In the crypto community, the term SegWit (or BTC SegWit or Segregated Witness) is used to refer to an alteration in the transaction format of Bitcoin. The need for SegWit creation was caused by certain limitations of BTC. The new protocol decreases the amount of time it takes to process transactions, so every time you swap and exchange crypto, your transactions are performed much more quickly. The increased capacity of the blocks within the blockchain also has a positive impact on a well-known blockchain issue known as [transaction malleability](https://github.com/bitcoin/bips/blob/master/bip-0141.mediawiki#user-content-Motivation).

When looking at the main differences between BTC and BTC SegWit, people need to put their minds to it and understand what each of them stands for. Understanding BTC SegWit is pivotal, as it can help crypto newbies start using cryptocurrency the right way and avoid any unwanted problems that could be related to the inherent shortcomings of blockchain technology.

Why Was BTC SegWit Created?
---------------------------

As briefly mentioned above, there were several major reasons why this new transaction format was created. Before its creation, crypto enthusiasts could only use one kind of address to carry out BTC transactions – Legacy (P2PKH). That’s why you might hear people discussing SegWit and Legacy BTC. “Legacy” is a word that is much easier to memorize than P2PKH or any other name that could be used for the original version.

The relatively small size of the original BTC blocks eventually led to network congestion, meaning that the processing time gradually increased. The transactions could not be processed as quickly as before due to the fact that interest in BTC was growing larger over time. That meant that the congestion would only increase as the transactions became more numerous and, as a result, they became more difficult to process.

The solution was introduced in the form of an additional layer. A certain percentage of transactional data will now be deployed on an additional layer to reduce the burden on the main network. That offloaded data was comprised of the witness data, otherwise known as SegWit (or segregated witness).

To sum it up, here’s how it happened:

1.  Interest in BTC grew as more people started using it. As more people used BTC, accumulated transactions clogged up the main chain.
    
2.  A solution was introduced in the form of an additional layer that helped decrease the burden on the main chain. In other words, witness data was removed from the main blocks.
    
3.  An additional benefit of the transition from Legacy to SegWit was manifested through increased protection against transaction malleability.
    

BTC and SegWit: Highlighting the Main Differences
-------------------------------------------------

Now that we have briefly explained the nature of SegWit and the reasons for its creation, let’s underline its biggest distinction from the original BTC.

*   Format. Legacy uses the P2PKH format, while the BTC SegWit address does not. SegWit’s Bech32 address and P2 styles are the first major differences between BTC and BTC SegWit.
    
*   Wallets. People were worried that it would be impossible to convert their funds from one BTC wallet to the other, but those concerns were groundless. You’ll be able to freely transfer funds between SegWit and Legacy wallets, even though they are different.
    
*   Transactional costs. The costs involved in crypto transactions are the biggest deciding factor for most people since nobody wants to overpay. It’s cheaper to use BTC SegWit.
    
*   Speed. Paying less is important, but not having to wait a few hours or days to have your transaction processed is also crucial. SegWit emerged when the backlog of transactions became too great to be processed quickly, and now it still offers superior transactional speed. As BTC SegWit removes witness data, transactions become faster naturally.
    
*   Security. One more advantage that SegWit BTC has over BTC Legacy is security. It’s underrated compared to the faster speeds and lower costs, but it still is a very important point of difference. It’s one of the reasons why the more involved crypto enthusiasts have been supportive of the project right from the start. Thanks to the fact there are separate signatures, hackers now have a more complex task on their hands: it is way harder to meddle with transaction data and other code. 
    

To summarize, BTC SegWit offers several advantages over BTC Legacy. But is it a better option overall? Let’s discuss that below.

Which Option is Better? Should You Use BTC SegWit or BTC Legacy?
----------------------------------------------------------------

This is hardly one of the hot takes that you are used to seeing from the Exolix team. It is pretty obvious that BTC SegWit offers a multitude of advantages over BTC Legacy, but the reality is that both are quite interesting options to consider. It certainly is interesting to learn the full story and understand the difference between the two.

