No More Taxes With Crypto

Most of us are loathe paying taxes if the truth is to be told.

If you could get away without filing your yearly tax returns you will gladly do so. This is the reason why wealthy people resort to using tax havens in order to pay lower taxes. Some go to the extreme of getting residency in countries with low taxation rates. For the common person who is thinking of avoiding paying taxes, this article will show you how to get started.

Let`s understand the basics of crypto

Crypto refers to the digital currency that operates outside of the control of central banks and the formal banking system. Crypto currency is not minted like conventional currency bit is mined using complex algorithms and computer programs. Crypto offers more security than conventional currencies since it is based on encryption. Since crypto is not considered as currency by the government, it is logical that it cannot be taxed. The crypto currency operates on peer-to-peer platforms that are not under the control of the central bank. This means that the protocols of taxation do not apply to crypto. This extends to holders and users of crypto currency who benefit by bypassing the formal system of taxation.

How the taxman is able to get to you

The reason why it is hard for you to avoid the taxman is because you are part of an intricate system designed to ensure you pay taxes. The government vests authority in the central bank to act as the supervisory body that controls the supply of money. Central banks work with banks to ensure that you are part of the financial system. By virtue of being part of the system, the taxman is able to ensure you pay taxes.

How to avoid the taxman

One way in which you can avoid paying taxes is by using crypto as security in order to get a loan. There are platforms which lend against crypto. Unlike other loans which may attract the capital gains tax, crypto does not attract this tax. You can get access to tax-free loans by using crypto. Therefore, by borrowing against crypto, you avoid paying taxes.

Another way to avoid paying taxes is to use crypto for making your purchases. There are an increasing number of establishments that accept crypto for payment. Every payment has an element of taxation in it. It could be the value-added-tax or some other form. By making payments in crypto, you avoid paying taxes since crypto is not taxable by the government.

In conclusion, the above reasons are convincing enough to show you that avoiding paying taxes is real and achievable. The future is for those who will open their arms to embrace crypto. The way to get started in order to avoid paying taxes is actually simple. Start by investing in crypto. You can search for some of the platforms that offer crypto currencies and start buying. This investment will soon start paying dividends in terms of avoiding paying taxes.