Making some money off cryptocurrency? Be careful. Here is why you shouldn’t rush to cash out on crypto when it comes to Robinhood account investments.
According to The Ascent, a lot of people are currently making money by investing in stocks and other assets, including cryptocurrency. However, before anyone considers cashing out on their profits, they should really consider the tax implications.
It was noted that not all investments are actually meant to be kept. Whenever someone sells an asset at a price that’s more than what they originally paid for it, they are subject to capital gains taxes. This tax depends on how long the persona has held the assets before selling. If someone sells investments such as stocks and cryptocurrency before holding them for at least a year and a day, they are subject to short-term capital gains taxes on their profits.
Meanwhile, if someone holds their investments for at least a year and a day before selling them, they will be bumped into a “more favorable” long-term capital gains tax category. This, in return, will result in a less tax bill.
The Ukrainian Government Secures More Than $10 Million in Cryptocurrency Donations
Following the invasion of Russia this past week, the Ukrainian government reportedly secured more than $10 million in cryptocurrency donations. CNBC reports that the country’s officials have two cryptocurrency wallets. One is accepting only Bitcoin. The other is taking Ether and Tether. According to blockchain analytics firm Elliptic, as of Sunday morning, both wallets have raised $10.2 million worth of crypto.
CNBC reports around $1.86 million donated to the country’s government was through the sale of non-fungible tokens (NFT). The funds were originally intended to raise money for WikiLeaks Founder, Julian Assange. Come Back Alive, an NGO that provides equipment to the Ukrainian military has been accepting cryptocurrency donations since 2018. It now has raised millions of dollars worth of crypto since Russia’s invasion began. Total crypto donations to the Ukrainian government and NGOs supporting the military reportedly stand at $16.7 million.
Speaking about cryptocurrency donations, Tom Robinson, Elliptic’s Chief Scientist, writes, “Cryptoassets such as Bitcoin have emerged as an important alternative crowdfunding method. They allow quick, cross-border donations. Which bypass financial institutions that might be blocking payments to these groups.”
Meanwhile, the Ukrainian military initially suggested it was unable to accept cryptocurrency. The government’s website reads, “National legislation does not allow the Ministry of Defense of Ukraine to use other payment systems (Webmoney, Bitcoin, PayPal, etc.).”
However, the Ukrainian government is now allowing these kinds of payments. Ukrainian Minister of Digital Transformation, Mykhailo Fedorov, has even called on major cryptocurrency exchanges to block payments to Russian users while the fighting is continuing. “It’s crucial to freeze not only the addresses linked to Russian and Belarusian politicians but also to sabotage ordinary users.”