The number and the sheer impact of all the improvements made during the transaction to BTC SegWit speak for themselves. Quicker transaction speed, lowered fees, increased security, and other features instantly made BTC Legacy seem obsolete to at least some subset of crypto investors and entrepreneurs. That’s why there is a common opinion that the BTC SegWit is the superior option.

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n the crypto community, the term SegWit is used to refer to an alteration in the transaction format of Bitcoin. 

What Is the Difference Between BTC and BTC SegWit?

What is a 51 attack in blockchain? Let’s start by giving you a simple explanation. So, a 51% attack is a direct attack on a blockchain. A better understanding of the nature of this attack requires a better understanding of the technology itself.

In short, blockchain is where data is stored in blocks and interlinked together to build an information chain. In the world of crypto trading, various blockchains are used to document cryptocurrency transactions. In order to add blocks and receive financial rewards, you need to “mine”. Each system of several mining machines has a set hash rate, i.e. the combined speed of all mining machines within a network.

A 51% attack is called so because it’s carried out by people that accumulate more than 50% of the network’s overall mining/computing power or hash rate. If successful, the attackers can pretty much rule over the entire network, influencing transactions and disrupting certain markets and cryptocurrencies.

Recent Examples of Successful 51% Attacks
-----------------------------------------

Despite what some experts say, 51% attacks are far from a hypothetical problem. We already have a couple of really big ones:

*   2018 – The attack on Bitcoin Gold (BTG) resulted in more than $18 million worth of crypto assets being double-spent.
    
*   2018 – Repeated attacks on Vertcoin (VTC) also resulted in copious double-spending.
    
*   2019 – Ethereum Classic suffered a damaging 51% attack. More than $1 million of ETC was double-spent as a result.  Three more attacks occurred the following year.
    
*   2020 – Grin (GRIN) became the victim of a 51% attack, but was able to quickly regain control, preventing the permanent damage.
    
*   2021 – Bitcoin SV was attacked three times. People understood better what 51 attacks were, so BSV suffered mostly reputational damage due to suspicious circumstances related to the attacks. Prior to that, it was [delisted](https://beincrypto.com/australias-biggest-exchange-to-delist-bitcoin-sv/) by a major Australian exchange website, Independent Reserve.
    

What Is a 51 Attack & How Does It Work?
---------------------------------------

We already have surface-level knowledge of what a 51 attack is and that it rocked several smaller cryptos in the past. Now let’s give you a more detailed understanding of how it all works in the world of blockchain.

As mentioned above, in order for crypto transactions to occur, freshly mined blocks have to be validated by a consensus of mining machines in the network. When the validation finally happens, the block is added to the chain.

Blockchain operates on a total decentralization basis, which means that the entire system that stores information regarding transactions is as much decentralized as a network’s hash rate is. When a certain miner or a group of miners takes control of over 50% of the total hash rate, the crypto network is in peril. Attackers can:

*   Leave out new transactions from the logging;
    
*   Switch the order of transactions;
    
*   Stop new transactions from being confirmed/validated;
    
*   Thwart all other mining activities;
    
*   Reverse already completed transactions in order to spend the coins twice.
    

Any of the above-mentioned harmful actions can result in a lot of value being lost. When a 51% attack is launched, it’s a huge reason for concerns not only for investors but for the crypto community as a whole.

User Side: What Are 51 Attacks?
-------------------------------

You have to know that there are certain risks involved if you are a crypto investor. 51% attacks, as unlikely as they might be, are one of them. You should take them into consideration while investing in minor coins or taking part in a network’s activity.

These types of attacks are rare because they are extremely costly, so experts urging you to convert all your crypto assets into cash probably don’t have the best understanding of how any of it works. Of course, if you are sure about your security, you might deliberately stay away from small and suspicious cryptocurrencies. The possibility of more popular crypto being attacked is almost zero.

