Cryptocurrency Taxes: The Ultimate Guide to Filing with the IRS (And How To LEGALLY Avoid Paying Them!) +Trading Tools

Are you inclined towards the crypto currency trading? With you reading this write-up, I assume that you are. Crypto-currencies have been commanding a major position in the virtual financial realm. More and more people are getting fascinated with these digital fortunes due to their flexibility and lucidity. It has hence, necessitated the government agencies to pay stringent watch over crypto dealings and impose crypto taxes on the earnings.

I have tried elucidating a comprehensive guidance on tax filing with Internal Revenue Service using the crypto tax software. I have further provided tips on how you can avert tax payments on crypto currencies by legal means. Lastly, some of the tips for selecting reliable crypto trading software will also be discussed. Let us now begin the discussion!

Steps on how to file your crypto tax with the IRS

Do not panic regarding your crypto tax filing since you can have ready access to crypto software. It will do all the necessary record compilation on your behalf. Follow the steps provided below for achieving a super convenient tax filing with IRS.

Step1. Firstly, you are required to import all your crypto trading details to the software you are using.
Step2. The next step is the addition of outgoing and incoming transactions taking place all throughout the year.
Step3. Finally, you will have to choose a specific financial year for which you intend to generate the result. You will be provided with important reports and these are
● Long and short term sale
● Income report on crypto currencies
● Report on audit trial
● End Year positional report

After you have downloaded the documents, you can either opt for manual tax filing or take the help of the relevant software. It is recommended that use automated tax filing to prevent any grave error. Use of crypto tax software will introduce you to the end number of benefits that these applications have to offer you. Facilitation of easy tax document record keeping will not only improve your experience but also keep you in good books of the IRS authority.

How can you avoid paying taxes by legal means?

Your frustration is understandable if half of your hard earned money is getting deducted as taxes. You need not panic as it is not the end of the world. There is solution on how you can escape the tax payment by abiding with the legitimate rules. Some of the tips are given for your awareness.

Take the advantage of IRA Roth

Be an intelligent investor and rip the benefit of your IRA Roth retirement scheme. The plan allows tax deferral to its account holders. Since crypto currencies are considered to be properties, these can be held or sold using the Roth retirement account.

Every deal in gains and incomes via this special account invites no tax deduction. Therefore, you can be unhesitant to purchase the crypto currencies within an IRA Roth and avoid paying capital gain taxes absolutely legally. You will no more be required to feel heart in your mouth on hearing the names of crypto and taxes.

No tax under International Life Insurance Policy

Set up an international life insurance policy and eliminate paying of crypto taxes. Sounds intriguing? Then let me elaborate on it a little further. By establishing of an offshore life insurance you can buy crypto currency under it. The tax exemption benefit entailed in it is same as an IRA account, that is, you are not required to pay taxes.

However it is only till there is no closing out of either policy or the disbursement. It does not end here; there is another tantalizing utility of this scheme. If a policy is kept existent till the holder’s demise, it will get handed over to his offspring without any liability of tax payment.

Be a Puerto Rica resident

If you are a crypto fanatic, then you can consider becoming a Puerto Rico resident. Several investors have set their residencies in this land in order to avoid paying of taxes. As per the 933 Section of IRC, every American citizen is subject to tax payment for their global income, with Puerto Rico as the singular exception. In order to attain the eligibility you are required to live for a minimum number of 183 days on the island nation. On earning the eligibility you will no more be required to pay either crypto mining tax or trading tax.

Be a smart investor by using the right trading and tax tools

You can find various types of tools available in the commercial market that facilitates trading in crypto currencies. Some of the important instruments are managing portfolio, exchanges and advanced analysis tools for professional crypto trading. So, choose an online platform that provides you access to all these essential trading tools.

If you deal in crypto currencies, crypto taxes will tag along with them. Hence, there is no point avoiding it, so, embrace it. Opt for well-reviewed crypto taxing software. For an instance, if you carry out deals in bitcoins, then get acquainted with software bitcoin taxes review. It will help you immensely in an efficient document consolidation and tax filing.

Discussions and tips shared in this article will help you building your own smart strategy when dealing with crypto-currencies. With the right trading tools at your disposal, you can earn substantially from this lucrative investment.…

Bitcoin – Everything  You Need To Know

Curious to know about Bitcoin? Well, here comes some interesting stuff for you.

