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Tag: Guide

  • Coinbase is now your personalized guide to crypto taxes | by Coinbase | Jan, 2022

    Coinbase is now your personalized guide to crypto taxes | by Coinbase | Jan, 2022

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    Coinbase

    By Lucy Aziz, Product Manager, Coinbase

    Crypto taxes can be complicated. Last tax season, many customers told us they didn’t know if they owed taxes on their crypto activity, and those who did know found it manual and difficult to file.

    This tax season, we’re introducing a tax center so customers can understand and file their crypto taxes with more ease and confidence. Customers will see all of their taxable activity in one place to determine if they owe taxes, and how much. If they’ve taken more advanced steps like sending or receiving crypto from Coinbase Pro or external wallets, they can receive free tax reports for up to 3,000 transactions from our crypto tax partner CoinTracker. The most complicated time of the year just became more clear.

    See a simple summary of taxable amounts

    U.S. taxpayers are required to report crypto sales, conversions, payments, and income to the IRS, and these transactions may be taxed as either capital gains/ losses or as regular income. Last year, customers had to research which transactions were considered taxable, and then manually track and sort them to calculate their gains/losses. It was tedious and time-consuming.

    Now, we’re simplifying the process by showing each customer a personalized summary of their taxable activity on Coinbase, broken out over time by realized gains/losses and miscellaneous income. Customers can use these amounts to prepare and file their taxes either with their personal accountants or directly with tax prep software like TurboTax®, where all Coinbase customers get up to $20 off TurboTax products.

    Get help with all crypto taxes, even transactions off Coinbase

    U.S. taxpayers may owe taxes on the amount they gained from crypto, or may be able to use losses against their other income. In order to calculate gains/losses, we need to know the initial value of a customer’s crypto. There are some cases where Coinbase is missing this information (e.g. the customer received it from an external wallet). Customers with these cases can use our crypto tax partner CoinTracker to aggregate their transactions across Coinbase and other exchanges, wallets, and DeFi services. Coinbase and Coinbase Pro customers have free access to tax reports for up to 3,000 transactions made on these platforms and get 10% off CoinTracker plans that support the syncing of any other Wallet or exchange.

    Learn about the latest crypto tax tips

    To access tax tools on coinbase.com, customers can tap their profile in the upper right hand corner and will see Taxes as a new item in the drop down menu. To access from the mobile app, customers will tap the menu on the upper left hand side, tap Profile & Settings, and will see Taxes. Over the next few weeks, customers will also find written guides on topics like finding the right tax professional and filing taxes on NFTs plus explainer videos on capital gains/losses and income.

    Coinbase is committed to making it as easy as possible to understand and file crypto taxes. We’ll continue improving tax tools and creating new content throughout tax season as we all navigate the evolving world of web3.

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  • A Guide to Liquidity Pool Token

    A Guide to Liquidity Pool Token

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    DeFi is not an uncommon term in the current financial system due to its growing impacts on the financial market. It provides solutions to the limitations of traditional finance. It encourages an open and decentralized financial transaction that won’t depend on intermediaries, like banks, insurers, brokerages, or stock exchanges. Instead, it allows the use of decentralized networks to provide services to users. Despite the fact cryptocurrency allows decentralized transactions, it is faced with the same challenges that it has always avoided; intermediaries! So, this brought about the emergence of DeFi liquidity pools.

    We understand that some people are not familiar with DeFi, liquidity pool, and how it works. This article will provide a simple guide to liquidity pool token and liquidity staking programs.

    What Factors Determine DeFi Liquidity Pool?

    The aim of DeFi is to ensure open finance and exclude middlemen from any sort of transactions done and that includes; loans and insurances. It seeks to enhance flexibility when buyers and sellers carry out transactions. However, liquidity has always been a major constraint of cryptocurrency and blockchain. This brought about the emergence of the DeFi liquidity pool.

    DeFi liquidity pool is modeled on a ‘smart contract’ which allows buyers and sellers to execute transactions and determine prices in order to achieve fairness. It supports DeFi by making it convenient and efficient for users. The term ‘liquidity’ refers to how easy it is to convert at the right price. When it comes to cryptocurrency, liquidity refers to how easy it is to sell and buy cryptocurrency without resulting in a loss of value. The exchange value of cryptocurrency increases when the liquidity rate is high and this is why the liquidity pool is referred to as the backbone of cryptocurrency.

    There are different factors that result in the increase and decrease of the liquidity pool rate. They include; the market, market makers, and more investment.

    1. The Market:

     The lack of wide access and market efficiency impacts negatively on the liquidity of cryptocurrency and this as a result hinders communication. When the market is not efficient enough then it becomes difficult to carry out transactions between cryptocurrencies.  In order to increase liquidity rate, wallets must not be isolated to just local exchanges. The easier it is to access global exchanges, the higher the liquidity rates. So the market must be open so that people can trade with different cryptocurrencies.

    1. Market Makers:

     The major factor that determines the easy conversion of cryptocurrencies to cash is the market makers. They include; trading firms and buyers. However, it is not trading firms alone, but firms that are capable of utilizing infrastructures to their advantage in order to achieve an operative market.

    1. More investment:

    For a market to be liquid there must be people ready to trade. When people continue to invest in the market and ensure that there are global exchanges when a transaction is done, the liquidity pool increases. When there is money people will want to trade without having to worry about the price being affected. Hence, the liquidity pool will increase.

    How Can DeFi Be Applied?

    Stablecoins:

    Stablecoins make use of DeFi because they deal with assets that are not tied to cryptocurrency in order to avoid fluctuation of price and they include education or making transactions in conventional stores.

    While there are different liquidity pool providers, Edgecoin is known to be the only stable coin that is made specifically for decentralized payments for educational fees to be accepted by universities worldwide. Hence, it creates an open market and open market system with gradecoin as their DeFi fluctuating coin. Some of the peculiar features of Edgecoin are fast transactions, fewer costs, it offers a secured global system.

    Edgecoin has a liquidity staking program with the motto “earn while you learn”. That means when you stake Edgecoin you will get 34% Gradecoin. Gradecoin is the governance token of Edgecoin and it has two tokens in total. Another benefit of the staking program is the large rate of demand which makes it easier to stabilize price and access to the world’s first educational stablecoin. It is very easy to get started; all you need is your desktop, visit the website edgecoinpay.com and stake.

    Benefits of the Edgecoin

    One of the benefits Edgecoin offers is an open payment system that allows institutions to make transactions that are related to education. This includes; payment for books, enrollment fees, and accommodation. So transactions have been made easier through a decentralized payment platform.

    Edgecoin is providing solutions to the traditional financial system by ensuring speed and also ensuring that people have access to educational infrastructure. Recently there was announced the partnership with Dublin College of Advanced Studies (DCAS), which from now accepts Edgecoin tokens as a form of payment, and more universities are lined up.

    Apart from all these, Edgecoin allows you to get a Grade Coin which is a coin on the DeFi market when you hold a Edgecoin. All you have to do is to head over to the website edgecoinpay.com and begin staking your EdgeCoin to receive 34% of GradeCoin before decreasing the amount of GradeCoin you get for staking.

    Follow these easy steps:

    -download Brave or Chrome  browser
    -connect your wallet through Metamask
    -choose the coins you would like to deposit and begin staking within Edgecoin
    -get your W-Edge coins followed with your 34% of GradeCoin at 0.20 located to your wallet that you created to deposit on.

     

    Image by asderknaster from Pixabay

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