Taxation of cryptocurrencies, what you need to know when using digital money
Gradually, digital currencies are taking up more and more of a place in our lives; some use cryptocurrencies exclusively for investment, while others use them for daily payments.
At the same time, not everyone realizes that profits received from using cryptocurrencies are taxed according to the same scheme as profits from exchange rate differences in transactions with conventional currencies.
Therefore, an unpleasant surprise may be a letter from the tax service offering to pay taxes and fines for not paying them on time.
It would seem, what kind of taxes could there be if you are not engaged in stock exchange speculation, but use this type of asset exclusively for your needs.
What is 1 lot of cryptocurrency equal to, features of determining transaction volumes for cryptocurrency pairs on Forex
Those who have been trading Forex for several days have long been accustomed to the fact that 1 lot of a currency pair is equal to 100,000 units of the base currency.
But new assets are constantly appearing on the trading platform, for example, cryptocurrencies, and every day their list is becoming larger and larger.
Cryptocurrency pairs are traded in lots, just like other assets, but unlike standard currency pairs, 1 lot here has different values depending on the selected asset.
This point sometimes causes difficulties for novice traders, because opening a new deal is quite difficult if you don’t know how much money it will require.
Investing in Tether Gold cryptocurrency as an alternative to physical gold
For thousands of years, investing in gold has been considered one of the most secure investment options.
This metal was a place to store savings in turbulent years, when money lost its value and purchasing power.
But time does not stand still and gradually physical gold replaced gold bank accounts, and with the spread of cryptocurrencies, cryptocurrencies tied to the precious metal also appeared.
Today, Tether Gold is a gold-backed cryptocurrency; the price of one coin corresponds to the price of one troy ounce.
How to identify the most liquid cryptocurrencies and why this is needed
Despite the fact that the rate of cryptocurrencies has dropped significantly recently, interest in transactions in digital currency still remains quite high.
Some use cryptocurrencies in current calculations, while others consider the current decline to be the best option for investing in this category of assets.
At the same time, the main question facing each potential investor is “Which cryptocurrency should I invest in?”
In our case, one of the criteria for assessing the attractiveness of an investment asset is its liquidity; it is this indicator that affects the comfort of working with digital currency.
Stablecoin storage options, profitable or convenient
Recently, stablecoins have gained enormous popularity; unlike other cryptocurrencies, their capitalization has practically not decreased.
Many of my friends, and I myself, use this type of digital money for payments and simply storing available funds.
This type of cryptocurrency is sometimes practically the only possible option for withdrawing money abroad without unnecessary formalities and in any volume.
However, the open question remains: where is the best place to store existing stablecoins? Today there are three options available – a crypto-wallet, a crypto-currency exchange, and an international broker’s deposit.
Cheap cryptocurrencies, bright prospects for earning money or wasted money
Many of us have more than once regretted that at one time we did not buy a couple of bitcoins at a price of 3 cents apiece and missed the opportunity to make good money.
But not everything is so bad, with the advent of new, cheap cryptocurrencies there is also a chance for record profits, who knows, perhaps one of the altcoins will repeat the fate of Bitcoin and rise in price several thousand times.
Surprisingly, this has already happened more than once; for example, the same Ethereum at one time cost less than 1 US dollar, but now its price is 4 thousand.
At the same time, there are also cryptocurrencies that have risen in price not long ago; the same Polygon, which cost $0.03 at the beginning of the year, has risen in price 75,000 times over the year and now its price is $2,270.
How to use leverage for cryptocurrencies and what it is like
Cryptocurrencies are currently the most volatile exchange asset on the forex market.
Due to the high speed of trend movement during the day, cryptocurrency rates can change by tens of percent and bring good profits to the trader.
But even such dynamics of exchange rate movement may not be enough for the set goals, then you should use leverage for cryptocurrencies.
That is, increase the volume of a future transaction using borrowed funds provided by the brokerage company, and therefore increase the amount of potential earnings.
What is and how to determine a cryptocurrency pump and dump (Pump and Dump)
Such a thing as a pump and ladies has long been familiar to those who are engaged in exchange trading or investments.
Pump and dump are methods of influencing the price of market assets. Pump - pump up or play for an increase, Dump - dump or play for a decrease in the exchange rate.
At their core, these two methods are an attempt to artificially influence the price of securities, cryptocurrencies, futures or other assets.
That is, this influence can be assessed as a way of manipulating the market, as a result of which the exchange rate changes in the desired direction.
