Let’s begin with the updates to the pricing. With the introduction of the Cloud, we are going to change our pricing model. We have been listening to your feedback and learning about your specific goals that our products help you achieve. Our current software suite contains a wide array of useful features and advanced tools, which are reflected in the license prices. We are going to offer monthly and annual subscription plans that differ in terms of available features. There will be suitable plans for novice traders as well as ones to accommodate our most demanding traders–best of all you can upgrade or downgrade at any time.
We will also continue to maintain and update our on-premise version of HaasOnline Trade Server for enterprise and privacy-focused operations.
Once beta testing has finished, existing users will receive the option for a free upgrade to the cloud version, or to continue with the stand-alone enterprise license.
The name HaasOnline Cloud isn’t entirely accurate. Yes, we do use a cloud for stringing our data and for basic operations. However, what we are applying is something called Edge Computing. Your trade bots, which will be running on our advanced infrastructure, will be strategically located closer to specific exchange servers. It also means we will be providing the lowest latency times, which means better strategy execution.
Of course, there’s more to it than that because when you are closer and put a large amount of computing power against the exchanges, it becomes possible to run bots at a much higher speed. We’re talking about running bots at update speeds faster than the current industry standard of one minute intervals. These changes will result in very powerful and quick responding bots.
The answer to that is simple. We will be running HaasScript in the cloud and phasing out our legacy trade and custom bots. You have the freedom to create trading strategies that range from arbitrage and scalping to your very own complex proprietary models. You will also be able to share and exchange scripts from marketplaces.
Anything you create or that is available now in HaasOnline Trade Server v3.x will run in the cloud version—everything is cross-compatible.
Open public beta testing and certified security audit
We know many of you are anxious to get up and running on our new platform as soon as possible. We’re working around the clock and are currently using the new cloud, and trade bots are already running from it.
In future updates, we will go into more detail about what you will be able to do with HaasOnline Cloud.
It’s been over ten years now since the emergence of the Bitcoin blockchain and the publication of Satoshi Nakamoto’s famous Bitcoin whitepaper. In that time, cryptocurrencies have matured rapidly as an asset class and have even started to gain a foothold in the traditional finance industry.
As a result of its ongoing maturation, the investment market for cryptocurrencies has naturally began to resemble that of more traditional investment vehicles. This includes the rollout of cryptocurrency index funds over the past few years. Now you can manage your crypto index strategy and compete with funds like Coinbase Index Fund (RIP), Bitwise10, or Bloomberg Galaxy Crypto Index.
While there can sometimes be substantial monetary barriers to entry to the tune of tens of thousand of dollars when it comes to investing in a professionally-managed cryptocurrency index fund, it is easier than ever to enjoy the benefits of crypto index funds without having to overcome such hurdles.
In general, index funds are portfolios of securities that seek to track market indexes in terms of both composition and financial performance. Major stock indices include the S&P 500, the Dow Jones Industrial Average, and the Nasdaq Composite. Index funds are regarded as an effective way to minimize trading fees and gain broad exposure to the market, thereby achieving diversification at a low cost.
Index funds have been gradually gaining in use and popularity in the past decades, as they have proven to outperform most active managed funds and are very accessible to the average investor. Following the explosion in popularity over the past couple of years, it was only a matter of time until cryptocurrency index funds emerged as alternatives to traditional index funds.
Investing in cryptocurrency index funds has some notable advantages over picking and choosing specific coins. In particular, cryptocurrency index funds:
Give broad exposure to the crypto market easily and at low cost
Allow focus on particular segments of the market (based on size or category)
Distributes the risk of any particular cryptocurrency failing
Can be set up and managed yourself
The first three benefits are largely the same as traditional index funds, but the fourth is unique to crypto index funds. This is because traditional index funds must be purchased from a brokerage firm or directly from a mutual fund company. In that way, your investment options are constrained by the index funds available at a given time. With crypto index funds, it is quite easy to replicate the portfolio holdings of a professional crypto index fund like the Bloomberg Galaxy Crypto Index from the comforts of your own computer, without needing to purchase the index directly from a broker or open any special accounts.
With HaasOnline Trade Server, it is easy to replicate the crypto index fund of your choice. You only need to identify your desired portfolio mix of cryptocurrencies and set up an automated trading bot according to those parameters. The HaasBot will do the rest.
