CoinQuest

Key Takeaways
The interaction of different factors affects the value of crypto, from global events to technical upgrades and competition among cryptocurrencies.Crypto prices are subject to market sentiment, tokenomics, supply and demand, security issues, favorable news, and economic downturns.Other factors that affect Bitcoin’s value are adoption, government policies, action by liquidity providers, and action by whales.Users need thorough research, strategic diversification, emotional control, and risk management plans to navigate volatility in the cryptocurrency market safely.

The price of Bitcoin and other cryptocurrencies appears unpredictable and mysterious, especially for beginners. If you’re new, you may be asking yourself, “What makes crypto prices go up and down?” What exactly affects crypto prices to make them notoriously volatile, increasing or decreasing in price daily?

The truth is that there are identifiable factors that explain the factors influencing the value of cryptocurrencies. This article describes “why does crypto go up and down,” what drives the fluctuations, and how prices are determined.

What Makes Crypto Go Up and Down?

Unlike fiat currencies, cryptocurrencies primarily serve as fully digitalized and decentralized currencies without backing from central authorities or governments. As they take the financial world by storm, many investors jumping onto the bandwagon ask, “How does crypto have value?” That’s because crypto market volatility is a double-edged sword, with prices soaring and plummeting without notice. So what exactly causes cryptocurrencies to rise and fall?

First is the appeal of a non-government-controlled currency that separates them from the reliance and control of centralized authorities. This disintermediation deprives crypto assets of the stability that dependence on a central authority gives traditional fiat currencies. In the absence of this governmental backing, cryptocurrencies do not trade in the traditional, more stable manner of fiat currencies.

Maybe you’re wondering “why is crypto going up” all of a sudden and down the next moment. The answer could lie in the presence of whales, referring to large investors holding significant amounts of a cryptocurrency. Whales have the power to affect market manipulation by selling or buying large quantities of crypto at once. Such actions can cause the price of Bitcoin or other cryptocurrencies to crash or spike. Market manipulation is illegal in traditional finance, but is difficult to detect or regulate in the crypto market.

Lastly, many other factors can explain the fluctuations in crypto prices. They range from macroeconomic factors, supply and demand, technical analysis, and market sentiment. Moreover, the fact that most commercial entities don’t yet accept cryptocurrencies makes them more like speculative assets than fiat currencies. By understanding the factors that drive crypto value, investors can navigate the ups and downs and be prepared for volatility.

What affects the price of Bitcoin and other cryptocurrencies?

Several factors cause cryptocurrencies to rise and fall. Whether it’s economic events, wars, fluctuations in bond and stock markets, or many others, they all have an effect.

Unlike fiat currencies whose value is influenced by the government’s monetary policies, cryptocurrencies are fully decentralized. This means the value depends on how much investors are willing to pay. Among the most prominent factors affecting crypto prices are the following:

1. Supply and Demand
Supply and demand are essential bases in determining the price of cryptocurrencies. The value of assets like Bitcoin with a maximum supply increases as demand rises. The hard cap of 21 million coins creates scarcity, giving investors the confidence that promotes ongoing demand. On the other hand, an increase in market supply can suppress prices, which dilute the value of a token.

2. Market Sentiment
Individuals generally assign value to a product or service based on the item’s market perception. In most cases, the value of an item increases whenever more people are willing to pay its price. For example, the cost of Bitcoin rose to its all-time high of $65K in 2021 following the launch of a Bitcoin exchange-traded fund. On the flipside, the value of cryptocurrency can go down whenever it loses a positive perception due to adverse events. This can range from unethical behavior from their leaders, bad publicity, or security breaches.

3. Utility
Within the cryptocurrency ecosystem, utility means the real-world practical application or functionality of a digital asset. Cryptocurrencies with practical use cases always attract more investors and users, thereby increasing their demand and value. For example, an increase in demand and reduced circulation can lead to higher prices. A cryptocurrency with greater utility makes the network more secure and robust, attracts more participants, and increases demand for the token.

