- Bitcoin breaks $20k!
- Money Talks – Short Bites on our YouTube channel (Win $1,000 in Bitcoin)
- Deposit from ANY Country in the World – Introducing Global Wire Support
- OTC Services for Large Crypto Buys and Sells
- Tax-Loss Harvesting – Thinking about Crypto Taxes
- Update on Abra’s new Global Crypto Marketplace
- Abra named as one of the “Top 50 Most Innovative Blockchain Companies for 2020”
Bitcoin breaks $20k!
Wednesday was a magical day. Bitcoin started the day unceremoniously moving around the $19.4k USD range. Within hours Bitcoin was on the move, ultimately breaching $20k relatively quickly. As if that wasn’t enough, Bitcoin decided it was worth way more than $20k and kept going until it hit $23k which is where it’s hanging out as of this writing. That’s a gain of nearly 15% over 24 hours.
— Bill Barhydt (@billbarhydt) December 15, 2020
A few hours before this price move I published this tweet which I would ask you all to pay attention to and note that nothing, and I do mean nothing, goes straight up in price and pullbacks will happen.
The big point here is that as we go higher we could see big volatility rear its head in the form of big movements up and followed by corrections down. The trend in the chart is clear, namely UP. But the path to get there may be rocky and require a conviction.
We’re in completely unchartered territory here. We’ve never, in the entirety of human history, had a new asset class like this making new highs at these price levels with a market cap of over $400 Billion USD. Stay smart and stay vigilant and above all else enjoy the ride. You’re now part of history in the making!
Money Talks – Short Bites on our YouTube channel (Win $1,000 in Bitcoin)
Thanks for all your love in making our first season of Money Talks series on YouTube a huge success. For those of you who haven’t been able to watch all full episodes, we have created a new playlist breaking down the top highlights in a short 1-2 min easily digestible format. Check it out on our YouTube channel.
Wait there’s more 🙂
We are giving away $1,000 in Bitcoin split equally amongst 10 lucky winners for Christmas. Check out our Twitter to participate.
Bitcoin Santa is coming to town. Time to win $1,000 in BTC equally split amongst 10 winners for Xmas!
— Abra (@AbraGlobal) December 17, 2020
NEW – Deposit from ANY Country in the World – Introducing Global Wire Support
I’ve been talking about it for weeks and it’s finally here. By far the most requested feature for global users of Abra is the ability to wire money to your Abra wallet from anywhere in the world. We convert all incoming wires to TUSD (True USD) stablecoins. Your TUSD has arrived in your Abra wallet, what next? Now you can easily convert your TUSD into Bitcoin, or any other cryptocurrency or you can deposit it directly into your Abra Interest Account to earn 10% on your TUSD or 4.5% on your Bitcoin or 5% on your Ethereum deposits!
NOTE: It’s REALLY IMPORTANT that you follow the instructions and include your unique user code in the notes field for any wire you send. Otherwise, the wire will not be associated with your Abra account.
Countries like The United States, Singapore, Philippines, Korea, UK, Germany, France, Spain, Russia, Mexico, Canada, Brazil, Australia, Nigeria, or South Africa all of where Abra is really popular can now easily take advantage of our global wire support.
When you’re ready to sell and you need cash you can convert your crypto back to TUSD and wire the funds back to your bank account in your home currency. Of course your home bank will convert the incoming dollars back to your local currency.
Note that if you want to do a smaller transaction you can also check out our Abra Crypto Marketplace on our homepage at https://www.abra.com/ to see the different payment options available in your home country.
Abra Crypto Marketplace on www.abra.com
NEW – OTC Services for Large Crypto Buys and Sells
Once you’ve signed up for Abra Interest Account you can also utilize our new OTC trading desk built in partnership with Prime Trust. The Abra OTC desk takes advantage of the deep crypto liquidity pools we’ve built over the years and Prime Trust’s security, reliability and regulatory compliance. We can offer great pricing across all major crypto pairs for trades above $100k in value.
Trades are quoted and approved in seconds via Telegram or SMS and we can give you a voice confirmation call as well.
This service is particularly useful if:
- You want to move large deposits from one currency type in your Abra Interest Account to a different currency. For example, if you want to move $500k from TUSD to Bitcoin in your Abra Interest Account this can now be done in a couple of minutes via our OTC desk.
- You want to do trades larger than those supported directly be the Abra App
- You prefer the confidence of working directly with the Abra team for large trades rather than doing manual data entry in the App. For example, if you’re not comfortable calculating across non USD/fiat currencies such as Bitcoin and Ethereum Abra can help.
To get started simply send an email to [email protected]
It’s harvest time! Here’s what crypto investors need to know about tax-loss harvesting.
