Contest !! ||Cryptocurrency taxes

Taxes play vital role to maintain any network. Similar taxes are important to maintain crypto currency. Today I will discuss about types of crypto currency taxes in this post. I invite you very humbly to read my post and get more knowledge about crypto currency taxes.I am going to take part in this crypto currency taxes contest which title is

Contest !! ||Cryptocurrency taxes
and organized by @khursheedanwar .

First of all I would like to highlight the definition of crypto currency taxes.

cryptocurrency taxes

Crypto currency taxes are the amount which we paid extra fund for transfer token and at the time of withdrawal token. On other hand, the taxes we pay on any income we generate from purchasing, disposing of, or trading cryptocurrencies are said to as cryptocurrency taxes.

Write any two types of cryptocurrency taxes

Crypto currency has many types, two types if crypto currencies are:

(a). Bitcoin: This coin is the boss of all crypto coins. Before few years back the rate of this coin was very low and now it became very expensive and most popular. When we talk about crypto currency, its name come first of all. It is similar to digital gold.

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(b). Ethereum: This coin is also very popular in crypto currency. It visualize as a digital platform on which developers can create applications and games. We utilize Ether, the platform's proprietary currency, to transact on the network. It is digital playground designed for consumers and developers.

Is tax payment is mandatory for each and every cryptocurrency holdings?

Yes, my dear friends it is true, having of crypto currency is relate to taxation in many countries. We have to pay taxes on our cryptocurrency tokens, same as any other form of income. To make sure we are following the laws in good way. It is a good idea to verify with a tax professional or the appropriate authorities. But requirements can differ depending on where we live. We have to pay crypto currency taxes for any transactions. The amount of crypto currency is very low, we can afford easily.

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How are cryptocurrency gains and losses taxed?

It is very important for us to know how crypto currency gain and losses tax. Gains and losses from cryptocurrency transactions are usually relate to income tax and capital gains tax. It is depending on the usage and duration of the holding.
Capital Gains: We have to pay capital gains tax on any profit which we make from selling or exchanging our crypto coins for more than we originally paid for it. It is depending on how long we had the cryptocurrency before selling it the rate may change. Profit which is held for less than a year are taxed at a higher rate than profit that are held for a longer period of time.

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Income Tax: Cryptocurrency is mostly recognized as regular income and relate to taxes if it is received in exchange for products and services. The amount of income tax due is based on the cryptocurrency's value when it was given to us. For making sure we are complying with the tax regulations in our nation, it is difficult to maintain precise records of all our crypto coins transactions and to speak with a tax expert.

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