For tax purposes, in the U.S., cryptocurrency is generally treated as property (a capital asset like stocks, bonds, and other investment properties). It is not treated as currency like the U.S. dollar.
Cryptocurrency is a general name referring to all encrypted decentralized digital currency like Bitcoin. Cryptocurrency uses cryptography to create coins and secure transactions. Typically cryptocurrencies are open source with pubic, but encrypted ledgers of all transactions.
There are a number of cryptocurrencies (over 500 as of 2015) traded in markets, but only 10 of them had market capitalizations over $10 million. Popular cryptocurrencies include the original Bitcoin and Litecoin.
Cryptocurrency is legal and taxable in the US, but due to it’s infancy is volatile and should be invested in and used with it’s volatility in mind.
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We explain how to trade cryptocurrency for beginners. To start trading cryptocurrency you need to choose a cryptocurrency wallet and an exchange to trade on.
Altcoins are cryptocurrency alternatives to Bitcoin. There are thousands of altcoins used today each with their own unique functionalities, purposes, and quirks. Altcoins can be fun, profitable, and educational investments.
Below is a list of important cryptocurrencies and additional resources you can use to learn more about all the different cryptocurrency types.
Understanding How a Cryptocurrency Wallet Works A cryptocurrency wallet is a secure digital wallet used to store, send, and receive digital currency like Bitcoin. Most coins have an official wallet or a few officially recommended third party wallets. In order to use any cryptocurrency you will need to use a cryptocurrency wallet. Below we discuss how . . . read more
Learn everything you need to know about mining Litecoin in 30 minutes or less.
Cryptocurrency can get pretty technical, but the basics couldn’t be any simpler. A digital ledger keeps track of money in accounts. People transfer money for goods and services, and math handles the rest.
Proof-of-stake is an alternative to the computationally wasteful, alas effective, proof-of-work system used to protect cryptocurrency mining from spammers and hackers.
In cryptocurrency, proof-of-work is system that uses hard-to-compute but easy-to-verify functions to limit exploitation of cryptocurrency mining. How Does Proof-of-Work Work? A proof-of-work system’s hash function – the algorithm used to find a solution to the computational puzzle – is simple to calculate an output for if given an input, but it is nearly impossible to do . . . read more
Understanding how cryptocurrency works on a basic level is rather simple, but digging into the details can be a little more heady given the many cryptocurrency types. On this page we give an overview of the basics.