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Crypto.com Has Rolled Crypto.com Tax and We Can’t Wait For It To Go Live

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Crypto.com is pleased to announce the launch of Crypto.com Tax in Canada, with plans to expand to other markets in the near future.

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Crypto.com Tax simplifies the filing of complex crypto taxes with its user-friendly interface and country-specific tax calculation formulas. This completely free service allows users to easily produce reliable and well-organized crypto tax reports, complete with transaction history and capital gains and losses information. We partnered with competent tax advisors to ensure that the calculation logic complies with existing guidance and laws in Canada for filing crypto taxes.

Users can upload a CSV file or use API synchronization with major platforms like the Crypto.com App to import crypto transaction records from approved exchanges and wallets. Crypto.com Tax can provide users with an estimate of taxable gains/losses on related crypto transactions in a matter of minutes, which can then be downloaded for tax reporting.

Is cryptocurrency subject to taxation?

For tax purposes in Canada, cryptocurrency is classified as a commodity. Depending on the situation and the individual’s purpose, income from crypto transactions is viewed as either capital gain/loss or business income. When users sell bitcoin, they must record the sale on their Canadian personal income tax return. On the CRA website, cryptocurrency disposition is defined as follows:

  • Sell or make a gift of cryptocurrency
  • Trade or exchange cryptocurrency, including disposing of one cryptocurrency to get another cryptocurrency
  • Convert cryptocurrency to government-issued currency, such as Canadian dollars
  • Use cryptocurrency to buy goods or services
  • Crypto.com Tax has complete integration with common exchanges and wallets, as well as a user-friendly interface that allows you to get the job done quickly.
  • Crypto.com Tax is the market’s first crypto tax product that offers completely free services to anyone who wants to file their crypto taxes. We’ll do the estimate for you at no expense, no matter how many transactions you’ve had in the previous years.
  • Our user interface is simple and intuitive, with the aim of providing the best possible user experience when dealing with tax issues. Before your final results are generated, you can review all of the results.

How does tax reporting work?

To plan for  your tax returns, it’s mandatory to have complete information of your cryptocurrency transactions of all exchange and wallet accounts from the time you purchased your first crypto. Even Though, you are only filing your tax return for 2020, in order for the cost basis to be reflected, the complete transaction history needs to be submitted for appropriate results.

You can export your Crypto.com Wallet App transaction log into a CSV file. Next, upload the CSV file to Crypto.com Tax. For tax reporting of other exchanges/wallets, visit the website and follow the instructions to connect API or upload CSV file.

How do I know if my cryptocurrency is taxed?

Essentially, if you are a traditional crypto trader who treats cryptocurrency trading as a hobby, your taxable profits would be measured by subtracting the proceeds from the modified cost base of the crypto-multiplied by 50%. Any proceeds from the sale are considered capital gains and are taxed accordingly.

The income from disposition, on the other hand, would be called business income/loss if you were running a crypto business (not a hobby). Crypto.com Tax does not support business purpose transactions at this time. As a result, if your crypto transactions are business-related rather than recreational, this might not be the best tool for you.

Cryptocurrency Transactions and Taxes

Purchasing cryptocurrency (for example, CAD BTC)

Purchasing cryptocurrency is not a taxable case. However, it’s important to keep track of the purchase price (along with any related fees), since this becomes the cryptocurrency’s cost basis and can be used to calculate capital gains/losses for future taxable events (i.e. dispositions, etc.)

Selling Cryptocurrency (e.g. BTC CAD) is being sold

A taxable case is the exchange of cryptocurrency for fiat currency. Subtracting the cost basis and related costs (discussed in more detail in the commission session below) from the proceeds yields the capital gains/losses.

Property laws in other countries

If you own more than CAD100,000 in “specified foreign property” in a given year, the CRA needs you to file the Foreign Income Verification Statement (T1135). Some cryptocurrencies can be classified as “international property” depending on their location, which is not always in the country defined by the fiat currency.

