Cryptocurrency
Day Traders Can Use Regulated Crypto Futures To Save Big On Taxes
As reported at Forbes, “Regulated cryptocurrency futures bypass the default short-term, long-term capital gain tax rules applicable to cryptocurrencies. It allows you to treat 60 cents of each dollar of profit you make as long-term gains, irrespective of the holding period of the asset. For the savvy day trader, this can yield up to 24% of tax […]
As reported at Forbes, “Regulated cryptocurrency futures bypass the default short-term, long-term capital gain tax rules applicable to cryptocurrencies. It allows you to treat 60 cents of each dollar of profit you make as long-term gains, irrespective of the holding period of the asset. For the savvy day trader, this can yield up to 24% of tax savings.
“A futures contract is an agreement between two parties to buy or sell an asset on a given future date for a specified price agreed upon today. When you buy a futures contract, you do not own the underlying asset; you simply own the legal contract which gives you the right to buy or sell the underlying asset at a future date on a set price.
“In the crypto world, many futures contracts are cash settled. This means that there is no physical exchange of bitcoin or other cryptocurrency between two parties at the contract expiration…”