4. Competition
As of 2025, there are between 17,000 and 24,000 different types of cryptocurrencies promising different technological advancements and use cases. Leading projects face rival platforms offering lower fees, more scalability, and increased use cases. The ongoing rapid evolution and an influx of new coins keep the cryptocurrency ecosystem healthy, but bring additional volatility.

5. Tokenomics
The tokenomics of a cryptocurrency can influence its value based on the supply and demand dynamics. Some important factors include the token’s utility, scarcity, burning mechanism, and distribution model. The side mechanics of a token, such as token burns or limited maximum supply, have the potential to create scarcity and boost the price. However, effective distribution strategies and strong utility can drive its demand and create long-term value.

6. Governance and Regulations
Regulation is one of the key factors affecting the present value and future of a cryptocurrency. Developments like legalizing crypto trade or governments offering regulatory clarity can instill investor confidence and price gains. On the other hand, announcements about harsh restrictions and bans can curtail demand and quickly lead to a selloff. Policy shifts keep investors on edge, causing prices to react downwards or upwards based on rumors or updates from lawmakers.

7. Liquidity
Liquidity influences investor behavior, price stability, and trading efficiency, and can impact crypto prices. High liquidity facilitates fast, stable, and cost-effective trading while low liquidity causes slippage, higher costs, and greater volatility. Factors associated with liquidity, like market depth, trade volume, and market makers, play a role in ensuring market stability or its absence.

How Does Cryptocurrency Gain or Lose Value?

The fundamental economic principle of supply and demand explains how cryptocurrency gains or loses value. The price increases whenever demand for a cryptocurrency exceeds its supply. On the other hand, a cryptocurrency loses value during times of high supply and low demand. Other factors that can influence crypto prices include positive or negative media coverage, fraud, security breaches, and regulatory actions.

How does crypto make money?
Cryptocurrency can generate returns by selling or buying crypto and making a profit from price increases through supply and demand. However, there are other methods, including:
Investing: Buy and hold onto a crypto asset, hoping the value will increase over time.Passive Income Streams such as:Staking: Staking or locking up a cryptocurrency to secure a blockchain network and earn rewards.Lending: Lend your idle crypto assets via a DeFi platform and earn interestMining: Use computers to mine crypto by solving mathematical puzzles to verify blockchain transactions and get rewarded with newly minted coins.Yield Farming: Offer liquidity to DeFi platforms and earn rewards and fees.Affiliate Programs: Earn commissions by referring new users to crypto exchanges and platforms.Initial Coin Offerings (ICOs): Investing in new cryptocurrency projects before they become widely available and get high returns if they succeed.Airdrops: Receive free tokens to promote a crypto project’s platform.
What causes cryptocurrency to fail?
Several factors can cause cryptocurrency to fail, including:

Regulatory crackdowns: Whenever governments ban trading or implement increased oversight, it can sap market confidence. Also, when exchanges are shut down or a cryptocurrency is classified as illegal. The same applies to security issues, exchange breaches, high-profile hacks, and a blockchain’s security flaws leading to eroded trust.Market sentiment shifts: Critical comments from mainstream media, influential figures, or warnings from regulators that create widespread fear and panic selling.Supply surges: Releasing a large amount of tokens for project rewards or early investor selloffs can be detrimental. This can make the market unable to absorb the supply and lead to price drops.Technological Failures: Failed upgrades, poor scalability, slow transaction speeds, and bugs can undermine a token’s reputation and cause investors to lose confidence.
Can Cryptocurrencies Be Overbought or Oversold?
Overbought and oversold are extreme crypto market conditions that occur under different circumstances and impact future price movements. The truth is that just like traditional assets, cryptocurrencies can be oversold or overbought.

Overbought: This is a scenario where a cryptocurrency is bought aggressively over a short period. The result is pushing the price to an unsustainable level. The situation is caused chiefly by FOMO (Fear of Missing Out) and leads to inflated prices.Oversold: This refers to when an asset is sold aggressively and drives the price below its market value. The phenomenon is mainly caused by panic selling.
How accurate are cryptocurrency price predictions?
The cryptocurrency market is highly volatile and unpredictable, making accurately predicting the future performance of an asset rather difficult. Factors like technological advancement, regulatory changes, or social media trends can have a significant impact on their value. As a result, making accurate price predictions in this dynamic environment is a tricky balancing act.

