Jan 11, 2025 12:55

From 0xChaos to .bnb Cool: CoinStats Integrates SPACE ID

CoinStats recently partnered with TON, TRON, SUI, and BNB blockchains. With this, CoinStats now supports over 120 blockchains. At the same time, weve observed a clear trend among CoinStats users: more people are choosing Web3 Domains as an easier and more convenient way to connect and track wallets. Domain wallet connections have increased from 450 in October 2024 to 4,600 in December 2024, a 922% jump reflecting growing user adoption.

Data source: CoinStats

Listening to our users, were proud to announce our integration with SPACE ID, the first multi-chain Web3 domain service and identity platform. A Web3 Domain is like a username for your wallet address. It replaces complex wallet addresses with simple, memorable names, like you.bnb. With the help of SPACE ID you can discover, register, trade, and manage all your Web3 usernames. Backed by Binance Labs and Polychain Capital, SPACE ID is trusted and widely integrated. Platforms like MetaMask, Trust Wallet, and PancakeSwap already support it, and now, CoinStats joins the list.

You can now easily view your entire portfolio on CoinStats with your SPACE ID handle. Simply enter your SPACE ID handle in the CoinStats app search bar to instantly see your wallet addresses' balances across multiple blockchains.

Whats in It for You?

Heres what this integration unlocks for you:

1. One Handle to Rule Them All: Connect all your blockchain addresses using a single SPACE ID domain and track them seamlessly on your CoinStats portfolio.

2. Explore & Track: Use Wallet Explorer to search SPACE ID handles and add them to your CoinStats Watchlist.

3. EVM Wallet Integration: Connect your EVM wallet (like MetaMask, Trust Wallet, or any other supported wallet) using your SPACE ID handle to CoinStats.

To celebrate the partnership, we are launching a Galxe campaign where you can enter the raffle for a chance to win $500 in $ID tokens.

Web3 domains save our users time by eliminating the hassle of copy-pasting long addresses. With over $100 billion in assets tracked, CoinStats is committed to simplifying and making crypto portfolio management more efficient. Our partnership with SPACE ID is another step toward delivering comprehensive crypto portfolio management.

Sep 22, 2024 12:55

Are Trumps NFT Cards an Investment Opportunity or Just a Hype Product

In December 2022, former U.S. President Donald Trump made headlines again, but this time in an unexpected arena - the world of non-fungible tokens (NFTs). The launch of his digital trading card collection shook up the political and crypto spheres, sparking debates about the nature of digital assets, celebrity influence, and the future of political merchandising.

As with many ventures associated with Trump, opinions are sharply divided. Some view these NFTs as a groundbreaking investment opportunity, while others dismiss them as hype capitalizing on Trump's controversial persona.

Unpacking the Hype VS. Real Value

Before delving into the investment potential of these digital assets, it's crucial to understand what they represent. Trump's NFT cards are part of a limited collection featuring the former president in various guises - from superhero to cowboy, astronaut to golf pro. Each card is a unique digital asset, authenticated and secured on the blockchain.

This uniqueness is part of what gives NFTs their value. It makes them profitable, much like a casino gaming experience with free spins mentioned here, which operate on similar principles of scarcity and authenticity.

The initial release saw 45,000 NFTs minted, each priced at $99. The collection sold out rapidly, demonstrating significant initial interest. But as the dust settles, the question remains: are these digital trading cards a legitimate investment opportunity or simply a fleeting trend riding on celebrity status and NFT hype?

Understanding the Trump NFT Ecosystem

Understanding Trump's NFT cards' ecosystem is essential for assessing their investment potential. These digital assets are more than just static images; they come with potential perks and privileges that add layers of value beyond the digital artwork itself.

The collection includes rare and unique cards, some signed by Trump, bringing a sense of traditional collectible value to the digital format. Additionally, certain card combinations or quantities unlock real-world experiences, such as dinner with the former president or access to exclusive events. This fusion of digital scarcity with tangible rewards creates a unique value proposition that sets these NFTs apart from many others in the market.

Moreover, the Trump NFT project relies on the Polygon blockchain, known for its lower transaction fees and energy consumption than Ethereum. This choice addresses environmental concerns often associated with NFTs, potentially broadening their appeal to environmentally conscious investors.