Trailing stop for cryptocurrencies, need for use and installation features
Gone are the days when trading cryptocurrencies was reduced to banal earnings on the growth of the exchange rate.
Most speculative traders have long appreciated the comfort of trading in the trading platform and transferred their transactions to a special trading program.
But newbies do not always use the full functionality provided by metatrader or other similar software.
But trading in cryptocurrency pairs is no different from trading in regular currencies, which allows you to use all the capabilities of the trading platform , including such an order as a trailing stop.
Trading volumes as an assistant when trading cryptocurrencies
One of the biggest things about trading cryptocurrencies is that even in this unusual market, standard market laws apply.
Here you can also apply strategies that are successfully used on currency pairs and conduct technical analysis using indicators.
There are many indicators that characterize the trend, one of the most striking of which is the total volume of transactions performed.
That is, for what amount are transactions concluded during a certain time period - an hour, a day, a week.
How to reduce risk when trading cryptocurrencies
Thanks to the popularization of the cryptocurrency market, trading this asset only vaguely resembles classic stock trading.
The main strategy of market participants here is based on the principle - buy when the price goes up and sell when the price goes down.
What kind of technical analysis or risk mitigation tactics are there? The process often resembles the purchase and sale of currency at a regular exchange office.
Many people saw what this behavior leads to during the last drop in the virtual money market, when many of the cryptocurrencies fell in price by almost half.
Indicators for cryptocurrencies, market analysis, trend determination
The cryptocurrency fever, which has caught a huge number of people, has once again proven that the market simply does not tolerate unprofessional and superficial traders.
The enormous excitement about record growth rates, which was spread by the media and on various channels of YouTubers and bloggers, attracted a huge number of ordinary people to the market.
Information was received from all sources that it was necessary to buy cryptocurrency.
The most interesting thing is that people could not even imagine that the crypto currency market could move in a direction other than up.
Indeed, almost everyone was able to make money on the wave of excitement, but no one talks about how many lost huge money after the market suddenly changed its course.
In fact, cryptocurrencies are practically no different from any other trading asset on the movement of which traders speculate.
When to Buy Cryptocurrency, Best Time to Buy Bitcoin and Altcoins
Recently, the cryptocurrency market has been constantly growing, it would seem that it does not matter at all when to buy cryptocurrency, in any case you will win.
Often, investors actively begin to buy cryptocurrency at the peak of growth, after it has already reached another high.
But in fact, a spontaneous purchase at the wrong time may not only not bring profit, but even lead to significant losses.
Therefore, before making a transaction, it is recommended to first conduct a small market analysis and determine the most successful points for opening a transaction.
This is not at all difficult to do, since lately cryptocurrencies have been moving according to a certain pattern; you just need to analyze the movement chart of the selected asset.
Cryptocurrency scalping, strategy and best cryptocurrencies for scalping
The Scalping trading strategy involves making money on short-term transactions, the duration of which does not exceed several minutes.
The main conditions that determine the possibility of using this strategy are high liquidity, the presence of leverage and quick opening/closing of positions.
This is why cryptocurrency scalping is most effective when using a trading platform.
In this software, you can open and close transactions in one click, and do so with a specified volume; in addition, there are opportunities to automate the process.
The second advantage of using a trading platform is that you can use the leverage provided by the broker.
The best platforms for trading cryptocurrency including Bitcoin
Over the past couple of years, cryptocurrencies have been perceived not only as an investment object, but also as a profitable asset for trading.
Many investors who initially simply bought Bitcoin and waited for the price to rise have now switched to speculative operations.
And as you know, the most comfortable way to carry out speculative transactions is in a special program, since ordinary crypto exchanges do not provide such opportunities - transactions in both directions, pending orders, technical analysis, automatic trading.
Therefore, it is advisable to know which trading platforms for trading cryptocurrency will make this process more efficient.
The most volatile cryptocurrencies on which you can make good money in 2021
Most traders who make money on cryptocurrencies have long been convinced that the best option for trading this asset is to use a trading platform .
The trading platform does not expand the technical possibility of trading, but also provides the opportunity to apply a credit shoulder.
True, the leverage provided by brokers for cryptocurrency pairs rarely exceeds 1:5, so for ultra-profitable trading it is best to choose the most volatile cryptocurrencies.
It is due to the high dynamics of price movement that you can earn up to 100% per day even when using a leverage of 1:5.
In 2021, this market segment has become the leader in the speed of trend movement, but for stable earnings it is necessary that the selected asset has not only high volatility, but also good liquidity.
Take profit for cryptocurrencies, the best way to take profit on time
Trading cryptocurrencies through a professional trading platform is not only more profitable, but also more convenient.