We all know that Bitcoins are the most trending and most popular subject of discussion in the current time. Everyone, especially the youth of the current generation is investing in Bitcoins in a vast amount.

If you really want to know what is Bitcoin, how and why it is useful and many other things about Bitcoins, this content will definitely help you.

Let us have a quick and brief discussion about Bitcoins.

Bitcoins:

Bitcoin is a cryptocurrency, i.e., digital cash. It is a digital currency which is decentralized without any central bank or any single administrator.

Network nodes are used to verify transactions through cryptography and are recorded in a public distributor ledger called a blockchain.

Bitcoin was released as an open source software in 2009 and was invented by an unknown person or a group of people using the name Satoshi Nakamoto. Bitcoins can be exchanged for other currencies, products, and services.

To clear the confusion about Bitcoins, we need to categorize it into two components:

  • Bitcoin-the token: It is nothing but just a fragment of code that represents ownership of a digital concept.
  • Bitcoin-the protocol: It is a distributed network that maintains a record of balances of Bitcoin-the token.

The system allows the payments between the users without passing through a central authority, such as a bank or payment gateway.

These cryptocurrencies are not printed like dollars or euros, in fact, they are produced by the computer worldwide using free software.

Bitcoins are the first example of cryptocurrencies. It has also inherited some properties of traditional currencies with the verification based on cryptography.

Creation of bitcoin:

bitcoin atm growth

Satoshi Nakamoto, a software developer proposed Bitcoin in the year 2008 as a digital payment system based on mathematical proof.

The main idea behind the creation of bitcoin was to produce a means of exchange, independent of any central authority, that could be transferred electronically in a secure, verifiable and immutable way.

Why use Bitcoin?:

The objective behind creating Bitcoin was to establish a safe and secure mode of payment between various parties. It is an alternative and decentralized payment method.

However, due to the improvement in domestic payment methods and rapid development of non-cryptocurrency has the advantage of Bitcoins to a great extent.

In some parts of the world, Bitcoin is a more efficient and cheaper way to transfer money across borders.

Several startups also make use of Bitcoins. Bitcoin is not only used in startups and money transfer but also, many large and small retailers accept the cryptocurrency as a form of payment. According to the reports, the demand for this function is not so high.

According to some sources, bitcoin is rapidly being used for money laundering. However, only retailers and entrepreneurs can do that. For money laundering also, Bitcoin is not considered perfect.

How to buy Bitcoins?:

After knowing the basic details of Bitcoins, you must be inquisitive to know how to buy it.
Let us have a discussion about buying the Bitcoins.

You can buy Bitcoin as an exchange or directly from other people via marketplaces. For payment, you can use cash, debit cards or another mode of cryptocurrencies.

Steps to buy Bitcoins:

1. Set up a wallet.
2. Open an account at an exchange.
3. Choose the purchase method.

These are the three steps which you have to follow if you want to buy Bitcoin.

How to sell Bitcoins?:

To make the profit out of Bitcoins, you must sell them. Before selling the Bitcoins, you must have a basic idea about selling the Bitcoins.

Currently, almost all the methods available to buy Bitcoins also offer an option to sell.

Bitcoin ATMs are the exception. Bitcoin ATMs allow you to exchange Bitcoin for cash, but not all the ATMs.

All the exchanges let you sell as well buy the Bitcoins. The type of exchange you choose to sell your Bitcoins depends upon the type of holder you are, whether you are a small investor, institutional holder or a trader.

Retail clients can sell the Bitcoins at exchanges such as Coinbase, Kraken, Bitmap, Poloniex, etc. Each exchange has a different interface and some offer some related services such as secure storage.

Also, you can use crypto derivatives exchange platforms like Delta Exchange to Trade Bitcoins. It requires only 1 Minute to Sign up and you can start trading right away.

How to make a paper Bitcoin wallet?:

A Bitcoin paper wallet is a just public and private key printed together. It is an offline wallet and extra secure storage which does not make any connection with the internet that can be hacked.

As the name suggests, a paper wallet is made up of paper. The private and public keys which are usually in QR form are printed on the paper.

You could just copy and paste the keys onto a text document and print that out. Or you could just use one of the free web services that generate the printable wallet for you.

The key generation is generally done in your browser, so they are never transmitted on the internet. For your safe side, you should clear your browser after printing. Always remember that you never store an image of the paper wallet on your computer or phone.