Market Performance and Price Dynamics

Since their launch, Trump's NFT cards have experienced significant price volatility, reflecting the broader trends in both the NFT market and Trump's public persona. Initial sales saw prices skyrocket, with some rare cards fetching tens of thousands of dollars on secondary markets. However, as with many NFT projects, prices have since stabilized and, in some cases, declined.

As of the current data, the price floor for Trump Digital Trading Cards stands at 427.00 MATIC (Polygon's native cryptocurrency), with a 24-hour trading volume of 772.90 MATIC. The collection has seen a 7.83% increase in its price floor over the last 24 hours, indicating ongoing market interest. The 7-day average sale price of 398.35 MATIC, with highs of 900.00 MATIC and lows of 310.00 MATIC, demonstrates the considerable price range these assets can trade within.

This volatility is characteristic of the NFT market but is particularly pronounced for celebrity-linked projects, where value is often tied to public sentiment and media attention. This presents opportunities and risks for potential investors, requiring careful timing and market analysis.

The Collector's Perspective: Beyond Financial Returns

While much of the discussion around Trump's NFT cards focuses on their investment potential, it is important to consider the collector's perspective. For many buyers, these digital assets represent more than just a financial opportunity; they're a piece of political memorabilia, a show of support for Trump, or simply a fascinating artifact of our digital age.

The collection's success has demonstrated the power of combining political fandom with digital collectibles. Each card captures a facet of Trump's public image, from his business persona to his political achievements, creating a digital time capsule of his career and presidency. For collectors of political memorabilia or Trump supporters, these NFTs offer a new way to engage with and preserve what they see as important historical and cultural moments.

Furthermore, this collector value provides a level of price support that purely speculative assets might lack. Even if the broader NFT market experiences downturns, dedicated collectors may continue to value these cards, potentially providing a price floor.

Risks and Criticisms: The Flip Side of the Trump NFT Coin

Despite their initial success and ongoing trading activity, Trump's NFT cards have faced significant criticism and skepticism. Detractors argue that the project is little more than a cash grab, capitalizing on Trump's fame and the NFT hype without offering substantial long-term value.

One primary concern is the project's heavy reliance on Trump's brand. While this is currently a strength, it also represents a significant risk. The value of these NFTs could be dramatically affected by shifts in public opinion or any controversies surrounding Trump. This personality-driven valuation makes them a potentially volatile investment compared to NFTs based on artistic merit or utility.

Additionally, the NFT market itself remains highly speculative and unregulated. The lack of oversight and the potential for market manipulation pose risks to investors, especially those new to crypto. Though mitigated by using Polygon, blockchain technology's environmental impact remains a concern for some potential buyers.

Critics also point out that the real-world perks associated with some cards, while attractive, are limited and may not justify the high prices some NFTs have reached on secondary markets. There's also the question of long-term relevance - will these digital cards maintain their appeal and value over time, or will they become digital relics of a fad?

Future Prospects: Riding the Waves of Technology and Politics

The future of Trump's NFT cards as an investment hinges on several factors, including technological advancements in the blockchain space, the evolution of the NFT market, and Trump's ongoing public relevance.

Technological improvements in blockchain scalability and energy efficiency could address some of the current criticisms of NFTs, potentially broadening their appeal. Integrating these digital assets into virtual or augmented reality experiences could enhance their utility and value proposition.

Politically, Trump's future activities and public perception will likely continue to influence the value of these NFTs. Any potential political comeback or major media events could reignite interest in the collection, while prolonged absence from the public eye might dampen enthusiasm.

The broader adoption of NFTs and digital collectibles will also play a crucial role. As more mainstream brands and public figures enter the space, the novelty of Trump's collection may diminish. However, this could also lead to a more mature and stable political and celebrity NFTs market, benefiting early entrants like the Trump collection.

A Digital Gamble or a Piece of History

Trump's NFT cards represent a unique intersection of politics, technology, and collectibles. Their investment potential is as polarizing as the figure they represent, offering significant opportunities and considerable risks.

For those considering investment, it's crucial to approach these NFTs with a clear understanding of the volatile nature of both the NFT market and Trump's public image. While the initial hype has subsided, the ongoing trading activity and price floor suggest a persistent interest in these digital assets.

