<span data-preserver-spaces="true">When it comes to different sources through which you can earn interest on your money, cryptocurrency has become the most productive one. If we compare the result of any other source for the last decade, cryptocurrency has grown several times and has provided a tremendous return to users. It is why it has become one of the most invested platforms in the world. Cryptocurrency can be termed a digital asset used to buy things digitally. However, many companies have recently started taking cryptocurrency as a payment for physical objects like cars, retail space, etc. </span>

<span data-preserver-spaces="true">Due to the increasing usage of cryptocurrency in the various segments, the value is increasing day by day. It is why more and more people are trying to invest in cryptocurrency. One of the primary reasons for its popularity is that it is entirely decentralized and is not associated with any financial institution or bank. </span>
<h2><span data-preserver-spaces="true">How Secure are Cryptocurrency and its trading?</span></h2>
<span data-preserver-spaces="true">Cryptocurrency is based on the decentralized blockchain platform. It is entirely secure, and all the transactions are encrypted and recorded in a digital ledger approved and reviewed by all the network members. There are currently thousands of different cryptocurrency types available throughout the globe. When it comes to investing in cryptocurrency, it is very similar to investing in Stocks and the Share markets. We need to understand the cryptocurrency market is very volatile, so one can never assure you profits as it has witnessed steep declines over the last few years. However, if invested after a thorough study of the market, it can help you gain a lot of profit as well.</span>
<h2><span data-preserver-spaces="true">Taxes on Cryptocurrency</span></h2>
<span data-preserver-spaces="true">Investment and profits in the Cryptocurrency market are charged with taxes. Every transaction you make with profit and loss is reported to the necessary authority, and selling it for profits will also attract a surcharge at the ordinary income rate. However, you will have to pay more taxes if you buy and sell crypto for a short time, like less than one year. Keeping and holding your investment for more than one year and a long time will attract fewer taxes. Similarly, if you mine cryptocurrency for which the miners receive cryptocurrency, you are taxed as a part of self-employment income. Again, if you accept crypto as payment from someone for goods sold, it will be considered under taxable income. The same will also apply to exchanging one cryptocurrency with another. Almost every transaction with cryptocurrency is taxed. </span>
<h2><span data-preserver-spaces="true">How TurboTax can help in Crypto Investing and Taxes?</span></h2>
<span data-preserver-spaces="true">Turbotax is one of the leading platforms for handling the taxes on your crypto trades and transactions. It records all your transactions automatically and provides a comprehensive report. Since Turbotax is associated with exchanges like Coinbase, Robinhood, and more, you can easily import your transactions directly to Turbotax. Not just Crypt, but it can also help you calculate your tax on things like stocks, bonds, ETF, property income, and almost every type of investment you can think of. It is why it is the one platform to manage all your taxation needs.</span>

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Investing in Crypto? Know the role of Turbotax

Aushini is a technical writer with over 5 years of experience in the content industry. Her current focus is on blockchain technology and cryptocurrency. With her excellent writing skills, she makes the world of blockchain reachable to everyone. In addition to content writing, she is an aspiring Data Scientist from IIT Madras.

Investing in Crypto? Know the role of Turbotax

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