Cryptocurrency

Do I need to pay Cryptocurrency Taxes?

Yes, you are required to report losses as well as gains on all H2cryptO exchange transactions. The Internal Revenue Service holds all investors liable for reporting income and transactions whether you receive a tax form from a crypto exchange or not. Cryptocurrency is considered “property” for federal income tax purposes and is treated like a capital asset (stock or bond). H2cryptO Exchange provides all transaction history available to clients for this purpose.

IRS form Q36-Q38 can be used as a trusted guideline to report.

Form 8949 can be used to report capital gains and loss. The transaction report we provide can be used to fill out the info in this form.

Form 1099-MISC (Miscellaneous Income) can be used to report any rewards/fees from staking or any other promotional form of income (educational reward, airdrop). This form may be filled out if earnings have exceeded $600 USD.

Form 1040(Schedule D) can be used as well for gains and losses reporting. This will summarize all information to report capital gains.

H2cryptO is not responsible to provide any tax advice. We suggest consulting with a licensed tax advisor. Cryptocurrency laws are different in every country. Failure to report cryptocurrency losses as well as gains, could result in Internal Revenue Service levying penalties or possible jail time.

How do I send Cryptocurrency?

Sending Bitcoin or other cryptocurrencies is effortless once executed a few times. It has been compared in the past to learning how to send an email. You can select the amount to send as well as the destination of where it will go. The main objective is to know the ‘address’ of the recipient. A Bitcoin or cryptocurrency wallet address is an identifier representing a alphanumeric string of characters: 3Hc5tYbu93ufb4ubYnk4Wnvk9kcnkndknBa

Cryptocurrency wallet addresses are long, often containing 26 and 35 alphanumeric characters in length and usually start with a 1 or 3. These addresses can be represented as a QR code that you can scan in various cryptocurrency mobile applications. Once the wallet address has been obtained (destination address) please select how much will need to be sent and the transaction will be completed.

There is usually a small “network Fee” or “gas fee” associated and included in the total transaction. These fees are often lower than using other forms of payment such as MoneyGram or Western Union (remittances).

Cryptocurrency is Crypto also doesn’t have any physical borders the way dollars, pesos, or euros do, so you can send crypto to friends, family, or merchants overseas as easily as sending it to someone sitting next to you. Lastly, you can send crypto without sharing your personal or banking info, making it more secure.

Every type of cryptocurrency has its own definitive form of address. Please make sure if you are sending Bitcoin that the address is specifically a Bitcoin address. Do not send Bitcoin to a Ethereum wallet address as you will lose your cryptocurrency.

Cryptocurrency transactions can take seconds as well as several minutes to arrive from source to destination. Once the transaction is verifiable and confirmations have completed the amount will be present in the wallet address.

Sending as well as receiving cryptocurrencies to wallet addresses is easy and can be used with friends and family or be sent halfway across the world.