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Tax season: How to identify taxable US crypto gain/loss?

Claim your crypto losses Disclaimer: This is not tax advice. For tax advice, you should consult with tax professionals.  The purpose of this article is to illustrate how a simple crypto transaction: Buying one crypto with another crypto   may generate something that the US authorities consider as a taxable gain or loss, also called a tax event. For the purpose of this article, we will assume the following transactions: First transaction is: buying Ethereum (ETH) with US dollars Second transaction is: buying Lumens (XLM) with Ethereum (ETH) a day later  In the real world, what's happening is that the day you bought ETH, ETH price was let's say, $600 a piece (remember HODLERS from the last crypto winter? ) So you spent $600 to acquire 1 ETH.  You didn't think much about that ETH  price because your target was to buy XLM. Back then XLM couldn't be bought directly with US dollars, hence you bought ETH as a pivot. A day later when you finally com...
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How to transfer cryptos from Coinbase to Binance?

How to transfer cryptos from Coinbase to Binance? In a previous post, I covered how to buy cryptos with USD? By now you have come to realize that on Coinbase : 1) your trading options are limited.  2) Fees are very high on this Primary Exchange. I label Coinbase a primary exchange because it supports trades from and to legal currencies. As you may have discovered, most exchanges out there do not support trading with legal currencies but only trading from one cryptocurrency to another. I label those exchanges Secondary exchanges . One of the most famous Secondary Exchange is the Taiwan-based   Binance . So you have traded a few dollars for Bitcoins that now sit on your Coinbase wallet and you are eager to get into crypto trading: Buying alt coins like Ripple, Neo, IOTA… you name it. As stated in my previous post, the website coinmarketcap.com provides a great overview of all the various cryptocurrencies that are out there and where to buy them. ...

What these terms mean?

What these terms mean: coins, tokens? While I have definitely joined the crypto frenzy, I cannot help but noticing that the cryptoverse is not exactly user-friendly. As a proof, not too long ago, someone on a social media crypto group, was asking this plain question... "Can somebody tell me what these terms means? 1. Token 2. Coin 3. Alt Coin It is a very legit question, here is my best answer.  It is common to split cryptocurrencies into 3 categories: the Coins, the alt coins and the tokens The Coins These cryptocurrencies  are the main cryptos like Bitcoin (BTC) or Ethereum (ETH). They are the elder crypto currencies. They can be bought with legal or so called fiat currencies  (USD, EUR...) on exchanges that support fiat (legal currency) deposits like Bitstamp, Coinbase. The AltCoins  Growing parallel to the above main coins, Alt coins have flourished.  Most were built as an alternative or a spin-off to one of the main coins. For examp...

How to buy cryptocurrencies with USD?

How to buy cryptocurrencies / cryptos with USD? [ Disclaimer:   This blog is not to be considered as financial advising.  It simply offers tutorials on how to navigate the crypto world and make your first transactions. You should not invest any amount that you are not comfortable losing!  Trade to learn the ropes first! ]   Be prepared, acquiring cryptos is not for the faint of heart! But if, step-by-step, my lead you follow!  Coins you will earn. In a later post we will cover how to buy tokens, that is, how to participate in an ICO . What is a Crypto? A Crypto is a digital medium of exchange stemming from the blockchain technology. Cryptos have somehow hijacked back the concept of currency after it was annexed over the course of time by states and governments. Currencies, that is the medium of exchange, proved to be a powerful lever to control economies and societies. The blockchain technology ripped through that slee...