If you don’t particularly like the portfolios that any of the professional crypto index funds offer on the market today, you can also simply create your own. As a result, it is possible to enjoy the benefits from crypto index funds in a way not feasible in the traditional financial sector, with customization options and individual management to boot.
The HaasOnline software is integrated with over twenty of the largest cryptocurrency exchanges on the market today, from BitMEX and Binance to Coinbase Pro. There are no exchange restrictions or trading fees on the HaasOnline platform, as we believe that what you earn is yours to keep.
Use HaasOnline trading bots to automate strategies across dozens of cryptocurrency exchanges in minutes.
As mentioned earlier, it is simple to set up trading bots that automate the work of maintaining a balanced portfolio. Furthermore, the HaasOnline index bots can be backtested, allowing you to see how your portfolio would have performed historically. For a visual demonstration of how to use the HaasBot to set up and manage your own cryptocurrency index fund, please watch this video.
Here are a few of the different bots one can set up in the HaasOnline Trade Server that are especially helpful in constructing or replicating crypto index funds:
The Crypto Index Bot allows users to design and maintain their own cryptocurrency portfolios within the HaasOnline trading platform. Choose the exchange of your choice, the crypto coins you wish to hold in your portfolio, whatever percentage of each you wish to hold, and buy/sell thresholds in the event of price movements that necessitate portfolio rebalancing. The Crypto Index Bot will automatically rebalance your assets once they have breached the customized value thresholds set for each currency.
The Advanced Index Bot offers more granular configuration of index settings than the standard Crypto Index Bot. Like the Crypto Index Bot, the Advanced Index bot will automatically re-balance your assets when the value of one of the currencies has changed or breached a pre-set threshold. You can manualy set which digital assets to hold or choose preconfigured templates like market cap and market volume with weighted or equal distribution.
In addition to such automated trading bots, HaasOnline offers a range of insurances, safeties, and technical indicators that can be combined for unique and innovative strategies. These insure that you have the tools at your disposal to set up your automated crypto index fund in the way that best suits your goals.
Use the HaasOnline platform to trade on over twenty of the largest crypto exchanges on the market today.
HaasOnline offers three different license tiers in the Beginner, Simple, and Advanced plans. The original Crypto Trading Bot, a number of insurances, safeties, and indicators, and all exchanges are available at the Beginner tier, with the more advanced bots like the Advanced Index Bot and the Inter-Exchange Bot available at the Advanced tier. All plans come with unlimited trades, no fees, and friendly chat & ticket support.
Please let us know if you should have any questions about the HaasBot or how to construct your own cryptocurrency index fund. We look forward to helping you take control of your automated crypto trading strategies and construct the right crypto index fund for you.
It is no secret that in traditional markets like Forex or stocks a large portion of these trades are being executed by trading bots managed by institutional, day traders, and other entities. These high-frequency trading techniques have changed the landscape of fintech and traders and companies alike are constantly fighting to maintain their edge. With the explosion of Bitcoin in late 2017 this cutting-edge method of trading has grown rapidly on cryptocurrency exchanges. Digital asset exchanges are more plentiful and rarely shutdown as compared to their traditional counterparts. The new age day trader must adapt and learn to use these advanced forms of trade automation.
Individuals, organizations, and companies are all looking for creative ways to improve profit margins and efficiency. One way of doing this is by automating manual trading strategies that have historically proven to be profitable. In its most basic form, the platforms used for most Bitcoin trading bots allow a user to configure variables that exist inside the scripts, which are typically thresholds for values generated by technical indicators. Other features found in trading bots might include features like copy trading, external signals, scripting languages, charting, and more.
In our review guide, we will take a look at our top 5 Bitcoin trading bots for 2020, features we like (or don’t), supported exchanges, and other features necessary for a day trader to grow new skills with trade automation.
Our team has been quietly working hard on developing new features, improving product stability, and revamping HaasScript. After countless hours of development, documentation, and processing feedback from the community we are finally ready to release our newest feature for HaasOnline Trade Server to the public. We are proud to announce the Visual Editor, which generates scripts built with HaasScript. The Visual Editor does this by allowing users to drag-and-drop hundreds of command blocks to create scripts for automated trading or technical indicators without any manual coding.
