week (Beating Bitcoin) — Steemit https://steemit.com/bitcoin/@benkalashnikov/benkalashnikov-trading-fund-is-22-this-week-beating-bitcoin
Very informative, goind to look for part 1. awesome post!
hi
Follow the follow-up
Informative, but if you think about it, bitconnect investing is the same as trading because it trades against the volatility of bitcoin.
Thanks for the follow up post. Very informative. I think that taxes is one thing that many people in crypto overlook, which may come back to bite them in the future.
Personally, I consulted a family member who works in the tax office (luckily!) and I will pay capital gains on my earned income through investing, and will have to declare trading income - so you are spot on!
great postttttt @newlifeabdo
Excellent, timely piece @rok-sivante. This reinforces many issues I have been trying to explain to fellow investors/traders. Now I can just send them to your post. Tax compliance, especially here in the US, will only become more scrutinized (and prosecuted). Clearly better to prepare sooner and know ones plan and as you note "play it smart". Thank you and looking forward to a great 2018 for Steem/Steemit!
😊🙏
Tell me some trusted investing site
@mominsdt
Uh... you mean exchanges?
Amazing
Frankly, this was super helpful. Resteemed! Keep up the great work!
That's a very useful article. Thank you.
Like all things in crypto, lots of lines ( and labels) are getting blurred, whether it be investing or trading and their respective attributes and distinctions. Applying old frameworks to new the new tech of the blockchain and its related tokens and babies will be what I expect to see first. It'll be a surely be a mess and will invite (constitutional)litigations world over (see South Korea) , but hopefully, smart legislatures should realize the need for new approaches (laws and regs) to new problems/ tech. Especially if taxation is done right, it can truly be a win win for most. At the very core, the inefficiency of the tax system today (in most countries, including in India, where i'm from) is that it itself breeds the justifications, requirements and means to evade tax. Since we're all a bunch of disruptive folk right here, I'm sure the world with catch up to us soon enough (enter Gibraltar, Belarus, etc). One last thing, the difference between investing and trading will most often, as it is here, come down to how long you hold on to an asset. If you hold on to something for 3 years +, it'll probably be seen as an investment, less than that may be considered trading. This is how its done for stocks/equity, but given the time frame of crypto, this is a bit redundant, but that's what it is.
Thank you. For people new to crypto, investing and trading, this was one of the clearest, to the point, explanation of the difference between trading and investing.
The best thing about the taxes is you only pay when you cash out from what I can see you dont have to claim gains unless you cash out vs stocks you have to tally up your gains and losses on the sells for the year which I think is dumb if your not cashing out.
I’d triple check with lawyers and accountants on this, as have heard both things and not sure where the matter stands with the most recent tax law updates...
from what I can tell if you trade on bittrex binance or other non linked with bank account exchanges then you are fine its only when you send funds into an account (cash out) that the bank recieving will report to IRS. So even coinbase I believe is not the one reporting to the IRS its the individual customers banks receiving the deposits from coinbase when you withdrawl. So as far as I can tell No agency can know your gains for trading because many of the exchanges are not connected to banks
Though if you were to keep such activity hidden and eventually get busted, it might be considered tax fraud.
new-age currency
Investing in Bitcoin can start from a minuscule amount which can keep on increasing with time and experience. It’s also a long-term undertaking, which eventually might lead to accumulating a large amount of money. It can also ease the nerve-wracking volatility of Bitcoin as one would enter the market prepared for a wait.
Trading, on the other hand, should be reserved for those who know the Bitcoin nature in depth and aren’t afraid of losing. The constant fluctuation of Bitcoin can be an exhilarating experience for any trader, but at the same time, it can scare away those who do not know how to deal with it.
The difference between investing and trading Bitcoin lays not only in the technicalities of it but also in one’s character and nature.
Some see trading Bitcoin as a Wild West, without any regulations and legitimate backup, while others are just waiting for the governance to kick in. It’s a game of which nobody can predict the end result.