Topic: Buying Altcoin with BTC, Capital Loss Every Single Time? - page 2. (Read 617 times)
Don't know why you ppl seem confused. If you want to buy altcoin, you need to buy btc almost always to get that altcoin. Example say you want to buy lisk, you can't just send money to coinbase or bittrex and then buy lisk with usd. So wouldn't that mean you lose money each time almost since you have to pay the trading fees?
I actually had the hard time on understanding this one but as I had read up;
BTC to fiat pairs are few so you wont have any option to take if you do tend to purchase up bitcoin with fiat.
BTC to Alts does have corresponding fee (it isn't something new) if you do trade up and minding losses and gain then
expect it can happen anytime due to price swings.It will just vary on what you are trying to accumulate as gain - either solely
with BTC or focused on fiat value or even on alt one.
BTC to fiat pairs are few so you wont have any option to take if you do tend to purchase up bitcoin with fiat.
BTC to Alts does have corresponding fee (it isn't something new) if you do trade up and minding losses and gain then
expect it can happen anytime due to price swings.It will just vary on what you are trying to accumulate as gain - either solely
with BTC or focused on fiat value or even on alt one.
This is a mathematical solutions to resolve the problem what did you want go solve, any way op pointing the the fees in very transactions se ding and traded buy bitcoin or altcoins he loss their money because of the fees, but not actually loss their money every time he make transaction fees is normal, if they wantbto,earn he need to know how to get eaen in digital currency mathematically. Wait for the price hype before complain for sure op can get earn investing in crypto.
It's very difficult to figure out what you actually try to explain.
Firstly, it really depends on what country you're in to figure out what can be seen as a taxable event and what not, but generally speaking, it should be something like this:
Fiat to crypto = (mostly) not a taxable event
Crypto to crypto = taxable event
Crypto to fiat = taxable event
What matters is the fiat value of your entry point, and the fiat value of your exit point, and over that amount you either report a gain or a loss. Pretty straightforward if I may say so.
Depending on your country, there can be a certain allowance for gains and losses that you don't have to report, but to be sure you really need to contact your tax authority.
Firstly, it really depends on what country you're in to figure out what can be seen as a taxable event and what not, but generally speaking, it should be something like this:
Fiat to crypto = (mostly) not a taxable event
Crypto to crypto = taxable event
Crypto to fiat = taxable event
What matters is the fiat value of your entry point, and the fiat value of your exit point, and over that amount you either report a gain or a loss. Pretty straightforward if I may say so.
Depending on your country, there can be a certain allowance for gains and losses that you don't have to report, but to be sure you really need to contact your tax authority.
I did not understand the point you want to make, but let's summarize the following:
- 1 Bitcoin = 1 Bitcoin.
- If you are afraid of fluctuation in price do not buy BTC or at least do not think about USD value.
- Transaction fees are very low and are often less than $ 0.1.
- You can send one million USD using 1 dollar fees.
- You can trade with the same value (P2P deal) and pay tx fees only.
- BTC to Altcoin services (challegy) offers direct conversion with small fees.
in short, it is possible to exchange BTC to any altcoin using tx fees only (less than 1$?!.)
- 1 Bitcoin = 1 Bitcoin.
- If you are afraid of fluctuation in price do not buy BTC or at least do not think about USD value.
- Transaction fees are very low and are often less than $ 0.1.
- You can send one million USD using 1 dollar fees.
- You can trade with the same value (P2P deal) and pay tx fees only.
- BTC to Altcoin services (challegy) offers direct conversion with small fees.
in short, it is possible to exchange BTC to any altcoin using tx fees only (less than 1$?!.)
I know that when you want to buy an altcoin, let say iota or lisk for example, you have to buy it with btc as oppose to usd or usdt as many altcoins, you cannot pair them with usd or usdt.
So for example, let say you buy $1000 worth of btc at $1000. So you have 1 btc. There is also a fee for buying it so say you only get $997.50 worth of btc. Now let say you want to buy lisk and say its $1 to make it simple. You now spend all that btc which is like 0.9975 btc and buy lisk. You will get around 997.5 - 0.25% fees = $995 worth of lisk so 995 lisk.
But the issue is when you buy btc at $1000, you have to send the btc to another exchange usually to buy the altcoin. So first you have to pay that 10 cent - 1 dollar sending fee. Then after this, you sell btc for lisk. Obviously by the time you make the transaction to buy lisk with btc... its almost impossible for btc to be around the exact price where you bought it which is $1000 btc price. Now let say btc price when you do this is $998.
So here, you are
Buying btc at 1000 dollar price
Selling btc at 998 dollar price
And thus incur a capital loss right?
Thus you never put buy or sell lisk until you sell lisk correct?
Now here is the thing. Let say you buy btc and sell btc at same exact price which is possible. Like during those minute span its the same price. So in these situations, there is no gain and no loss? Or there is always loss because of the sending fee? What about the transaction fee? Because say you bought btc at 1k and sold it at 1k to get lisk... well you are never going to get 1000 lisk, you will probably get 995 lisk more or less right?
So if someone buys altcoins with btc and only does this when they buy btc... meaning... the only time i buy altcoin is when i buy btc right now... then sell it immediately for altcoin, isn't this person going to incur capital losses almost everytime it seems as oppose to capital gains?
So for example, let say you buy $1000 worth of btc at $1000. So you have 1 btc. There is also a fee for buying it so say you only get $997.50 worth of btc. Now let say you want to buy lisk and say its $1 to make it simple. You now spend all that btc which is like 0.9975 btc and buy lisk. You will get around 997.5 - 0.25% fees = $995 worth of lisk so 995 lisk.
But the issue is when you buy btc at $1000, you have to send the btc to another exchange usually to buy the altcoin. So first you have to pay that 10 cent - 1 dollar sending fee. Then after this, you sell btc for lisk. Obviously by the time you make the transaction to buy lisk with btc... its almost impossible for btc to be around the exact price where you bought it which is $1000 btc price. Now let say btc price when you do this is $998.
So here, you are
Buying btc at 1000 dollar price
Selling btc at 998 dollar price
And thus incur a capital loss right?
Thus you never put buy or sell lisk until you sell lisk correct?
Now here is the thing. Let say you buy btc and sell btc at same exact price which is possible. Like during those minute span its the same price. So in these situations, there is no gain and no loss? Or there is always loss because of the sending fee? What about the transaction fee? Because say you bought btc at 1k and sold it at 1k to get lisk... well you are never going to get 1000 lisk, you will probably get 995 lisk more or less right?
So if someone buys altcoins with btc and only does this when they buy btc... meaning... the only time i buy altcoin is when i buy btc right now... then sell it immediately for altcoin, isn't this person going to incur capital losses almost everytime it seems as oppose to capital gains?
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