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Only 1 in 10 People Understand How Cryptocurrency Works, Reveals Survey

Criminals also create fake e-wallets to attract people to unwisely invest their money, and 15 per cent of consumers have been victims of cryptocurrency fraud

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Cryptocurrency, virtual currencies
The value of cryptocurrency rises and falls daily. Pixabay

Only one in 10 people understand how cryptocurrencies work while 29 per cent have some knowledge about digital currencies, a new Survey by Russian cybersecurity firm Kaspersky has found.

The rate at which cryptocurrencies are being adopted by global consumers is slowing down, despite celebrities like Johnny Depp and YouTube influencers such as PewDiePie embracing the technology.

“To date, four in five people (81 per cent) have never purchased cryptocurrency, highlighting just how far away we are from it being accepted as a common form of payment or investment,” the findings showed.

Although there is a desire among many consumers to use cryptocurrency, a knowledge gap is getting in the way of taking the plunge.

In addition, many people who thought they knew with what they are dealing with, later decided against using cryptocurrency. Nearly a fifth (18 per cent) stopped because it became too technically complicated.

Nearly a third (31 per cent) of respondents stated that they believe cryptocurrencies are quite volatile and they need to be stable before they are prepared to use them.

Avoid making decisions based on emotions and find reliable sources for information as it will become a trader’s best asset.
Avoid making decisions based on emotions and find reliable sources for information as it will become a trader’s best asset.

There is also a common perception among consumers that cryptocurrency will not be around forever.

A third (35 per cent) believe cryptocurrencies are a fad that is not worth bothering about.

“It is clear that mainstream adoption and growth of cryptocurrency is being held back due to the vulnerable nature of the technology. While there is a high appetite to use it, giving your hard-earned cash to something you don’t fully understand, or trust, is a hurdle,” explained Vitaly Mzokov, Head of Commercialization at Kaspersky.

While widespread interest in cryptocurrencies may have already peaked, there is still a demand to use the technology. A fifth (20 per cent) of those surveyed said that while they are not using cryptocurrency at the moment, they would like to in the future.

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Fraudsters can use cryptocurrencies to their advantage, with around one in five (19 per cent) of those surveyed saying they have experienced hacking attacks on exchanges.

Criminals also create fake e-wallets to attract people to unwisely invest their money, and 15 per cent of consumers have been victims of cryptocurrency fraud. (IANS)

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Use These Tools to Calculate Your Crypto Tax

Be sure to do your research and choose the crypto tax calculator that you think would best suit you

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Tax
People have come to realize that they can learn the fundamentals of this payment system and using a crypto Tax calculator to file and report their taxes. Pixabay

The current state of taxation on cryptocurrencies-

One of the biggest hurdles while trading in cryptocurrencies is the calculation of taxes also known as Crypto Tax of the investments and returns. Most people despise the idea of filing their regular taxes. The idea of filing taxes for cryptocurrencies is generally met with more frustration and annoyance.

Moreover, cryptocurrency tax rules vary with each country. Several countries have a severe lack of ground rules and regulations surrounding cryptocurrency taxation. Dealing with cryptocurrencies is undoubtedly much more difficult in such countries in comparison to those countries with set regulations. The general population’s confusion around cryptocurrencies is entirely understandable.

Despite this, people across the world are getting themselves involved with cryptocurrencies at varying degrees. People have come to realize that they can learn the fundamentals of this payment system and using a crypto tax calculator to file and report their taxes.

Tax
One of the biggest hurdles while trading in cryptocurrencies is the calculation of taxes also known as Crypto Tax of the investments and returns.

The need for a crypto tax calculator

A crypto tax calculator is an invaluable tool that automates and speeds up the process of calculating taxes and yields accurate results. Whether you are an enthusiastic amateur trader with a few bitcoins under your belt or you are a seasoned cryptocurrency day trader, the tools mentioned in this article are bound to help you.

Tax
A crypto Tax calculator is an invaluable tool that automates and speeds up the process of calculating taxes and yields accurate results.