In addition to the fact that there are much lower overhead costs and commissions, the platform also allows you to use stop orders - stop loss and take profit.
We talked about how to prevent large losses using stop loss in the article on this page - https://time-forex.com/kriptovaluty/stop-loss-dlya-bitkoina
But in addition to losses, there is also profit, which must be recorded in time by closing the existing transaction.
We are all familiar with the situation when, waking up in the morning, we find that the price of the purchased cryptocurrency rose to its maximum during the night, and by the morning it had fallen again.
What is capitalization and what role does it play when trading cryptocurrencies?
If you want to make consistent money on the stock exchange, then you should understand that stock trading is more than just buying when the rate goes up and selling when the rate goes down.
In order to make a successful transaction, you need to take into account not only the existing trend, but also the factors that confirm it.
One of these factors is the market capitalization of the asset, and it does not matter whether the asset is a company stock or cryptocurrency.
The easiest way to understand the essence of capitalization is through the example of securities, or, more precisely, the company that issued them for circulation.
For example, if there are 1,000 shares of a company in circulation on the stock exchange at a price of $100, then the market value of the company as a whole is 100,000.
The most popular cryptocurrencies 2021 for earning and investing
There is no doubt that cryptocurrencies are now one of the most interesting assets for anyone to earn money from.
It doesn’t matter how long this type of money will last, but you can make money by buying and selling it today and now.
The only thing that remains is to figure out what to focus your attention on, because rushing between different assets can lead to disappointing results, and not all altcoins allow you to work with them effectively.
Let's try to find out which of the most popular and liquid cryptocurrencies are suitable for making money in 2021.
At the moment, there are several favorites, trading which you can earn a lot, but a lot.
Free cryptocurrency signals based on technical analysis
Currently, cryptocurrency trading is, in most cases, a chaotic process.
Trading participants en masse begin to buy digital money, for which an upward trend appears, and rush to sell what they bought as soon as signs of a fall in the exchange rate appear.
But cryptocurrencies, like other classical currencies, lend themselves well to technical analysis, and this can significantly increase the efficiency of transactions.
And make the trading process more orderly and, as a result, profitable.
As with other exchange assets, the most important point here is the time of opening transactions and the moment of their completion at the most favorable price.
What is the Tether cryptocurrency and is it possible to make money on it?
We are already accustomed to the fact that most people perceive cryptocurrencies only as a source of investment or as an asset for making quick money.
But this is only one of the opportunities that digital money provides; in fact, this type of currency was created for other purposes.
The main goal of Bitcoin was to be complete anonymity, which would keep the owner of the tokens incognito.
That is, it was assumed that this type of payment would be used to pay for goods and services if the counterparty wants to hide his identity.
This approach allows you to hide income and not pay taxes, because in many countries tax authorities control not only income, but also expenses.
Crypto trading or why trading cryptocurrencies is easier than trading regular currencies
For a long time I was not a supporter of crypto trading, but after recent events my opinion has changed dramatically.
An experiment with the purchase of several cryptocurrencies brought unexpectedly large profits, and it was possible to make money both on an increase in price and on a downward trend.
With all this, I was surprised by the simplicity with which crypto trading takes place, namely how much easier it is to trade cryptocurrencies than the monetary units we are familiar with.
In just a few weeks, I managed to earn more than on classical assets in several months; now digital currencies have been permanently included in my arsenal of preferences.
So, how does crypto trading differ from the tools we are used to?
First of all, it is a stable trend; if cryptocurrencies begin to rise or fall in price, then with a high probability this movement will last quite a long time.
Cardano cryptocurrency current status and investment prospects
This cryptocurrency attracted the attention of investors not so long ago and this happened due to a record increase in value.
In just a couple of weeks, Cardano rose in price several times, from 35 cents to 97 cents per altcoin, or almost 300%. It
should be noted that before this jump, the asset had been growing steadily for several months; on January 1, 2021, its price was only 18 cents.
After such a significant and rapid increase, many people have a question - What kind of cryptocurrency is this, and most importantly, what are the prospects for its growth.
The Cardano platform appeared back in 2014, but the cryptocurrency itself came into circulation at the end of 2017 and is essentially a fairly new monetary unit.
Simple and effective Bitcoin strategy
For many people, stock trading seems like something very complicated and accessible only to graduates of Harvard or another prestigious university.
This is not surprising, because most strategies intended for trading are striking in their complexity and intricacy.
But in fact, there are simple trading options that allow even a beginner to get a guaranteed profit.