Overall, what is a 51 attack crypto? Now you understand that it is a type of fraudulent hacker activity that has little impact on your life but you still need to be aware of it. Let’s talk about the main prevention methods and address some of the most popular questions.

Can a 51% Attack Be Detected or Prevented?
------------------------------------------

Yes, a 51% attack can be both detected and prevented. The detection methods are nowhere near as important as the methods that allow people to fully deter such attacks. Key prevention methods include:

1.  Choosing Proof of Stake. Some consensus algorithms offer more protection than others. PoS is less susceptible to 51% attacks than PoW (Proof of Work). As you can prevent certain attack scenarios with different means, it’s a solid swap to consider.
    
2.  Placing limits on miners. There has to be a 50% limit on hashing power. This way, a protocol can make sure that there’s not a miner or a group of miners responsible for over half of the network’s hash rate.
    

Harnessing the power of the community. With PoS and a strong community, it's MUCH harder to carry out a successful attack. The community has to vote to determine if a person can be a block validator (the same thing as a miner in PoW systems). If the community is suspicious of someone (due to them accumulating power to carry out the attack), they can simply kick them out.

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What is a 51 attack in blockchain? Let’s start by giving you a simple explanation.

What is a 51 attack in blockchain?

What is a 51 attack in blockchain? Let’s start by giving you a simple explanation. So, a 51% attack is a direct attack on a blockchain.

What Is a 51% Attack & Why Does It Need to Be Detected?

Some people seem to think that when it comes to taxes, there’s always a bit of wiggle room when it comes to determining what is tax-deductible. Others are scared to death of the IRS and are willing to go to any length to keep the IRS happy. Today, we are going to examine the IRS definition of a day trader and what it might mean for those that make money trading cryptocurrency.

Remember that you are always welcome to reach out to the Exolix team if you have a question that wasn’t answered in the FAQ section or if you have something to add to the discussion. Alright, let’s get into it.

## Who Does the IRS Consider a Securities Trader?

There are many people who make a living from day trading. In fact, it’s something that’s been getting more and more traction in recent years as many new online trading platforms have popped up. The rise of cryptocurrencies (cryptos are securities in the eyes of the IRS) has also impacted the day trader game in a meaningful way.

Now, it is very important to establish that there are three key points to the IRS definition of a day trader. In order to be categorized as someone who trades securities, you need to:

1.  Try to profit from day-to-day market fluctuations. In other words, you make money thanks to shifts in prices of the above-mentioned securities and not from capital growth or payment of dividends;

2.  Be active in the market;

3.  Trade continuously and regularly.

Further points to consider:

*   Are your holding periods for cryptos (or any securities) purchased and sold short? Are they long?

*   Do you trade every day? What’s the volume?

*   Do you make a living off of trading? Is it possible for you to make a living off of it?

*   How much time do you spend trading?

Even if you consider yourself a day trader, you might not necessarily fit the IRS day trader definition. If your crypto trading activities don’t amount to a full-fledged business, then you are classified as an investor, not a trader.

It’s pivotal to understand that you can be a day trader in some areas and an investor in others. It’s sometimes difficult to make a distinction between the two, and that is why it’s essential to keep all the records related to your trading activities. That way, you can always point to the data that proves you’re an investor, not a trader.

## IRS Day Traders - Further Clarifications

Even after thoroughly examining Publication 550, there are still some uncertainties related to the question “What does the IRS consider a day trader?” Still, there are questions that you can ask yourself to gauge how well you fit their definition. Let’s expand on some of the things mentioned before.

*   The first question to ask is how much time you spend on trading activities. There’s a common opinion that you have to spend at least 18 hours per week to fall under the category of a day trader. That being said, it can be a little murky, but 18 is the absolute minimum that you see mentioned in various legal opinions.

*   How many trades typically occur within a year? You have to have at least 1,000-1,200 trades in a 12-month period.

