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2025-07-25

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.

CoinLedger

CoinLedger is an accessible crypto tax platform with over 1,000 exchange and wallet integrations.

Best for: Users who want a simple, straightforward experience without complex DeFi needs.

Key differentiator: Offers an unlimited transaction plan for high-volume traders at a fixed price.

Pricing: $49 (100 transactions) to $499+ (10,000+ transactions).

Limitation: Does not generate Schedule D forms - you will need to complete this manually or with other software.

Notable: Strong NFT support with OpenSea integration.

CoinTracker

CoinTracker is a portfolio tracker and tax calculator supporting over 30,000 cryptocurrencies.

Best for: Users who prioritize portfolio tracking alongside tax reporting.

Key differentiator: Direct integrations with TurboTax and H&R Block Desktop.

Pricing: $59 (100 transactions) to $599 (10,000 transactions), with full-service options up to $3,499.

Limitation: Customer support is limited on lower-tier plans - priority support requires the $599 Ultra plan.

Notable: Good security with end-to-end encryption and SOC 2 compliance.

ZenLedger

ZenLedger offers both DIY crypto tax reports and professional full-service accounting.

Best for: Users who want tax loss harvesting included at every pricing tier.

Key differentiator: Tax loss harvesting is available on all plans, not just premium tiers.

Pricing: $49 (100 transactions) to $399 (15,000 transactions).

Limitation: Only offers 400+ exchange integrations - significantly fewer than competitors. Some users report customer support issues with long wait times.

Notable: TurboTax integration and 14-day refund policy.

blog
Jul 25
,
 
2025
 - 
10
min read

Announcing Our New Partnership with Bybit

The Summ team is proud to announce our exciting partnership with Bybit, delivering a crypto tax solution tailored to Bybit’s global community of users.

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Key takeaways
This tax guide is regularly updated: Last Update  

The Summ team is proud to announce our exciting partnership with Bybit, delivering a crypto tax solution tailored to Bybit’s global community of users.

As one of the world’s leading crypto exchanges by trading volume, Bybit is renowned for its high-performance trading infrastructure, deep liquidity, and commitment to innovation. With millions of users worldwide trading derivatives, spot markets, and participating in a growing Web3 ecosystem, this partnership comes at the perfect time;  when accurate and accessible tax reporting is more important than ever.

Making crypto tax reporting effortless for Bybit users

Whether you're a seasoned trader, DeFi explorer, or simply navigating crypto for the first time, tax reporting shouldn’t be a roadblock. Together, Summ and Bybit are here to remove the complexity.

Here's what this partnership brings you:

Easy Account Setup
Connect your Bybit account to Summ in just a few clicks. Automatically import your transactions via either API keys or CSV files.

Smart Transaction Labelling
Our platform supports 3,500+ exchanges, wallets, and blockchains, with powerful algorithms that label activity across Bybit’s diverse products, including derivatives, spot trades, and more.

Full DeFi & NFT Support
Got activity outside of Bybit? No problem. We specialize in handling advanced crypto use cases - staking, liquidity pools, NFT trades, airdrops, and more.

Global Tax Support
Generate tax reports for over 100 countries, customized for your local laws. Whether you're filing solo or with an accountant, you’ll have the forms you need - clearly formatted and ready to go.

Why this matters

As global tax authorities increase scrutiny on crypto transactions, accurate reporting is more critical than ever. Bybit's commitment to compliance and user empowerment makes this partnership a natural fit.

Together, we're making sure that no matter how active you are in the crypto space, you're always in control, and ahead of your tax obligations.

Get your crypto taxes sorted and start using Summ for free. 

The information provided on this website is general in nature and is not tax, accounting or legal advice. It has been prepared without taking into account your objectives, financial situation or needs. Before acting on this information, you should consider the appropriateness of the information having regard to your own objectives, financial situation and needs and seek professional advice. Summ (formerly Crypto Tax Calculator) disclaims all and any guarantees, undertakings and warranties, expressed or implied, and is not liable for any loss or damage whatsoever (including human or computer error, negligent or otherwise, or incidental or Consequential Loss or damage) arising out of, or in connection with, any use or reliance on the information or advice in this website. The user must accept sole responsibility associated with the use of the material on this site, irrespective of the purpose for which such use or results are applied. The information in this website is no substitute for specialist advice.

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Ga gratis aan de slag

Importeer uw transacties en genereer een gratis voorbeeld rapport.