Final words:

So, this was all about the hottest and the most trending topic of discussion “Bitcoins”.

The article was intended to give you all the required details about the first example of cryptocurrencies.

Here, we mentioned about the Bitcoins, their creations, buying and selling the Bitcoins and many more necessary details which one must know before investing into Bitcoins.

We tried our best to give you all the required and necessary details about the most popular cryptocurrency, i.e., Bitcoins.

If you still have any doubts or queries regarding any point in the content, just feel free to contact and ask us. If you know something more about Bitcoins which you think can be a part of the content, definitely share with us. It will be good to have a two-way conversation.

Hope the content was helpful 🙂…

What Makes Bitcoin Cash Researchers To Plan a new Transaction Sorting Process?

Four researchers and developers of bitcoin cash have published a fresh paper envisaging a plan to modify the topological transaction ordering rule surrounded by the network of BCH. They think that the new process would turn out to be highly efficient apart from allowing better scaling opportunities. Their ultimate objective is to enable the network to process big blocks very easily.  Also, the four researchers think that the changes are necessary specifically for some “compelling” use cases.

Compact Proofs

The four researchers and developers are Tomas van der Wansem from Bitcrust, Shammah Chancellor of Bitcoin ABC, Amaury Sachet of bitcoin ABC, and Joannes Vermorel of Lokad. Their new paper is known as ‘Canonical Transaction Ordering for Bitcoin’ that sought to favor a canonical ordering process, news.bitcoin reported. At present, consensus system procedure transactions are in the form of a list enabling remote peers to advance transactions to their neighbors.

Considering how the list works currently, the developers think that it should be sorted topologically. However, the procedure must be changed to a canonical method, which performs with a set of blocks compared to a list. That allows bitcoin or BCH to route big blocks. The four researchers wanted the changes to happen for some reason or the other. One of the first key points is that it enables to make compact transaction proofs that include or excludes. As a result, there would be chainless apps to be capable of.

New Control Degree

Aside from that, the second key point was that it provides a fresh control degree to participants of bitcoin so that they could localize their transaction inside the blocks. The proposal suggested that the newer process would be easier to produce block propagation apart from emissions to be efficient. They have also ensured simplification of software implementations, and that inclusion of transaction proofs are enhanced.

The developers also detailed how the network participants could make use of their bandwidth capacity in an efficient way. This included propagating as much information as possible well before the new block’s emission. For its part, the Canonical Transaction Ordering Rule (CTOR) enables opt-in among the participants. Aside from that, there could be the possibility of making a pioneering ‘chainless applications.’

Proposal’s Emphasis

The researchers’ proposal also emphasized that the CTOR provides the option for any participant to go like a bullet into a block so that it could spot out or not where a transaction is found. They clarified that it was without processing the complete block.  The developers’ paper indicated that “this property is of high interest because chainless apps gain the possibility to verify flows of transactions without being encumbered by an arbitrarily large blockchain.”

The research paper focused on alleviating computational load whereas CTOR could provide a lending hand to the chain process. Social media and bitcoin cash supporters have supported the idea. They appear to be confusion on the consensus change on the upcoming hard work, which is scheduled for November.…

New Vulnerabilities Found in EOS, Network Lands in Hot Water

After many irritating delays and head on controversies, EOS blockchain was eventually launched on June 10. But, it seems that the blockchain is still not ready to function properly.

Guido Vranken, a security researcher who won $120,000 in EOS after entering company’s bug bounty program, has again found a vulnerability in the system. What’s more shocking is that he is not the only developer to find issues with the blockchain platform.

Vranken stated that the newly discovered flaw is related to “unbounded recursion in Binaryen WASM parsing.” In simple terms, an unbounded recursion happens when a function enters an endless loop after calling itself from within. It keeps happening until a system utilizes all its resources and reaches its demise. Any user who uses the Binaryen compiler to compile to web assembly (WASM) will wreck his system.

Block.one’s HackerOne profile states that the celebrated developer has already gained $120,000 after discovering twelve different imperfections. Although he is not sure if any other glitch is still present within the system yet reports claim that more researchers are observing kinks.

Earlier in May, Qihoo 360, a Chinese security firm, exposed various defects in EOS. The issue was dangerous as they would have allowed hackers sitting around the globe to access network’s nodes which would compromise the whole EOS blockchain. The allegation made by the Chinese firm forced the company to start a bug bounty program which halted its original launch on June 2.

