Tax On Cryptocurrency

Cryptocurrencies are one of the most profitable investment options, for prices on crypto assets are changeable, and this allows for a lot of earning opportunities. Crypto trading platforms are meant to enable traders to conduct operations with crypto assets with the purpose of making a profit. Examples of crypto platforms:

WhiteBIT
Binance
Coinbase
KuCoin
Huobi
etc.

These and many other crypto exchanges offer up-to-date cryptocurrency rates and provide a big range of digital assets to buy, sell, swap and do a variety of other operations such as:

trading against fiat currencies (the opportunity to make deposits and withdrawals with fiat);
staking (holding assets on the exchange’s wallet and receiving interest in return);
futures trading (derivative contracts on buying or selling digital assets at a pre-agreed price and on a pre-agreed day);
leverage trading (multiplying initial investment amount 10, 20, 30, 50 times, etc. to multiply the profit);
spot trading (coins exchange at up-to-date market cryptocurrency rates);
etc.

Such a variety of earning opportunities attracts beginner traders to the market. They often wonder about taxes on cryptocurrency. Let’s switch to this topic.

Do You Have To Pay Tax On Crypto?

Besides the variety of trading tools, every crypto exchange charges fees for operations with digital assets. We cannot call it “crypto tax rate” because, in fact, the crypto market is not subject to tax policies. Government and central banks do not impact crypto assets. The only fee you pay is when using crypto platforms. An average commission is 0,10%, but every exchange has its own fee policy, depending on the operations you carry out.

Another thing worth attention to is bank fees when you use a bank card to deposit or withdraw money on crypto platforms. Pay attention to your bank’s policy before using your card, for they are charged independently from the crypto platform.

Contributer