TurboTax Crypto Taxes: Simplifying Tax Filing for Cryptocurrency Users
Coinbase users reported experiencing delays and outages while trying to access the platform during the crypto market's sudden downturn. The high trading volume combined with increased sell-off activity led to a strain on Coinbase's infrastructure, causing disruptions in user access and trading functionality.
2. Impact on Traders
Crypto News: Safest Way to Store Crypto, TurboTax Crypto Taxes, Coinbase Outage
Safest Way to Store Crypto: Ensuring Secure Digital Currency Storage
Read the full article here.
The Importance of Secure Digital Currency Storage
The world of cryptocurrencies is constantly evolving, and with its rapid growth, ensuring the security of your digital assets has become a top priority. Storing your crypto safely is crucial to protect it from hacking attempts, theft, and other vulnerabilities. Here, we discuss the safest ways to store your crypto and ensure secure digital currency storage.
1. Hardware Wallets - The Best Defense Against Hacks
As the tax season approaches, cryptocurrency users often find themselves struggling to accurately report their crypto transactions and calculate their tax liabilities. TurboTax, a popular tax-filing software, has introduced features specifically designed to simplify the process for cryptocurrency users.
1. Automated Import of Transactions
Read the full article here.
Coinbase Faces Technical Issues During Market Volatility
During times of intense market volatility, cryptocurrency exchanges often experience technical difficulties due to the overwhelming trading activity. Recently, Coinbase, one of the largest cryptocurrency exchanges, faced a major outage as crypto prices plummeted.
1. Trading Delays and Outages
Paper wallets are a form of cold storage where you store your private keys and wallet addresses on a physical piece of paper. Since paper wallets are not connected to the Internet, they are immune to online attacks. However, it is essential to keep them safe from physical damage or loss. Paper wallets are best suited for long-term storage of cryptocurrencies that you do not plan to trade frequently.
3. Multi-Signature Wallets - Enhanced Security through Collaboration
Following the outage, Coinbase acknowledged the technical issues and assured users that they were working to resolve them promptly. Additionally, Coinbase stated that they would take measures to prevent similar disruptions in the future by scaling their infrastructure to handle increased demand during periods of market volatility.
TurboTax automatically calculates capital gains and losses based on the imported transaction data. It takes into account factors such as holding periods and cost basis to accurately calculate the taxable amount and ensure compliance with tax regulations.
3. Guidance on Reporting Crypto Income
Read the full article here.
Streamlining Crypto Tax Filing with TurboTax
TurboTax allows users to import their cryptocurrency transactions automatically. By integrating with popular cryptocurrency exchanges and wallets, the software fetches transaction data, including buys, sells, and swaps, saving users a significant amount of time and effort in manually entering each transaction.
2. Calculation of Capital Gains and Losses
In conclusion, ensuring secure digital currency storage, streamlining tax filing with TurboTax, and considering the impact of platform outages are all crucial aspects to consider when navigating the world of cryptocurrencies.
Reporting crypto income can be challenging, especially for users involved in activities like mining, staking, or earning interest on crypto assets. TurboTax provides guidance on how to report different types of crypto income, ensuring users understand the requirements and can report their earnings accurately.
Coinbase Experiences Major Outage as Crypto Prices Plummet
The Coinbase outage left many traders unable to take advantage of price movements or execute timely trades. As prices fell rapidly, traders faced difficulties managing their portfolios or executing sell orders, potentially resulting in financial losses or missed opportunities.
3. Steps Taken by Coinbase
Hardware wallets, such as Ledger and Trezor, offer the highest level of security for storing your digital currencies. These wallets store your crypto offline, making it virtually impossible for hackers to gain access to your funds. By keeping your private keys offline, hardware wallets provide an extra layer of protection from potential cyber threats.