The accuracy of crypto price predictions can vary widely based on the economic theory used, research, and analysis. It is worth noting that in some cases, predictions rely on personal biases and speculation. While evaluating the credibility of the methodology and resources used, remember that even the most accurate price prediction can fail.

As the cryptocurrency market is constantly evolving, unforeseen circumstances and new developments could disrupt the most well-founded predictions. You must understand the risks and limitations associated with price predictions to make informed investment decisions. It’s also essential to remain updated and adaptable with a critical mindset as you’re dealing with speculative assets.

How market cycles affect cryptocurrency prices
Different cryptocurrency market cycles drive the process through at least four phases, namely Accumulation, Markup, Distribution, and Markdown. The four phases of the cryptocurrency market cycle are:
Accumulation: After a significant price drop, savvy investors buy and wait for the next uptrend.Markup: Price rise as more investors join the market with the growing optimism and positive news leading to bull runs.Distribution: Early investors sell during the peak, take profits, and cause a price fluctuation. This phase comes just before a downturn as sellers outnumber buyers. Markdown: The negative sentiment spreads and causes panic selling, leading to a bear market.
Some of the key factors influencing crypto market cycles include macroeconomic factors, investor sentiment, and supply and demand dynamics. The recurring shifts can cause price surges during bullish markets or downturns when sentiment changes and investors panic.

Tips for Beginner Investors to Predict Crypto Price Movements
Predicting the price movements of cryptocurrencies can be a challenge, especially for new investors. Price fluctuations are swift and unpredictable, and can lead to potential profits or losses overnight. Having insights on what to look for is essential to invest in crypto effectively.

Analyze Market Trends: Your first step is to carefully analyze historical price charts and identify short-term, mid-term, and long-term trends. Locate existing patterns and potential turning points that could predict future price movements. You can use technical analysis and tools like the Relative Strength Index and Moving Averages. You can also analyze Moving Average Convergence Divergence to predict future price directions.Sentiment Analysis: You can predict potential price movements through news outlets, social media, and other related forums. You may derive insights from trending news and community thoughts within crypto communities. Stay updated on technological breakthroughs, trend-setting announcements, and word from influential crypto personalities.Fundamental Analysis: Cryptocurrencies don’t have intrinsic value based on earnings and dividends like traditional assets. Key factors in the basic analysis within the crypto space depend on team composition, technology, adoption rates, and network strength. Read project whitepapers and consider their utility, scalability, and partnerships or market trends to evaluate their future potential. Quantitative Analysis: There are quantitative methods that use mathematical models and statistical data to predict future crypto prices. Use quantitative analysis tools and create algorithms to identify patterns that indicate probable predictions based on trade volumes and historical data. Artificial intelligence and machine learning are becoming increasingly popular for quantitative analysis.External Factors and News: Stay updated on external news events, such as geopolitical events and regulatory developments that can impact cryptocurrency prices. Stay abreast with news, legal announcements, and significant updates within the cryptocurrency ecosystem.
Conclusion
Understanding “why is crypto going up” or down is essential in helping you make informed investment choices. Due to the unique characteristics of crypto assets, they are notoriously volatile and can be subject to market manipulation. The key factors affecting the price of Bitcoin and other cryptocurrencies are supply and demand, as well as other market dynamics.

Users, especially new ones, must endeavor to conduct proper research on “how crypto has value before investing their cash. Alternatively, you can follow the advice of a qualified expert to stay ahead of the curve in this unpredictable market. As the crypto asset market continues to evolve, staying adaptable is the best way to remain abreast with crypto prices.
#Binance

The $VANRY token introduces a rare and structurally meaningful approach to token economics by linking supply reduction directly to real utility through its AI subscription burn mechanism. Unlike traditional burn models that rely on temporary hype, manual burns, or inflation-funded rewards, Vanar’s model is rooted in recurring economic activity. Every time developers, enterprises, or applications use Vanar’s AI services—such as data processing, AI agents, or on-chain intelligence tools—they must pay in $VANRY . A portion of this revenue is then used to buy back tokens from the open market and permanently burn them. This creates a direct bridge between platform adoption and token scarcity, turning utility growth into deflationary pressure.

