Crypto Trading Gets TO A New Dimension with the Best Base

Crypto Trading Gets TO A New Dimension with the Best Base

The trade in crypto currencies is becoming increasingly popular since the digital currency was created in 2009 by the mysterious Satoshi Nakamoto. The name of this person is a pseudonym and the actual identity is still a mystery. Bitcoins have been gaining popularity in recent years, and more and more investors have found it. Private individuals are also attracted by digital currency trading and we’ll show you how it works and what you need to consider when it comes to taxing crypto currencies.

How does crypto currency trading work?

Wire transfers of Bitcoins (BTCs) and other crypto currencies are handled via the Internet using peer-to-peer applications, eliminating the need for a centralized clearinghouse, as is required in conventional banking. Bitcoins, also known as crypto-signaling, use cryptographic techniques to ensure that bitcoin transfers are made only by the owner. So the monetary units cannot be spent endlessly. By not having a central clearing house in this process, digital currency advocates argue that monetary democratization can be achieved.

Crypto Trading Gets TO A New Dimension with the Best Base

Since when are crypto currencies taxable?

If you trade in different crypto currencies with Atecs Capital, then you are dealing in principle with different assets and trigger a virtual taxable transaction. The German tax law knows no difference as to whether Euro or Ethereum is in the transaction in the end. Thus, the trade is taxable even before the payment of crypto currencies.

Even if you give away Bitcoins, taxes may be incurred. Gifts are taxable transactions in which the allowance amounts to 20,000 euros. Thus, bitcoins that are given away to friends or family, for example, and are below the value of 20,000 euros, must not be taxed. The income tax is not triggered by this process, which means it is not a private sale transaction.

Where the surpluses from Bitcoin trading should be entered?

The profits from disposals are to be noted in the SO (Other income) section of your tax return (on the reverse side or in points 41-48). The surplus can be calculated from the selling price, minus the acquisition costs and costs of sale. The tax rate on this surplus is between 0% and 45%. Tax evasion can be prosecuted for up to 10 years – which is why it is important to make no mistakes. If you are unsure, it is best to seek help from your accountant.