*   Are you interested in short trades only? Trying to profit from day-to-day market fluctuations is exactly what you do when you make short trades, so if you buy and sell on the same day (day trading), after a few days or weeks (short-term trading), then you fit the IRS’ description of a day trader. Keep in mind that holding assets for a month or more might put your day trader status into question.

*   Did you actually make a profit from your trading? When you subtract all the expenses, such as, for instance, withdrawal fees, paid software costs, and crypto advisor payments. Whilst it’s perfectly understandable if you had a bad year and landed in the red, you need to have at least three profitable years out of the last five.

*   Can you say that day crypto trading is your main job? It’s a big question that many crypto traders struggle with. At the end of the day, if you can’t point to evidence that clearly depicts your day trading has made you a living from it, then you are not a day trader. At least not in the eyes of the IRS.

Be sure to examine all the [information](https://www.irs.gov/taxtopics/tc429) that the IRS itself offers on this subject. Their website is the best source of tax-related information you can find and it provides detailed explanations, so be sure to check out the link.

## Cryptocurrency Day Trading and Tax Implications

Now we can take a break from dissecting the question “What does the IRS consider a day trader?” Let’s return to the real world and talk about day trading and its tax implications.

Day trading in the cryptocurrency market doesn’t differ much from regular day trading in stocks. It’s a short-term strategy that is risky but may potentially yield higher returns compared to holding your cryptocurrencies in a volatile market. Day traders buy and sell cryptos on the same day in order to make money off abrupt market movements.

If you are trading in the US, you are required to report every single one of the transactions in any event: whether it was a net loss or a net gain. At the end of the year, you’ll owe taxes based on whether or not you’re in the green if there’s any actual gain. It is possible for you to take advantage of a [tax deduction of up to $3,000](https://www.irs.gov/taxtopics/tc409) if you end up losing money.

Remember that only the overall net gain is taxed, so you don’t have to worry about calculating taxes based on every profitable transaction. Based on your income tax rate, financial losses to taxes can be rather insignificant, so it would still make sense for you to buy, sell, convert, and exchange cryptocurrency in order to make a profit.

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Even after thoroughly examining Publication 550, there are still some uncertainties related to the question like What does the IRS consider a day trader?

Who is considered a day trader by IRS?

Some people seem to think that when it comes to taxes, there’s always a bit of wiggle room when it comes to determining what is tax-deductible.

The US Department of Justice confiscated $3.3 billion from an American who robbed a trading platform for 50 thousand Bitcoins; two scammers of the Estonian crypto mafia who stole $575 million were arrested; a gang of fake brokers deceived 17 thousand Spaniards out of 2.4 billion euros in crypto; in China, 63 people were arrested for laundering 12 billion yuan using cryptocurrencies. And all these events took place in 2022, and they’re not even the biggest cases.  

  

Between January 2021 and March 2022, 46,000 people reported cryptocurrency scams, as the [Federal Trade Commission](https://www.ftc.gov/news-events/data-visualizations/data-spotlight/2022/06/reports-show-scammers-cashing-crypto-craze) states. According to a report by Chainalysis, a company working with blockchain technology, cryptocurrencies worth the equivalent of $14 billion were stolen in 2021. Another $329 million was lost in Q1 2022. From January to November 2022, investors lost more than $4.3 billion worth of cryptocurrency, as was reported by Privacy Affairs researchers.

  

Cryptocurrencies and their users face a huge number of fraudulent activities, which leads to massive distrust of cryptocurrencies. Fraud can be divided into several categories, from scams on users for tiny amounts for deanonymization to hacking corporate servers and stealing billions. Let’s figure out what the most common cryptocurrency scams are and how you can protect yourself and your money with Exolix.            

The Most Common Crypto Scams 
-----------------------------

A cryptocurrency scam is the work of fraudsters who deceive users with the help of cryptocurrencies, digital assets that can be used as a means of payment. Here is a list of the most common crypto scams:

*   Rug Pull scams
    
*   Phishing scams
    
*   Cryptocurrency giveaway scams
    
*   Ponzi schemes
    
*   Fake crypto exchange websites 
    

Let’s talk about each of them in more detail.

