How to Do Your Lykke Crypto Taxes With Koinly in 5 Steps (Guest Post)

Wondering how on earth to work out your Lykke taxes? Or how to file your crypto tax at tax time? Koinly explains it all in this quick guide on how to file your crypto tax. Worried about how to report your cryptocurrency taxes? The good news is, filing your Lykke taxes is probably a lot easier than you think. That's because crypto tax calculators like Koinly do all the tricky calculations for you. 1. Connect your Lykke account to Koinly. Forget about creating your own complex spreadsheets and downloading tons of statements and reports. Simply connect your Lykke account to Koinly by uploading CSV files of your trades. 2. Let Koinly calculate your capital gains, losses and income. Koinly will be looking for transactions that resulted in a capital gain, a capital loss, and transactions that look like income. That's because crypto can be taxed as both Capital Gains Tax and Income Tax, depending on how the transaction happened — and on your country’s tax rules.  Let’s take a quick look at how 5 countries tax crypto across Europe. The United Kingdom In the UK, crypto is subject to either Capital Gains Tax or Income Tax — depending on the transaction. When you swap, sell, spend, or gift (except to your spouse) crypto — you'll pay Capital Gains Tax on any profits from it. Your CGT tax rate will depend on your Income Tax band. The basic Capital Gains Tax rate for those earning less than £50,270 is 10%, while the higher rate for those earning more than £50,271 is 20%. Each UK taxpayer gets £12,3000 in capital gains per year tax free — so you'll only pay Capital Gains Tax on any amount over this. You won't pay tax on any losses, though you can offset losses against your net capital gain to reduce your tax bill.  Meanwhile, you'll pay Income Tax when HMRC sees your transactions as 'earning crypto'. This includes mining, staking, airdrops, earning interest, and being paid in crypto.  France Crypto in France is viewed as a moveable asset. You'll pay tax whenever you sell crypto for fiat currency, but not when you trade one crypto for another. The type of tax you'll pay depends on the scale at which you're trading. If you're an occasional trader, you'll pay a flat 30% tax known as the Single Fixed Levy. You'll pay this on the profits from a variety of transactions including selling crypto for fiat currency, staking rewards, liquidity mining, airdrops, and when you earn interest on crypto.  Meanwhile, professional traders will pay an incremental business tax on profits of up to 45%. Crypto mining income falls under non-commercial profits and attracts a tax of 45%. However, those with an annual turnover of less than €70,000 may be eligible for a lower tax rate.  Austria In Austria, the tax you'll pay depends on the type of crypto transactions you're making and how long you've held your crypto for. Currently, you won't pay any Income Tax on crypto investments you've held for more than a year. You'll pay Income Tax whenever you sell crypto for fiat currency, swap crypto for crypto, spend crypto on goods or services, or when you receive an airdrop. How much you'll pay depends on how much you earn — but you'll pay anywhere between 0% to 55% in tax. This only applies if you’ve acquired and sold, swapped, or spent your crypto within the same year. You’ll pay no tax on crypto you’ve held for more than a year when you sell, swap, or spend it. If you’re mining crypto — this is seen as income from commercial operations, regardless of the scale. This is subject to a separate flat tax of 25%. Austria also has a specific flat tax rate for 'interest-bearing investments'. So anytime you're earning interest from crypto, you'll pay a flat 27.5% tax rate instead of your usual Income Tax rate. This would include a variety of crypto transactions like staking, liquidity mining, yield farming, and lending crypto.  