Do I need to pay taxes on crypto during 2021?
Answer a few simple questions here to see if you have to pay taxes during 2021!
How do cryptocurrency taxes work?
In most countries, crypto typically incurs capital gains tax. This means you need to pay taxes on the difference between what you bought crypto for and what you sold it for (minus fees). If you received crypto through other methods (e.g. salary), methods like income tax will apply.
Can I avoid paying taxes on crypto?
It is a criminal offense to not pay your taxes. It is also difficult to avoid since crypto transactions are recorded publically on the blockchain and exchanges have been forced to hand over information to local tax authorities.
Do I need to file taxes if I lost money?
Yes you need to file a tax report even if you lost money. The good news is that by filing your losses you may be able to reduce your taxes.
Are crypto to crypto trades taxed?
In many countries yes! This is where tax reporting gets more difficult as you need to be able to account for the value of different cryptocurrencies in your local currency for every trade. Divly can take care of this automatically for you.
Is it safe to share my transactions with Divly?
Divly is a premium service to help people calculate and submit their crypto taxes. We use industry standard practices to secure your data. We do not sell your information to third parties such as other companies or government agencies. We do not perform any KYC. Divly only requires an email address and your pseudonymous crypto transactions to generate your taxes. Feel free to use a temporary email / protonmail. You can also delete all your transactions and synched wallets at any time.