BTC-USD / Bitcoin to US Dollar


In simple words, Bitcoin to US Dollar is a platform which provides the conversion from Bitcoin to US Dollar. It's a one-stop solution for all the users who are worried about the security of their cryptocurrencies and want to keep their cryptocurrency safe from hackers and scammers.

More About BTC-USD / Bitcoin to US Dollar

Continue reading to learn more about:

Definition
Convert your bitcoins to USD dollars
How is Bitcoin taxed in the US?
Declare cryptocurrency profits
Can you claim losses on cryptocurrency?


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Definition


Bitcoin is a new type of digital currency. It is called the first decentralized digital currency because it works without a central bank or single administrator. It offers two-factor authentication and secure login protocols which allows you to keep your account safe from unauthorized access. When you buy or sell a cryptocurrency, then it sends you agreed amount of Bitcoins or US dollars in real time.

 
 

Convert your bitcoins to USD dollars


You have three basic options, including using a crypto-exchange (like Coinbase or Kraken), finding a local buyer to buy your bitcoins with cash at a regular market rate, or use Bitcoin ATMs.

The safest way is to transfer your bitcoin to an exchange and sell it for USD. Most exchanges only accept bank transfers, so you will have open an account and verify it to be able to use this method. Also there is a time delay because the funds have to settle before you can use them. One easy way might be using LocalBitcoin or a similar service, but again there will be a delay because of the payout.

 

How is Bitcoin taxed in the US?

Bitcoin is a digital currency. This means that us like any other currency, it can be exchanged for services or goods and can be used to buy and sell things. Contrary to popular belief, the US Internal Revenue Service (IRS) doesn't view Bitcoin as a currency so you will have to pay taxes on any earnings you make with it.
Bitcoin will be taxed as property, not currency. This means that if you're paid in Bitcoin, you'll need to keep track of the value of bitcoin at the time it was received, and then again at the time it was converted to US dollars. Since every transaction is different, there's still a lot of ambiguity surrounding how bitcoin will treated for tax purposes.
 
  • Do you have to declare cryptocurrency profits?

    If you have mined bitcoins and sold them for US dollars, euros, or any other fiat currency, you do not have to declare these as gains due to cryptocurrency being an intangible asset. It is considered a capital asset and the sales of bitcoins are exempt from capital gains tax as long as the conversion from bitcoin to fiat currency was done with the intention to make a profit.
    Cryptocurrencies are perceived as high risk and with the value fluctuating so much recently this has triggered many new questions over the legality of buying, selling and trading these digital coins. We follow the rules that are set out by HMRC so we can allow customers to enjoy their right to privacy, but also comply with UK financial regulations.
  • Can you claim losses on cryptocurrency?

    Virtual currency is a new technology that can be used as an alternative to traditional money such as the US dollar or Euro. The market price of these currencies can fluctuate and you may incur a capital loss. If you have a capital loss, this could provide you with an income tax deduction. This factsheet provides basic information on what is cryptocurrency, how your tax obligations are affected, and restrictions on claiming deductions in the 2017 income tax return.