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Source: https://coinpedia.org/crypto-tracking-tools/crypto-com-has-rolled-crypto-com-tax/

Coinpedia

Crypto Assets to Vouch on : Bitcoin (BTC), Ethereum (ETH), Cardano (ADA)

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Bitcoin, Ethereum (ETH), and Cardano (ADA) are the top three crypto-assets for 2021, according to the renowned YouTube crypto channel Altcoin Daily. As the crypto market continues to recover from its late-May fall, Altcoin Daily host Aaron Arnold discusses why he’s positive on top cryptocurrency Bitcoin, top smart contract platform Ethereum, and Ethereum’s close challenger Cardano in a new video.

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Though many projects, including the three highlighted in the video, have seen large increases in value over the past year, the trader points out that there are still plenty of opportunities for investors to improve their wealth with the correct crypto picks. 

Cryptocurrency offers so much potential right now. If you missed out on the early days of the internet, now is the time to appreciate Bitcoin, decentralised finance (DeFi), and crypto. This chance, like the early days of the internet, will not exist indefinitely, he said.

Arnold is bullish on Bitcoin, despite the fact that it is still struggling to reclaim the $40,000 price level and the Bitcoin fear and greed index remains in the “fear” zone. Arnold goes on to say that the present mood in the crypto markets is nothing like it was after the 2017 crash when everyone expected a brief pause before another leg up that never materialized. 

The Bitcoin taproot upgrade is also approaching, which will help keep Bitcoin in the news. According to Arnold, the improvement will improve Bitcoin’s anonymity, speed up transaction rates, and decrease the amount of data kept and exchanged on the blockchain.

Ethereum will also receive an upgrade in 2022, according to Arnold, which will keep the asset in the spotlight. As individuals stake their Ethereum on ETH 2.0, the new version will not only capture a large portion of the ETH supply, but it will also improve the efficiency of the blockchain by switching from proof-of-work to proof-of-stake consensus. 

Furthermore, according to Arnold, much of the supply of ETH is locked up in popular DeFi platforms, generating a further supply crunch for the asset. Arnold will be keeping a watch on Cardano throughout the remainder of the year, as the platform prepares to launch fully functional smart contracts in the coming months. The Alonzo testnet was just deployed successfully, indicating a strong case for the Ethereum competitor led by Charles Hoskinson.

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Source: https://coinpedia.org/altcoin/crypto-assets-to-vouch-this-week/

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Convergence Protocol Set to Integrate Unicorn Investments with DeFi

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Unicorn investments have been on the rise as more investors look for exposure in this upcoming investment niche. This market is now valued at over $1 billion and considered a lucrative niche in modern-day finance. To put it simply, unicorn investments have great potential returns for early investors that back successful projects. 

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Unlike listed companies, unicorns are mostly startups which means that only private investors can allocate funds to these projects. Currently, a good chunk of unicorn investments comes from Venture Capitalists (VCs) and private equity firms with access to unicorn stakeholders. While they continue to rip the benefits of Unicorn investing, retail investors are yet to get a seat at the table. 

A Decentralized Finance (DeFi) protocol dubbed Convergence is now attempting to create an open-source ecosystem for Unicorn investing. The project seeks to revolutionize Unicorn investing by making real-world assets available on blockchain ecosystems, including Ethereum and Binance Smart Chain (BSC). 

So, how will this change the future of Unicorn investing? A DeFi unicorn market means that users will be able to buy and sell tokenized unicorn shares. This is a significant improvement from the existing market structure where investors have to participate in a funding round to acquire a stake in a unicorn. Convergence protocol creates a bridge between unicorns and the larger crypto ecosystem. 

The DeFi market has grown exponentially in the past year following the launch of governance tokens and yield farms. DeFi enjoys a total value locked (TVL) of $58 billion with various decentralized applications, including exchanges, lending and borrowing protocols, and derivative instruments. 

Notably, most of the projects in DeFi are crypto-native and derive their value from underlying fundamentals and speculation narratives. Convergence protocol has been designed to integrate real-world assets such as real estate and unicorn shares with the DeFi ecosystem. In doing so, the project taps on real-world liquidity while exposing more people to decentralized investment opportunities. 

Built on a decentralized architecture, Convergence protocol leverages tokenization to introduce Wrapped Security Tokens (WSTs). These digital tokens represent real-world assets on Convergence and can be bought or sold via the platform’s Automated Market Maker (AMM), ConvX. The AMM is built on Ethereum and compatible with EVM, although it is set to migrate to Moonbeam. 