Blog

25 July 2025

X

 Min read

Announcing Our New Partnership with Bybit

The Summ team is proud to announce our exciting partnership with Bybit, delivering a crypto tax solution tailored to Bybit’s global community of users.

This tax guide is regularly updated: Last Update 

....

July

25

2025

The Summ team is proud to announce our exciting partnership with Bybit, delivering a crypto tax solution tailored to Bybit’s global community of users.

As one of the world’s leading crypto exchanges by trading volume, Bybit is renowned for its high-performance trading infrastructure, deep liquidity, and commitment to innovation. With millions of users worldwide trading derivatives, spot markets, and participating in a growing Web3 ecosystem, this partnership comes at the perfect time;  when accurate and accessible tax reporting is more important than ever.

Making crypto tax reporting effortless for Bybit users

Whether you're a seasoned trader, DeFi explorer, or simply navigating crypto for the first time, tax reporting shouldn’t be a roadblock. Together, Summ and Bybit are here to remove the complexity.

Here's what this partnership brings you:

Easy Account Setup
Connect your Bybit account to Summ in just a few clicks. Automatically import your transactions via either API keys or CSV files.

Smart Transaction Labelling
Our platform supports 3,500+ exchanges, wallets, and blockchains, with powerful algorithms that label activity across Bybit’s diverse products, including derivatives, spot trades, and more.

Full DeFi & NFT Support
Got activity outside of Bybit? No problem. We specialize in handling advanced crypto use cases - staking, liquidity pools, NFT trades, airdrops, and more.

Global Tax Support
Generate tax reports for over 100 countries, customized for your local laws. Whether you're filing solo or with an accountant, you’ll have the forms you need - clearly formatted and ready to go.

Why this matters

As global tax authorities increase scrutiny on crypto transactions, accurate reporting is more critical than ever. Bybit's commitment to compliance and user empowerment makes this partnership a natural fit.

Together, we're making sure that no matter how active you are in the crypto space, you're always in control, and ahead of your tax obligations.

Get your crypto taxes sorted and start using Summ for free. 

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Veel Gestelde Vragen

Hoe wordt cryptobelasting berekend?

Je kunt aansprakelijk zijn voor zowel vermogenswinst als inkomstenbelasting, afhankelijk van het type cryptocurrency-transactie en je individuele omstandigheden. Het kan bijvoorbeeld zijn dat je vermogenswinst moet betalen over de winst van het kopen en verkopen van cryptocurrency, of inkomstenbelasting moet betalen over de rente die je verdient als je cryptocurrency bezit.

Hoe kan SUMM helpen met crypto-belastingen?

De manier waarop cryptovaluta's in de meeste landen worden belast, betekent dat beleggers mogelijk nog steeds belasting moeten betalen, ongeacht of ze over het geheel genomen winst of verlies hebben gemaakt. Afhankelijk van uw omstandigheden worden belastingen meestal gerealiseerd op het moment van de transactie, en niet op basis van de totale positie aan het einde van het boekjaar.

Kan ik mijn eigen accountant gebruiken?

In de meeste landen bent u verplicht om de waarde van de cryptovaluta op het moment van de transactie in uw lokale valuta te registreren. Dit kan erg tijdrovend zijn om met de hand te doen, aangezien de meeste wisselkoersgegevens geen referentieprijs hebben en gegevens tussen wisselkantoren niet gemakkelijk compatibel zijn.

Wat moet ik doen als mijn exchange niet op de lijst met ondersteunde exchanges staat?

We bieden honderden exchanges, wallets, en blockchains aan, maar als jouw exchange niet op de ondersteunde lijst staat, werken we graag met je samen om deze ondersteund te krijgen. Neem gewoon contact op met [email protected] of via de in-app chatondersteuningsfunctie en wij helpen je verder.

Hoe werkt de gratis proefperiode?

Het platform is direct na aanmelding gratis te gebruiken, zodat je jouw transacties kunt importeren en kunt profiteren van onze slimme suggestie- en automatische categorisatie-engine, portfolio tracking, DeFi- en NFT-ondersteuning. Voor toegang tot rapporten, de tool voor het verzamelen van belastingverliezen of chat en prioriteitsondersteuning moet je upgraden naar een betaald abonnement.

Automatiseer uw cryptoboekhouding

01

Synchroniseer en centraliseer transacties

As SOC 2 Type 2 compliant, we ensure robust data security, giving customers confidence in entrusting us.
02

Secure organization

We conduct regular and thorough Security & Awareness training for all employees.
03

Full data privacy

Our application only ever requires 'read-only' access to your data.