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As cryptocurrencies become an increasingly more integrated part of everyday life, many traders and tax professionals are asking themselves how to deal with the tax questions. Starbucks will begin to trail the acceptance of cryptocurrency payments in November this year, so there will definitely have to be some hard and fast rules put in place soon. However, the US tax authorities have not yet made any official statements to address the questions on cryptocurrency and taxes. Fortunately, there are already a few answers to be found from those who have taken the time to look into the matter.

A quick summary

For the uninitiated, the world of cryptocurrency can still seem slightly confusing. So if you have been hesitant to get into the crypto-trading game, then a bit of background might be helpful. Cryptocurrency was created in the wake of the 2008 financial crisis and gained in popularity due to the loss of trust in the mainstream banking system. Some of the earliest cryptocurrency tokens were Bitcoin and Ethereum. Since then, a multitude of different tokens like Litecoin, Ripple, Monero, and others have come into circulation. There are currently over 1,500 tokens on the market. Given that the market cap of the most popular tokens like Bitcoin is in the billions of dollars, questions about the taxation of trading in them will naturally emerge.

Cryptocurrency is currently treated as property

The term cryptocurrency is at the moment a bit misleading for tax purposes. The reason for this is that it is in fact considered to be property rather than currency. In other words, trading in cryptocurrency is more akin to trading in assets and real estate than it is to foreign exchange of fiat money.

Transactions are taxable

Any transactions made with cryptocurrency are taxable events and must be recorded in the same manner as other transactions. All receipts must be kept and included in the taxable income for the year. One can wonder if this means that businesses are able to expense business related transactions with cryptocurrency as well?

Taxes depend on the nature of the token

Whether or not the exchange of cryptocurrencies is taxable depends on what the given token means to the holder and taxpayer. For some, this can be a capital asset. For others, it can be property or inventory.

Cryptocurrency mining is taxable

Cryptocurrency mining is the process of validations cryptocurrency transaction in exchange for a proportional amount of that cryptocurrency token. Given that this is essentially providing a service in exchange for payment, it is considered a taxable income if you make a profit. In order to report these profits to the tax office properly, the fair market value of the cryptocurrency token needs to be added to your gross income. Whether or not you perform your mining activities as self-employed or as part of an organization needs to be reported as well.

Salaries and one-off payments can be taxable

If you are working for someone on a freelance or permanent basis and get paid in cryptocurrency, these payments could also be taxable. If the payment amounts to more than $600, then it should be reported to the IRS.

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Today we are going to bust some myths about cryptocurrency. Many people are under the impression that it is either too late to invest, too dangerous to invest, too difficult to invest, or that the market is about to collapse. None of the myths are of course true, but let us have a look at four of them to make sure.

The logo of Bitcoin (virtual currency) is pictured on a door in an illustration picture taken at La Maison du Bitcoin in Paris July 11, 2014. REUTERS/Benoit Tessier

Is it too late to invest?

The value of different cryptocurrency tokens has been going up and down for quite a while now. Many of the most popular tokens, like Bitcoin and Ethereum, have been on a steady incline overall. This has led many to believe that they have missed to the chance to invest, as the tokens are worth too much now. However, we just need to look at the rise of Bitcoin to almost $20,000 in December 2017, just for it to crash and burn. Now it is has climbed back up from $6,000 to around $8,000. Had you invested in early 2018, you would have many a good profit. Even if the most popular tokens are too expensive to invest in, there are 1,500 different cryptocurrency tokens out there — and counting. There is ample opportunity to invest in many new and exciting opportunities.

It technical knowledge required?

There is a common misconception that in-depth technical knowledge is required in order to invest in cryptocurrency. Of course, in order to be able to work as a developer on a blockchain project, you would need this kind of knowledge. But in order to trade in the tokens themselves, this level of knowledge is not required. Just like you are able to confidently trade in Google shares without understanding their search engine algorithm, you are able to trade in cryptocurrency without understanding cryptography. This does not mean that you can enter the market with a blindfold. It is still important to read up on different tokens and keep an eye on the market movements.

Is the market about to collapse?

Many people in the current financial establishment have said bad things about cryptocurrency. The CEO of JPMorgan has for example called Bitcoin a fraud last year. This year, the very same JPMorgan was very enthusiastic about blockchain technology. The facts about cryptocurrency have not changed, but the opinions of many people have. Of course, there have been scammers and criminals in the cryptocurrency space, just like there are in any other industry. But since governments around the world have begun to impose regulations, they have more or less been weeded out. And as more sector, like health care, are beginning to explore blockchain, it will only become a more popular phenomenon.

Is cryptocurrency dangerous?

As mentioned, there have been some scandals involving the hacking of cryptocurrency exchanges. This has put some people off of trading due to security concerns. Again, these securities have already been addressed. It is not very difficult for traders to protect their assets if they ensure that no one else has access to the key to their digital wallet. It is very much like keeping the PIN number for your credit card safe, to use an analogy. Even if people are concerned about the safety of using a digital wallet, there is always the option of cold store their cryptocurrency tokens on an offline hard drive.

AligatoCoin ICO Review

Technological progress and innovation is moving along at a neck-breaking speed. We have gone from dial-up modems and brick-size mobile phones to wifi and smart watches in a couple of decades. Commerce is changing as well, and high street shops close as ecommerce stores take over the market. Even ecommerce itself has undergone many changes, and now several projects are aimed at utilizing blockchain technology to improve it. AligatoCoin is one of those projects, but what the team has put together goes above and beyond the blockchain. In this review we will look at some of the fascinating features Aligato offers, and how they all fit together to form a very ambitious project.

What is AligatoCoin?

