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How do I split Bitcoin, Bitcoin Cash and Bitcoin Gold?
I have a Bitcoin wallet which is over a year old and contains Bitcoin, Bitcoin Gold and Bitcoin Cash, how do I split these into three separate wallets?
Is there a Bitcoin wallet that supports all three and will allow me to send each coin to a different address?
I have a Bitcoin wallet which is over a year old and contains Bitcoin, Bitcoin Gold and Bitcoin Cash, how do I split these into three separate wallets?
Is there a Bitcoin wallet that supports all three and will allow me to send each coin to a different address?
You don't have to pay tax when you trade one cryptocurrency for another
Could you share your sources for this please? I've been trying to figure out the same myself, and my understanding was that if swapping BTC for any other asset (Crypto included), then it would be subject to capital gains as per:
Quote
Disposing of an asset
Disposing of an asset includes:
Disposing of an asset includes:
- selling it
- giving it away as a gift, or transferring it to someone else
- swapping it for something else
Source: https://www.gov.uk/capital-gains-tax
I do not have a source but technically If you were to do it legit and pay CGT there would be two methods of doing it...
Option 1 - You buy a Bitcoin for £1000, it doubles in value and is now worth £2000. With that £2000 with of Bitcoin to exchange for £2000 worth of Ethereum, that soon doubles and you have £4000 worth. You then sell your £4000 worth of Ethereum for GBP, and pay CTG on the £3000 profit you made.
Option 2 - You buy a Bitcoin for £1000, it doubles in value and is now worth £2000. If you want to declare the CTG on the Bitcoin at the point of purchasing the £2000 worth for Ethereum it will technically be a nightmare, especially if you want to pay off the CTG with the Bitcoin profit. If you worked out that on the £1000 profit you had to pay £100 CGT, it will also cost you money to convert the Bitcoin to fiat on the exchange, and might cost you again to bank transfer that fiat back into your bank to pay the CGT, lets just assume both of these charges are £25 each. So we use £150 worth of the Bitcoin profit to get £100 into your Halifax bank to pay the CGT. Now we are left with £1850 in Bitcoin, we now buy the £1850 worth of Ethereum. This then doubles in value, and we now have £3700 worth, we convert that back to GBP and pay the CGT on the Ethereum profit only which was £1850.
As you can see you loose out big time if you use option 2, both ways I would say are legal as long as you eventually pay the CGT. Imagine if you were day trading crypto's and paying CGT on every conversion from Bitcoin to Ripple and Ripple to Bitcoin and Bitcoin to Steem. It would be absolutely crippling and you would not make any profit especially if each time meant converting some of that to fiat and bank transferring it out to pay CGT.
I think the initial cost that you paid at the very beginning when you first bought the crypto i.e. £1000 should be the principal amount from which you deduct your gains.
If you had no income in a tax year, i.e. making you a basic rate tax payer, then you can legally sell £44800 of crypto, £11300 of that is taxed at 0%, and £33500 is taxed at 10%. Anything above £44800 per year (after principal amount and fees etc deducted) would attract a CGT tax rate of 20%.
So for a sale in the above scenario of £44800, you would pay £3350 tax, leaving £41450 profit to do as you please, this is the legal way of doing it for peace of mind. But this requires patience of waiting for each tax year to end, then selling another £44800 each year (dependent on what the tax rate and allowance is for that tax year). If you have a partner who also has no other income, then you could sell £89600 each year, and pay £6700 CGT tax at 10%.
Sounds pretty awesome, might be worth cashing some out at the end of 2018 for sure. No doubt the CGT on crypto's will change in future and probably for the worse.
You don't have to pay tax when you trade one cryptocurrency for another
Could you share your sources for this please? I've been trying to figure out the same myself, and my understanding was that if swapping BTC for any other asset (Crypto included), then it would be subject to capital gains as per:
Quote
Disposing of an asset
Disposing of an asset includes:
Disposing of an asset includes:
- selling it
- giving it away as a gift, or transferring it to someone else
- swapping it for something else
Source: https://www.gov.uk/capital-gains-tax
I do not have a source but technically If you were to do it legit and pay CGT there would be two methods of doing it...