Austria has released a draft bill on crypto tax due to come into force in March 2022. It states that crypto investors will pay the same Income Tax rate on long-term gains as they do on short term gains. It isn't retroactive, so it'll only apply to assets you buy after 1 March 2022 — if passed.  Germany Cryptocurrency is viewed as a private asset in Germany by Bundeszentralamt für Steuern (BZSIn) and is subject to Income Tax in specific circumstances. It all depends on how long you've held your assets for. When you swap, sell, or spend crypto you've held for less than a year — you'll pay Income Tax on the profits. This will be at the same rate you normally pay Income Tax. When you swap, sell or spend crypto you've held for more than a year, your gains are tax free. You'll also pay Income Tax when you're seen to be earning an additional income through crypto. This includes being paid in crypto, mining crypto, and staking crypto. If you sell crypto you've staked within 10 years, you'll also pay Income Tax on this. Switzerland For individual investors — not businesses or sole-traders, crypto in Switzerland attracts either a Wealth Tax or Income Tax, not a Capital Gains Tax. The amount you'll pay depends on the value of your assets, your transaction types, and the canton in which you live.  Each canton in Switzerland sets its own Wealth Tax rate and has the freedom to determine whether or not your cryptocurrency transactions should be considered as a private investment, or as business activity. The canton-specific wealth tax rate, and income tax rate is applied to the value of the most commonly used cryptocurrencies, as determined by the FTA on 31 December each year. The rates are based on the average of different exchanges. Swiss taxpayers must refer to this taxation value when declaring their crypto assets. If the FTA has not provided a value for a cryptocurrency you hold, you must declare the value as of 31 December using the value defined by the platform on which the assets are held. If you're paid in crypto, you'll pay Income Tax. There is no specific guidance from the Swiss tax office on earning crypto through various other activities like staking, mining, yield farming and so on — however, it is safe to assume these activities could be seen as additional income and that Income Tax would apply. 3. Download your Lykke crypto tax report Here's where the going gets really good. Once it's tax time, simply download the right tax report for your country from Koinly's menu of crypto tax reports. You'll then be able to file your crypto taxes easily — and safely — knowing that you have all your crypto trades accounted for. Each tax office has a slightly different process for this, as well as different tax deadlines. You can learn more about your country's crypto tax rules in Koinly’s regularly updated country guides. 4. File your crypto totals Are you a DIYer at heart? Then you'll want to file your crypto taxes yourself. Equipped with your Koinly crypto tax report, it's pretty easy to file directly on your country's online tax filing platform. Alternatively, if your accountant does your taxes, you can invite them to view your Lykke trades and tax report in Koinly. Grant your accountant access from your Koinly account settings. With a crypto tax report from Koinly it's easy for your accountant to file your tax return. 5. How much do you pay? In most countries, the amount of Income Tax and Capital Gains Tax owed on crypto depends on how long you’ve held your assets, and which income tax bracket you’re in. Typically, the higher your income, the greater the percentage of tax you'll pay on capital gains. Check out our updated country guides to find out what your tax bracket is. Koinly is a crypto tax calculator built for cryptocurrency investors of all levels. Save hours on spreadsheets and complicated calculations with Lykke and Koinly. Hurry up to get registered at Koinly with this discount code: 09082560.