Convergence WST tokens allow users to wrap real-world assets onto the DeFi protocol. In the case of unicorn investments, the platform provides the necessary infrastructure for users to wrap unicorn shares and trade them in decentralized markets. Just like ordinary shares, these tokens represent the underlying economic value of a particular unicorn share. The value can be transferred from one token holder to another.  

To complement its decentralized infrastructure, the Convergence ecosystem features liquidity pools’ ConvPools’. These liquidity pools allow token holders to manage their tokenized assets through marketing incentives such as offerings and rewards for liquidity providers. The Convergence DAO is further governed by the platform’s native token, CONV, which gives holders the right to vote on future developments. 

The Future of Decentralized Unicorn Investing 

Unicorn investing is gradually shaping the future of market ecosystems, with more capital trickling into early-stage companies. Going by the statistics, it is apparent that investors are willing to take more risks in return for potentially higher returns and other incentives such as tax exemptions extended to private equity investors. 

While most investors are still new to the nuances of Unicorn investing, DeFi is one of the futuristic markets where unicorns can attract more numbers. A decentralized market allows all investors to participate instead of whitelisted stakeholders, which is the norm in traditional Unicorn investing. Convergence protocol creates just the perfect ecosystem for unicorns and private investors to transact. 

Furthermore, the project is also introducing fractionalization of the tokenized real-world assets. This initiative will allow WST owners on Convergence to buy or sell a smaller portion of the token as opposed to purchasing the whole unit. For instance, a Unicorn WST represents 10% ownership of a startup; this token can be sold in fractions to retailers who are unable to buy a whole unit. 

Unicorn investing and DeFi markets have a great potential in integrating to build a decentralized ecosystem for the former. This may take a while but will eventually come into action through solutions offered by the likes of Convergence protocol. 

Conclusion 

With crypto now in the picture, Unicorn investing is on its way to being integrated with digital markets – a move that will expose more people to unicorn investments. Ultimately, the Unicorn investments space will also grow as a result of increased liquidity from DeFi markets. This will be a step forward in creating decentralized markets where entrepreneurs and investors interact seamlessly through smart contract infrastructure.

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Source: https://coinpedia.org/news/convergence-protocol-integrate-unicorn-investment/

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Coinpedia

Crypto Communities Are More Powerful Than You Think: Here Is Why Community Focused Projects Are Ahead Of The Game

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Remember Dogecoin? A cryptocurrency that started as a joke and served no real-world utility was one of the best performing crypto assets of 2021 with over 12,000% YTD, beating the likes of Bitcoin and Ethereum. This massive return didn’t come from the technology or the team but was purely driven by the community. 

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A strong community is by far the single most important asset that any company can have, be it a startup or a cryptocurrency project. Satoshi Nakamoto realized the importance of a community from the beginning when he was working on Bitcoin. He created the BitcoinTalk Forum to introduce and discuss the idea of a peer-to-peer and decentralized currency with some of the leading cyberpunks, cryptographers, and people who cared about the project. 

Source: BitcoinTalk Forum (first post on the forum by Satoshi himself)

After Satoshi disappeared from the web, the original Bitcoin project was adopted by the community that collectively nurtured and worked towards the advancement of Bitcoin and its ecosystem. Bitcoin never had any marketing budget, and it went from nothing to become a trillion-dollar market all because of the power of the community. 

If technology is the brain, then the community is the heart of any cryptocurrency project. To understand the importance of building a community, let’s explore two of the best examples of community-driven cryptocurrency projects and how they are making a dent in the decentralized ecosystem. 

Dogecoin 

Dogecoin is a super-hyped and Twitter’s favorite cryptocurrency that got mainstream attention recently. Dogecoin was launched back in December 2013 by Jackson Palmer from Adobe and Billy Markus from IBM. It was created as a Bitcoin parody, inspired by a viral meme of a friendly Shiba Inu dog on Reddit.  

The Dogecoin fans built a dedicated Reddit community, and they started using it to tip each other over funny or informative comments since it was worth a fraction of a penny at the time. Dogecoin didn’t get the mainstream attention until last year when it was picked by Elon Musk, the CEO of Tesla and SpaceX. 

