Unraveling the Enigma: Decoding Bitcoins Capital Gain Calculation

By Lola Coin Jun 28, 202368Views

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The concept of capital gain, which refers to the profit made from buying and selling assets, can be difficult to understand and calculate when it comes to Bitcoin and other cryptocurrencies. Capital gain is only realized when the asset is sold, and the gain is determined by subtracting the purchase cost from the sale proceeds. However, determining the purchase cost can be challenging, especially if the purchase was made a long time ago or if the Bitcoin was moved to a non-custodial wallet. Additionally, if only a portion of the Bitcoin is sold, there is a question of whether to use the purchase price of the first or last Bitcoin purchased. This calculation becomes even more complex for frequent traders, and it is recommended to seek professional help or use specialized software for accurate calculations. Tax rates and regulations on capital gains vary from country to country.

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