However, potential investors should be wary of viewing these NFTs solely through the lens of financial returns. Their value is deeply intertwined with Trump's brand and the broader cultural moment they represent. As such, they might be better understood as digital collectibles with investment potential rather than pure investment vehicles.

Whether Trump's NFT cards are a savvy investment or a hype product depends on individual perspective and risk tolerance. For Trump supporters and NFT enthusiasts, they offer a unique piece of digital memorabilia. For speculators, they present a high-risk, potentially high-reward opportunity in the evolving digital asset landscape.

As the NFT market continues to mature and Trump's post-presidency story unfolds, the true legacy of these digital trading cards will become clearer. Whether they become valuable pieces of political history or cautionary tales of digital excess, they undoubtedly represent a fascinating chapter in the ongoing story of NFTs and their impact on politics, culture, and technology.

Sep 14, 2024 12:55

To the Sun: CoinStats Now Fully Supports TRON Blockchain

The sun is shining even brighter at CoinStats! Weve just rolled out full support for the TRON blockchain. With TRON now holding the second spot in Total Value Locked (TVL) and its native token TRX climbing to the top 10 by market cap, we knew it was time to bring you seamless tracking for all things TRON.

Why This Matters for You

If youve been following TRONs recent hype, youll notice liquidity flowing in from other chains. Starting today, tracking your TRON assets is as simple as tracking anything else on CoinStats. Just pop your TRON wallet address into the CoinStats app search bar, or click here to get started on the web.

What You Can Track

So, what exactly can you do with this new integration? Lets break it down:

1. Advanced Portfolio Profit & Loss for Your Wallet

• Total Cost: The total amount spent on acquiring the asset.
• Unrealized P/L: The profit or loss on assets you havent sold yet.
• Realized P/L: The profit or loss on assets youve sold.
• All P/L: The sum of Unrealized and Realized P/L.

2. Your Coin-Specific Profit & Loss

Track the performance of individual coins within your TRON wallet. Whether it's a mainstream memecoin like SunDog, or other small any other coins with a market cap larger than $10k.

3. Transaction History of Your Wallet

Forget about manually visiting Tronscan. All your TRON transactions are now unified and easily accessible within CoinStats.

4. Asset Allocation

Asset allocation charts provide a clear pie chart visual of how your funds are allocated. This is essential for ensuring your portfolio is diversified and aligns with your financial goals.

5. Top 5 Gainers & Losers

Wondering which coins made you and lost you the most money? In the Portfolio Performance section, you can dive deep into the details. See exactly how much youve made or lost, along with the percentage breakdown of each coins overall profit and loss.

At CoinStats, our mission is to empower you with the tools that simplify and enhance your crypto journey. The integration of TRON is just the latest step in our ongoing commitment to help you make smarter, more informed investment decisions.

Jul 28, 2024 12:55

Partnership with FIO Protocol Brings Free Web3 Handles for CoinStats Users

CoinStats has recently integrated its 100th blockchain into the portfolio tracker. With over 300 integrated wallets and exchanges, CoinStats offers you the most comprehensive range of integration options available on the market.

Today, were excited to announce the integration of FIO Protocol. This gives you an exclusive chance to claim your universal Web3 handle on the @coinstats domain for free. Read on to learn how to claim your handle and benefit from this partnership.

With FIO, you can replace all your public wallet addresses with a single, secure, customizable handle. Its also an NFT owned by you, which allows you to use many of the features of the FIO Protocol. FIO has already registered 1.7 M handles. Their ecosystem includes MetaMask, Trust Wallet, Binance, and others. The FIO Token is a utility token that powers the FIO Protocol and its Ecosystem.

The integration with FIO Protocol brings several new features:

1. FIO Token Balances: Users can now see their FIO token balances and other blockchain data within the CoinStats portfolio tracker.
2. FIO Handle Lookup: Similar to other web3 domain integrations, users can type in a FIO handle to track balances for all addresses mapped to that handle across different blockchains.
3. FIO Handle Registration/Management for Free: Users can easily register and manage their FIO Handle for free.

You can now effortlessly view your entire portfolio linked to your FIO Handle or wallet address. Just enter your FIO Handle or wallet address to see all balances mapped to your public addresses across different blockchains. Explore this feature here.

