New to crypto - Trading fees?

[JamesDaniel90]

I started investing in February this year and up till now have not sold anything , just held.

I want to give trading a go and am just wondering how the fees & tax works in the UK , do we only pay tax on fiat withdrawals and pay fees on all trades?

The markets are very volatile at the moment so see it as an opportunity, I am only talking a small amount to start with as I am new.

If for example I put £100 in a crypto that doubles in price and I decide to put the £100 profit into Ethererum I am only charged a trading fee for doing so?

Daft question I am sure but like I said I am new to trading and want to know for sure how everything works before I start.

[CryptoHeadlineNews]

I started investing in February this year and up till now have not sold anything , just held.

I want to give trading a go and am just wondering how the fees & tax works in the UK , do we only pay tax on fiat withdrawals and pay fees on all trades?

The markets are very volatile at the moment so see it as an opportunity, I am only talking a small amount to start with as I am new.

If for example I put £100 in a crypto that doubles in price and I decide to put the £100 profit into Ethererum I am only charged a trading fee for doing so?

I actually don't know about UK trading exchanges, but the ones I used here in Africa, we only have charges on withdrawer fees and not trading.. And by this statement, I'm sure you must be referring to investing in shitcoins, because it can't be Bitcoin, as for Its price to double, it will actually take time unlike shitcoins whose volatility Is very high of which you could either make huge profit or great lose within a short period of time. But However, there is an alternative way you can make some money from your idle bitcoin through Spot Trading known as the "Dollar Cost Average" method, whereby you get to take advantage of the volatility nature of the market, by buying bitcoin at a low price & selling at a high price with the help of the "take profit & stop lose" trading feature.

[Welsh]

When investing, i.e buying you only pay tax on any profits made. That might be when you purchase something, since that's considered withdrawal or when you actually withdraw it to GBP. If it's income, that's slightly different as you're taxed as income at the time of the transaction, and then any capital gain taxes. Although, it's always best to consult an accountant. I'm of the opinion anyone dealing with a significant amount of Bitcoin, should be in contact with an accountant.

Let them doing it for you, and you can ask questions along the way. I know this goes against not using third parties, but tax is just so complicated at times, and you can easily make mistakes if you aren't clued up completely.

[rat03gopoh]

Several exchanges provide tax reporting simulation tools for users such as binance and crypto.com. Haven't tried it so far, but I'm sure it's been adjusted according to each country's local tax settings.

Or use a tax calculator website like Koinly.io (they happen to have an office in the UK).