As part of our ongoing commitment to ensure HaasOnline Software customers are protected, we conduct routine evaluations on the exchanges we are actively supporting. We work directly with exchange representatives to ensure there are direct lines of communication, which allows us to quickly resolve technical issues or get clarification on events that unfold. Our evaluations are broad and cover an exchange’s impact, public interactions, consumer sentiment, and overall positive contributions to the crypto community.
Comments Off on All About Cryptocurrency Taxes in 2023
Crypto Trading & Cryptocurrency Taxes
Trading cryptocurrency has become easier than ever, thanks to the development of sophisticated exchange platforms and new, user-friendly storage options. Yet there is one issue that can prove challenging for even relatively advanced traders: Cryptocurrency and taxes.
Given that the penalties for failing to accurately track, file, and pay taxes on cryptocurrency gains can be substantial, it’s vitally important that traders are equipped with up-to-date tax information.
With that in mind, let’s take a closer look at what you need to know about how to report cryptocurrency on taxes. You can also reference our other article about calculating crypto profit.
Do You Have to Pay Taxes on Cryptocurrency?
This is one of the most common questions among digital currency traders. If you’re in the United States, the short and simple answer is “yes” — cryptocurrency gains and losses must be reported on your taxes. Determining how to pay taxes on cryptocurrency — and how much you owe — is not so simple, however.
In the eyes of U.S. tax authorities, Bitcoin and other digital assets are not considered currencies, but rather property. Like stocks or real estate, cryptocurrency is a taxable asset that must be accounted for at the end of the year. Digital currencies are treated this way, in part, because they are typically used as investment vehicles, rather than a medium of exchange.
This has significant implications for those who buy and sell cryptocurrency. Unless you purchase your coins and tokens with the intention of holding them long-term, you need to be aware of the tax rules that govern any sale or trade of cryptocurrency. If you make any profit or sustain any loss from the sale of a digital asset, it has tax implications.
Cryptocurrency and Capital Gains Taxes
Because Bitcoin and other digital assets are treated as property by the IRS, they are classified as capital assets. This means that they are subject to U.S. capital gains taxes.
There are two forms of capital gains tax: Short-term and long-term. Short-term capital gains tax applies when an asset is held for 12 months or fewer. This is taxed at the same rate as your regular income. So, for example, if your income tax rate this year were 25-percent, any sale of a digital currency that you’ve held for less than a year would be taxed at 25-percent.
Long-term capital gains tax applies for assets held longer than 12 months, and the rate is variable. In 2018, long-term capital gains are taxed at zero-percent, 15-percent or 20-percent, depending on your taxable income and filing status. In many cases, investors will pay less in taxes by using long-term capital gains.
For example, a day trader who makes hundreds or thousands of Bitcoin trades each year — and who has a 30-percent income tax rate — would lose nearly one-third of any profits accumulated during the year to short-term capital gains tax. Someone who buys Bitcoin and holds it for a year could theoretically pay nothing in capital gains tax, assuming they earn less than $38,600 per year in regular income — the 2018 threshold for the zero-percent long-term capital gains bracket.
Another easy way to generate capital gains tax liability for your crypto trades in by using a service like CoinLedger.io.
Reporting Cryptocurrency on Taxes
Let’s take a closer look at the scenarios under which cryptocurrency taxes would need to be paid. First, the act of trading digital currencies would qualify. Any profit or loss on a trade is a taxable event. Additionally, selling cryptocurrency for cash (whether over the counter or to a friend) also triggers a taxable event, assuming there is a profit or loss.
If you accept cryptocurrency in exchange for goods or services — and that cryptocurrency goes up or down in value — that registers as a taxable event. The same thing applies to selling cryptocurrency to purchase items.
There are, however, some methods one can employ to reduce the tax burden associated with trading digital currencies. Margin trading, for example, allows you to maintain your core assets while deferring the capital gains taxes that would be triggered by a sale. This allows traders the flexibility to exploit developing market opportunities, without having to worry about steep, short-term capital gains taxes.
If you’re a crypto trader, you should also be aware that the IRS allows you to reduce your taxable income by deducting your losses. There is, however, a $3,000 maximum to this income reduction as of 2018. If you day trade for a living, you may also be able to deduct your trading expenses (establishing and claiming a home office for your business, for example).