Claim Your Handle for Free

Follow this link to FIO Protocol, search for your beloved Web3 handle, and push Get It. The rest of the details are in the video below, to make things easier for you.

How to Claim Your Web3 Handle on @coinstats Domain 🎥

CoinStats remains committed to empowering users to manage their crypto portfolios efficiently. This partnership with FIO Protocol is another step towards providing the most comprehensive and user-friendly platform for our 1 million users worldwide.

Jul 15, 2024 12:55

Security Incident Report: CoinStats July 12, 2024

Incident Overview

On June 22, 2024, at approximately 18:00 UTC, our team at CoinStats detected abnormal activity related to transfers involving the third-party supported, non-custodial CoinStats Wallet. In response to this event, we immediately took down the entire platform to initiate a thorough investigation and contacted the third-party wallet service provider to take any appropriate measures. At around 23:00 UTC we were able to identify and share the list of the affected wallets.

Incident Details

Upon further investigation, we discovered unauthorized access to parts of our infrastructure and third-party service providers, including HashiCorp Vault located in our infrastructure, which secured CoinStats Wallet 2FA keys(PINs) and a 3rd party wallet as a service provider APIs. Despite security protocols in place that segregated access controls and maintained any private keys outside of the control of CoinStats, through a combination of unauthorized intrusions across multiple services including outside of CoinStats the sophisticated (and we believe nation-state affiliated) attacker managed to access private keys of exactly 1590 CoinStats Wallets, resulting in the theft of approximately $2.2 million worth of cryptocurrency. The investigation into the full extent of the breach is ongoing.

In response to this breach, we promptly took the following actions:

1. Engagement of Security Experts: We enlisted the help of leading security researchers by the help of Security Alliance, including renowned experts like ZachXBT and Tay (Head of Security at MetaMask), to trace the stolen funds. Still ongoing.
2. Law Enforcement Involvement: We reported the security incident to local law enforcement and the FBI.
3. Platform Security Measures: To mitigate the attack, we completely rebuilt our production environment, ensuring no parts of the old infrastructure were used to guarantee the integrity of the new setup, as well as connections to compromised third parties like AWS, migrating to new accounts.
4. Comprehensive infrastructure audits: To enhance the security of our new production environment, we have taken additional steps, including hiring external top-tier security experts and conducting comprehensive infrastructure audits. More detailed security updates will be provided as our efforts continue.

Through collaboration with law enforcement and security researchers, we gathered enough evidence to confidently attribute the attack to the Lazarus Group or a related organization with a nation-state level of sophistication and resources.

No Connected Wallets or Exchanges Have Been Affected

We want to assure you that the funds in wallets and exchange accounts connected to CoinStats for portfolio tracking purposes, such as MetaMask, Phantom, or Binance, have not been affected by this incident. Since these accounts are not imported via private keys, your portfolio tracking remains secure. We only request read-only access for portfolio tracking, ensuring that there is no way your funds could have been affected.

Now CoinStats is Fully Operational

We completely rebuilt our production environment, ensuring no parts of the old infrastructure were used to guarantee the integrity of the new setup. As of July 3, 2024, all functionalities on CoinStats have been fully restored and are now fully operational.

Next Steps

Our current findings indicate the attacker's primary objective was to steal funds. Through ongoing investigation across our infrastructure, email phishing monitoring, and dark web monitoring, there is currently no evidence discovered of user data being stolen. However, as a precaution, we advise all users to remain vigilant against potential email phishing attacks and report to us if they receive any suspicious email on their CoinStats related email address which is not leaked on any data breaches.

• Be cautious of emails from unfamiliar or suspicious domain
• Avoid clicking on links or downloading attachments from unsolicited sources
• Be wary of emails claiming to offer token airdrops

As an additional precaution, we are also enforcing the following measures which affect the existing users:

1. Mandatory Password Update: We are enforcing a stricter password policy requiring all users to update their passwords if it does not comply with the new password policy.
2. Enable 2FA: We advise all CoinStats users to enable 2-factor authentication on their CoinStats accounts.

The Highest Degree of Transparency

We are committed to maintaining the highest degree of transparency throughout this process. We will provide regular updates on our investigation and the measures we are taking to enhance security further. Our goal is to keep you fully informed and to rebuild your trust in CoinStats. 