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How to Buy Tezos (XTZ) Without Fees

You can buy Tezos with absolutely no fees and this is no joke. Curious about how to trade XTZ without paying commissions? Then read on! Tezos is one of the top cryptocurrencies, the project that stays behind it aims at addressing the inefficiencies of blockchain technology. It was founded in 2017 in Switzerland and is currently one of the most interesting projects on the cryptocurrency market. Both traders and investors are interested in learning about the cheapest way to buy Tezos (XTZ). And in this article, we are sharing with you the steps you need to take if you want to buy XTZ at the lowest price possible. The first thing you have to do is to get registered at Lykke Wallet crypto exchange. Lykke Wallet is commission free exchange, which means that all kinds of traders, regardless of the volume they generate, can trade cryptocurrency without fees at Lykke. Then you have to pass the KYC. It is very easy: just take a selfie, submit your ID and a proof of address. The Know Your Customer verification is one of the security measures all compliant crypto exchanges have to implement to protect the funds of their customers. The third step is to deposit your EUR / GBP / CHF to your Lykke crypto wallet by bank transfer. Lykke Wallet is the only crypto exchange that covers deposit and withdrawal fees by bank transfer for its users. The crypto deposit fee is also zero and the crypto withdrawal fees are among the lowest on the market. After you have completed the three previous steps, you can convert your cash to cryptocurrency without commissions. It means that you can buy Tezos or Bitcoin, or any other of some 20 cryptos listed at Lykke without paying any fee at any step of the process. Download the app and try it yourself! About Lykke Lykke is a fintech company that has been operating the Lykke Wallet crypto exchange since 2015. The company was founded based on scientific research in high-frequency finance. Our research and financial engineering expertise allowed us to develop a commission independent business model which is absolutely unique on the crypto market. By charging zero cryptocurrency trading fees we democratize the market and allow retail traders and investors to enjoy the same favorable trading conditions as those of the whale traders. Our conditions do not depend on the volume generated. At the same time, we also offer cryptocurrency trading without fees to API and day traders who can leverage our zero fees for their strategy execution in a very cost-efficient manner.