### Rug Pull Scams 

A Rug Pull in crypto is a fraudulent scheme where the creators pump up a new project and then withdraw liquidity, which was received from ordinary depositors. Eventually, trading stops, and scammers disappear with the stolen funds. Thus, depositors are left with useless tokens with no value. A popular case was the Squid coin scam — the scammers gained almost $3 million from the investors.

  

### Phishing Scams

Phishing scams are a long-standing favorite among fraudsters. They seek to gain access to your account data and crypto keys. Phishing scammers often use links to fake websites where they can then steal account details. They can impersonate well-known companies like retail stores or banks, post links to social media or even contact victims directly. For example, they can send an email or message that a withdrawal has been initiated and provide a link to cancel the transaction. Do not click on links that you are not sure about, and do not enter your data on unknown websites.

### Giveaway Scams

Social media cryptocurrency giveaway scams include fake communities and celebrity accounts promoting a giveaway. There can be fraudulent sites asking for verification to receive Bitcoin or other tokens. The verification includes making a payment to prove that your account is legitimate. The scammers promise to send back double what you send them. 

  

These scams often cause FOMO, which is about making victims think they’re missing out. They offer a limited amount of crypto, such as “1,000 ETH,” and use bots and fake accounts to imitate that people are actually receiving money. The hurry makes users conduct irrational transactions. 

### Ponzi Schemes 

A Ponzi scheme lures in new investors with the promise of high returns. It is similar to financial pyramids. At its core, scammers using Ponzi schemes pay older investors with the money they get from new ones. This scheme runs in circles, as there are few or no legitimate investments. Sooner or later, schemes collapse if users try to withdraw money, especially during bearish market cycles. 

### Fake Exchange Websites & Wallets

As it is clear from the name of this fraudulent scheme, the websites and cryptocurrency wallets that the user gets to are not real and verified. You can get there by clicking on the links in social media, ads, or search results. Also, there are a lot of fake products on the net, such as cheap Bitcoin or cryptocurrencies with discounts. Don’t get fooled by this; it’s 100% fraud. Always double-check the URL and use trusted websites. 

The Most Common Bitcoin Scams 
------------------------------

Apart from some popular crypto scams, which are universal and can apply to Bitcoin as well, there are several specific cases. Let’s consider the most common Bitcoin scams.

*   Bitcoin investment schemes
    
*   Romance scams 
    
*   Old-school Bitcoin scams
    

### Bitcoin Investment Schemes 

Investment scams involve luring people to send their cryptocurrency to a scammer with promises of huge profits. If you follow their request, say goodbye to your crypto. Investment scams include pumping and dumping schemes. A fraudster tempts you to buy cryptocurrency at a low price, promising that the value of the asset will soon skyrocket. This can refer to BTC as the main currency on the market and obscure little-known crypto.

### Romance Scams 

Scammers may use dating sites and applications to make naive victims believe that they want a real long-term relationship, usually strictly online. When trust is gained, conversations often turn to cryptocurrency opportunities and the possible transfer of crypto coins. 

The scammer asks to buy or give money in cryptocurrency. After receiving them, the fraudster disappears. The Federal Trade Commission found that about 20% of the money lost in love scams was in crypto.

### Old-School Scams

An example is an unwanted phone call or email from someone claiming to be a tax inspector. Scammers will try to convince you that you owe money, and you will face a lawsuit if you do not transfer a certain amount of Bitcoins to them. There are also Bitcoin blackmail scams:

fraudsters pretend to be hackers with some compromising evidence. One of the common variants of this fraud is an unsolicited email, the sender of which claims that he is a hacker who has gained access to your computer.

How to Avoid Crypto Scams     
------------------------------

*   Remember that there are always risks and no guaranteed returns in crypto investments.    
    
*   Never trust schemes that promise returns that sound too good and promising to be true.    
    
*   Thoroughly research any product, coin or token history, community website, and reviews before buying it. 
    
