Cryptocurrency FAQ (2024)

FAQs

What is the golden rule of crypto? ›

Investing in crypto, still a new and volatile asset class, follows many of the same rules as investing in other markets. The most important rule is never to invest more than you can afford to lose.

The same-day rule in share pooling determines the cost basis based on the cost of crypto acquired on the same day, helping prevent 'bed-and-breakfasting' tax avoidance. The 30-day rule states that if a crypto asset is sold and repurchased within 30 days, the cost basis is the purchase cost of the newly acquired asset.

Mandatory yearly reporting will phase in starting in 2026, with digital currency brokers required to cover gross proceeds from sales in 2025 via Form 1099-DA. In 2027, brokers must include cost basis, or purchase price, for certain digital asset sales for 2026.

You can cash out bitcoins for real money through exchanges, peer-to-peer platforms, or Bitcoin ATMs. Each method offers different fees and processes, so choose one that suits your needs.

For founders and CEOs in the blockchain industry focusing on NFTs, the 80/20 principle can also provide valuable insights. By identifying and focusing on the 20% of efforts that bring in 80% of results, companies can optimize their resources and achieve maximum impact.

On a panel hosted by CNBC's Dan Murphy at the Abu Dhabi Finance Week on Wednesday, the New York University professor said there were “seven Cs of crypto”: “Concealed, corrupt, crooks, criminals, con men, carnival barkers,” and finally, Binance Chief Executive Changpeng Zhao, known as CZ, who spoke on a prior panel at ...

If you're looking to earn $50 a day, speculating on market movements is the best way to make money from the cryptocurrency market. You'll need a secure crypto wallet, and you should avoid storing your assets on the exchange's website. Using an exchange's online wallet is the least secure option.

Crypto has created life-changing wealth for many people. But passive income from crypto is possible even on a smaller scale. With the right strategies, you can realistically earn an extra $1,000 per month in passive crypto income.

You can make $100 a day trading crypto by trading —

Each of these has its own advantages and disadvantages. Spot markets offer the least amount of risk as you only stand to lose the percentage the market moves at.

The IRS treats cryptocurrencies as property for tax purposes, which means: You pay taxes on cryptocurrency if you sell or use your crypto in a transaction, and it is worth more than it was when you purchased it. This is because you trigger capital gains or losses if its market value has changed.

Do I report crypto if I didn't sell? ›

If you buy Bitcoin, there's nothing to report until you sell. If you earned crypto through staking, a hard fork, an airdrop or via any method other than buying it, you'll likely need to report it, even if you haven't sold it.

Capital Gains Tax rate

You'll pay a 0%, 15%, or 20% tax rate depending on your taxable income. If you earn less than $44,626 including your crypto (for the 2023 tax year) then you'll pay no long-term Capital Gains Tax at all.

There is no way to legally avoid taxes when cashing out cryptocurrency. However, strategies like tax-loss harvesting can help you reduce your tax bill legally. Converting crypto to fiat currency is subject to capital gains tax. However, simply moving cryptocurrency from one wallet to another is considered non-taxable.

In conclusion, the Golden Cross in crypto trading is a technical analysis signal where the short-term moving average (like the 50-day SMA) crosses above the long-term moving average (like the 200-day SMA), suggesting a potential shift to a bullish market trend.

There's a saying in the industry that's fairly common, the '90-90-90 rule'. It goes along the lines, 90% of traders lose 90% of their money in the first 90 days. If you're reading this then you're probably in one of those 90's... Make no mistake, the entire industry is set up that way to achieve exactly that, 90-90-90.

Golden Ratio Multiplier Explained

The Golden Ratio Multiplier shows the daily 350-day moving average of Bitcoin's price and compares it to that average multiplied by the Golden Ratio (1.6) and the Fibonacci sequence (0, 1, 1, 2, 3, 5, 8, 13, 21).

Another factor that has made Bitcoin the gold standard for crypto investors is its unique risk-reward profile. For much of its existence, it has been uncorrelated with any major asset class, and that presents enormous potential for portfolio diversification.