Support for Affected Users

We are profoundly sorry for the distress this attack has caused to our users. We deeply sympathize with the victims and are actively exploring ways to support them during this difficult time. This situation has been challenging for us as a company, but we remain positive and committed to making things right. As a first step, we have created a form to identify affected users and cross-check with our records .

If your wallet is on the list of affected wallets, please make sure to submit the form before August 15, 2024, 00:00 UTC to be eligible for any future support from the CoinStats team. Please note that some fields may be optional depending on your estimated amount of loss.

We appreciate your understanding and patience as we navigate through this challenging situation. We ask for your continued trust and support, which are essential for us to overcome these challenging times. Your faith in us will help us maintain our position as the best portfolio tracker and enables us to provide the necessary support to the victims of this attack.

Jun 16, 2024 12:55

Introducing CoinStats Upgraded Profit & Loss Calculation

If you want to make better crypto decisions, you need proper portfolio tracking, and that must include accurate profit and loss analysis. Everyone will agree on this.

At CoinStats, were committed to our mission of providing top-tier crypto portfolio management to our users. Earlier in May, we rolled out Portfolio Analytics 2.0, and now were bringing you our most precise Profit & Loss calculation yet. Its designed to help you manage your crypto portfolio with greater accuracy.

See how you can benefit from CoinStats' latest updates below.

Advanced Portfolio Profit & Loss (P/L)

With our new update, you can now view your total portfolio P/L through various metrics:

• Total Cost: The total amount spent on acquiring the asset.
• Unrealized P/L: The profit or loss on assets you havent sold yet.
• Realized P/L: The profit or loss on assets youve sold.
• All P/L: The sum of Unrealized and Realized P/L.

These metrics offer a comprehensive view of your portfolios performance, helping you make informed investment decisions.

Let's break it down with an example.

You bought 3 SOL for $100 each

When SOL price reached $200, you sold 1 SOL

Now SOL Price is $300, and you still have 2 SOL

Total Cost (Of current holdings): $200

Unrealized P/L: (Current coin amount * Current coin value) - (Current coin amount * Cost of each coin) = $400

Unrealized P/L: (2 SOL * $300) - (2 SOL * $100) = $400

Realized P/L: (Sold coin amount * Sold coin price) - (Sold coin amount * Cost of each coin) = $100

Realized P/L: (1 SOL * $200) - (1 SOL * $100) = $100

All P/L: (Unrealized + Realized P/L) = $500

All P/L: ($400 + $100) = $500

Detailed Asset P/L

See exactly how much profit or loss you've made on each asset, now more accurate than ever. Go to the 'Holdings' tab of any coin to see detailed insights. When there, click on any P/L to view your average buy and sell prices for that coin!

Wanna flex your gains?

On the same page, click on any of your P/L and click the Share button to get a share banner!

Transactions P/L 

You can now see detailed Profit & Loss based on your transactions when filtered by single coins in the 'History' tab. 

DeFi Holdings 

You asked, we delivered! You can now include your DeFi holdings in your total balance. This feature has been highly requested by our users, and we're thrilled to integrate it into our platform. Go to your Portfolio and click on the 'DeFi' tab, then click on 'Total DeFi' to toggle it!

These new features are live now, designed to provide you with greater clarity and success in your crypto investments. Your feedback has been instrumental in shaping these updates, and we look forward to hearing more from you. Try out the new features and share your experience with us on Twitter.

May 17, 2024 12:55

Introducing Exit Strategy 2.0 & More

We're thrilled to share a batch of updates that make your app even more tailored and intuitive for managing crypto investments. Let's dive into what's new and how these enhancements can improve your crypto journey.

Enhanced Exit Strategy 

We've given our exit strategy feature a major overhaul. Now, you can set up detailed exit strategies with multiple exit prices directly from the initial coin list screen. This redesign not only integrates the exit prices but also allows for easier setup. To aid in precision, you can add or delete multiple rows, and our new autofill options suggest exit prices based on the latest market trends. Plus, a one-time hint and a price setting screen displaying current values ensure you're well-informed at every step.

Smoother Portfolio Switching

Navigating between portfolios is now more seamless. With feedback from users like you, we've introduced a new gesture-based method to switch portfolios. Simply long press and slide to select a portfolio from the updated list, which now shows up to seven items, including 'All Assets' and child portfolios. First-time users will receive helpful hints to get accustomed to this smoother experience.

