Cryptocurrency
Memecoins are a category of cryptocurrencies that originated from Internet memes or jokes. The most notable example is Dogecoin, a memecoin featuring the Shiba Inu dog from the Doge meme. https://marathikhabri.com/ Memecoins are known for extreme volatility; for example, the record-high value for a Dogecoin was 73 cents, but that had plunged to 13 cents by mid-2024. Scams are prolific among memecoins.
Various studies have found that crypto-trading is rife with wash trading. Wash trading is a process, illegal in some jurisdictions, involving buyers and sellers being the same person or group, and may be used to manipulate the price of a cryptocurrency or inflate volume artificially. Exchanges with higher volumes can demand higher premiums from token issuers. A study from 2019 concluded that up to 80% of trades on unregulated cryptocurrency exchanges could be wash trades. A 2019 report by Bitwise Asset Management claimed that 95% of all bitcoin trading volume reported on major website CoinMarketCap had been artificially generated, and of 81 exchanges studied, only 10 provided legitimate volume figures.
Cardano (ADA) is an “Ouroboros proof-of-stake” cryptocurrency created using a research-based approach by engineers, mathematicians, and cryptography experts. The project was co-founded by Charles Hoskinson, one of the five initial founding members of Ethereum. After disagreeing with the direction that Ethereum was taking, he left and later helped to create Cardano.
Cryptocurrency exchange
Crypto exchanges first started emerging with the release of the Bitcoin white paper in 2008. Ever since the original cryptocurrency launched globally, crypto exchanges began looking for ways to make crypto-trading legal and accessible to more people.
Crypto exchanges first started emerging with the release of the Bitcoin white paper in 2008. Ever since the original cryptocurrency launched globally, crypto exchanges began looking for ways to make crypto-trading legal and accessible to more people.
Cryptocurrency exchanges work similarly to a broker, giving you the tools to buy and sell cryptocurrencies like Bitcoin, Ethereum, and Tether. The best cryptocurrency exchanges make it easy to buy and sell the currencies you want with low fees and strong security features.
In a decentralized market, technology enables investors to deal directly with each other instead of operating from within a centralized exchange. Virtual markets that use decentralized currency, or cryptocurrencies, are examples of decentralized markets.
Corporate account holders and professional traders can enjoy expedited verification time and rapid customer support ticket responses. Sub-accounts also offer additional benefits, such as segregating risk and enabling separate deposit and withdrawal permissions.
Huobi Global , founded in 2013, is one of the top crypto exchanges to trade derivatives. It offers a percentage fee charged on each trade, with a takers fee of 0.04%. Huobi is one of the longest-lasting exchanges globally, surviving through China’s ban on Bitcoin trading. The platform launched several international exchanges in 2017, and 2018, including ones in Japan and Singapore. Huobi is also the second-largest exchange in terms of traded derivatives, following behind Binance.
Top 10 cryptocurrencies
The very first cryptocurrency was Bitcoin. Since it is open source, it is possible for other people to use the majority of the code, make a few changes and then launch their own separate currency. Many people have done exactly this. Some of these coins are very similar to Bitcoin, with just one or two amended features (such as Litecoin), while others are very different, with varying models of security, issuance and governance. However, they all share the same moniker — every coin issued after Bitcoin is considered to be an altcoin.
The second largest stablecoin is USD Coin, abbreviated to USDC. Similar to USDT, USDC is centralized and is backed by cash and US T-bills. Interestingly, you can view the underlying assets here, which consist of approximately 20% Cash and 80% short-duration T-bills. To learn more about Short Duration Products, check out the CMSA course on this topic.
Another stablecoin, USD Coin, also pegs its price to the U.S. dollar using fiat-collateralized reserves, which means it holds an amount of fiat currency equal to the amount of USD Coin in circulation. USD Coin was launched in 2018 by the Centre Consortium, which at one time consisted of Circle and Coinbase, which is no longer part of the project. Because Circle is based in the U.S., it is subject to regulation, making USDC a regulated stablecoin.
Its main utility token, MAGIC, acts as the currency that powers the entire Treasure ecosystem. MAGIC is designed as a cross-game token, connecting various games, players, and communities, effectively creating an interconnected gaming network
Cryptocurrency tax
The way cryptocurrency is taxed will generally remain the same for taxpayers. However, in June 2024, the IRS released updated tax guidance for taxpayers. As of January 2025, the new rules remove the concept of universally applying basis using a first-in, first-out (FIFO) approach for all digital asset units that could not be identified and replace it with one that accounts for cost basis on a wallet or account approach. This transition is supposed to make it easier to track cost basis as cryptocurrencies move from wallet to wallet.
Proceeds represents how much value you received in exchange for disposing of your crypto-asset. Typically, this will be the fair market value of your assets at the time of disposal minus the cost of relevant fees.
This means that trading transactions in which the payment or receipt is in a cryptocurrency need to be converted to the currency of the accounts (eg sterling), in accordance with the existing tax rules applying to conventional currencies.
At any time during the tax year, did you: (a) receive (as a reward, award or payment for property or services); or (b) sell, exchange, or otherwise dispose of a digital asset (or a financial interest in a digital asset)?
So far, the IRS hasn’t provided any guidance on how Decentralized Autonomous Organizations (DAOs) are taxed. It’s likely that they’ll be considered ‘flow-through entities’. This means that while the DAO itself won’t pay taxes, individuals in the DAO recognize income based on their share of the organization’s profits.
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