We withdraw profits received on the exchange through cryptocurrencies
If you've already started making money on Forex or the stock market, sooner or later you'll face the issue of taxation of your profits.
This issue has been discussed in detail on our website numerous times, and you can read more about it at this link: https://time-forex.com/info/nalogi-s-zarabotka-na-forks .
There are several options for reducing tax costs, but in any case, you'll have to pay something.
Until recently, cryptocurrencies offer a unique opportunity to completely avoid taxes when withdrawing profits.
Brokers have recently begun allowing their clients to withdraw funds to cryptocurrency wallets, thereby charging only operating expenses.
If you work with a broker who isn't a tax agent in your country, they are not required to report your income to the tax authorities.
Because real tax liabilities only arise after you personalize your money, for example, by selling cryptocurrency and having the proceeds deposited into your personal bank account.
This is a really good opportunity, and we’ll talk about how to use it to its full potential below.
Withdrawing funds from a trading account using cryptocurrency
Currently, most brokers allow withdrawals to a Bitcoin wallet, and other popular cryptocurrencies may also be available:
For example, RoboForex offers Bitcoin and Ethereum, and you can withdraw funds commission-free twice a month, which is also a significant advantage.
It's recommended to withdraw only profits and, if necessary, return the main deposit to the same account from which the deposit was made.
Before trading, you should also check with the broker to see if the company allows withdrawals to an account different from the one from which the deposit was made. If not, you'll have to top up your account using a cryptocurrency wallet.
what do you do with cryptocurrency?
After all, you still need to convert this money into real money to spend it?
That was the case a few years ago; now there are plenty of options that allow you to pay directly with Bitcoin.
Firstly, Amazon and eBay, as well as other online stores, mean you can transfer all your expenses via cryptocurrency.
Bitcoin and similar currencies are readily accepted in some restaurants, travel agencies, and hotels, and there are plenty of services for finding places where you can pay with digital currency.
You can also convert cryptocurrency into cash using crypto ATMs or exchangers, then transfer it to electronic payment systems. However, this method is more expensive than paying for goods and services.
What are the disadvantages?
The main drawback is the instability of electronic currency exchange rates. While you can make a good profit if the cryptocurrency appreciates after the withdrawal, you can also lose a lot if the exchange rate falls.
Therefore, you should request a cryptocurrency withdrawal when its exchange rate is at a significant minimum or quickly spend (convert) the received cryptocurrency into cash after the withdrawal.