Improved Transaction Details

Transparency is key in managing your crypto, so we've improved how transaction details are displayed. Whether you're sending or receiving, the relevant addresses are now clearly shown, with direct links to a detailed wallet page for deeper analysis. This ensures you have all the necessary information to track and verify every transaction easily.

Trending Tab for Market Movements

Stay ahead of the market with our new Trending tab in the coin list view. This feature allows you to see which coins are gaining traction. With a simple click on the 'View More' button, you can access this tab with custom filters, helping you focus on relevant market movements over the last 24 hours.

We hope these updates make your CoinStats experience even more enjoyable and efficient. As always, we're eager to hear your feedback and make improvements that help you manage your crypto portfolio better. Happy tracking!

May 06, 2024 12:55

Introducing Portfolio Analytics 2.0

Weve rolled out some exciting updates to our platform that promise to make your crypto tracking experience even more intuitive and insightful. Whether youre a seasoned trader or just starting, these new features are designed to help you understand and optimize your investments better than ever.

Whats New at CoinStats?

Our latest update focuses on making complex data easy to understand, helping you make informed decisions about your crypto investments. Heres a breakdown of what you can expect:

Portfolio Performance: Ever wondered how your investments are really doing? Our enhanced portfolio performance feature lets you see your profit and loss and how your portfolio stacks up against market trends. This can help you understand whether youre outperforming the market or if theres room to tweak your strategy.

Asset Allocation: Its crucial to know where your money is going. Our updated asset allocation charts clearly show your investments across different categories. This visualization makes it easier to ensure your portfolio is diversified and aligned with your investment goals.

Wallet Analyser: Dive deeper with our enhanced Wallet Analyser, designed to analyze the performance of any wallet across multiple blockchain networks. Gain insights into asset allocations, track cross-chain transactions, and assess your investment diversificationall in one intuitive dashboard. This tool simplifies complex data to give you a clear overview of your cryptocurrency holdings.

Fees Paid: Nobody likes fees, but theyre a necessary part of trading. Our new fees paid feature provides a detailed report of all transaction fees, including gas fees on blockchain transactions and trading fees on exchanges. This transparency can help you manage your costs more effectively.

Heatmaps: Our improved heatmaps offer a color-coded view of your portfolios performance and concentration trends. At a glance, you can see which parts of your portfolio are hot and which are not, helping you make adjustments as needed.

Were excited for you to try out these new features and hope they help you gain deeper insights into your crypto investments. As always, were here to help you navigate the crypto space more confidently and clearly. Happy tracking!

Apr 15, 2024 12:55

Introducing Degen Plan: Power Up for the Bull Market

The crypto market is on a wild ride UP. In response to this, we've been closely tracking the increasing needs of our users. The top needs are more daily portfolio syncs, more wallet and exchange connections, and faster customer support.

So, we got to work and made something special for you: the Degen plan 👑

Whats inside?

• Unlimited daily syncs 
• 1M history transactions
• 500 portfolio connections
• VIP support in under 1 hour
• Plus, all the perks in CoinStats Premium

The Degen plan is your new way to ride the bull market with confidence. It's designed for the dedicatedfor those who breathe, eat, and sleep crypto. This new plan is our answer to the community's call for more powerful capabilities. It perfectly reflects the intensity of todays crypto world.

With Degen, you're not just getting another subscription. Youre unlocking the next level of your crypto journey. Track 500 portfolios and a million transactions, all while enjoying unlimited syncs. Time is money, and in the world of crypto, it's everything. That's why we've included lightning-fast customer support, ensuring you receive help in under one hour.

Joining Degen is joining a group of crypto investors who demand the best. It's for those who want to dive deeper, track smarter, and move faster in the crypto universe.

Welcome to the Degen plan. 

Best,
Narek

Apr 14, 2024 12:55

Smart Strategies: A Guide to Saving on Your Crypto Taxes

Every year, we're greeted by the unavoidable annual milestone - tax season! For those residing in tax haven countries, this is probably the last of your worries. However, for the rest of us, taxes are an unfortunate reality we must face sooner or later.