Option 1 - You buy a Bitcoin for £1000, it doubles in value and is now worth £2000. With that £2000 with of Bitcoin to exchange for £2000 worth of Ethereum, that soon doubles and you have £4000 worth. You then sell your £4000 worth of Ethereum for GBP, and pay CTG on the £3000 profit you made.
Option 2 - You buy a Bitcoin for £1000, it doubles in value and is now worth £2000. If you want to declare the CTG on the Bitcoin at the point of purchasing the £2000 worth for Ethereum it will technically be a nightmare, especially if you want to pay off the CTG with the Bitcoin profit. If you worked out that on the £1000 profit you had to pay £100 CGT, it will also cost you money to convert the Bitcoin to fiat on the exchange, and might cost you again to bank transfer that fiat back into your bank to pay the CGT, lets just assume both of these charges are £25 each. So we use £150 worth of the Bitcoin profit to get £100 into your Halifax bank to pay the CGT. Now we are left with £1850 in Bitcoin, we now buy the £1850 worth of Ethereum. This then doubles in value, and we now have £3700 worth, we convert that back to GBP and pay the CGT on the Ethereum profit only which was £1850.
As you can see you loose out big time if you use option 2, both ways I would say are legal as long as you eventually pay the CGT. Imagine if you were day trading crypto's and paying CGT on every conversion from Bitcoin to Ripple and Ripple to Bitcoin and Bitcoin to Steem. It would be absolutely crippling and you would not make any profit especially if each time meant converting some of that to fiat and bank transferring it out to pay CGT.
In my opinion it does not matter what you do with the money. You first have to work out what the Capital Gain is on the BTC
and then you can buy whatever asset you want. If you earned say $2000 worth of BTC or you traded and your profit was
$2000, then you have to pay Capital Gain on that first and then you can buy the car or whatever you want to buy.
Also remember that you are paying VAT on that purchase.
and then you can buy whatever asset you want. If you earned say $2000 worth of BTC or you traded and your profit was
$2000, then you have to pay Capital Gain on that first and then you can buy the car or whatever you want to buy.
Also remember that you are paying VAT on that purchase.
I think this was the most satisfying response on the question so far
Whether you convert to GBP or buy a car if you are going to do it legally you should pay CGT
This is my understanding of it.
When selling your bitcoins in the UK you pay capital gains tax on the profit. If you're a basic rate tax payer (i.e. you earn less than £45,000 per year), then you pay 10% CGT.
Example:
You buy 10 Bitcoins for £5 each many years ago.
You then sell 3 of these Bitcoins for £45,000.
You then deduct the cost of the Bitcoins £45,000 - £15 = £44985
You're allowed £11,300 tax free, so 44985 - £11,300 = £33685
You pay 10% tax on £33685 = £3368.50 tax.
Theoretically, if you had a partner who you trust and also is a basic rate tax payer, then they could also sell the above amount and pay 10% CGT.
In total you could sell around £90,000 per year between you both and pay 10% tax. If you're patient enough do this every year, rather than selling all at once.
I'm happy to be corrected if anyone now differently.
When selling your bitcoins in the UK you pay capital gains tax on the profit. If you're a basic rate tax payer (i.e. you earn less than £45,000 per year), then you pay 10% CGT.
Example:
You buy 10 Bitcoins for £5 each many years ago.
You then sell 3 of these Bitcoins for £45,000.
You then deduct the cost of the Bitcoins £45,000 - £15 = £44985
You're allowed £11,300 tax free, so 44985 - £11,300 = £33685
You pay 10% tax on £33685 = £3368.50 tax.
Theoretically, if you had a partner who you trust and also is a basic rate tax payer, then they could also sell the above amount and pay 10% CGT.
In total you could sell around £90,000 per year between you both and pay 10% tax. If you're patient enough do this every year, rather than selling all at once.
I'm happy to be corrected if anyone now differently.
That is the same conclusion I came to regarding selling your Bitcoins for cash.
The question was though, what if you buy a car directly with Bitcoin and no conversion to GBP is done?
Do you have to pay tax if you exchange Bitcoin for Ethereum (for example)? The funds are still in crypto but they've been traded for a different crypto.
I don't think you have to pay any tax if you trade one cryptocurrency for another
So you could in theory sell £19,800 with of Bitcoin every year and only pay £850 in CGT
This is incredible!
