How do you treat cap gains from sales of crypto currency? Same way as stocks and shares, and other investments? I imagine if you bought 10 Bitcoin a few years ago you'd be facing a hefty tax bill if you sold them today...
Taxed like interest, stocks and shares etc. Hence why you hear so many stories of coins being "stolen" (so they can hide, away from the tax man). Ultimately though, if you sell, but don't cash out back to fiat and retain on an exchange, it would still be considered investedHow do you treat cap gains from sales of crypto currency? Same way as stocks and shares, and other investments? I imagine if you bought 10 Bitcoin a few years ago you'd be facing a hefty tax bill if you sold them today...
@systereg I've been using an exchange to purchase crypto via a verified Paypal account, PM me if interested. It may be an alternative if you don't have household bills to scan etc
Same as you, psychologically I'd rather buy thousands of an alt coin at fractions of a cent than the huge coins with 3, 4 or 5 figure dollar values. Having said that; they scale in the same way if successful so it makes no difference, but to be able to say "I own 10000 of them" is always nice.That's the sort of thing I'd rather do, buy 10,000 coins like that at 5 cents and sell for 12 cents or hold for a bit longer to see if it goes higher, it's currently trading at $0.109811 on one site and $0.1162995 on another.
Will PM about the exchange PayPal thing.
Same as you, psychologically I'd rather buy thousands of an alt coin at fractions of a cent than the huge coins with 3, 4 or 5 figure dollar values. Having said that; they scale in the same way if successful so it makes no difference, but to be able to say "I own 10000 of them" is always nice.
How do you treat cap gains from sales of crypto currency? Same way as stocks and shares, and other investments? I imagine if you bought 10 Bitcoin a few years ago you'd be facing a hefty tax bill if you sold them today...
It would be most likely that a coin worth just $0.01 is because there are more 'shares/coins' in public release, therefore you would in theory only own the same stake in the market. It might seem likely that a low value coin will increase more in value as a percentage than lets say bitcoin, but in reality, it is entirely based on fundamentals with the amount released playing a big part. As I alluded to though, it is nice to invest in something "cheap", in the hope that one day you can say "I own 10000 of those", rather than "I own 0.00002324 bitcoins" but it is entirely a mindset . For balance though, I own coins such as Litecoin (more expensive) and small coins such as Stellar Lumens ($0.03 at the time). Which one will increase the most isn't a factor of current value.Actually, isn't there a real difference? If you own $100 worth of Bitcoin you have 1/100th of a Bitcoin, but if you own $100 worth of a whatevercoin that's going for $0.01 you own 10,000 coins. So far, so obvious... But doesn't that 10,000 whatever coin stake represent a very significantly larger proportion of all available whatevercoin than that 1/100th of a Bitcoin does of all Bitcoin. In other words, are you controlling "more" of the whole market?
BTW, having been a paper millionnaire several times over just before the first dot-com crash (based on the valuation set by angel investors on a company I co-founded) only to have it all disappear when our funding ran out, I can only suggest that if you’re sitting on a life-changing pile of Bitcoin, don’t let the opportunity pass you by.
The price may rocket higher, stagnate, fall or plummet, who knows...
But what I do know is this: it is much much less painful to cry into your beer over what “might have been” if your bank account is already bulging than it would be if you tried and failed, to catch a falling knife, and have little or nothing to show for it.
I think personally if I had a couple of million pounds in bitcoin I'd be liquidating enough into cash to ensure that I had a decent enough mortgage-free house and enough in pensions to make heating + eating likely (couple of hundred grand), once you've got that... what have you really got to lose? Keep the rest in crypto and enjoy the ride.
Anybody sitting there as a paper millionaire in bitcoin but still paying a mortgage at the start of a cycle of interest rate rises is doing things wrong. Ensuring that you will live mortgage free if the bubble bursts would appear to be the minimum one should do to mitigate risk.
BTW, having been a paper millionnaire several times over just before the first dot-com crash (based on the valuation set by angel investors on a company I co-founded) only to have it all disappear when our funding ran out, I can only suggest that if you’re sitting on a life-changing pile of Bitcoin, don’t let the opportunity pass you by.
The price may rocket higher, stagnate, fall or plummet, who knows...
But what I do know is this: it is much much less painful to cry into your beer over what “might have been” if your bank account is already bulging than it would be if you tried and failed to catch a falling knife, and have little or nothing to show for it.