But its not all doom and gloom; you can save thousands of dollars on your crypto tax liabilities with strategic planning and the right tools. Here are some easy methods to help you reduce your tax bill this season:

1. Take Advantage of the Long-Term Holding Period

The duration you hold onto your crypto can significantly impact your tax obligations. In many jurisdictions (e.g., USA, UK, Australia, etc.), holding onto your cryptocurrency for over a year before selling or exchanging your crypto may make you eligible for long-term capital gains tax rates.

Typically, these long-term rates are more favorable than short-term rates, which are applied to investments held for less than 12 months.

For example, say you bought BTC on the 1st January 2023 and then sold it on the 1st September 2023 for a $100,000 profit. This would be considered short-term capital gains in the US (as it was sold after 10 months) and is therefore taxed at the federal income tax rate for this bracket which is 24%.

NOTE: This calculation is based on the assumption that you have had no other income or short-term capital gains in the financial year period.

However, say you were to hold onto this BTC and instead sell it on the 1st February, 2024 - still for $100,000 profit. This would then be considered long-term capital gains (as it was sold after 13 months) and is taxed at a lower rate of 15%.

2. Harvest Your Losses

Tax-loss harvesting is another tactic that you can undertake to reduce your overall capital gains for the financial year period. This can be done by selling your crypto assets at a loss to offset your capital gains, slashing your overall tax bill.

For example, say you purchase 1 BTC at $50,000. After holding onto it for a while, you decide to sell it when the value drops to $45,000 - incurring a capital loss of $5,000.

During the same year, you also purchase 100 SOL for $4,000. The value of SOL triples, with your 100 SOL now worth $12,000. Consequently, you decide to take advantage of this price increase and sell all your SOL - leading to a capital gain of $8,000 ($12,000 - $4000).

In this situation, you can offset your capital gains of $8,000 with your capital loss of $5,000. As a result, you are only liable for capital gains tax on the remaining $3,000, thereby reducing your tax burden.

3. Utilize Crypto Tax Calculator

Crypto Tax Calculator (CTC) simplifies and minimizes your taxes by automating the process of calculating your crypto tax liabilities. By importing your transaction data from various exchanges and wallets, the platform accurately determines your capital gains and losses, saving you valuable time and reducing errors that are prone to manual calculations.

CTC also has a tax-loss harvesting tool, which highlights tokens & NFTs you can sell to potentially minimize your tax burden and which ones you should hold onto in order to be eligible for the long-term CGT discount. The calculator also supports a variety of inventory methods which you can change based on your preferences (see our point 4).

In partnership with CoinStats, CTC is offering all users $30 off any plan! Sign up here and get your taxes sorted today.

4. Use the Most Tax Effective Inventory Method

Inventory methods refer to the way in which you match your cost bases with the sales of your crypto assets, which is particularly relevant in situations where youve bought the same cryptocurrency at multiple price points. This can significantly impact your capital gains calculations, which can lead to you overpaying on tax..

Different countries also have different inventory methods (e.g., the UK has specific inventory methods set by HMRC), which you need to be aware of (see more on this here).

Luckily for you, Crypto Tax Calculators most tax-effective inventory method will select acquisitions with higher prices as they will lead to larger losses or smaller gains. This inventory method also allows short-term gains to mature into long-term gains, leading to you paying less tax in the long run. This option can be found on the Reports page in CTC.

5. Invest via a Retirement Fund

Finally, one of the most effective ways to save on taxes is by investing in crypto through your retirement fund. And while not all countries offer pension systems, those residing in jurisdictions such as the US, Canada, UK, Australia, etc are typically enrolled into a retirement scheme. 

The contributions you make to your retirement fund are usually tax-deductible, allowing you to reduce your taxable income for the year. Plus, earnings from your investments in your pension fund (including gains from crypto) are often taxed at a lower rate than the standard capital gains tax rate, and in some cases, you can actually defer the taxes until you decide to withdraw your funds at retirement.

Conclusion

As you can tell by now, reducing your crypto tax bill isnt all that hard. All it takes is employing a few simple strategies like holding assets long-term, harvesting losses, and using tax-effective inventory methods. You may also opt to invest in crypto via your retirement fund to take advantage of the tax benefits.

And dont forget to utilize tools like Crypto Tax Calculator to streamline your tax calculations and maximize your tax savings. Take control of your crypto taxes today and start saving more of your hard-earned money!