Taxes for digital assets

xuanling11
Coinmonks
Published in
4 min readOct 19, 2022

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Photo by Zack Walker on Unsplash

The umbrella term for all digital assets is “digital wallet” — a service that manages your digital money and stores it in a blockchain-based system. Many people use this as their primary way to store and manage their cash, but other users might also supplement their traditional bank accounts with one or more digital wallets. Great banks and other financial institutions provide services like security deposits, capping balances, and so on. Customers who want to use a service like that for storage of their personal data can choose from several options: an online wallet from a web site or mobile app; a physical wallet (which some banks also offer); or another service like an ATM borrow agency. These are generally considered less secure than using one of the above options. But what if you can’t go anyplace else? What if your bank doesn’t provide services like those available through its intranet? This is when the term “digital asset” might be right for you. In this article, we discuss the basics of how your digital asset is treated as cash by your bank, what they will ask for in return, and what types of assets are covered by different digital assets.

What is a digital asset?

A digital asset is any digital content, service, or wealth that can be owned and controlled like a physical asset. Digital assets can be used to store data, create virtual assets, or all…

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