How Cryptocurrency Taxes Have Evolved
Because Bitcoin was the first functional digital currency there was no real precedent for how cryptocurrencies would be treated under tax laws.
In the immediate aftermath of Bitcoin’s creation, there was little guidance on tax regulation, given Bitcoin’s newness, its obscurity and its lack of value. Bitcoins were initially trading for a few pennies, mostly among cryptography and computer hobbyists.
Once the popularity and value of Bitcoin began to soar, the regulatory landscape began to take shape. In 2013, Germany declared Bitcoin a unit of account and deemed it subject to capital gains tax. The following year the IRS issued Notice 2014-21, which provided guidance on tax issues surrounding virtual currencies and established that cryptocurrencies in the U.S. were subject to capital gains taxes.
In 2019 there was an update to U.S. Tax Codes
In October 2019, the United State’s Internal Revenue Service (“IRS”) provided official guidance on cryptocurrency taxation, which states that cryptocurrencies, including Bitcoin, Etherium, Litecoin, XRP, and so on should be treated as property for tax purposes, as opposed to currency. What this means for U.S. consumers is that property such as stocks, real-estate and gold is now treated the same as cryptocurrency. When selling stocks, you are expected to report your capital gains and losses, and now the same applies to cryptocurrency. Cryptocurrency tax avoidance goes in breach of IRS regulations. Transactions undergo capital gains tax and that must be reported on Form 8949, the same applies to cryptocurrencies.
Regarding enforcement, cryptocurrency is treated just like any other asset by the IRS. Any trader or investor is expected to accurately report any taxes owed and pay all due taxes by the annual deadline.
Failure to do this can lead to significant sanctions, including fines and penalties. For more serious cases, the IRS may pursue tax evasion charges, meaning that jail is also a possibility.
In order to ensure this never happens, it’s incumbent upon traders to keep accurate records. This means detailing every trade or transaction made. This includes all trades on exchanges, all third-party sales, and trades and all transactions.
If you’re a day trader, that can mean compiling data for thousands of separate trades. Fortunately, most exchanges allow traders to print out a record of all trades. Additionally, advanced portfolio tracking tools can help you track trades from multiple sources with ease. This information is critically important, as it can help you (or a third-party tax professional) accurately calculate your year-end taxes.
Working with a tax professional is often a smart move for most traders and investors, as the high volatility of the digital currency market makes it difficult to track profits and losses with precision. Additionally, working with a professional can help ensure that you receive the tax advantages to which you’re entitled while avoiding the kind of mistakes that can lead you to tax trouble.
The Takeaway
Taxes on cryptocurrency trading and transactions can be a difficult subject for even experienced traders and investors. By understanding the information we’ve outlined above, you can help ensure that you stay on the right side of the law.
Our sophisticated crypto trading bot uses advanced technology to help keep your trades, gains, and losses in order so you’ll be more prepared when tax time comes.
For newer cryptocurrency traders, learning how to successfully time market entries and exits is a fundamental challenge. It’s also often a difficult one, given the considerable volatility of the market.
Technical trading tools help level the playing field, giving traders access to indicators that can help identify developing market trends and opportunities. One of the most popular and useful of these indicators are “Bollinger Bands.”
To help you learn more about technical trading strategy, let’s take a closer look at the ideas behind Bollinger Bands, and how the bands are used in cryptocurrency trading. This article is merely meant to serve as a helpful resource, not advice.
We partnered up with New Dawn and the Salvation Army to help people in Greece who have been devastated by a crippled economy.
HaasOnline is proud to have sponsored this event and we look forward to continuing this competition in the future. With your help, we were able to assist refugees who have fled to Greece and continued to face hardships. For those who may not be aware, the economic situation in Greece provides limited opportunities to those seeking refuge which made your donations all the more meaningful. These circumstances can be unimaginable for many of us and we applaud all of you for your willingness to act.
With our latest Haas Trade Server release there are several new bug fixes and features. We’re proud to announce two new HaasBots to our line up, the Crypto Index Bot and our C# script. Our Crypto Index Bot will allow you to grow a diversified crypto currency portfolio and the C# Script bot is geared towards advanced users who want to code their own bot. There have also been various updates for API changes that were impacting HaasBot capability with a couple crypto exchanges.
