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Bitcoin, other crypto prices today gain; ether surges 7%, Uniswap rallies 15%

Cryptocurrencies rose for the second day as US tech stocks also posted an advance and investors got more clarity on the bankruptcy of a major digital-assets lender. Bitcoin price today was trading at $20,474, up more than a per cent. The world’s largest token has struggled since hitting a high near $69,000 in November and has been rangebound close to $20,000 for about a month.

The global cryptocurrency market cap today was below the $1 trillion mark, even as it was up more than 3% in the last 24 hours to $972 billion, as per CoinGecko.

“The crypto market has observed a slight correction alongside the US stocks. After bulls pushing the coin up, Bitcoin has bounced off the US$20,000 mark. If buyers can hold BTC at the current level, we might see it testing the US$21,000 level soon. The second largest cryptocurrency, Ethereum witnessed a rise of nearly 10% outperforming BTC after its Shadow Fork 9 went live in lead up to the merge on yesterday,” said Edul Patel, CEO and co-founder of Mudrex.

On the other hand, Ether, the coin linked to the ethereum blockchain and the second largest cryptocurrency, rose more than 7% to $1,194. Meanwhile, dogecoin price today was trading nearly 2% higher at $0.06 whereas Shiba Inu rose marginally to $0.000010.

Other crypto prices’ today performance also improved as XRP, Solana, BNB, Litecoin, Stellar, Chainlink, Tron, Apecoin, Avalanche, Polkadot, Polygon, Uniswap (up as much as 15%), Tether prices were trading with gains over the last 24 hours.

Celsius Network listed a $1.19 billion deficit on its balance sheet in a bankruptcy court filing on Thursday, a day after the cryptocurrency lender filed for Chapter 11. New Jersey-based Celsius froze withdrawals last month, citing “extreme” market conditions, cutting off access to savings for individual investors and sending tremors through the crypto market.

Another U.S. crypto lender, Voyager Digital Ltd, filed for bankruptcy this month after suspending withdrawals and deposits. Singapore’s Vauld, a smaller lender, also froze withdrawals this month. Cryptocurrency trading volumes have plummeted amid a dreadful first half of the year for the industry.

(With inputs from agencies)

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Bitcoin, Ethereum, Dogecoin, Shiba Inu take a hit

The price of Bitcoin, the world’s largest cryptocurrency, is seeing a decline. There is a fall in the price of Ethereum as well.

Cryptocurrency market update: Bitcoin, Ethreum, Dogecoin, Shiba Inu take a hit
Author

New Delhi, First Published Mar 21, 2022, 11:24 AM IST

On the first trading day of the week, a mixed effect is being seen in the cryptocurrency market. The price of Bitcoin, the world’s largest cryptocurrency, is seeing a decline. There is a fall in the price of Ethereum as well. Also on the decline are Dogecoin and Shiba Inu. At present, the global cryptocurrency market is below the 2 trillion dollar mark.

The price of bitcoin, the world’s largest cryptocurrency, is trading below the $41,000 level today on Monday. The digital token is trading down 2.3 per cent at $40,917 (at 11:15 am). The world’s largest and most popular cryptocurrency is down nearly 11 per cent (year-to-date) so far in 2022. It is about 30 per cent off the record high of $69,000 Bitcoin achieved in November last year. The global cryptocurrency market cap stands at $1.95 trillion.

Ethereum and Other Cryptocurrencies

The world’s second-largest cryptocurrency, Ethereum, also fell more than 2 per cent to $2,857. The price of Dogecoin fell nearly 3 per cent to $0.11 while the Shiba Inu was down around 4.5 per cent to trade at $0.000022. Other digital tokens such as Polygon, Litecoin, Stellar, Uniswap, Solana, Polygon, Polkadot, Cardano also declined in performance over the past 24 hours, while Tera rose over 2 per cent.

Why The Volatility

Cryptocurrencies have been engulfed by the same forces that have hurt other risk assets, including US stocks, this year. The recent volatility in cryptocurrencies comes amid a broad market sell-off arising out of geopolitical tensions triggered by the Russia-Ukraine crisis. On the other hand, the US Federal Reserve has increased interest rates. The Federal Reserve has made it clear that interest rates will be increased in the coming 6 Fed meetings.

Also Read: RBI shares information about phishing links; all you need to know

Also Read: RBI shares how to protect yourself from ATM card skimming

Also Read: Here’s how to avoid being scammed through QR code

Last Updated Mar 21, 2022, 11:25 AM IST

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How Will Your Crypto Be Taxed?