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What is a crypto-fiat gateway?

How to buy Bitcoin or other cryptocurrencies with euro, GBP, or CHF? A fiat gateway is a combination of words that you will frequently hear if you decide to enter the cryptocurrency world and buy Bitcoin or other cryptocurrencies in a crypto app. To understand its meaning and function, you have to understand what fiat means. Fiat means simply conventional money, it refers to national currencies the government’s issue not backed by any commodity. It derives from the Latin word fiat (from “facere” - make/do, present passive subjunctive “let it be done”) and we can assume that it implies a deal - let it be done! Therefore, a fiat gateway is an entrance to the cryptocurrency world, the step at which you can deposit fiat into a cryptocurrency app. Yesterday at a dinner with friends we were talking about those people who made a fortune by simply buying Bitcoin at its very early days. And one guy said: “I realized back then that I had to buy it as well as all my friends from the gaming community were buying. So I tried to understand how to do it, but back then it was impossible to buy it easily, you had to use specific tools and programs I could not figure out how to use”. These times have passed long ago, now if you’re wondering how to buy Bitcoin you will be surprised by how easy it is. Namely, the architecture behind depositing money to a cryptocurrency app is the following: you have to transfer money from your bank account or digital wallet to the bank account of the entity that operates the cryptocurrency exchange of your choice. In theory, it is not as simple as that if we are talking about decentralized exchanges and DApps that are supposed not to belong to any entity. However, these still belong to the future. Since most exchanges are centralized and they generate an overwhelming proportion of volume, we will use them as an example. There are different types of fiat gateways. In a broad sense, any form of fiat deposit into the crypto market is a fiat gateway. 1. Bank transfer. Most exchanges are entities that have a bank account to transact with agents in traditional finance. The simplest way of depositing money to a cryptocurrency application is by making a bank transfer. If you are located in the Eurozone and the exchange as well, you are lucky because the SEPA transfers are usually either free or very cheap. If you are located outside of the eurozone, it’s quite probable that you will have to use the SWIFT system, which is more expensive and slower. In Asia, which technologically is more and more advanced than the “old world”, there are numerous alternative ways to make a fast transfer in local currencies. 2. Card payment. The possibility of card payments to recharge your fiat balance in a crypto app is usually offered by payment providers. These may be VISA or Mastercard or PayPal or Skrill or many other intermediaries that offer you added value in the form of a card that you can always carry with you and use instead of paper money. With the card, you can pay on the Internet. For this added value they charge a commission. So, typically, when you choose between a bank transfer, which is direct from account A to account B, and a card payment that has to be carried out by an intermediary, you have to realize that in the latter case you will have to pay a commission. In the cryptocurrency world, this commission normally is about 3-4%. What if you don’t have a bank account or a credit card? Fiat onramp for the unbanked. Many cryptocurrency apps and projects are guided by a noble mission: democratizing finance, giving access to financial services to the unbanked, making the economy fairer, eliminating injustice and intermediaries, etc. So, no wonder that there are lots of interesting and promising projects that you can find in the crypto space. However, there are also certain limits within which they have to exist in order to be able to operate legally in the current legal framework. We have already spoken elsewhere of some paradoxes of decentralized finance, such as the absence of true decentralization. So, you will realize that even if the crypto space is fighting to give access to the unbanked, in reality, if you don’t have a bank account or a card, you will find it quite challenging to enter the crypto market. 3. Bitcoin ATMs At the end of 2013, the first Bitcoin ATM was installed in Vancouver, Canada. One month later, the first European Bitcoin ATM was installed in Bratislava. Some Bitcoin Automated Teller Machines allow only to buy Bitcoin, others allow to sell it as well. They are connected to the Internet and process the operation in real-time. This sort of machine is particularly popular in countries with a high percentage of unbanked people. In early 2020, Nigeria became the 8th country to install a Bitcoin ATM. However, they are still a very rare phenomenon in the world. 4. Authorized shops There are cryptocurrency projects that allow you to buy the cryptocurrency at a shop. Imagine you go to a kiosk to buy a newspaper and you ask to exchange a couple of euros in ethereum and you get the operation done right at the cashier. In this case, even if you don’t have a banking account, the fiat-to-crypto operation is performed for you by an authorized intermediary. Businesses can enable a wallet on the platform and serve as a crypto onramp for their clients.  5. Buy from other people This is a bit risky way of buying Bitcoin because there arises the usual problem in finance - trust. In traditional finance, since two peers don’t trust each other, they resort to a third party that guarantees the completion of the deal and gets a reward in exchange. If this third party eliminates competition, it starts requiring higher and higher rewards (remember how you could pay in cash with no commission on Blablacar and now the commission has become absurd?). The whole concept of open finance aims at eliminating intermediaries by providing infallible technology and smart contracts that would make fraud physically impossible. So, in the case of buying something directly from another peer with no third party and no technological or other guarantees, you risk being scammed. If you still decide to consider such an option, the biggest database of possible sellers and buyers is Local Bitcoins. Best choice - Lykke crypto exchange with a fiat gateway You might have already realized that not all famous crypto exchanges have a fiat gateway. Some of them only accept crypto deposits. Others do have fiat gateways but require high fees. Or maybe there’s an exchange with a convenient fiat gateway, but it is not suitable for trading given high fees or few currencies available for trading. The Lykke Exchange is an all-in-one solution:  It is a wallet integrated with an exchange;  it has a multi-currency fiat gateway for euro, GBP, and CHF; fiat currencies for forex;  you can deposit by bank transfer with 0 fees; you can deposit by credit card immediately; it offers dozens of cryptocurrencies;  it charges 0 trading fees; The company is based in Switzerland, real people and legal entity are behind it, unlike many other exchanges that are not compliant with the law and hence you don’t have any guarantee against being scammed. Sign up with Lykke and start trading today!