Yeah definitely! I have been to see three different accountants in the UK and two of them had never heard of cryptocurrencies and one of them had heard of it but didn't know the tax implications of it. If you don't declare the capital gains tax and get caught it could cost you much more than it would if you had just paid the tax, so more research is needed.
Just need to understand the tax implications of buying things direct with Bitcoin, if you can legally avoid converting to GBP and can avoid paying CGT it is definitely worth doing. Just can't find anyone who knows the answer for sure.
I decided to get to the bottom of how much tax you have to pay for selling crypto currencies if you live in the UK...
You don't have to pay tax when you buy
You don't have to pay tax on it if it increases in value and you just hold it in crypto
You have to pay tax on the "profit" made when you sell it back to GBP
The tax bracket this comes under is capital gains tax (CGT), it's not the same rates as property though
In one financial year the first £11,300 profit in capital gains on cryptocurrency is tax free
The next £8,500 comes in the 10% tax bracket, anything over that is taxed at 20%
So you could in theory sell £19,800 with of Bitcoin every year and only pay £850 in CGT
What I really want to know and can't find the answer to online is...
What are the tax implications if you buy a car direct with Bitcoin? You are not technically making profit on the sale of an asset, you are swapping an asset with the value of x for a different asset with the value of x
The answer to your question directly depends on how and where you will change your bitcoins to buy a car or something else. Now there are a large number of independent exchangers and it is always possible to negotiate a personal meeting with the seller about the method of payment. You don't have to pay tax when you buy
You don't have to pay tax on it if it increases in value and you just hold it in crypto
You have to pay tax on the "profit" made when you sell it back to GBP
The tax bracket this comes under is capital gains tax (CGT), it's not the same rates as property though
In one financial year the first £11,300 profit in capital gains on cryptocurrency is tax free
The next £8,500 comes in the 10% tax bracket, anything over that is taxed at 20%
So you could in theory sell £19,800 with of Bitcoin every year and only pay £850 in CGT
What I really want to know and can't find the answer to online is...
What are the tax implications if you buy a car direct with Bitcoin? You are not technically making profit on the sale of an asset, you are swapping an asset with the value of x for a different asset with the value of x
If the buyer is willing to accept bitcoins directly and you swap the Bitcoins for the car without touching GBP do you still have to pay capital gains tax?
I decided to get to the bottom of how much tax you have to pay for selling crypto currencies if you live in the UK...
You don't have to pay tax when you buy
You don't have to pay tax on it if it increases in value and you just hold it in crypto
You don't have to pay tax when you trade one cryptocurrency for another
You have to pay tax on the "profit" made when you sell it back to GBP
The tax bracket this comes under is capital gains tax (CGT), it's not the same rates as property though
In one financial year the first £11,300 profit in capital gains on cryptocurrency is tax free
The next £8,500 comes in the 10% tax bracket, anything over that is taxed at 20%
So you could in theory sell £19,800 with of Bitcoin every year and only pay £850 in CGT
What I really want to know and can't find the answer to online is...
What are the tax implications if you buy a car direct with Bitcoin? You are not technically making profit on the sale of an asset, you are swapping an asset with the value of x for a different asset with the value of x
You don't have to pay tax when you buy
You don't have to pay tax on it if it increases in value and you just hold it in crypto
You don't have to pay tax when you trade one cryptocurrency for another
You have to pay tax on the "profit" made when you sell it back to GBP
The tax bracket this comes under is capital gains tax (CGT), it's not the same rates as property though
In one financial year the first £11,300 profit in capital gains on cryptocurrency is tax free
The next £8,500 comes in the 10% tax bracket, anything over that is taxed at 20%
So you could in theory sell £19,800 with of Bitcoin every year and only pay £850 in CGT
What I really want to know and can't find the answer to online is...
What are the tax implications if you buy a car direct with Bitcoin? You are not technically making profit on the sale of an asset, you are swapping an asset with the value of x for a different asset with the value of x
How do I buy SuperNET UNITY?
According to coinmarketcap you can only buy it from "Nxt Asset Exchange"
Their website appears to be mynxt.info
I signed up and cannot work out how you buy it
Any ideas?