Moreover, these strategies work great not only on the Forex or stock market, but also for digital currencies.
It can be used both for trading Bitcoin and for other types of digital money; at one time I managed to make good money with Ripple and Litecoin with its help.
How to buy cryptocurrency in real life, the best payment options, including cash
At the moment, there are several categories of cryptocurrency users, each of which has its own goals.
Some people trade digital money on Forex, taking advantage of high volatility and rapid exchange rate changes, others use Bitcoin and other cryptocurrencies for savings, settlements, or tax optimization.
And if with speculative trading everything is relatively simple, then with real-life transactions you should take into account a lot of nuances, starting from the place where to make the exchange, ending with the choice of payment option.
Today I will talk about a company that has been providing services in the crypto-currency market for a wide range of users for more than three years.
The main activity is the purchase/sale and exchange of cryptocurrencies, as well as the provision of some other types of services.
List of cryptocurrencies that can be traded on Forex
We have written more than once that you can trade cryptocurrencies not only on specialized platforms, but also on Forex.
Moreover, it is much easier to organize cryptocurrency trading on a currency exchange. Unlike other currency pairs, digital currency trading is available 24 hours a day and 7 days a week, meaning you can buy or sell digital money at almost any time.
There are many advantages why this asset is best to trade on Forex and only one drawback.
This disadvantage is that not all digital currencies are available in the trader’s trading terminal.
But gradually the situation is changing for the better and the list of available assets is becoming larger and more impressive.
How to trade cryptocurrencies on the exchange
The main and only asset used for trading on Forex is currencies, so it would be strange if brokers did not provide their clients with the opportunity to trade liquid cryptocurrencies.
The enormous popularity of the latter is an excellent opportunity to make money on the difference in selling and buying rates.
Moreover, many investors have already become disillusioned with specialized intermediary exchanges that provide similar services.
The advantages of stock trading through brokers are obvious, but listing them would take more than one page.
Here are the main ones - a professional trading platform, leverage, free analytics, signals for opening transactions, risk insurance, automatic trading, etc.
Usually, novice traders have a lot of questions:
- Who provides the opportunity to trade cryptocurrencies on Forex?
- What is the trading platform?
- Where to learn trading and how much does it cost?
Trading Dash on Forex
There are several digital currencies that can be traded not only on specialized exchanges, but also on Forex.
One of them is Dash, which is not just a digital currency, but an entire payment system built on the latest technologies.
There are more than 2,000 companies around the world that accept Dash as a means of payment for goods or services.
This asset has high capitalization and good liquidity, which allows it to be one of the thirty most popular assets in this market segment.
You can trade it both on special exchange platforms and with Forex brokers through trading platforms for trading.
Is there a future for digital money?
The first virtual currency called Bitcoin appeared in 2009, then no one thought that this type of electronic money would gain such popularity.
This monetary unit made it possible to maintain complete anonymity of the owner and, at the same time, eliminated some of the disadvantages inherent in other electronic money.
After the popularity of Bitcoin began to rise and its value began to be created in parallel, hundreds of other digital currencies began to be created.
Cryptocurrency trading has begun to gain popularity among more and more people.
Until 2018, it seemed to many that this type of payment was the future; the cost of one bitcoin reached $19,000, and then collapsed.
Thus, dashing the hopes of investors who believed the forecasts that the first digital currency could reach the $100,000 mark.
Arbitration on cryptocurrencies and whether it is worth using it
Arbitrage trading of any financial instruments is the most attractive way to make money on decentralized markets.
This tactic is especially popular among traders who trade popular cryptocurrencies on Forex.
Although quotes for liquid currency pairs are provided by the Chicago Futures Exchange, they may vary significantly
brokers The permissible error range varies within 10 points.
Experienced traders can use this effectively in short-term trading. Cryptocurrency trading is developing extremely rapidly, but the cost of digital financial instruments is still not regulated by government or other competent structures.
Using pending orders when trading cryptocurrency
It has already happened that trading using a strategy on pending orders is one of my favorite options.
A pending order is an order to buy or sell on a trader's trading platform, which will be executed as soon as the price reaches the level you specify.
There are a lot of advantages to this strategy, and one of the main ones is that you don’t have to constantly sit in front of a computer monitor waiting for the right moment.
That is, thanks to this opportunity, you do not need to wait for the currency to start getting cheaper (more expensive), you just need to indicate the price at which you want to sell or at which you want to buy the selected asset.
Trading cryptocurrencies using pending orders becomes more efficient.
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