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Lykke Underlying System Improvements: scalability and extended functionality

Lykke Wallet exchange has been on the market for more than five years, it’s a fully functional trading environment that combines a web terminal and mobile device applications. It is a trading venue that creates conditions for ultimately cost-efficient transactions with the trading fees being zero and the buy-sell spreads low. To maintain these conditions, a whole system composed of a blockchain engine, nodes, integrations and various add-ons is necessary. This system offers an all-in-one trading solution for cryptocurrency trading and forex: it integrates a KYC-verification system, a fiat gateway, an API for automated trading, a possibility to generate trading history for tax purposes, etc. The underlying architecture allows to create trading and private wallets, supports the necessary nodes to integrate new blockchains and, last, but not least, maintains high security standards to protect the users’ funds. All this system has to be maintained and constantly updated to meet the needs of the maturing market and the growing user base of Lykke. Its seamless functioning requires a continuous effort of a whole development team. So even when it looks like nothing is really happening, in reality, a whole team of professionals works full-time to guarantee the system’s seamless functionality. A new and important step for Lykke in this continuous process is the migration to a new underlying exchange architecture. For several months, we have been gradually migrating the building blocks of our exchange infrastructure to Sirius, a dedicated solution developed by a Swiss tech company SwissChain. SwissChain is a Lykke talent spin-off specialized in blockchain technology. It is one of quite few entities globally that offer businesses a whole range of services for Self-Managed Custody and Management solutions. Sirius is one of the key product offerings of the company, it combines a blockchain engine with a custody solution. Apart from blockchain infrastructure and custody components, Sirius supports such functionalities as smart contracts, stacking, and settlement to name a few. It also allows the integration of DeFi systems. For example, if integrated, it allows users to buy tokens on decentralized exchanges. What does the current migration mean to Lykke and its users? First of all, Sirius is a product tailored to the needs of blockchain-powered businesses. It combines the necessary elements of blockchain infrastructure with other value-add items. The system is developed according to the industry’s highest security standards. In particular, it includes a dedicated custody solution developed specifically for safe storage purposes. Lykke’s hot wallet will be migrated to Custody to enhance the security level. This also means that all the users’ trading wallets will be moved to Custody as well, bringing more security and peace of mind to the investors and traders. The system’s blockchain technology features are designed specifically to enable faster and easier blockchain integrations. Building a node for a new blockchain integration will now be a standardized process based on a prefabricated architecture. It means that integration of new crypto assets will be a faster and smoother process. Finally, it is important to mention that the system is scalable. With the Lykke user base growing, the system has to be able to maintain operability during trading peaks and rush hours regardless of the number of users simultaneously executing their transactions. What to expect? The process of migration will not affect our users heavily. The only action that will be required is paying attention to the notifications about new deposit addresses. The newly integrated blockchains - Tezos, Cardano, Polkadot, and Dogecoin - are already hosted in Sirius. However, all the other blockchains have still to be migrated. As a blockchain is migrated to Sirius, each user will be assigned a new corresponding deposit address. Please make sure to update this deposit information at all other venues from which you may fund your account. Another improvement consists in the whitelisting of addresses for API traders. The users will be able to whitelist withdrawal addresses to enable arbitrage or crypto transfers to and from other cryptocurrency exchanges. The system migration is an ongoing process, it has no ETA. It is an important step in our continuous work on system and process optimization. Please stay tuned and be informed about the coming changes in deposit addresses.

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How to Buy ADA With Fiat Without Fees

Wondering how to buy Cardano (ADA) without fees? It’s easier than you might think. In this article, we will tell you how to buy Cardano by credit card or by bank transfer in three simple steps.  ADA is one of the top assets on Coinmarketcap, the native currency of the Cardano project. Cardano is building a third generation blockchain that is environmentally sustainable, based on a research-driven consensus protocol and offering various applications. Among these applications, there are verifiable smart contracts and Dapps. Cardano, in fact, is aiming at becoming the default blockchain for an entire ecosystem of Dapps. With all that, ADA becomes an attractive asset which many investors and traders are interested in acquiring or trading. Lykke Wallet cryptocurrency exchange offers its clients a possibility to trade, sell or buy Cardano without fees. To do that, follow these simple steps: Get registered and KYC-approved at Lykke Wallet commission-free crypto exchange. Make a bank transfer (in Euro, Swiss francs, or GBP). Lykke covers the bank fee for its users, but you might have to pay the correspondent bank fees, if any. Lykke is probably the only exchange on the market that covers the deposit expenses for the user. Exchange your fiat funds directly into ADA without trading fees. There’s also an option to buy Cardano if you deposit with a credit card. It is even easier! Start at the same step as above - get registered and KYC verified. Then to deposit, choose “credit card”. You will be forwarded to a cart where you should enter your credit card details. Note that when buying cryptocurrency by credit card, there’s always a fee. All payment providers charge a fee for such an operation, this fee is independent from the crypto exchange. However, in the case of Lykke, you always have a free alternative which is the bank transfer! About Lykke Wallet Lykke Wallet is a cryptocurrency and forex digital exchange based in Switzerland and founded in 2015. It has gained a reputation of a transparent venue committed to regulation compliance. The exchange offers a web trading platform and apps for Android and iOS. Professional traders can connect their trading robots via an API. Both retail and API traders enjoy very favorable trading conditions with zero trading fees and low buy-sell spreads at Lykke. Learn more and get registered here.

