According to the Internal Revenue Service (IRS), most cryptocurrencies are convertible virtual currencies. This means they can be used as a medium of exchange, a store of value, a unit of account, and in place of real money. This also implies that any profits or income generated by your cryptocurrency are taxable.
Taxation can be complex depending on where you live. Crypto taxes can be lower in countries with lower tax burdens for trading and mining, whereas in countries with stricter crypto tax laws, the tax burden can be enormous.
Trading is a short-term event and thus taxable on the same basis, whereas Bitcoin mining is still a DCF strategy, depending on the jurisdictions in which you purchase a Miner. Regarding bitcoin mining and trading taxation, bitcoin mining is able to win the race due to the variety of available mining options, with remote mining being the most lucrative.
Learn more about taxes and how remote mining can be a preferred alternative by clicking on the below: - https://www.zionodes.com/blog/crypto-on-taxes-vs-bitcoin-mining
No comments:
Post a Comment