Biturai Trading Wiki
The ultimate crypto encyclopedia. Verified by experts.
Spot Exchange Explained: Your Comprehensive Guide
Spot exchange in the crypto world is like making an immediate trade at the current market price. This guide breaks down what spot trading is, how it works, and what you need to know to navigate the market safely.
Crypto Derivatives Exchanges: A Comprehensive Guide
Crypto derivatives exchanges are platforms where traders speculate on the future price of cryptocurrencies without owning the underlying asset. They offer tools like futures and options contracts, enabling leverage and hedging strategies, but come with significant risks.
OTC Trading: A Deep Dive into Over-the-Counter Cryptocurrency Transactions
OTC trading, or Over-the-Counter trading, involves buying and selling cryptocurrencies directly between parties, outside of public exchanges. This method is preferred by large-scale traders for its privacy, flexibility, and ability to execute large transactions without significantly impacting market prices.
Peer to Peer (P2P) Cryptocurrency Exchanges: A Comprehensive Guide
Peer-to-peer (P2P) cryptocurrency exchanges are platforms that connect buyers and sellers of cryptocurrencies directly. This eliminates intermediaries and offers users more control over their trades, often with a wider range of payment options.
Hybrid Crypto Exchanges: The Best of Both Worlds
Hybrid crypto exchanges combine the speed and user-friendliness of centralized exchanges with the security and self-custody of decentralized exchanges. This innovative approach aims to provide a superior trading experience by merging the strengths of both exchange models.
Wash Sale Rule: Avoiding Tax Pitfalls in Crypto Trading
The wash sale rule prevents investors from claiming a tax loss on a security if they repurchase the same or a substantially identical security within a 61-day period. Understanding this rule is crucial for crypto traders to avoid disallowed losses and ensure tax compliance.
Like-Kind Exchange in Cryptocurrency
A like-kind exchange, also known as a 1031 exchange, allows investors to swap one asset for a similar one while deferring capital gains taxes. This can be a powerful tool for tax planning, but it's crucial to understand the rules and limitations, especially in the evolving crypto landscape.
Taxable Events in Cryptocurrency
A taxable event in the crypto world is any transaction that triggers a tax liability. This includes selling crypto for cash, trading one crypto for another, or earning crypto through activities like staking or mining.
Fair Market Value in Crypto
Fair Market Value (FMV) in cryptocurrency refers to the price an asset would sell for in an open market. Understanding FMV is essential for accurate accounting, tax purposes, and informed trading decisions.
Cost Basis in Cryptocurrency: A Comprehensive Guide
Cost basis is the original price you paid for a cryptocurrency, including fees. It's crucial for calculating capital gains or losses when you sell, trade, or otherwise dispose of your crypto.
Specific Identification in Crypto: A Biturai Guide
Specific Identification (Spec ID) is a method for crypto investors to choose which specific units of cryptocurrency they are selling, allowing for potential tax optimization. This approach requires meticulous record-keeping to track the cost basis of each individual crypto unit.
LIFO (Last In First Out) in Crypto Explained
LIFO, or Last In, First Out, is an accounting method that impacts how your crypto gains and losses are calculated. It assumes the newest assets you acquired are the first ones you sell. This can significantly affect your tax liability and profitability.
FIFO First In First Out in Cryptocurrency Trading
FIFO, or First In, First Out, is a fundamental accounting method used in cryptocurrency trading. It dictates that the oldest assets you purchased are the first ones you sell, impacting your tax liabilities and profit calculations.
Long Term Capital Gains in Cryptocurrency
Long-term capital gains in cryptocurrency refer to the profits you make from selling or trading crypto assets you've held for more than a year. These gains are taxed at a lower rate than short-term gains, making them a crucial consideration for any crypto investor.
Capital Gains Tax on Cryptocurrency Explained
Capital Gains Tax is the tax you pay on the profit you make from selling an asset, including cryptocurrency. Understanding this tax is crucial for responsible crypto investing and can significantly impact your overall profitability.
Crypto Taxes: A Comprehensive Guide for Traders
Crypto taxes are the taxes you pay when you sell, trade, or use your cryptocurrency. They are primarily capital gains taxes, but income taxes can also apply. This guide will help you understand how crypto taxes work and how to navigate them.
Bank Secrecy Act (BSA) Explained
The Bank Secrecy Act (BSA) is a U.S. law designed to prevent money laundering and other financial crimes. It requires financial institutions to monitor and report suspicious activities, ensuring transparency in the financial system.
Suspicious Activity Report (SAR) in Crypto
A Suspicious Activity Report (SAR) is a crucial tool used by financial institutions, including crypto businesses, to report potentially illegal financial activity to regulatory authorities. Understanding SARs is vital for anyone involved in the crypto space, ensuring compliance with anti-money laundering (AML) regulations and helping to maintain the integrity of the financial system.
The Crypto Travel Rule: A Comprehensive Guide
The Crypto Travel Rule is a set of guidelines designed to prevent money laundering and terrorist financing in the cryptocurrency space. It requires virtual asset service providers (VASPs) to share information about crypto transactions, similar to regulations in the traditional banking sector.
Counter Terrorism Financing (CTF) in Cryptocurrency
Counter-Terrorism Financing (CTF) in cryptocurrency aims to prevent the use of digital assets for terrorist activities. It involves a set of measures and regulations designed to block access to funds by terrorist organizations and prevent the flow of money to support terrorism.