Aligato is a very ambitious project that sim to revolutionise ecommerce. The features are many, and the technology that will be used on the platform is nothing short of cutting-edge. AligatoCoin will utilize blockchain technology, artificial intelligence, delivery drones, iris scanning for transactions, and much more.

Aligato’s ecommerce platform

The team behind the Aligato platform wants to help usher in the next era of ecommerce. According to their white paper, ecommerce is an industry that is very adaptable in terms of incorporating new technology like the digital ledger system. Aligato wants to build an ecommerce platform using blockchain technology, in order to let users enjoy all the benefits that come with such a system. That includes full transaction transparency, added security, and faster and cheaper payments.

Aligato’s artificial intelligence

Along with the benefits of blockchain technology, Aligato also wants to utilize the wonders of artificial intelligence to facilitate the ecommerce system. AI will be able to streamline customer support, marketing campaigns, and help analyze customers buying patterns. The AI will also enable the deployment of delivery drones, which we shall get to in just a bit.

Aligato’s Pay via Eye system

One of the most interesting features of the Aligato platform is perhaps the Pay via Eye payment system. As the name implies, it uses the eyes of the customer to facilitate the transaction in a secure manner. This is not a groundbreaking concept, given that Samsung phones already have iris scanners and Apple’s iPhones have fingerprint scanners and facial recognition software. But it has not been used for ecommerce purposes before. With blockchain transactions already being more secure than existing payment methods, the Pay via Eye system adds an extra layer of security for customers and merchants alike.

Aligato’s delivery drones

Once an order has been placed and the payment has been made, it is time to deliver the parcel to the customer. Here Aligato is also very forward-thinking in their approach. By utilizing commercial delivery drones, they can automate the delivery process as well. Amazon has already rolled out test delivery drones across the United States, so this is not a completely new concept either. But the team behind Aligato has taken great care to research not only the technology, but also public opinion on delivery drones. Their white paper meticulously details the scientific research, as well as some of the risk factors that might be involved.

The key features of Aligato

The main concept of Aligato is to create a fully automatic ecommerce ecosystem that will help propel the world of ecommerce into a new era. In addition to the underlying blockchain technology, the artificial intelligence, the delivery drones, and the unique payment system, Aligato also wants to build warehouses that run on renewable energy. To further accommodate customers, Aligato will also introduce a digital wallet for them to store their cryptocurrency tokens in.The Proof-of-Stake also allows holders of ALC tokens to receive a portion of the profits made by the company.

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Cryptassist ICO Review

Cryptocurrencies are still somewhat of an intangible substance to most people, despite digital tokens having been around for almost a decade. The many new technological concepts and slang words being thrown around in the crypto community make it difficult for the layperson to get involved. Many are also apprehensive because cryptocurrencies are still not in wide use on the high street yet. Quite a few ICOs have attempted to address this problem by offering cryptocurrency payment cards, and easy-to-use trading apps. But few have managed to put everything together in one place.

What is Cryptassist?

This ICO is definitely one of the most ambitious ones around. The team behind Cryptassist wants to create a one-stop hub for everything related to cryptocurrency. That includes exchanging, trading, education, collaboration, communication, gaming, and, of course, spending. Cryptoassist is a platform that will comprise of no less than 25 different apps, so users will have access to virtually all aspects of cryptocurrencies.

Cryptassist Debit Card

The Cryptassist debit card will have the same utility as a regular Visa/Mastercard, but with the added benefit of being able to store 50 of the most popular cryptocurrencies. When the debit card is used to make a transaction, the Cryptassist application automatically converts the cryptocurrency to fiat money.

Cryptassist Exchange

Naturally, Cryptassist also comes with its very own cryptocurrency exchange, that will allow users to make conversions into different cryptocurrency tokens.

CryptoGo

Similar to Pokemon Go, CryptoGo is an augmented reality game in which players can discover hidden cryptocurrency tokens in their environment. It is meant to entice more people to join the world of cryptocurrency, as they will actually earn the tokens they find.

Multi-coin block explorer

This app is essentially a search engine that allows users to find the transaction histories of multiple coins at the same time, rather than having to search multiple blockchains individually.

Cryptassist OTC

The platform also comes with a feature that helps eliminate risk for cryptocurrency traders. Cryptassist OTC is an escrow system that helps out people trading in altcoins.

Cryptstarter

Crowdfunding is a great way to kick-start projects of any kind, and Cryptassist comes with its own crowdfunding tool called Cryptstarter.

Cryptassist Freelancer

In addition to crowdfunding, project developers using Cryptassist might also want to hire freelancers for a particular project. The Cryptassist Freelancer app allows for just that.

Trading Tools

Trading in different cryptocurrencies will also be made much easier with the trading solutions offered by Cryptassist. With tools that make calculations on behalf of the trader, even beginners will be off to a good start.

CTA Tokens

All the apps and features of Cryptassist will be based around the native CTA utility token. Users of Cryptassist will pay for the various services using CTA tokens, and freelancers or players of CryptoGo will be paid in CTA tokens as well.

Conclusion

Crypassist is genuinely an exciting project. Having so many tools gathered in one place will make entering the cryptocurrency industry infinitely easier for beginners. More experienced crypto-fans will also find this to be an intriguing and helpful tool. Although we only covered some of the interesting apps in this review, there are many more exciting features for you to explore if you decide to invest in the Cryptassist ICO. From a business perspective, it will also be interesting to see how well competing for blockchain projects will fare against Cryptassist. Although many of the features in Cryptassist, like the debit card and the exchange, are present on other cryptocurrency platforms, none have managed to pack this many different apps into one single platform. This is ultimately what makes Cryptassist so impressive.

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