According to coinmarketcap you can only buy it from "Nxt Asset Exchange"
Their website appears to be mynxt.info
I signed up and cannot work out how you buy it
Any ideas?
Whats the quickest way to buy Gulden if your living in the UK?
I usually get my alt crypt's from Poloniex, but Gulden isn't listed on there.
Found a few sites you can buy from but only using foreign banks
I usually get my alt crypt's from Poloniex, but Gulden isn't listed on there.
Found a few sites you can buy from but only using foreign banks
Re: Create Bitcoin Address using custom private key using Vanitygen
Why would you want to do that? It would be very insecure and not very useful.
Vanitygen isn't made for that, and there's currently no tool for that. There's a thread about "vanity private key" here, you might wanna read it.
Vanitygen isn't made for that, and there's currently no tool for that. There's a thread about "vanity private key" here, you might wanna read it.
Great thanks
Create Bitcoin Address using custom private key using Vanitygen
Is it possible to create a Bitcoin Address using custom private key with Vanitygen?
So I can input a private key such as "supersecretprivatekey", and from that generate associated public address?
So I can input a private key such as "supersecretprivatekey", and from that generate associated public address?
I have taken all the advise on board and here's my plan...
Create 10x Bitcoin address's on an offline computer using downloaded version of bitaddress.org. Create 10x Bitcoin address's with Electrum on offline computer. Put all 20x keys in KeePass using encryption and 30 character password. Then encrypt KeePass file with TrueCrypt and different 30 character password. Copy to file to several USB sticks, and bury the USB sticks in waterproof boxes in family members gardens.
Can then pay a little into each wallets for the next 20 years and there's a pension plan
Create 10x Bitcoin address's on an offline computer using downloaded version of bitaddress.org. Create 10x Bitcoin address's with Electrum on offline computer. Put all 20x keys in KeePass using encryption and 30 character password. Then encrypt KeePass file with TrueCrypt and different 30 character password. Copy to file to several USB sticks, and bury the USB sticks in waterproof boxes in family members gardens.
Can then pay a little into each wallets for the next 20 years and there's a pension plan
i can not imagine if bitcoin is become my salary for now, because for now, i still use fiat rather than bitcoin. i use bitcoin just to hold for a while and buy altcoin in trading, but in future if there is many store offline and online available in around my city, i will accept bitcoin as my salary and its not problem for me.
We can afford to receive salary in future if we have enough places to spend them directly without converting them to fiat, but at a moment it would be a wrong decision to get paid in bitcoins.
Second that!
It would be nice if the world used one currency. No more getting the phone out to work out how much something costs in a foreign currency.
Re: Bitcoin Transfer Fees Will Go Up With Time - How Can This Affect BTC Market
The transaction fee is increased for sure.
If btc fees become higher than paypal and bank fees a lot of people might be dissapointed by bitcoin and
sell their btc.This might affect the bitcoin price.
people always choose low fees!
If btc fees become higher than paypal and bank fees a lot of people might be dissapointed by bitcoin and
sell their btc.This might affect the bitcoin price.
people always choose low fees!
I don't think its an issue if your sending 1 Bitcoin with transaction fee of 0.0002, its far less than 1% of the total value.
It's the small transactions that hurt. If you send 0.0004 Bitcoins you loose 50%!
Re: Bitcoin Transfer Fees Will Go Up With Time - How Can This Affect BTC Market
I have just noticed a problem, I sent 0.0001 to my Electrum wallet. And the minimum transaction fee I was able to set to transfer it out of my wallet is 0.00002. That is 20% of the total sum I was transferring.
If Bitcoin does become mainstream worldwide and MOST* people use it every day. The value of 1x Bitcoin would have to increase 1000 fold. That would make 1BTC worth $600,000.00, and 0.0002 BTC worth $1,200.
If its then costs $1,200 to send 0.0000001 bitcoins that will make Bitcoin unusable?
If Bitcoin does become mainstream worldwide and MOST* people use it every day. The value of 1x Bitcoin would have to increase 1000 fold. That would make 1BTC worth $600,000.00, and 0.0002 BTC worth $1,200.
If its then costs $1,200 to send 0.0000001 bitcoins that will make Bitcoin unusable?