Turns out you are making a lot of profit by using our bot, but
- What should you do with all this money now?
- Do you need to pay taxes?
There are a few options:
1) You withdraw some of the money to your real-world bank account.
Chances are your bank will panic and will start asking questions: how did you get this money, can you proof it's not from criminal activities, ...
You could do this, but if you take this risk, do it in smaller parts.
Once you go above 2.000€/$ some banks might already trigger alerts.
Other banks just check the originating bank account and if it's from a crypto exchange, they ask you questions right away.
What about taxes?
Depending on your country's laws, you will need to pay taxes on
- when you convert the crypto coins back to € / $
- for all profits your realize during a year
- everything you own
- no taxes on crypto, eg if it's not considered a financial instrument
What are smart strategies to minimize taxes:
In some countries, like Belgium, you pay on your profits.
If you do a payout to your bank account, you need to declare it in the 'other revenues' field in your taxes.
You will then have to pay 33% on your profits in taxes.
If you however spend your crypto, for instance by using a crypto visa card,
you will have less profit and will need to pay less taxes.
How can I request a crypto Visa card?
Open an account at Crypto.com (you get extra benefits by using this link).
Depending on which type of card you request, you can even get a cashback on your Netflix, Prime and Spotify subscription.
What could be a smart strategy to use?
Once you earn 'enough' in your opinion, eg: you earn an extra salary each month, you can start spending 50% of your profits using your crypto visa card. The remaining 50% you can reinvest to keep on increasing your earnings.