One shouldn’t avoid taxes on cryptocurrency transactions. You need to understand that you are not taxed when you buy crypto with fiat cash in the United Kingdom, such as the Great British pound. However, you must keep track of your crypto transactions to keep track of your cost base in detail. This ensures that you can calculate your crypto earnings and losses accurately in the future. How to determine cost basis of cryptocurrency Investigators estimate that between 2017 and 2021, the site helped “clean” some $700 million in funds stolen by hackers, $17 million extorted through ransomware attacks, and more than $200 million associated with darknet markets selling drugs, stolen identities, malware, hacking tools, and counterfeit cash.

The strength of the economy is also a huge factor in Bitcoin pricing. In what has been designated as the 2022 "crypto winter," sharp declines occurred in Bitcoin pricing as the Federal Reserve began aggressively increasing interest rates to stave off inflation. Investor appetite for risk all but disappeared and liquidity became a major issue among the exchanges. Bitcoin's value decreased over 60% from a high of $68,990 in Nov 2021, and pessimism in the markets still persists. Crypto Income for Investors No, actually. Cryptocurrency is often compared to other types of investments, like stocks or real estate. When it is liquidated through a sale, a taxable event has occurred, and the gain or loss must be reported. Crypto gains are taxed at the same rate as capital gains for stocks and bonds. So, for tax purposes, cryptocurrency is treated as property that has either appreciated or depreciated in your custody.