9 Benefits of Using OKX for Your Crypto Dealings
As the UK tax authority, OKX's crypto clients must monitor their crypto dealings for taxation. Why is that? Because HMRC is looking into cryptocurrency dealings. HMRC requires a statement from exchanges regarding UK taxpayers who meet specific conditions.
Let’s discuss the benefits of using OKX for cryptocurrency transactions.
How HMRC Uses Crypto Data?
HMRC obtains data from exchanges, such as OKX, to investigate tax fraud. The authority is monitoring cryptocurrency transactions to ensure individuals meet their tax obligations.
However, HMRC sometimes needs to reveal how it conducts its investigations. It has been reported that the exchange must keep a record of the transactions users have carried out. The agency has issued warning letters to thousands of crypto owners who should have accurately reported their digital currency transactions. From the UK, capital gains from crypto-asset gains will be charged up to 20%, depending on the amount of profit and the taxpayer's income level.
Benefits of Using OKX
OKX is a popular cryptocurrency exchange with many features that make trading and managing your crypto assets easier. Here’s a detailed look at what OKX offers:
1. Very Low Trading Fee
OKX ensures that it charges among the lowest trading fees available. That way, you will hold more of your profits than you are used to when purchasing or selling any cryptocurrency. If you are a regular trader, the low charges might be beneficial.
2. Variety in Cryptocurrencies
OKX supports more than 350 different kinds of cryptocurrencies. This extensive selection gives you the flexibility to deal in an enormous array of digital assets, ranging from some significant coins like Bitcoin and Ethereum to newer, emerging ones.
3. Advanced Wallet
OKX Wallet is far more advanced and user-friendly. It hosts 77 blockchains to store many types of cryptocurrencies in one place. It provides access to various DeFi applications or tools and services based on blockchain technology aimed at helping users earn interest or manage crypto assets.
4. Trading Options
OKX offers multiple trading facilities, such as:
Spot Trading: Buy or sell cryptos at the current market rates.
Derivatives Trading: Derivative contracts can be traded for cryptocurrencies that depend on the price of the underlying cryptocurrency. It enables traders to use the price fluctuation in the underlying asset to speculate on or hedge.
Margin Trading: A process in which you can borrow capital to trade more or excess cryptocurrency than your position value. This allows your profits to be multiplied as well as losses.
5. Purchase of Cryptocurrency
You can buy cryptocurrencies with more than 90 different fiat currencies, including USD, EUR, and GBP. This makes it extremely simple to trade with your local currency.
6. DeFi and Web3 integration
OKX integrates with DeFi wallets and offers an in-app opportunity to get access to decentralized finance services. It supports Web3 dapps, where wider crypto space access is available.
7. NFT Marketplace
OKX has a marketplace for creating, buying, and selling non-fungible tokens. NFT means digital ownership of digital art, collectables, or any other form of digital content. This feature lets you connect with the fast-growing digital art and collectables world.
8. Crypto Loans and Mining
You can borrow against your cryptocurrency with OKX. You can obtain access to cash or other assets without selling any of your crypto holdings. You can join mining pools, where users collaborate and contribute to mine cryptocurrencies more effectively, sharing the rewards.
9. TradingView Integration
OKX is also integrated with TradingView, a top charting tool with advanced charts and analysis features that will help one track market trends and undertake trades in a much more informed way with the help of enhanced visual tools. These features make OKX a versatile and strong platform for new and experienced cryptocurrency users.
How to Report Your Taxes with OKX?
Since OKX does not provide tax reports directly, you must use third-party software to track and report your transactions. Popular tools include:
These tools can generate detailed tax reports tailored to your country’s requirements. To use them, follow these steps:
Connect Your OKX Account: Link your OKX account to the chosen software via API to sync your transaction data automatically.
Export Transaction History: Export your OKX transaction history to a CSV file and upload it into the software.
Bottom Line!
Using these tools ensures that you have accurate records for tax reporting and helps you manage your investments effectively.
For more crypto tax-related, due diligence, and compliance information, contact the Crypto Accountants.