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2025-12-08

How Investing vs Trading impacts tax

In most cases of buying and selling cryptocurrency as a retail investor, you are participating in investing rather than trading. The two are treated differently for tax purposes.

  • Investing is subject to capital gains tax or income tax, depending on the nature of the transaction.
  • Trading in this case refers to self-employment which is subject to income tax and National Insurance Contributions.

The key difference between investing and trading – along with the different tax treatments, is how losses generated in the crypto-activity can be used.

In their guidance, HMRC have explicitly stated that they would expect it to be exceedingly rare that any crypto-activity constituting buying & selling crypto would be classified as “trading”.

If you are uncertain, speak to a tax advisor as there are always exceptions, including but not limited to, developing tokens and large scale mining.

How is crypto tax calculated in the United States?

You can be liable for both capital gains and income tax depending on the type of cryptocurrency transaction, and your individual circumstances. For example, you might need to pay capital gains on profits from buying and selling cryptocurrency, or pay income tax on interest earned when holding crypto.

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Dec 8
 
Dec
 
2025
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Product Update: Spam Filtering

Our new spam center gives you control over any crypto spam currencies that slip through automated detection. Mark entire currencies as spam in one click, manage all spam controls centrally, and maintain clean transaction data for precise reports.

Key takeaways
This tax guide is regularly updated: Last Update  
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Wham, bam, goodbye spam! Introducing the spam center

We automatically filter the vast majority of spam currencies for you. But for the occasional ones that may slip through, you now have direct control.

Our new spam center gives you three tools for the edge cases:

  • Currency-level spam filtering: Mark entire currencies as spam in one click when our automated filters miss one. Your transaction tables declutter instantly.
  • Centralized management: All spam controls in one location. Check what's already filtered or add exceptions as needed.
  • Automatic application: Any manual spam settings you add apply across all transactions and reports immediately. No need to update multiple places.

Most users won't need to touch this. But if you spot spam we haven't caught, you can fix it in seconds rather than categorizing individual transactions.

New category: spam out

We've added a spam out category to handle a specific edge case: fake outgoing transactions that appear in your wallet but weren't initiated by you.

These transactions exist on-chain but represent spam activity rather than genuine transfers. The spam out category lets you classify them correctly, keeping your disposal records accurate and your capital gains calculations precise.

Standard spam filtering catches incoming junk. Spam out handles the fake outgoings. Together, they give you complete control over spam classification.

Log in or sign up to see the spam updates in action.

Le informazioni fornite su questo sito Web sono di natura generale e non costituiscono consulenza fiscale, contabile o legale. È stato preparato senza tenere conto dei vostri obiettivi, della vostra situazione finanziaria o delle vostre esigenze. Prima di agire in base a queste informazioni, è necessario considerare l'adeguatezza delle informazioni rispetto ai propri obiettivi, situazione finanziaria ed esigenze e chiedere una consulenza professionale.
Summ (precedentemente Crypto Tax Calculator) declina ogni e qualsiasi garanzia, impegno e garanzia, espressa o implicita, e non è responsabile per eventuali perdite o danni di sorta (inclusi errori umani o informatici, negligenti o di altro tipo, o perdite o danni incidentali o consequenziali) derivanti da o in connessione, qualsiasi utilizzo o affidamento sulle informazioni o sui consigli contenuti in questo sito web. L'utente deve accettare l'esclusiva responsabilità associata all'uso del materiale presente su questo sito, indipendentemente dallo scopo per il quale tale uso o risultati vengono applicati. Le informazioni contenute in questo sito non sostituiscono la consulenza specialistica.

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