Do you have tokens in your portfolio trading at a loss right now? If you invested in DeFi in 2020, you probably do.
Investors that are sitting on unrealized crypto losses may want to harvest those losses to offset their tax liability. The good news is there is a smart tax strategy called tax-loss harvesting that will help you reduce investment losses, and the month of December is the best time to take advantage. Since crypto is treated as “property” under IRS rules, that means the same capital gains rules apply.
What is Tax-Loss Harvesting?
Tax-loss harvesting is the process of selling a cryptocurrency that is trading at a loss in order to realize that loss for tax purposes. By “harvesting” the loss, investors can offset taxes on both capital gains and income. The sold cryptocurrency can then be replaced in the portfolio to maintain an optimal asset allocation and expected returns.
Harvested losses can offset capital gains and reduce ordinary taxable income by up to $3,000 per year. If you don’t have enough losses, you can even carry over unused losses into future years to provide a longer-term benefit.
A simple tax-loss harvesting example:
Dec 31, 2020 – sell 0.1 YFI currently trading at a $3,000 loss for $15,000 (you bought at $18,000). Now you have a tax loss asset and $15,000 cash.
Jan 15, 2021 – buy 0.1 YFI back at $15,000 and have your 0.1 YFI and a $3,000 tax loss asset. Or buy some other token you prefer.
What if you didn’t have losses for the year?
Another savings option according to Andrew Gordon, JD/CPA, President of Gordon Law Group, an expert in cryptocurrency taxation and legal structures, is when you have gains for the year.
“If you traded a bunch of cryptos and have accrued gains during the year, then you are currently in a gain position. You can reduce your current gains by year-end by selling your crypto at a loss. You can also offset other capital gains, so it doesn’t have to be crypto, it can also reduce stocks or other securities. You can even sell your real estate to realize the loss. So again, it’s not just crypto, but crypto is a very liquid investment to use for tax-loss harvesting.”
What about the Wash Sale Rule?
Of course, the IRS wants everyone to pay their fair share of taxes, so they introduced the wash sale rule to prevent investors from incurring losses and repurchasing the same security within 30 days. But, the IRS considers cryptocurrencies property, rather than securities, so under the current law, the wash sale rule does not apply to crypto investors. But even with saying this, don’t sell and buy back without some time or days passing. Otherwise, the IRS could argue there was no economic substance.
The Bottom Line
With tax-loss harvesting, you can significantly reduce your crypto tax bite. The deadline for the 2020 tax year is coming up quickly, December 31st, so don’t miss your chance to take advantage and save up to $3K on your income taxes. You can also check out ZenLedger’s tax-loss harvesting tool which easily automates the process for you.
Update on Abra’s new Global Crypto Marketplace
If you haven’t already, check out the Abra marketplace we launched recently. The marketplace is accessible on our website www.abra.com and offers a simple checkout experience for buying Bitcoin and 650+ cryptocurrencies (options vary by country) using a variety of payment methods available worldwide:
- Credit/Debit cards, Apple Pay, Google Pay and Samsung Pay:
- United States and other countries worldwide
- Bank transfers:
- Australia (POLi, PayID/OSKO,BPAY)
- Canada (Interac)
- Europe (SEPA, Sofort-Klarna, iDEAL)
- India (IMPS, UPI)
- United Kingdom (Faster Payments)
- Retail Points:
- Australia (4000+ retail locations of Australia Post and Newsagent)
Getting started with Abra Crypto Marketplace is extremely easy. Here is a short video to help you get started:
Abra named as one the “Top 50 Most Innovative Blockchain Companies for 2020 Globally”
Thank you CB Insights!
Proud to announce that @abraglobal makes it to the list of the “Most Innovative Blockchain Companies for 2020 Globally” by CB Insights. Wohoo!
Congratulations to all our fellow winners! https://t.co/mCVI8K3Sj9
— Abra (@AbraGlobal) December 17, 2020
For those of you celebrating Hanukkah and Christmas please enjoy your holiday with your small circle of loved ones and we’ll talk to you again before the New Year! And if you’re alone for the holiday find me on Crypto Twitter or Instagram and hit me up with your favorite crypto questions!
Peace and Love,
Disclaimer: Abra Interest Accounts are issued by Prime Trust a Nevada Chartered Trust Company. Rates for Abra Interest Accounts are subject to change. Digital currencies are not legal tender, are not backed by any government, and Abra Interest Accounts are not subject to FDIC or SIPC insurance protections. Any opinions, news, research, analyses, prices, or other information provided here is a general market commentary and does not constitute investment advice. Abra does not recommend that any cryptocurrency should be bought, sold, or held by you. Do conduct your own due diligence and consult your financial advisor before making any investment decisions. Abra will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.