India announced plans to begin taxing income from digital assets earlier this year, while also setting out plans for the launch of its own digital currency. The government unveiled a tax of 30 percent on the sale of crypto assets in a move that brings more clarity to the regulation and tax treatment of cryptocurrencies following months of uncertainty about their legal status in the country. Budget 2022 has thus removed most of the FUD (Fear, Uncertainty, and Doubt) from the crypto sector.

In this post, I will answer some of the most important questions around crypto taxation in India.

Do note that this information is provided for educational purposes and is NOT legal or financial advice.

How will crypto profits be taxed?

The government has defined “virtual digital assets”. The term has a broad definition and includes all types of crypto assets/ currencies such as:

  • Ready money for example, Bitcoin (BTC)
  • Open Blockchain Tokens, for example, Wrapped Asset Token (WRAP)
  • Hush/ privacy coins, for example, Monero (XMR)
  • Application coins, for example, Filecoin (FIL)
  • Security tokens, for example, Exodus
  • Non-Fungible Tokens (NFTs), for example, Crypto Kitties
  • Algorithmic stablecoins, for example, Frax (FRAX)
  • Governance tokens, for example, Uniswap (UNI)
  • Public Blockchain natives, for example, Ether (ETH)
  • Asset-backed tokens, for example, Tether (USDT)
  • Lending / Borrowing cryptos, for example, Aave (AAVE)

A tax of 30 percent on the income from the transfer of “virtual digital assets” is applicable.

This tax is payable on your profit, which is calculated after deducting the “cost of acquisition” that could include the purchase price of the crypto and the gas, transaction fees.

Will free cryptos from airdrops, learn and earn schemes, and play-to-earn games be taxed?

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Free crypto that you earn from airdrops, learn and earn schemes, and play-to-earn games will be considered as a gift. Under the existing income tax laws in India:

  • Money received as gifts from relatives (such as a spouse, siblings) is not taxable.
  • Money received as gifts from friends is taxable.
  • If the amount of money gifted to you in a financial year is less than Rs. 50,000 then it will not be taxed.
  • Money received as gifts on your marriage or under will/ inheritance is not taxable.
  • Money received on your birthday, anniversary, etc. is taxable.

So depending on the above conditions, you may have to pay tax on these free cryptos.

Example: You have received 100 ABC crypto (worth Rs. 75,000) from a play-to-earn game. You may be liable to pay tax on this.

Will I be taxed even if I don’t sell my crypto?

Yes and No.

Suppose you buy crypto and then don’t sell it. Even if the value of your crypto goes up, you will not be taxed till you actually sell the crypto. So this may be good news for HODLers.

But if you get free crypto (from airdrops etc.) then you may have to pay gift tax on it even if you don’t sell it. See Answer 2 above for details on this.

How will crypto mining be taxed?

Crypto miners may have to pay a 30 percent tax on their profits. They may be allowed to claim a deduction of the “cost of acquisition” — electricity costs, depreciation on mining computers, etc. Further clarity on this is awaited.

How will crypto staking and lending be taxed?

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You may have to pay tax when you sell the crypto that you have earned from staking or lending. Further clarity on this is awaited.

Example: You have staked 100 ABC and received 5 ABC as a staking reward. You may not have to pay any tax. A few months later, you sell the 5 ABC for Rs. 10,000. Now, you may be liable to pay 30 percent tax on this Rs. 10,000 profit.

Will crypto exchanges deduct TDS?

For most transactions, crypto exchanges will have to deduct 1 percent TDS from July 1, 2022 onwards under the new section 194S of the Income Tax Act. This will ensure that all crypto transactions are recorded and reported to the government.

For the following people, this TDS may apply only if the total amount of crypto transactions is more than Rs. 50,000 in a year:

  • Individuals or Hindu undivided families (HUF) with total business sales/ gross receipts/ turnover of more than Rs. 1 crore a year.
  • Individual professionals with income over Rs. 50 lakh a year.
  • Individuals or HUF who do not have any income from business or profession.

For others, this TDS may apply if the total amount of crypto transactions is more than Rs. 10,000 in a year.

Will salaries paid in crypto be taxed?

Yes. Your crypto salary may be subject to a 30 percent tax. And since no deductions will be allowed, taking crypto salaries may not be a good idea anymore.

Do I have to pay tax even if I use a decentralised exchange (DEX) like Uniswap?

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A DEX like Uniswap will obviously not deduct any TDS. But you will still have to pay tax on your crypto profits. If you do not, then this is tax evasion carries heavy penalties when you get caught.

