TipHound is a paywall that is used on Reddit in order to help monetize content. Well, we here use TipHound in order to run a weekly contest that A. You have to pay into of course and B. If you win it, you get paid back several more bits/satashi!
Why is it that bitcoin is taxed if you sell, trade, or convert? I'm from the US - so if it's not controlled by one government, what's the representation for the taxation? submitted by
I am aware that the IRS wants you to report gains/losses on every trade and exchange between any cryptocurrencies.... But... If you purchased bitcoin on Coinbase and transfered to a foreign exchange such as Binance, does the IRS have any way to identify that you have sent your BTC to a trading exchange? Perhaps it would be more favorable to say that it was transferred to a site that provided exponential growth to investors or some sort of community investment pool (?) versus tracking potentially thousands of transactions? I have accepted the fact that I will pay gains on my crypto trading but am wondering if it seems feasible to delay the gains until the BTC or ETH make their way back to Coinbase (at least from the standpoint of providing a reasonable explanation to the IRS)? Obviously this is more of a speculative question, but it would make a law-abiding crypto day-trader's tax reporting dilemma much easier. submitted by
Since I'm pretty sure we aren't getting like a 1099, we need to do the calculation ourselves? submitted by
Is it FIFO basis or average cost? is there another way to calculate it?
How tax will be calculated for following trades: 2017: 1) Bought 3000 LTC @ $100 = $300K USD 2) Converted LTC($200) @$10K BTC = 60 BTC, profit $300K, tax $84K @ 28% (My tax bracket for regular income) 2018: 1) Sold 60 BTC @$5K, loss $400K submitted by
Is trade #2 in 2017 taxable event? If I have to pay tax in 2017 for 2nd trade than how can I cover loss in 2018?
Build Distribution Channels, Don’t Build Products
The number one reason startups fail is because they don’t succeed in getting traction.
In other words, they fail because they don’t succeed in getting enough users or customers for their product or service so that revenues could be greater than expenses.
I know I know, duh, that’s obvious.
But, why do startups fail to get traction?
Most of the time it’s not because the product was bad or the idea didn’t solve a real problem. No, predominantly a startup doesn’t get traction because the founders don’t approach the business from a distribution first perspective. They never spend any time really figuring out how to efficiently get their product in front of their target customer. They don’t invest in building distribution channels.
This brings me to my main point: You should spend most of your time early in your startup’s life building distribution channels, not products.
The Mistake Everyone Makes
You are starting a company.
The reason you are likely starting it is because you have an AWESOME idea for a new product or service that just needs to exist in the world.
Of course, most entrepreneurs who find themselves at this point are going to spend the vast majority of their time and energy on building out their product and turning it into reality.
It makes sense why they would do this. Naturally, the new product and that thing they are creating is what they are so excited and passionate about. The product is what they are in love with. Not the question of, “How are you actually going to get people to use this product?”
So the distribution question gets ignored.
In this circumstance, the entrepreneur is so confident in their idea, and they just know that it will naturally spread like wildfire once they launch it. Why spend any time on marketing when the idea is this good?
The sad truth is that this NEVER happens, and the entrepreneurs who take this approach wind up launching their product to crickets. No one ever finds out about their amazing idea, and no one ever uses their product.
This is the mistake everyone makes. It’s the main reason why so many startups fail.
Distribution First Mentality
To win in business, I think you need to approach every new venture or startup idea from a distribution first mentality.
It should be the question above all other questions when evaluating a new business: “How am I going to get this product or service in front of my target customers at scale?”
If you have a hard time answering this question, then your idea sucks.
You HAVE to have a convincing, plausible, and executable distribution strategy for your product. If you do not, you are doomed to fail along with all of the other entrepreneurs who make the same mistake.
How We Built Distribution First
When starting our cryptocurrency tax software company CryptoTrader.Tax
, we started with distribution first.
From the launch of the company, we knew that it was extremely likely that one of the strongest distribution channels for this type of product would be Google Search.
We knew this because we could see that there were THOUSANDS of searches being done on Google every month for questions like, “How to report cryptocurrency on taxes”, “Crypto taxes”, “Is bitcoin taxable”, etc. We used tools like Google Keyword planner, Ahrefs, and Ubersuggest to see keyword volumes on Google.
The distribution channel was the search engine.
So, if we could rank highly on Google for these types of search queries, we’d likely get a consistent flow of users into our website and into our cryptocurrency tax automation app.
It’s that simple. We had an idea for an app, and we came from a distribution first angle: how can we get our app in front of our target customers?
With that question answered, we started focusing on writing high quality content
discussing the tax implications of cryptocurrencies. We published this content on our blog, and then focused on getting this content ranking as high as possible in the search results (SEO) for high volume queries like “crypto taxes” and “how to report crypto on taxes”.
Before our product was even complete, we had thousands of people reading our blog content
and signing up for the waitlist for an application that would automate all of their crypto tax reporting, a TurboTax-like experience for crypto investors.
Build the Distribution Channel
The examples of wildly successful entrepreneurs who took this same approach and built out distribution channels before launching products are endless.
One of my favorite recent examples is what The Hustle
did when launching their subscription informational product Trends
. The Hustle is a media company that spent years building a free tech and business newsletter that gets read by millions of people every day (now THAT is a distribution channel). Then, on the back of this distribution channel, they launched a subscription product that helps identify up-and-coming startup Trends for hopeful entrepreneurs.
Within a year of launch, Trends is making the company tens of millions of dollars.
This is only possible because the Hustle built their distribution first. They can now reap the benefits of owning that distribution in dozens of ways—including launching related products to their audience and making millions.
Spend more time thinking about how you’re going to effectively distribute your product over how you are going to build it. Better yet, build the distribution channel before the product is ever even live. Your chances of success go up exponentially.
If you want to learn about more scrappy marketing tactics that will add jet-fuel level growth to your business, you should subscribe to my email list below.
I blog about all of my marketing tactics that I am using to build my businesses, like the time I made $13,000 by growth hacking Instagram
. I then email out all of my best tactics and ideas directly to the people on my email list.
I’ll see you in the inbox!
Original article: https://davidkemmerer.co/distribution-channels/
So bitcoin is not control by any central government and is some countries the government does not even recognize bitcoin as legal tender. So is profit on bitcoin taxable in your countries? submitted by
Edit: so i see some hefty tax percentage on earning. I just found out my country(Malaysia) doesnt have tax on crypto exchange if i'm not mistaken. People i know investing in BTC tend do just keep a low profile and not declare anything to the government.
Bitcoin earned through trade or by running a bitcoin exchange could fall under the “capital gains” category, like gold, and will be taxed. Bitcoins that are mined are counted as income received from the act of mining and are taxable with the expenses accrued (such as computing power) being deductible. Taxable gains and losses from that basis are recognized in the exchange and the type of gain or loss, capital or ordinary, depends upon whether the bitcoin was held for investment, as inventory, used in a trade or business or held for personal reasons. Bitcoin Rewards May Not Be Taxable. When you check out through bitcoin shopping reward platforms, you get a small percentage of bitcoin credited to your wallet. The bitcoin reward is a percentage ... If you are paid wholly in Bitcoins, say 5 BTC, then you would use the fair value. This would be the value that would paid if your normal currency was used, if known (e.g. $1000), otherwise you would use the price of Bitcoin at the time to establish your taxable income. CRA & Bitcoin Taxation in Canada – Is Bitcoin Taxable? The CRA has not yet addressed the issue of Bitcoin tax in any of its Information Circulars or Interpretation Bulletins. However the CRA has issued Income Tax Rulings and Technical Interpretation to address the tax treatment of transactions involving Bitcoins.
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