The need to optimize transaction taxes
The world of cryptocurrency is evolving every second. Every week new protocols, blockchains, tokens or exchanges gain broader acceptance in the already decentralized world. Trading methods such as margin trading, futures, profit farming and liquidity pool mining, NFTs and many others have become a great source of innovation in the crypto world. While these various innovative financial methods or transactions are revolutionary, they add a layer of complexity to the real world that few people previously knew about – taxes.
From this year’s crypto hobbyist to professional crypto trader, both profiles are involved in the crypto world, driven by the idea of creating wealth, have and will be part of something new and exciting – the future of finance.
However, they do not take into account the future effects this will have, such as new tax routes. Countries like Germany, Austria, UK and the US have very complicated tax systems and they are no easier for crypto traders. If this resonates with readers, they may find themselves in the same predicament as most crypto traders in their highly regulated countries when it comes to the crypto market: How to deal with the crypto tax?
Transaction tax optimization can be complicated if not properly understood. This is why ACCOINTING.com has created the ultimate tool to help people in the US and Germany optimize their transactions for tax purposes. Users simply connect their wallet and swap it out via API or wallet address, choose a tax calculation method, define the type of tax vault they want to use, and finally use the time slider to preview future taxable profits. This tool enables users to easily keep track of their portfolio and review future taxable events to optimize their taxes. The platform is free of charge for a limited time and is available in German and English.
About transaction tax optimization
The knowledge and ability of traders to optimize crypto taxes depends on several factors: First of all, their previous experience with paying taxes on assets such as stocks, commodities and futures, as these are taxed in a similar way to cryptocurrencies. Another very important factor is knowing exactly when to optimize them and that makes crypto taxes more interesting: using the same token at different time intervals to maximize optimization for financial purposes.
Transaction tax optimization enables crypto traders to visualize, optimize and plan their trades in the future and understand the actual profit per token, broken down by exchange transactions, so that they can easily identify their next trade to reduce the tax burden and the To maximize profit. The transaction tax optimization gives an indication of the future, in order to take action against current tax consequences today. Strategy and implementation depend on two variables: tax calculation method and warehouse layout.
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Important NOTE: All content on the website is for informational purposes only and does not constitute investment advice in any way. Your money, the choice is yours.