*   Never make purchases when you are in a hurry, overexcited, or too nervous. Try to reason about your choice. 
    
*   Do not trust any unsolicited emails and phone calls from strangers.
    
*   Choose only well-known and popular crypto exchanges, such as Binance, Huobi, and Exolix. 
    
*   Install and regularly update antivirus software to protect yourself against malware and unauthorized access.

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Do not trade, swap, convert, or buy cryptocurrency on an unknown website; always identify the team members who are behind the project. Try to protect your personal information

Top 8 Crypto Scams and How to Avoid 

Between January 2021 and March 2022, 46,000 people reported cryptocurrency scams, as the Federal Trade Commission states. According to a report by Chainalysis, a company working with blockchain technology, cryptocurrencies worth the equivalent of $14 billion were stolen in 2021.

The Most Common Crypto Scams & How to Avoid Them	

TOMORROW \[noun\] / to·mor·row – Future in a broad sense.

It feels odd talking about what tomorrow might bring when discussing this year's challenges and successes, but we believe that past events, in particular overcoming difficulties and gaining experience, can say a lot about a project.

The year 2022 was an enormous transition for us. We have a vision, a clear goal that we strive to achieve every day. Our goal is to make Exolix one of the most favorable and respected cryptocurrency platforms out there. We don't make bold claims, saying that we will oust Binance in the long run, but it's clear that there's a huge potential here. We can evolve, grow, and get better. Thanks to our new partners and beloved clients, the groundwork has already been set.

Our Goal for Tomorrow:

Do better, get better, and make our friends a little happier.

Now, before we get to discuss our future once again, let's catch up on what we've been up to this past year.

Results of the Year
-------------------

### Part 1: New Partners

Brokering a new partnership is not always easy since it can be tough to balance your expectations with the realities of cooperation. We have all been there.

Now, it's safe to say that EVERY new partner that we've gained has been nothing short of incredible. Here are the business allies that will help us in the coming years:

1.  Exodus. A Huge Crypto Wallet for Desktop & Mobile which is used worldwide by more than a million users.
    
2.  Edge Wallet. A great way to manage all your cryptocurrency assets and swap them too.
    
3.  Сonstellation Network. An ambitious network with no fees and a burning desire to shape the future of Web3.
    
4.  Bittab. A life-saving widget with real-time exchange rates.
    
5.  CoinVault Wallet. A cryptocurrency wallet that meets the highest security standards.
    
6.  Stargazer Wallet. An outstanding wallet with huge potential.
    
7.  GetBlock. Blockchain node provider with an eye on the future.
    
8.  Trocador. Anonymous, fast transactions – just like in the old days.
    
9.  Moneroj. Monero-centric resource with great data.
    
10.  Tezotopia. An NFT-powered RTS that everyone will be talking about.
    
11.  Dokwallet. A multi-currency wallet that allows you to convert, store, and earn.
    

  

Any other year, this would have been the crowning achievement, but 2022 really was a year of transition – transition to greater goals.

### Part 2: New Coins

Moving to popular and not-so-popular demands, we modestly updated our exchange and added almost 100 popular altcoins. Of course, we are not going to vouch for every project or coin as the future of crypto, but we've been able to expose many of our users to new, promising projects.

Becoming more involved with different projects, coins, and trading pairs is a great way to push yourself in a positive direction. Every crypto can be a great tool that helps you build an awesome portfolio and perhaps get richer.

### Part 3: Selected 2022 Highlights

*   A floating rate option was added and it was a resounding success. We helped many people to save and make money.
    
*   Blog was launched, and we surely hope that it's going to become a major cryptocurrency-themed blog eventually. Yes, we are talking about the [Exolix Blog](https://exolix.com/blog). We aim to educate and analyze but also predict and discuss the future of the cryptocurrency world.
    
*   3 important sections were added: Markets, Currencies, and Trending Exchange Pairs. Each of them helped make the site a more informative and useful place for its users.
    
