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Frequently asked questions
Ether is a functional currency. As the amount and use and acceptance of Ether increases, the price will also increase. Ethereum can be used to make processes smarter and get the most out of it. The price of Ethereum will increase if Ethereum is accepted by more institutions and its popularity and use increase. In 2016, the value of each ether was less than one dollar, but for example, in 2020, which was the year when digital currencies flourished, the price of Ethereum increased by 200 times. In conclusion, Ethereum has a special place among digital currencies and a bright future is predicted for it. With updates coming in the near future, Ethereum will become faster and a more viable investment option. Investing in Ethereum may seem risky, but if all goes well, the returns on this investment might be impressive.
According to the website of the Dutch Government, if you submit your tax return too late or not at all, the Tax and Customs Administration will see this as undisguised capital and impose a fine. Before you receive a fine, the Tax and Customs Administration will send you a reminder and later probably a final notice. If you cannot submit your tax return in time, you can ask for a deferment.
Yes, you do. The Netherlands is different from many countries where cryptocurrency is only taxed when you sell, trade, spend or gift it. This is based on the Dutch tax office statement which assumes you make a return from your assets and tax you on this assumed return.
Officially, ETH has a minimum fractional number called a Wei. Each Wei equals 0.000000000000000001 ETH (10-18). But the minimum amount you are allowed to purchase is dependent upon your exchange’s minimum limit. Our exchange allows a minimum of $10.
According to Dutch tax office you are not charged tax for simply buying or selling crypto. Contrary to most other countries, you are not taxed when buying, selling, exchanging, or otherwise disposing of a cryptocurrency. It is taxed as an asset, so you are charged tax on the amount of savings and investments you hold at the beginning of the tax year.
To store Ether and Ethereum-based tokens, you need software or hardware called a “wallet”. A wallet can be considered like a bank account that is used to store, receive and send money.
Ethereum software wallets are free and you can easily install them on mobile phones (Android and iOS) or PCs (Windows, Linux, and Mac). Some wallets are also web-based and can be accessed with internet browsers (such as Chrome). In contrast, hardware wallets, which are more secure, are physically available and must be purchased from reputable stores. It is necessary to take a backup copy of your wallet so that you can recover your funds if the wallet is deleted, the password is forgotten, or the device on which the wallet is installed is damaged.