Since then, Dogecoin became the center of discussion on Twitter and was later picked up by many influencers and celebrities, including Mark Cuban. The community growth was so exponential that Dogecoin became the best performing asset, spiking up in value by 12,000% which is phenomenal. Who would have thought a cryptocurrency that started as a joke will grow so massively, all thanks to the power of a strong community. 

Edgeware

The second project that is super-focused on community building in the cryptocurrency space is Edgeware. Unlike Dogecoin that has no better technology or use case, Edgeware is a platform that bridges its sophisticated technology with a sound approach towards community building. 

Edgeware is a smart contract chain for the next generation of decentralized applications. This smart contract platform is fully EVM-compatible, allowing developers to migrate their Solidity based DApps from Ethereum to Edgeware without making a single change to the codebase. New developers coming to the platform can also use Rust and WebAssembly. 

Now coming to a great community aspect of Edgeware, it allows builders and organizers to connect with a robust community, share their skillset, and receive funds for the projects they want to work on within the ecosystem or beyond. Rather than a single large community, the Edgeware ecosystem has small focus groups where community members can interact with each other, work on ideas together, or form a team. 

To empower the community of builders and organizers, Edgeware has an on-chain treasury managed by the community. This community treasury disburses funds to a working group or a full-fledged project plan to support the development process. Edgeware is a unique platform that focuses not only on community building, but also on empowering the community and helping them engage and connect with each other in the ecosystem. 

Here are some of the many reasons why crypto projects should play their part in building strong communities where people can engage and interact with each other in ways that will benefit the ecosystem and strengthen the project along the way. 

Inclusivity And Trust

Crypto projects can play a crucial role in providing users with a sense of acceptance and inclusivity through building focused communities. It empowers users with a sense of ownership of what the project is built around. 

The projects should serve as a bridge for users to join the community through various social media platforms so they can communicate with each other. Communities can be a great way to connect newbies, traders, investors, and people from diverse backgrounds to join hands and share their views under a single platform. 

Communication Brings Clarity

The complex world of cryptocurrencies can be compelling at first, but robust communities can help bring clarity to the people once they engage with each other. Community platforms can be a great place for having two-way communication, where crypto Projects can connect with their users and answer any possible questions concerning their services, mission, or project roadmap. 

Creating Opportunities Through Online Meetups

One of the great trends among the community builders is arranging online meetups. By organizing these online meetups, crypto Projects can build a strong online presence, and welcome more people into the ecosystem, thereby creating more networking opportunities and possible peer engagements from the members. 

Conclusion

Communities are an integral part for any project in the crypto space. No matter if you have an awesome technology or an awesome team, if you don’t have a robust community, you might lose the battle. Crypto projects that are focused on building a community early on have a higher chance of getting success and traction in the market – Power to the people!

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Source: https://coinpedia.org/news/crypto-communities-are-more-powerful/

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Bullish Week Ahead For Bitcoin Price, Expected To Hit $44,000

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Bitcoin price that maintained a narrow trend since the mid-May crash, is yet again attempting to rise above $40k anytime from now. The prominent case about the bull market is the strong bounce at $31,000 each time it visits. And hence keeping the uptrend of the BTC price movements intact. 

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As the price swelled nearly 9% since Elon Musk hinted of a possible resumption of the BTC payment for Tesla car, more uptrend may be on the cards. The price is currently testing the upper resistance levels and hence a major breakout appears imminent. The price is expected to hit $44,000 anytime this week as predicted by an analyst.

bitcoinchart

The analyst said that the bitcoin is all set to undergo a breakout after not being able to break the major support levels around $31,000, multiple times. Therefore the rally is getting exhausted and will result in a massive uptrend to hit the target at $44,000. 

However, the bull rally may continue to move to newer highs in the coming days after smashing $44,000. As predicted by a popular analyst, Galaxy Trading, currently the price is aiming for $42,000 area. One done, the gates for $48,000 to $50,000 may be accessible.

The bitcoin price rally has accelerated with the fresh surge may be due to the possible resumption of the BTC payments for the purchase of Tesla Car. Moreover building the bullish momentum BTC price may recover the previous month losses and regain the levels above $60,000. 

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Source: https://coinpedia.org/price-analysis/bitcoin-price-may-surge-high-this-week/

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