*   As much as 100% of our site's design enjoyed an overhaul. Do you like the newer, slicker look of the site? We think that the Exolix home page looks more vibrant than ever before!
    

The inwards-facing improvements are one thing, but what about our work with partners and attracting new partners?

In 2022, we expanded and improved our affiliate program. We overcame past mistakes and conjured up a way to achieve all the goals we were seeking: simplicity, transparency, equality, and profitability. We boast the best rates among leading exchange sites, and we come up with tailored plans for registered affiliates. We also take great care of our business partners, so the magnificent ten discussed above are in great hands.

### Part 4: Navigating Uncertainty

While the declines and rises of the cryptocurrency world are completely unpredictable, some of the global events that took place in 2022 were truly shocking and not in a good way. Dismayed, confused, and taken by surprise, we still managed to grow and achieve breakthroughs. We hope this will bring at least some degree of stability to our beloved customers.

*   We released an app on Android. Today, it is [available in Google Play](https://play.google.com/store/apps/details?id=com.exolix.app&hl=en_GB&gl=US) and has over 1k downloads and no negative reviews. Our app is a way to make it easier to manage and swap your assets on the go.
    
*   We launched a newsletter with the latest updates, the newest promotional deals, and news pertaining to the cryptocurrency world. It's now easier than ever to stay on top of all goings-on in the world of crypto.
    
*   We added new contests. In tough times, it's very important to give people   
        a) something that will keep them occupied/distracted/motivated;  
        b) a chance to win money.   
    Our contests combine the best of both worlds.
    
*   We expanded our team. Our operation is still on track, even with the turbulent changes in the world. We now employ 30 team members that have vast experience in the blockchain world. They bring forth their own individual ideas and recommendations to help shape a better future for Exolix.
    

Rounding Up the Year in Review
------------------------------

Being involved in the cryptocurrency industry has never been an easy task. It's a tough road full of pros and cons and rapid changes which sometimes make things unbearable. As mentioned before, we have a clear vision for tomorrow – a better tomorrow – for Exolix, and we can assure everyone that we are working tirelessly to bring that brighter future to life. Over the past few years, we have made a name for our project by putting the customers in the spotlight.

Remember: you are not a faceless ID or a number; you are our client. Your successes, failures, complaints, and ideas were all a part of Exolix's growth over the years. We wouldn't have gotten this far without you, so thank you.

In the upcoming year, we will continue to bring forth advancements and propel ourselves to the next level. Be prepared to witness new events, new achievements, and hopefully, a whole lot of new partners. Keep your eyes and ears open.

"Tomorrow belongs to those who can hear it coming." 

\- David Bowie

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Our goal is to make Exolix one of the most favorable and respected cryptocurrency platforms out there. 

Year in Review | Exolix

The year 2022 was an enormous transition for us. We have a vision, a clear goal that we strive to achieve every day. Our goal is to make Exolix one of the most favorable and respected cryptocurrency platforms out there. 

Year in Review: Exolix

Giving or receiving cryptocurrency as a present would have been unthought of a few years ago. It's perfectly natural to do so today. However, like with any new investment, it is critical to conduct thorough research and comprehend all of the potential consequences.

Ordinary people may now buy and trade digital assets through popular platforms and exchanges like Exolix. Numerous platforms have made crypto gifting even easier by improving this function and feature for their customers.

However, if you receive cryptocurrency as a present, there are several points you need to think about, according to industry professionals.

Is a Crypto Gift Taxable?
-------------------------

Is a gift received taxable? Is receiving money as a gift taxable in the form of cryptocurrency? What tax applies to receiving crypto as a gift? There are so many questions about crypto gifts. 

When a person receives a crypto gift, it is not taxed. However, if the receiver later sells or otherwise disposes of the coin, the activity must be reported on their tax form. Because the gift recipient's cost basis in the cryptocurrency will normally be equivalent to the giver's, the giver should show evidence to the recipient so that they understand their tax basis in the gifted coin.

