Do you want to join the 50 million crypto-investors, but you don’t know where to start? This article will give you the answers to the key questions you may have before becoming a crypto-investors.

Where to store your crypto-currencies?

Without entering into too much details about blockchain technologies, crypto-currencies are not actually stored, transactions are registered in the decentralized ledger, and owners use “keys” (public and private) to prove their ownership. So the first decision to make is how you want to manage your keys:

  • on a piece of paper (or in your mind if you have a good memory)
  • on a software, which could be directly on your computer or on a usb key or hard drive, such as Jaxx (mobile) or Ledger (USB…


Introduction

The last report published by the Cambridge Centre for Alternative Finance concluded that there were more crypto traders than ever, with more than 35 out of 139 million cryptocurrency accounts ID-verified users, which could be considered as regulated exchanges’ users (Coinbase, etc.), and therefore considered as active crypto traders. This figure doubled since 2017 and cryptocurrency gained 17 million verified users last year. That being said, crypto traders’ activity is difficult to track, notably because the criteria that were used varied significantly.

In another research paper Datalight investigated most popular crypto exchanges to find out which countries are actively trading and buying cryptoassets. Unsurprisingly, the main result of the study showed that most crypto traders are located in the USA, Japan and South Korea. Nonetheless, Datalight concluded with a total number of crypto traders twice as high as the Cambridge finding: 68.5 …


Despite recent talk of a coming crypto spring, the crypto winter that took hold in early 2018 still persists into the new year. While the total market capitalization of digital assets once topped $830 billion, that number is now $130 billion at the time of writing. Since the beginning of this market meltdown, we’ve witnessed bitcoin slide from $20,000 to $3,900 today — an 80% decline.

While this dramatic turn of events is undoubtedly negative, the rise and fall of digital assets continues to push a narrative that facilitates investor awareness. As they say, any publicity is good publicity — and that appears to ring true for the digital asset class. …


Cryptocurrency increased adoption suggests IRS will have heightened interest in crypto-asset capital gains, and a large cohort of investors will be forced to grapple with infamously unclear crypto taxation laws. Chances are, you’re one of them! That’s where we come in. Our tax reporting platform was created by a senior team with years of combined experience in Financial Services, Fintech and blockchain technology to help you navigate your crypto taxes with ease. Let’s delve into why Coqonut is the only tool you’ll need to calculate your crypto gains and losses.

We’re Here to Help with Your Tax Filing

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Taxes are hard enough, and your crypto assets add another layer of complexity. Look no further than US federal tax laws to uncover a myriad of confusing requirements.


With crypto taxation laws often unclear at best, those holding and trading crypto remain in a challenging position. To stay compliant, they must navigate an increasingly complex system of rules and regulations. In the United States, the IRS classifies crypto as property which formally requires the specific identification (SI) accounting method be used.

However, most crypto traders cannot comply with this formal IRS requirement due to the pace of broker-less crypto exchanges. …


As cryptocurrencies continue to gain traction and popularity, the IRS is catching up. Crypto-tax reporting is complex and can be be a painful exercise unless you use Coqonut.

Crypto-Tax rules are still relatively new and complex

Crypto-assets were popularized with s the invention of blockchain and further developments in distributed ledger technologies. . With the proliferation of different types of tokens in the market, the IRS started taking strong interest in the topic and defined the rules of the game. As a result, IRS published a short notice in 2014 in which it defined crypto-assets as a property that is, as an investment in real estate, bonds or stocks. Tax is therefore applicable from the moment investors placed their order.

Today, traders and crypto-assets holders have to file their taxes on their own, which has proven to be a daunting process This is where problems start. In order to calculate capital gains, users need to apply the FIFO (First In First Out) methodology, a process implying that the first assets bought must also be the first ones sold, which in turn requires unbundling each crypto-to-crypto trade into a ‘buy’ and a ‘sell’ transaction both expressed in USD, for which access to historical prices is needed. Additionally, other difficulties and complications are encountered, such as the treatment of payments made with crypto-assets as ‘sell’ transactions, or the consideration of the original asset acquisition date for asset transferred between two accounts owned by the same investor, or special treatment cases for airdrops, crypto-mining or selling of services or labor in exchange for crypto-assets. …

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