Oct 02, · Basis trading is a bit more complicated than out right position trading. However, due to the lack of understanding by many Bitcoin traders about the interplay between time and interest rates as it applies to Bitocin futures contracts, there are many more opportunities to Author: Arthur Hayes. Jul 29, · The first step to get started trading bitcoin is choosing a reliable platform. When starting out with bitcoin trading, we recommend that you opt for a user-friendly, regulated broker such as eToro. Dec 17, · Bitcoin's record rally could hit a wall in Signs in the cryptocurrency's technical chart point to a 25%% sell-off that's likely to hit early in the new year, Miller Tabak chief market Author: Lizzy Gurdus.
Bitcoin basis tradingIs Bitcoin a Good Investment? • Pros & Cons in • Benzinga
Rankings are based on usability, fees and more. Bitcoin is rising in value once again. Our guide to investing in Bitcoin will help you open an account, add your funds and make your first purchase. Learn how to trade cryptocurrency whether you're a beginner or advanced trader.
Our how-to guide provides simple instructions. Learn what it means to mine Bitcoin, how to do it, and a list of the best Bitcon mining software for casual miners and professionals alike. Benzinga's financial experts go in-depth on buying Ethereum in Read, learn, and compare your options to make the best investment. Check out our guide on how to buy Bitcoin cash and get statrted. Beninga's financial experts detail buying bitcoin with your PayPal account in Read, learn, and compare your options for investing.
Benzinga Money is a reader-supported publication. We may earn a commission when you click on links in this article. Learn more. Is bitcoin a good investment? Start with our guide to learn more and make your own judgment. Table of contents [ Hide ]. Buy Bitcoin. Cryptocurrency Explained Beginner Course.
Get Course. Cryptocurrency Mining December 23, Shanthi Rexaline. Melissa Brock. Sarah Horvath. Our guide introduces you to a brief history of HEX and the steps needed to add it to your wallet today.
Best Crypto Portfolio Trackers December 18, Interested in learning more about investing in Polkadot? Our guide will help you get started. December 17, Wayne Duggan.
The meteoric rise in the price of bitcoin has investors flocking to accumulate coins at sky-high prices. Cryptocurrency miners, on the other hand, prefer to get their coins for free.
Load More. Read Review. Best For Crypto Trading. Open an account. Best For Crypto Investing. Best For New cryptocurrency traders Cryptocurrency traders interested in major pairs Cryptocurrency traders interested in a simple platform. Pricing 1 time investment fee depends on acct. Get Started. Getting Started with Crypto. Talk about a validation for FOMO. Now, the fun part. So how do you account for which Satoshis you sold and what your basis was in those specific trades? First, I need to make a correction.
You have to identify each transaction individually to determine the basis and subsequent realized gain or loss on what you sell. They mean exactly what they say. Think about that. Prices generally rose from October to December. Likewise, in times of falling prices, it is frequently more tax beneficial to utilize FIFO which will create the bigger loss.
This is the part where I again remind you to read my previous columns and, more importantly, consult with your tax professional. Also, you should know that the default assumption by the IRS is that you are selling everything FIFO — of course, because that most often creates the largest gain and the biggest tax revenue for them.
The burden is on you to document if you use a method other than FIFO and ensure that you track everything very carefully.
This is more challenging in that it requires a more detailed level of tracking but it can be the most beneficial because you can take advantage of the benefits of both LIFO and FIFO, depending upon the current environment, by handpicking which portions of your Bitcoin you will sell specifically.
You could sell the Bitcoin acquired on November 27 th , and December 11 th , 18 th , and 25 th , but not that purchased on December 4 th. I feel like I need to touch again briefly on a topic I have addressed more specifically in Will we finally get some relief from taxes on our Crypto? Tax Code. That is trading cryptocurrency for cryptocurrency.
If you exchange Bitcoin for Stellar Lumens for example, you are deemed to have sold your Bitcoin for fiat currency at its market price at that moment and purchased Stellar Lumens for their value in Fiat currency at that moment as well.
Although we all know it is a trade, it is deemed to be a separated sale and subsequent purchase thereby creating a taxable gain or loss on the Bitcoin and establishing a new basis for the Stellar Lumens. Yep, this stuff is complex. And, honestly, even though you are smart enough to figure out investing in crypto, you cannot get what you need to prepare a tax return from a column like this.
What you can get from a blog like mine is a strong general knowledge that enables you to speak the same language, ask the right questions, and compile and provide the necessary data when meeting with your personal tax professional. Even if they are new to the crypto space, they have spent a ton of time educating themselves on how to best handle every single scenario they might face and how to thoroughly research new ones like crypto.
And since the tax code has sweeping changes for , they get to do all the research and study again to figure out what best suits your tax situation next year. But the bottom line is, doing your part by reading columns like this saves your tax professional from spending time educating you on the basics, and saving their time means you get to keep more of your crypto gains for yourself.
Like Like. Hi, Brad. I addressed depreciation of mining assets in a prior column entitled, Mining for crypto currencies and why the IRS might owe you a refund.
What is your product? If you send me an email, I can get you into a demo account to try it out and see your thoughts and give any feedback you have. We are from Canada and it was developed with the Canadian market in mind. Lots of great feedback from CPAs up here, however Id love to get your opinion as a CPA in the United States and see if its something viable down there as well or if the rules are too different. You are commenting using your WordPress. You are commenting using your Google account.