Liquid is a crypto exchange that aims to offer solutions to the contemporary problems of traders/investors. The exchange creates a secure crypto environment where its users can not only enjoy a safe financial transaction but also remarkable blockchain technology.
Founded in 2014, the exchange offers brilliant crypto-fiat exchange services. Owned by Quoine, a Japan-based financial technology company, the Liquid exchange is ranked among the top ten regulated crypto platforms. Additionally, the exchange has a user-friendly interface resulting in great user satisfaction. In this Liquid exchange review, we will touch up on some of its features and functionalities.
Connecting your Liquid Address to ZenLedger For Your Crypto Tax Forms
- To import your transactions, log in to Liquid and copy your receiving address.
- Paste the receiving address you copied from Liquid into the wallet address field in ZenLedger.
- Select the proper coin from the dropdown list.
- Select if the wallet is based in the USA or not.
- Then hit add coin.
Liquid Exchange Review
The Liquid exchange is perfect for crypto traders outside the US who use advanced tools and are accustomed to margin trading. Let’s look at some of the pros and cons of the exchange:
Pros:
- Low trading fees
- For beginners and advanced traders
- Lending program to earn rewards
- High-Quality Educational Content
- Supports 100+ crypto tokens
- Excellent security
- Margin trading
Cons:
- Not available in the US
- Costly withdrawal fees
- Missing out on top crypto tokens
Pros Explained:
Low Trading Fees
Liquid is one of the most affordable crypto exchanges. Its trading fees are based on the user’s 30-day trading volume. The highest trading fee a user can pay is 0.30 percent, which is on par with top crypto exchanges. If you want to reduce the trading fee to the minimum, you can pay Liquid’s native coin, QASH, and get a 50 percent discount on the fees.
For Beginner and Advanced Traders
There are two ways to trade on the Liquid exchange. The first is to use a beginner-friendly trading tool with an easy-to-use UI. If you are looking for an advanced trading tool, you can use Spot Trading. This tool has an order book and includes more order options such as stop orders and limit orders.
Lending Program to Earn Rewards
One of the most notable features of this exchange is Liquid Earn. This feature lets you earn a reward for one more than a dozen crypto tokens. After you have the required amount of tokens in your liquid account, you can start earning rewards with Liquid Earn.
High-Quality Educational Content
If you want to learn about cryptocurrencies, Liquid blog is one the best places. The educational material is neatly organized for its users to find and covers an array of topics for them to learn. You can access Liquid Academy to read technology-related articles and find trading tips as well.
Excellent security
The Liquid exchange has robust security measures in place to keep its users’ funds safe. The exchange has integrated two-factor authentication (2FA) to access the accounts and make a withdrawal. Also, the exchange puts 98 percent of customer assets in cold storage, which means these assets are offline and almost impossible to steal.
Margin trading
Liquid offers margin trading with up to 25x leverage. Margin trading is very risky, especially when done in crypto. Experts don’t’ recommend it, but it is available on the exchange for users who want to use it
Cons Explained
Partially Available in the US
US investors are restricted to engaging in crypto-to-crypto trading exclusively, with no option for fiat-to-crypto trading available. This restriction primarily stems from legal considerations. The US legal framework places significant obligations on companies that accept investments from US investors. These obligations encompass various requirements such as creating marketing materials that comply with SEC standards and undergoing the cumbersome process of registering them with the SEC.
Costly Withdrawal Fees
One of the things that aren’t working for the Liquid exchange is the withdrawal fees. It charges around a 0.10 percent fee while withdrawing fiat money. And, if a user is withdrawing USD, they might have to pay a minimum of $15. For instance, if you are withdrawing $1000, you’ll have to pay $15. This means that you lose 1.5 percent in withdrawal fees.
Luckily, you can stick to crypto withdrawals, which have reasonable withdrawal fees. The majority of crypto exchanges allow you to withdraw fiat directly to a bank without any fees, but with Liquid, you have to pay with every withdrawal.
Missing Out on Top Crypto Tokens
Liquid supports more than 100 tokens but it is missing out on some top tokens in its lineup. Polygon (MATIC) and Cardano (ADA) are not in its roster of tokens and they are both popular tokens.
Can Liquid Generate My Tax Forms?
While Liquid provides tax reporting for its platform, it may not cover your entire cryptocurrency portfolio if you use multiple exchanges, wallets, and DeFi platforms. If you’ve engaged in cryptocurrency activities on other platforms, Liquid’s reporting might not offer a comprehensive overview of your gains, losses, and income tax data.
To ensure a complete picture of your tax obligations, especially when using various crypto services, consider using a comprehensive crypto tax solution like ZenLedger. ZenLedger can aggregate data from multiple sources to provide a holistic view of your crypto-related taxes.
How To Do Your Crypto Taxes?
To complete your cryptocurrency taxes, follow these essential steps: First, gather all your crypto transaction records, including buys, sells, and trades. Next, calculate your gains and losses by determining the cost basis and selling price. Convert these values into your local fiat currency, and then fill out the required tax forms for your jurisdiction, reporting your cryptocurrency income accurately. For complex situations or to simplify the process, consider seeking professional assistance or using crypto tax software like ZenLedger.
For more information, read this: A Step-by-Step Guide to Crypto Taxes
Liquid Tax Reporting Uding ZenLedger
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Connect Your Liquid Exchange Account: Begin by linking your Liquid Exchange account to ZenLedger. This will allow ZenLedger to access your transaction history and necessary data.
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Generate Accurate Tax Reports: ZenLedger automatically processes the data from your Liquid account and creates detailed tax reports. These reports include essential information like capital gains, taxable income, and more, tailored to your jurisdiction’s tax regulations.
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Review and File: Review the generated tax reports for accuracy. Once you’re satisfied, you can download the necessary documents and forms needed for tax filing. Then, simply follow your local tax guidelines to file your cryptocurrency taxes.
By using ZenLedger for Liquid Tax Reporting, you can streamline the tax reporting process and ensure compliance with tax authorities. Don’t let cryptocurrency tax obligations overwhelm you; simplify the process with ZenLedger.
Liquid Exchange Review: Final Verdict
Liquid is an incredible crypto exchange with a lot going on in its favor. It caters to both newbies and advanced traders. However, it needs to revise its trading fees and pro-assistance tools. It is a regulated exchange, has great security measures, and most importantly, it has corporate infrastructure allowing it to trade fairly. To conclude, Liquid is a great exchange for effective financial trading.
ZenLedger can help you easily calculate your crypto taxes, and also find opportunities for you to save money and trade smarter. Get started for free now or learn more about our tax professional-prepared plans!
Disclaimer: This material has been prepared for informational purposes only, and is not intended to provide tax, legal, or financial advice. You should consult your own tax, legal, and accounting advisors before engaging in any transaction.