This is an automated archive.
The original was posted on /r/ethereum by /u/tcdoey on 2023-12-15 16:57:05+00:00.
I am new to ethereum and bitcoin technologies. Apologies if this is dumb or if this question has already been addressed.
I was just informed that if I were to do this process:
- deposit funds from my bank account (key or citi) to either coinbase or kraken (or better?) and then use funds to purchase one or other of the stablecoins such as USDC.
- Use that ‘balance/funds’ to exchange on a different platform, such as kraken, for another coin of interest such as Ethereum.
- Will I then be taxed on each step of the transaction, and I’m required to retain all documents of each transaction, even if it is only 10 dollars each, and >100 transactions?
That would mean, that legally, the purchase and incremental sales of any cryptocurrency is totally not worth it. It would be an accumulated tax of over 50% or more.
Apologies if this is newb question, but I’m trying to make proper sense of this. I have funds to invest. ? Taxed at every transaction ?
That doesn’t make sense, there is then no incentive to invest if that taxation level is so high. I think some of you experts out there can help to clarify. I’m sure there must be a workflow, best practice.
thx for any info.