Bitcoin and other coins are considered property and taxed similarly to gold or equities. That is why one may need to pay tax originating from the cryptocurrency received the previous year if it was sold for a profit. Receiving cryptocurrency as a gift is not a taxable event in itself.

What to Think about upon Receiving Crypto as a Gift
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Is gifting crypto a taxable event? While the sender may be exempt from the gift tax, recipients may be liable to pay taxes on this cryptocurrency in the future, even if they dispose of it immediately after receiving it. This is determined by the gains and losses on the cryptocurrency when the gift receiver sells or transfers it. In other words, how much value the asset gained or lost in a certain period. So, is receiving crypto as a gift taxable for the recipient? It might be, and if you are the recipient, you should think about the tax implications.

When the gifted cryptocurrency appreciates over time, you will generate a capital gain once you sell or transfer it. The period of time you hold it has a difference in how much tax is payable, too. Any cryptocurrency kept for less than one year is considered a short-term gain. It is a long-term gain if you hold it for longer than one year. These distinctions can influence what tax rate is administered. The tax rate also differs according to your total taxable income, in addition to potential limitations on the amount you can deduct in capital losses in the event your coin drops in price.

Receiving a Cryptocurrency Gift
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Upon receiving cryptocurrency in the form of a gift, it's generally a smart option to plan ahead and gather and document a few crucial data points. Whether you do your own taxes or hire a tax professional, maintaining a comprehensive history of transactions will prove helpful at tax reporting time.

Selling a Cryptocurrency Gift
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When you decide to sell, convert, swap, or otherwise dispose of cryptocurrency received as a gift, it is taxed. In principle, if you sell your cryptocurrency for a price greater than what your gifter paid for it, you must pay tax on capital gains.

These regulations may be rather complex, so it's suggested that you consult a tax adviser before making any choices or filing a return.

Usually, there are no tax consequences for receiving cryptocurrency as a gift, but this changes when you sell, convert, or transfer the cryptocurrency. These are taxable situations, and you must declare your profits and losses along with paying any capital gains taxes owed.

This is when things become tricky. When selling a Bitcoin gift, your cost basis might vary based on the circumstances. Below are a few frequent instances.

1.  The gift has gained value, and the value is now greater than the cost basis of the gifter.
    

If the value of your gift has risen since you got it, the cost basis is the same as the giver's;

2.  Your asset has increased in value, yet the price is less than that of the giver's cost basis.
    

It's feasible that perhaps the value of the cryptocurrency gift has increased after you got it, although it's still less than the initial cost basis. There would not be either a capital gain or loss to declare in this circumstance;

3.  Your gift's price has decreased.
    

When the price of the gift has decreased since you got it, the basis would be the lesser of the gifter's cost basis or the crypto fair market value at the moment the present was given.

4.  You are unaware of the initial cost basis for the gift.
    

If determining the initial holder's cost basis is not possible, the cost basis is equivalent to the fair market value at the time you got the cryptocurrency gift.

If such regulations appear complicated, it's because they are. Finally, because every case is unique, it's a good idea to consult with a tax adviser about the tax liabilities upon receiving or prior to selling a crypto gift or submitting your taxes.

Conclusion
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Because cryptocurrency is a new and developing asset class, be sure to expect numerous changes to how it is regulated in the coming years, which means it is definitely a good idea to consult tax specialists who have expertise in and understanding of cryptocurrency  in any complicated tax filing process.

  

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Giving or receiving cryptocurrency as a present would have been unthought of a few years ago. It's perfectly natural to do so today. However, like with any new investment, it is critical to conduct thorough research and comprehend all of the potential consequences.

Is Receiving Crypto as a Gift Taxable? | Exolix

Giving or receiving cryptocurrency as a present would have been unthought of a few years ago. It's perfectly natural to do so today. However, like with any new investment, it is critical to conduct thorough research and comprehend all of the potential consequences.


Is Receiving Crypto as a Gift Taxable?

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