It was eventually launched on June 10 after the block producer candidates affirmed it a green signal, but only technically. As per firm’s protocol, 21 block producer candidates are elected who decide the functioning of the platform. For the election of the block producer candidates, a minimum of 15 percent of the entire EOS supply should be stacked. Yesterday, the voting process did not even pass the 10 percent mark.

In order to stack the coins, an investor will have to use his private key which is looked upon as a risky venture as unauthorized use of their private keys could erase all their funds.

It should be noted that EOS blockchain has finally gone live. The company received the desired numbers of votes to determine the officials that will manage the distributed network. Thus the fifth largest blockchain platform will see the light of the day after facing the most complex and negative set of affairs the crypto space has ever seen. After the launch, the tokens have been trading at $10.45.

However, the unfavorable press attention gained by the company has made it look stupid at times. Being outsmarted by outside developers has decreased the reputation of the company, but it still has a thin chance of making it big again. If the firm is able to pace up its functions and provide value to investors, its failures will be quickly forgotten.

Investors only care about profits which has nothing to do with media’s perspective. As of now, the platform is finally live and can be accessed by investors until another blunder takes place.…

Amidst Talk of Blockchain Being Disruptive, Geopolitical Analyst Sees It to Be Out Of Date

Amidst Talk of Blockchain Being Disruptive, Geopolitical Analyst Sees It to Be Out Of Date

Amidst the talk of blockchain technology being the most disruptive in a decade after iPhone, there is one person who sees the technology to become out of date. However, the founders of Geopolitical Futures, George Friedman, did not give the time frame for it to happen and merely mentioned that it would happen one day. That does not mean that he does not see the usefulness of the technology, but he sees it be an old-fashioned one.

Encryption Technology

Friedman is the author of “The Next 100 Years: A Forecast for the 21st Century.” The founder of an online publication that is focused on the prediction of international affairs. Future said that he did not come across any encryption technology, which could not be broken. He referred to the intelligence services of the United States, Russia, and China and raised doubts that blockchain technology could not be decrypted. He thinks that the new age technology is “one of those hypes.” He believes that people are making a big profit from unexpected claims.

Interestingly, during the international conference on Cyber Security in January, the Federal Bureau of Investigation (FBI) director, Christopher Wray, indicated that they could not crack more than 7,800 devices. The FBI badly wanted to crack since the agency believes that it contains key information in respect of investigations during the period 2016 and 2017, cointelegraph reported. This apart, he pointed out that 50 percent of the devices, which were safeguarded by encryption, could not be accessed.

A report indicated that the American National Security Agency (NSA) was apparently in a position to spot the location of bitcoin users throughout the world. This was based on classified documents offered by Edward Snowden.

It was quite natural that the NSA handled this with the establishment of a procedure for not only harvesting but also analyzing and processing internet traffic throughout the globe. The security wing has reportedly used a program as if it was the most popular anonymizing software. Aside from these, the agency’s corporate partnerships have allowed it to have a secret internet monitoring program to oversee communications. This was meant to be used to get data directly from the fiber optic connections, which structures undergird of the internet.

Different Opinions

Though the technology is used mostly as a platform for cryptocurrencies, it is also being looked at for exploring in other sectors too. Similarly, while some of the experts think to be a disruptive one in the current decade or at least for a decade, there are others who do not think so. Taking a different stance is nothing new. However, what matters the most is that it should be backed up by supporting events or documents.

In any case, Friedman does not think that blockchain is not useful and that how far and how much is the question that he seems to be asking. There are already several financial service providers, and supply chain management is exploring the possibility of using the technology. It could be a premature thing to write it off completely.…

Argo Blockchain to be Listed on the London Stock Exchange

Reportedly, a crypto mining start-up is making history by becoming the maiden industry to be listed on the London Stock Exchange.

Mining-as-a-service provider, Argo Blockchain, revealed its plans to conduct an Initial Public Offering or IPO to sell shares of a common stock to generate 20 million pounds. The London Stock Exchange stated that the firm would probably be valued at 40 million pounds making it the first crypto project joining the exchange.

The blockchain start-up claimed that it would provide a user-friendly experience to its mainstream clients. It is offering services to even those investors who do not possess any technical or hardware knowledge by making it available on both computers and smartphones.

