Taxes

[Anonymous No.28073960]

Sorry if you guys get this question repeatedly over here at /biz/ but I have a little money to play with and wanna into crypto

How do you guys deal with the whole tax thing? From what I can tell bisq kind of works like localbitcoins used to (no kyc), and then you can use something like cake wallet for different exchanges, then use electrum for a wallet.
This would pretty much avoid taxes? But how viable is this? Is it even worth it?

How do you guys go about " day trading" coins? Do you just use coinbase and just get your taxes done or something? Or is it something you dont have to worry about that much?
I know crypto has been band wagoning lately, but I've been using them for a long time and figured I'd give a try. Only thing is back then there was no KYC laws.

[Anonymous No.28074056]

>>28073960
Taxes are hell.

[Anonymous No.28074196]

>>28074056
I agree, any tips?

[Anonymous No.28074256]

>>28073960
my plan is to never cash out
I hope CZ doesn't give my history to the CRA

[Anonymous No.28074466]

what kind of retard pays taxes on crypto?
>if you want to decrease exposure, you can swap to DAI or USDC etc
>if you want spending money, bitcoin ATMs or bisq
>always use non-KYC exchanges or DEXs
someone please fucking tell me how or why someone pays taxes on crypto gains? avoiding the government was literally the whole point of this

[Anonymous No.28074637]

How does gov discover I have sold crypto? They get info from the bank or?

[Anonymous No.28074807]

>>28074466
I don't know, that's why I ask. All the robinhood people are paying taxes, same with the coinbase people, no? I'm not new to crypto but I'm new to KYC and day trading.
The way I thought you made money from crypto is the "boomer method" of buying when it dips and selling when it peaks. Is this not what day trading is? And the "selling" part is where taxes come in.
If what I said above is how it's done, can you sell crypto on bisq for market price, instantly? If so, do you just get someone to send you money to a bank account or cashapp or what?
I imagine simply buying crypto and saving it for when it's worth more would be alot simpler ofc.

Sorry for the spoon-feed questions

[Anonymous No.28074899]

>>28074637
I was under the impression that any exchange with KYC (know your customer) laws active, so say coinbase, robinhood, ect., Do report what you SELL/cash out to the government? Atleast if you make 20k or more and/or 300 transactions, they send you a tax form?

Maybe I'm getting ahead of myself and will never even make that much, but these questions are why I started this thread, I'm curious how the people in the know do it.
Or if I'm just worrying about nothing.
Or what the best way to go about this all is

[Anonymous No.28075122]

>>28074196
My tip is to pay them.
If you use DEXes just export the CSV for your token from etherscan directly.
If you use exchanges, "converts" as coinbase calls it goes in my excel as both a sell and a buy.
Good luck bud

[Anonymous No.28075957]

>>28075122
Thanks.
Can I ask how do most people do it? Like say open up a coinbase or robinhood account or something, then pretty much look at the price charts all the time and buy low/sell high?

Is bisq considered a DEX? If so a good one? And what are the best ways to receive payment from there if it's p2p?

Anyway I understand if you don't answer that all but can't blame me for asking kek

[Anonymous No.28076221]

>>28074899
I'm tired and retarded but remember your losses as well I believe they should off set your gains.

[Anonymous No.28076712]

>>28075957
Not sure what you mean by how to do them but basically its by coin and then just lining up when you bought, when you sold, quantity, and $ difference; OR income if it was an airdrop or interest or profit share.
All i know about bisq is theres no liquidity but maybe that will change. Is it a dex? IDK its a protocol-like dex where the liquidity providers are off chain, ive heard they maintained decentralized status but not sure how

[Anonymous No.28077414]

>>28076712
Sorry by how most people do it, I meant like making money off of crypto trading.
For example, the streamlines process for a begginer would be what?
Get coinbase or similar, and simply buy low and sell high, and when the time comes report your taxes?
Is that how most do it? Through say coinbase or similar exchange?
I know robinhood is cucked since you don't get the coins but could it be good for a begginer for "day trading" or whatever it's called? I'll of course still get actual physical bitcoins and other other crypto too if I went that route of robinhood

Anyway, thanks for the discussion and any possible info.
And yeah bisq is a dex pretty much, I think people just put up listings to buy/sell and pay through 3rd party services. Not sure what the diff between that and other dex are, or what even the point of a dex would be if not to avoid taxes

[Anonymous No.28077804]

>>28077414
My strategy is:
Buy on coinbase
Send to ether address
Use the same ether address for all swaps
Swap on uniswap.exchange from ether address
Which then makes a ledger on etherscan which i stupidly wait every year until the last minute to do
I then download the csv, do my best to remember which are sells and which are sends.
At the end of the year i need to do: coinbase taxes and that one ether address onchain taxes

[Anonymous No.28077844]

>>28074899
lol you think KuCoin based in China are sharing anything with the US/UK or any western government? ok

[Anonymous No.28077922]

Even if you don't cash out--any time you've swapped from one coin to another that becomes a taxable event and you'll be taxed for any gains you made off the original coin.

[Anonymous No.28078270]

>>28077922
Can't you just report them all at once when/if you cash out?

[Anonymous No.28078771]

>>28077844
No I never said that, but KYC applied to mainstream exchanges/coins (yes there's ways around it)

>>28077804
Thank you anon, this is already enough to get me started really, this exactly the type of answer I was looking for.
The last thing I will bother you with. The ethereum address, that is not the same as a wallet right? If not, which wallet would you recommend to tie to your ethereum address? Or is the ethereum address same as wallet?
I know of wallets like electrum or cake wallet and stuff, but not sure if there's one that fits all crypto, or what the deal with ethereum address really is. Which do you use?

Thats really my last question, the rest I think I can figure out well

[Anonymous No.28079004]

>>28078771
Wait oh yeah, you do the "sales" on coinbase or similar exchange as well? You need to sell when the price is high to profit, and hold the money in dollars, or a more stable crypto, until you can buy low again right?