In this article of the Decentralised Finance (DeFi) series, we will introduce you to the tax relevance of token rewards.

DeFi has become one of the hottest applications of blockchain technology in 2020.

With DeFi, the character of a decentralized currency is extended from Bitcoin to the broader financial sector. The transfer of value through lending, borrowing, exchange trading, derivatives trading and also insurance is decentralized and without intermediation. Participants in the DeFi system receive the intermediation fee directly and theoretically it is possible for anyone to participate.

Receiving Rewards makes participation in the DeFi system particularly interesting.

For example…

Use Blockpit’s Cryptotax Software

As the battle of the bitcoin and altcoin maximalists continues, the marketcaps are shifting and trying to find their perfect balance. Many bitcoiners seek for the perfect opportunity to increase their bitcoin holdings. With bitcoin rising above 40.000 US dollar and the bitcoin dominance trying to overcome its final resistance, many traders as well as investors are waiting for the perfect storm. Most people may already know what we’re referring to. Maybe now is the perfect time for the next #ALTSEASON.

As the past has shown us there could be one or two huge altcoin cycles in front of us.

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Taxation of Cryptocurrencies

Cryptocurrencies have been around for more than a decade now, but lawmakers, accountants, and investors still struggle to tax them properly. Why it is a challenge to come up with a cryptotax for Bitcoin, Ethereum, and co. and how this issue will develop in the future can be found below.

The Taxation of Cryptocurrency

The taxation of Bitcoin and co. is a very complex topic that comes with constant change. The legal situation has to develop just as quickly as the technology itself, which is not always easy. The American Revenue Service (IRS) first came out with a legal statement on cryptocurrencies in 2014…

In a matter of just merely two weeks, the COVID-19 outbreak has changed almost every single aspect of our daily life. It is no surprise that the virus has also had a huge impact on the financial market, which can be seen in the falling stock prices all over the world. In this blogpost we will give you an overview of what has happened so far and how this will affect the future of the crypto market.

Why the Crypto Market Crashed

With its big focus on decentralization, many people see Bitcoin and co. as kind of a safe haven asset, that cannot simply lose…

A few weeks ago, the Austrian crypto-exchange Bitpanda announced that they now offer tokenized precious metals, aside from all common cryptocurrencies, for trading and hodling. What exactly tokenized gold, silver and co. entail for us and how they are legally treated and taxed can be found in this blogpost.

What exactly are tokenized precious metals?

Basically, tokenized precious metals are digitalized securities or bonds. For example, your bank can give you a gold certificate in return for cash. This certificate entitles its owner to sell their claim of the gold for the current gold rate at any time they want to. This is exactly how it…

Monero Coin

Monero is a cryptocurrency system with a high focus on anonymity. The key feature of the blockchain and its coin XMR is the fact that transactions reduce the used information a lot. How exactly this works and why Monero offers its users a lot more privacy concerning their financial actions will be discussed in this blog post.

What exactly is Monero?

Monero is a so-called privacy coin, which means that the transactions within its system remain completely untraceable und anonymous. Monero was created during a hard fork from the Bytecoin blockchain, which was launched in 2012. Originally, the Bytecoin network had a lot of…

Crypto Regulations in Turkey

In both the cryptocurrency market and the blockchain industry, Turkey is one of the countries to keep an eye on. The gateway to the East is known for its very progressive attitude towards cryptocurrency and their population has one of the largest percentages (around 20%) of cryptocurrency owners in the world. Currently, actions involving crypto are not taxed at all, as no regulation is in place. To find out more about how Bitcoin and co. are legally treated in Turkey, keep on reading!

Cryptocurrencies in Turkey

As already mentioned, Turkey has the highest proportion of people who use or own cryptocurrency in the…

In this part of our coin series we will take a closer look at Dash. The coin was introduced in 2014 and has a big focus on the aspect of anonymity.

Dash Coin

What exactly is Dash?

Dash is based on the original Bitcoin blockchain and was created during a fork in 2014 as ‘XCoin’, then changed to ‘Darkcoin’ and ultimately renamed to ‘Dash’, which is an abbreviation of digital and cash. Evan Duffield is the man behind Dash and disliked the fact that Bitcoin does not offer fully anonymous transactions and decided to create a better version of it. …

What is the Travel Rule?

The Travel Rule is often found in combination with AML5 and Know Your Customer topics. What exactly this set of laws entails for the use of Bitcoin and co. can be found in our handy visualization below.

By on Altcoin Academy

Ripple is not only a cryptocurrency but also a real-time gross settlement system (RTGS), currency exchange and remittance network. It rose to fame during its peak in late 2017 when it almost reached a price of $3.50.

Stay up-to-date with Blockpit when it’s about taxation of your cryptocurrencies. Track your portfolio in real-time and get a personalized tax report.

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