Do I have to pay tax even if I use a foreign crypto exchange like Binance?

Foreign crypto exchanges will not deduct any TDS. But you will still have to pay tax on your crypto profits. If you do not, then this is tax evasion and carries heavy penalties when you get caught.

Do I have to pay tax even if I use a peer-to-peer marketplace like LocalBitcoins?

Yes, you still have to pay tax on your crypto profits. If you do not, then this is tax evasion and carries heavy penalties when you get caught.

What if I gift crypto to a friend?

If it’s your friend’s wedding, then there is no gift tax payable. Otherwise, your friend may be liable to pay tax on these gifted cryptos. See Answer 2 above.


Rohas Nagpal is the author of the Future Money Playbook and Chief Blockchain Architect at the Wrapped Asset Project. He is also an amateur boxer and a retired hacker. You can follow him on LinkedIn.


Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.


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Bitcoin, Ether Values Continue to Rise After Massive Surge; Shiba Inu Price Rises by Nearly 25 Percent

Bitcoin has been on a bit of a recovery run over the past 10 days and if the weekend’s figures are anything to go by, the price rally appears to be far from over as the crypto asset makes a break above the $42,000 (roughly Rs. 31.5 lakh) mark. The world’s most valuable cryptocurrency had a strong 10 percent surge in price through Friday, with BTC bulls pushing for $45,000 (roughly Rs. 34 lakh) as the next target across global exchanges. Bitcoin’s value currently stands at $45,087 (roughly Rs. 33.5 lakh), up by 3.88 percent over the past 24 hours on Indian exchange CoinSwitch Kuber.

Meanwhile, on global exchanges, the price of the most popular cryptocurrency stood at $42,714 (roughly Rs. 32 lakh) up by 3.36 percent over the past 24 hours. As per CoinGecko data, Bitcoin’s value has surged close to 13 percent over the past week, after a dismal showing through January.

Ether, the second-largest cryptocurrency by market capitalisation, has had an even better showing since the start of February and that run hasn’t seemingly run out of steam yet. At the time of publishing, Ether is valued at $3,238 (roughly Rs. 2.5 lakh) on CoinSwitch Kuber while values on global exchanges see the crypto’s value hover around the $3,000 (roughly Rs. 2 lakh) mark at $3,078 (roughly Rs. 2.5 lakh), where the coin rose by 2.88 percent over the past 24 hours. Compared to the price of Ether a week ago, CoinGecko data reveals that the cryptocurrency’s value has surged by 18.2 percent, buoyed by 13 percent rise through Friday.

Gadgets 360’s cryptocurrency price tracker reveals that most of the popular altcoins have also had a strong start to the week. Cardano, Solana, Avalanche, Polygon, Terra, Binance Coin, Cosmos, Polkadot, and Chainlink all managed to increase in value, with play-to-earn tokens like Decentraland leading the charge.

Meme coins haven’t had a very good start to the year, but February appears to have flicked a switch for both SHIB and DOGE — the two most sought-after meme coins amongst others as both crypto assets have managed a decent showing over the past week. Dogecoin is currently valued at $0.16 (roughly Rs. 12) after rising 7.79 percent over the last 24 hours, while, Shiba Inu is valued at $0.000029 (roughly Rs. 0.002), up by a massive 24.39 percent over the past 24 hours.

While the crypto market has seen a big jump in market capitalisation over the past week, Yuga Labs, the team behind Bored Ape Yacht Club (BAYC), is rumoured to be in talks with venture capital firm Andreessen Horowitz, also known as a16z, for a possible investment in an upcoming founding round.

Digital collectibles from BAYC, a collection of 10,000 algorithmically generated unique animated images, have been snapped up by the likes of celebrities including Gwyneth Paltrow and Jimmy Fallon, with Justin Bieber forking out ETH 500 ($965,000 or roughly Rs. 7 crore) for one of the prized non-fungible tokens (NFTs).

Meanwhile, Dogecoin is readying to make a big transition too. Gaining intense criticism for consuming too much energy and being bad for the environment, the Proof of Work (PoW) blockchain consensus mechanism has lost favour among crypto projects. In the spirit of change, Dogecoin is the latest cryptocurrency planning to transition to the more efficient Proof of Stake (PoS) mechanism with a bit of help from Ethereum co-founder Vitalik Buterin.

The Dogecoin Foundation — a non-profit that aims to support the development of the meme coin — has announced that Dogecoin’s model of a Proof of Stake (PoS) blockchain promises increased involvement of its community and DOGE holders in the governance and management of the Dogecoin network.


Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article.


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