It was also announced that Vela Technologies had bought 2.5 million shares at 0.08 pounds per share for a consideration of 200.000 pounds. The company was able to raise 2.5 million pounds on a pre-money valuation of £8 million.

Founded in 2017, Argo Blockchain started functioning from June 11, 2018. Right now, it is providing four digital currencies to be mined- ethereum, ethereum classic, bitcoin, and Zcash. In order to support other altcoins, the management has planned to establish a data center management business to assist other virtual currencies.

Its representatives said that there is extensive demand for a simple platform that allows an average user to mine cyber coins. They added that everybody should be allowed to enter the crypto mining industry irrespective of their investment limits.

As per clients, the service allows its users to choose their favorite digital currency to mine and the mining pool they want to get associated with plus the way their coins are stored. Argo’s subscription model hints that the founders took inspiration from Amazon and Netflix for their framework’s development.

Argo has started functioning in China and Canada to expand its presence on the global platform. According to Co-founders Mike Edwards and Jonathan Bixby, there should be an affordable platform that caters to the need of a novice miner.

Bixby stated, “We have launched this service to take the pain and heartache out of participating in the biggest new technology breakthrough since the launch of the internet.”

Similarly, Edward said, “Setting up a computer rig to mine cryptocurrency is challenging, inefficient and expensive. I knew that we had to change the game and democratize the process so that crypto-mining could become a mainstream consumer activity.”

It should be noted that enrolment in a stock exchange has given huge popularity to the small company. For two days it has been part of headlines which is sure to make head turns and push interested individuals to try out a new service. Now, it totally depends on Argo’s capability to ash in the initial success. An easy to mine interface will make it an instant hit, but a single negative feature will kill its momentum.

Recently, popular smartphone producer, Apple, has banned every application form their App Store that deals in cryptocurrencies. It is hoped that the firm has come up with a technology which safeguards the interests of users more than their greed.…

Blockchain Technology to Power News Outlets

Blockchain technology is now being explored to power a news outlet in Colorado. Though their skeptics about the new age technology terming it as a “hyped” one, it is gaining traction in different sectors beyond the fintech sector. This was also quite evident when former editors and journalists of Denver Post have embarked upon a plan to unveil a local media outlet. They have formed an alliance with Civil Media Company, a start-up of blockchain enabled-ConsenSys.

Online Newspaper

The group of journalists, who had to leave the Denver Post, is aiming to establish a new local online newspaper named “The Colorado Sun,” cointelegraph reported. Their move came on the back of multiple factors like layoffs in the company apart from the worsening morale after a change in ownership of the newspaper. MediaNews Group, which is being controlled by New York hedge fund firm Alden Global Capital, has acquired it and managing it with the help of a subsidiary, Digital First Media. The alliance only demonstrated that technology could be used beyond the platform of cryptocurrencies.

The newly established, The Colorado Sun, would make use of disruptive technology with the help of civil to store data. The group of journalists is aiming to fund the project in the initial stage through a grant from civil. Once the online newspaper is launched, the group’s objective is to make it a community-supported and journalist-owned team. The journalist’s group’s website indicated that it would focus on the only narrative but also on investigative and explanatory journalism. Aside from that, the portal will not have any ads, which means ad-free.

The journalist’s group thinks that the State is going through a big evolution. For that purpose, the group is also engaged in a Kickstarter campaign for the proposed outlet. They are also planning to raise about $75,000 in the next month, July. Since there will not be any ads in the online newspaper, the team is planning to make it a subscription based one. This was also evident in their campaign page.

Their move meant that it would have to rely on local supporters to survive as the media companies see pain due to the availability of free news content. However, the group appears to have understood the compromise that it has to make if it opts for an ad-driven media firm. Similar is the case in respect of shareholder interest-powered content. Therefore, they are betting on the content.

Ethereum Network

Significantly, Civil Media Company would operate on the network of Ethereum with the help of a decentralized governance model. The company also has a plan to throw open to 1,000 publications before the current year ends in the United States. The network will be enabled by Civil’s forthcoming digital token called CVL. This would hold publications to a specific set of professional and ethical standards.

Recently, there has been an announcement that blockchain technology would be deployed for supply management solutions. This is apart from the financial service provides showing tremendous interest in the decentralized solutions.…