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About Lykke's Updated Listing and Delisting Policy

Since the emergence of the first cryptocurrency more than ten years ago, new and new projects have been appearing on the market offering new blockchains and cryptocurrencies. Behind the crypto movement lies the idea of decentralization, the idea of peer empowerment and trustless transactions. The range of issues that crypto projects address is truly infinite: from transaction registration optimization to real estate to governance and much more. Lots of those ideas are indeed long-sighted and visionary. Some of them take off and others, maybe because of being too ahead of their time, do not succeed, just like in the traditional business. The growth of the crypto movement resulted in the appearance of thousands of new cryptocurrencies. Many are utility tokens, others are potentially securities. The choice is enormous. If in the early times, speculation would make newborn projects rise fast and get listed at crypto exchanges, at the current phase, the market is becoming highly competitive. During the gold rush age of crypto, 2017-2018, lots of assets were listed at Lykke Wallet crypto exchange. We believe that eventually, everything will be tokenized: workers’ time, supermarket discounts, real estate, etc. Giving nascent projects a marketplace for their assets was an important element of our listing policy during that phase of the crypto movement evolution. However, with the market maturing, the needs and priorities change. Recently, we have updated the Lykke Wallet listing and delisting policy in accordance with our current focus. Our priority has always been creating a level playing field for cryptocurrency trading for all kinds of users. On many cryptocurrency trading venues, the trading conditions depend on the volume which creates unequal conditions for retail traders. Lykke’s goal is to democratize finance, and we have built a fully functional marketplace with the most cost-efficient trading conditions. Cost-efficient conditions means zero trading fees and low spreads. To maintain these conditions, the listed assets have to meet certain requirements. Our users come first, and it appears that lots of the assets we had listed enjoyed very little interest from our traders and investors. Little interest translates into poor order books and low liquidity. If an asset is illiquid, we cannot maintain the necessary conditions for cost-efficient trading. Even if the fee is zero, when the asset is illiquid, the buy-sell spread grows high, and trading becomes economically not feasible. The fact that many listed assets awoke little interest from our users made us modify Lykke Listing Rules. During the past more than a year, we have been consistently delisting illiquid assets and unsuccessful projects. Some of these delistings are just a temporary solution until the correspondent assets gain more liquidity. Once the interest towards them grows again, they can easily be newly enabled at Lykke Wallet. For some other cryptocurrencies, the number of fiat pairs has been reduced which resulted in tightening of the order books of the remaining pairs. The selected assets that we have maintained have to maintain the standards we require for the listing. Since our users demonstrated interest in more consolidated assets rather than in nascent projects, our listing criteria have also changed. During the past year, we have concentrated on listing such top assets as the cryptocurrencies of Chainlink, Uniswap, Tezos, Cardano, Polkadot. Other popular assets are currently in the pipeline. With the updated listing and delisting policy we strive to create and maintain the conditions for cost-efficient trading of the selected assets. Therefore, our users can count on zero fees, low spreads and a continuously growing liquidity. Get registered if you don’t have an account yet or enjoy trading and spread the word!

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How to Do Your Lykke Crypto Taxes With Koinly in 5 Steps (Guest Post)

Wondering how on earth to work out your Lykke taxes? Or how to file your crypto tax at tax time? Koinly explains it all in this quick guide on how to file your crypto tax.

Continue reading

How to Buy Tezos (XTZ) Without Fees

You can buy Tezos with absolutely no fees and this is no joke.

Continue reading

What is a crypto-fiat gateway?

How to buy Bitcoin or other cryptocurrencies with euro, GBP, or CHF? A fiat gateway is a combination of words that you will frequently hear if you decide to enter the cryptocurrency world and buy Bitcoin or other cryptocurrencies in a crypto app.

Continue reading

Lykke Underlying System Improvements: scalability and extended functionality

Lykke Wallet exchange has been on the market for more than five years, it’s a fully functional trading environment that combines a web terminal and mobile device applications.

Continue reading

How to Buy ADA With Fiat Without Fees

Wondering how to buy Cardano (ADA) without fees? It’s easier than you might think.

Continue reading