Since the inception of cryptocurrencies in 2009 spearheaded by Bitcoin, a significant number of quality crypto tax calculators have been come up to make the crypto taxpayer’s job easier. While there are countless crypto tax calculators, we will mention a few of them that you can choose from to take care of your crypto taxes.

Concern over risks that come with cryptocurrencies-

Given the volatility and complexity of cryptocurrencies, people have become apprehensive, albeit curious about the value and role of cryptocurrencies in the digital age. While most people understand the fact that cryptocurrencies are secure, they realize that they are also prone to loss and theft. No central authority or external influence can control cryptocurrency transactions. It is possible to trace transactions but impossible to track the accounts back to their respective real-world identities.

The top crypto tax calculators-

Koinly.io

Koinly is one of the most popular crypto tax calculators in recent times. It has its Headquarters in London. Owing to the sleek and intuitive UI, it is perfect for regular traders and amateur crypto enthusiasts alike.

Another point in Koinly’s favor is that a new user can start using it for free and pay when the final reports are to be generated. In addition to this, it officially supports the tax systems of over 100 countries, 33 exchanges, and six blockchains. It also has several notable features that include a portfolio tracker.

Koinly seems to have the edge over most crypto tax calculators as they develop their tax reports in partnership with audit consultants from KPMG. Hence, they are legally compliant. Their reports also support all the primary accounting methods, including the ACB (Average Cost Basis) and FIFO (First in First out) method.

CoinTracking

CoinTracking analyzes your transactions and generates real-time reports on various things like profit and loss, the value of your Bitcoins, realized and unrealized gains, and reports for taxes.

Cointracking seems to be an all-in-one solution for your cryptocurrency taxation and portfolio tracking requirements.

 It is also compatible with some third-party crypto tax calculators and software like TurboTax. Of course, this depends on the country out of which you are based.

Bitcoin.Tax

Bitcoin.Tax is known as one of the oldest crypto tax calculators. As a result, it is a highly trusted crypto tax calculator among long-time crypto investors and crypto enthusiasts.

Tax
Bitcoin.Tax seems to suit old-school accountants owing to their not so clean interface and the presence of a large amount of text.

The downside to this crypto tax calculator is that it looks dated compared to its competitors like Koinly and Cointracking. Just like Cointracking, Bitcoin.Tax has also partnered with TurboTax to support the seamless importing of cryptocurrency tax data into mainstream income tax reports.Bitcoin.Tax seems to suit old-school accountants owing to their not so clean interface and the presence of a large amount of text.

It is likely to be the one for you if you are looking for a traditional crypto tax software.

BearTax

BearTax is similar to Coinbase due to its simple UI and design language.

Tax
Like all other crypto Tax calculators mentioned, BearTax supports the important exchanges and cryptocurrencies. Like all other crypto tax calculators mentioned, BearTax supports the important exchanges and cryptocurrencies.

Their key selling points seem to be the diversity of features, options in pricing, and functionality.

Like all other crypto tax calculators mentioned, BearTax supports the important exchanges and cryptocurrencies. However, It should be said that BearTax could do very well with a few more intuitive features like a performance tracker.

Zenledger

Zenledger is another quality crypto tax calculator. Users can import cryptocurrency transactions and calculate their capital gains and crypto-related income.

Tax
Zenledger is another quality crypto Tax calculator.

The transaction history is imported, following which the tool generates all the crypto tax-related entities such as capital gains, income, donations, closing reports, and profit and loss statements.

Conclusion-

As Blockchain technology continues to spread, we will witness the increase in the number of crypto tax calculators. However, a crypto trader must understand the fundamentals of cryptocurrencies to make the best use of crypto tax calculators. In order to take care of your crypto taxes seamlessly, you ought to spend some time searching for the crypto tax calculator that is right for you.

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Be sure to do your research and choose the crypto tax calculator that you think would best suit you. To do that, it is crucial that you fully understand what you want from a crypto tax calculator.