Last Updated: 27 November 2023
Bitcoins are currently considered to be an attractive investment object in order to be able to invest one’s own capital profitably even in the current low-interest phase. Many private investors are also trying to secure a piece of the pie and are investing in this cryptocurrency.
In addition to the high potential returns, many investors are also attracted by the simple trading options. For example, so-called trading bots such as Bitcoin Method can be used. These programs can be used to automate trading.
In this process, investors surrender their autonomy in trading to the software. The main component of the trading bot is an algorithm that independently determines potentially profitable buy or sell signals.
How can you profit from Bitcoin Method?
Step 1: Click on the link to go to the official website of Bitcoin Method.
Step 2: Fill out the form to get a FREE licence to trade.
Step 3: Follow the instructions on the platform to profit from bitcoin fast!
Does tax have to be paid on trading Bitcoins?
Anyone who successfully trades on the Bitcoin market or has it traded by a software will ask themselves, at the latest when filling out their tax return, whether capital gains from Bitcoin trading have to be taxed.
However, there is no general answer to this question. Whether a tax liability exists also depends on how long the Bitcoins are held by the investor. If bitcoins are held for at least one year and only sold afterwards, the profits earned do not have to be taxed.
In addition, there is a tax-free allowance of 600 euros for the income earned on cryptocurrencies held for a short period, i.e. up to a maximum of 1 year. Up to this limit, the profits from bitcoin trading are tax-free.
It should be noted, however, that this exemption limit applies to all private sales, i.e. also to profits from the sale of other cryptocurrencies or even works of art.
If the exemption limit is exceeded, the entire capital gain must be taxed. This means that investors should check at the end of the year whether the exemption limit is about to be exceeded.
If this is the case, it may be worthwhile to suspend bitcoin trading for a short time in order not to exceed the exemption limit.
What influence does automated trading software have on the taxation of bitcoin profits?
Automated trading bots typically trade at very fast intervals. This means that bitcoins are not held for long in most cases. Thus, the profit made with them becomes taxable in principle if the exemption limit of 600 euros is exceeded.
How high is the tax on Bitcoin profits?
Profits from trading in Bitcoins are not subject to a uniform tax rate. Rather, the individual income tax rate and the solidarity surcharge apply. If applicable, church tax is also levied.
Can losses from bitcoin trading be deducted for tax purposes?
If losses are incurred when trading bitcoins, these can be deducted for tax purposes. Thus, these losses can be offset against profits from other private disposals. If the losses exceed the profits, losses can also be carried forward indefinitely to future years.