Celsius is a decentralized finance (DeFi) network that focuses on cryptocurrency lending, borrowing, and earning. It’s also a cryptocurrency software that lets you buy 10 different cryptos that can be exchanged for over 30 virtual currencies. Celsius is perfect for novices and anybody looking for passive income. It is not ideal for day traders.
When it comes to withdrawing your money, there are no account minimums, hidden fees, or difficulties. The CEL token is the system’s backbone. This is an ERC-20 token that is used within the platform to create interest, take out loans, transmit peer-to-peer payments, and much more.
Celsius Network Taxes
Many countries across the globe, including the United States, consider cryptocurrencies like bitcoin as property. Stocks, bonds, and real estate are examples of other types of property that you may be familiar with.
Whenever you make transactions on the Celsius Network, your gains are subject to capital gains and losses, just like other types of property, and you must record any returns, losses, and income from crypto investments on your taxes.
Reporting Celsius Crypto Taxes
To estimate your crypto taxes, you must convert your digital assets into your local fiat currency (such as U.S. Dollar, Canadian Dollar, etc.). and calculate your profits, losses, and income.
After you’ve completed your calculations, you’ll need to fill out the proper tax documents.
Will Celsius Network Provide me with Tax Forms?
Outside of Celsius, many crypto investors utilize other wallets, exchanges, and platforms. You may also buy on Bittrex or make money with Cash App.
The problem with Celsius’s reporting is that it is limited to the platform itself. Celsius is unable to give comprehensive profits, losses, and income tax information if you utilize other crypto wallets, exchanges, DeFi protocols, or other platforms in addition to Celsius.
However, you can still calculate your Celsius crypto taxes using crypto tax software like ZenLedger. ZenLedger easily calculates your crypto taxes and also finds opportunities for you to save money and trade smarter. Let’s find out how to do your Celsius Network taxes with the help of ZenLedger.
Connecting Your Celsius Network To ZenLedger For Your Crypto Tax Forms
As one of the most comprehensive cryptocurrency tax software options on the market, we have import instructions for well over 400+ exchanges.
Within ZenLedger, on the Import Transactions page and Exchanges tab, select the Exchange you want to import. Then you’ll see a table that outlines the possible methods. For many centralized exchanges, we support a direct API code import, while others may require a CSV import. Decentralized exchanges may require a wallet address.
To import your transactions from an exchange, simply navigate to the [Exchanges] tab of the [Imports] page. Select the exchange that you are looking to import, (Celsius, in this case) and instructions will be provided for that specific exchange!
The Bottom Line
Celsius is an excellent alternative for long-term digital asset investing because it allows you to expand your portfolio passively. Furthermore, if you currently own cryptocurrencies, you might be receiving interest in your investments.
Day traders, on the other hand, are likely to benefit from a platform with low costs and increased data integration. Celsius is ideal for investors who do not want immediate cash and intend to retain their money for several months.
ZenLedger easily calculates your crypto taxes and also finds opportunities for you to save money and trade smarter. Get started for free now or learn more about our tax professional prepared plans!