From an economic perspective, this design has strong potential to generate long-term deflation, but only if Vanar’s AI ecosystem achieves sustained adoption. Deflation is not automatic; it depends on whether the volume of tokens burned consistently exceeds the number of tokens entering circulation through staking rewards, ecosystem incentives, and token unlocks. If AI subscriptions scale alongside broader Web3 and enterprise adoption, the burn rate can gradually reduce circulating supply year after year. This would transform Vanry from a purely transactional token into a scarcity-driven asset supported by real demand.

The most powerful aspect of this mechanism is that it is fueled by external value entering the system. Companies and developers are not burning tokens for cosmetic reasons—they are paying for services they need. This means the burn is backed by real economic usage rather than internal token recycling. Over time, this creates a positive feedback loop: more AI usage leads to more Vanry demand, which leads to more burning, which reduces supply and strengthens the token’s scarcity narrative. In contrast to many projects where burns are marketing tools, Vanar’s model resembles a business reinvesting revenue into share buybacks.

In the next bull cycle, this mechanism could significantly influence $VANRY ’s price behavior across different phases. During the early stage of the bull market, when capital rotates into AI and infrastructure narratives, $VANRY may benefit from its dual identity as both an AI token and a utility-driven deflationary asset. Investors tend to favor projects with clear value capture models, and visible on-chain burns provide transparent proof of that value capture. This could support steady accumulation and relatively stronger price stability compared to purely speculative tokens.

As the bull cycle enters its peak phase, narratives become amplified. A token that “burns itself through AI usage” is a powerful and simple story for retail investors to understand. If adoption metrics and burn data show consistent growth, speculation may push price far above fundamental valuation in anticipation of future deflation. In this stage, scarcity combined with hype can create sharp upward price movements. However, this also introduces the risk of overvaluation, where price runs far ahead of actual revenue and burn impact.

During the later stages of the cycle and into a market correction, the burn mechanism could act as a stabilizing force. If AI subscriptions continue even in weaker market conditions, the system may burn more tokens when prices fall because the same dollar value of revenue buys more $VANRY from the market. This dynamic can strengthen downside support and encourage long-term holders to accumulate during dips. While it cannot fully protect against macro bear markets, it can reduce long-term inflation and soften drawdowns compared to tokens with no utility-driven demand.

Compared to other deflationary models in crypto, Vanar’s approach is structurally stronger. Many projects rely on transaction fee burns, which fluctuate wildly with market activity, or on artificial supply cuts that do not reflect real economic usage. Vanar’s burn is tied to subscription-based AI services, which are recurring by nature and potentially scalable with enterprise adoption. This gives Vanry a closer resemblance to a revenue-backed asset than to a purely speculative token.

However, risks remain. The entire model depends on Vanar’s ability to compete in the fast-growing AI and blockchain sector. If its AI services fail to attract developers or enterprises, burn volumes will remain low and inflationary forces may dominate. Token price volatility can also reduce the effectiveness of the burn, since higher prices mean fewer tokens are removed per dollar of revenue. Additionally, broader crypto market conditions will still heavily influence price behavior regardless of tokenomics.

In conclusion, $VANRY ’s AI subscription burn mechanism has genuine potential to create long-term deflationary pressure because it is rooted in real utility, recurring revenue, and transparent on-chain execution. If Vanar successfully grows its AI ecosystem, the token could benefit from a powerful combination of increasing demand and decreasing supply. Over the next bull cycle, this design may support stronger price resilience, a compelling investment narrative, and higher long-term valuation compared to inflationary tokens. The burn mechanism is not a guarantee of success, but it is a well-engineered engine for value accrual—one that can only reach its full potential if the Vanar ecosystem itself achieves meaningful adoption.

@Vanarchain #Vanar #vanar #tradingtechnique #creatorpad #Binance

CoinQuestFamily Just informationl purpose.... 👇
Key Takeaways
In most countries, cryptocurrency profits are subject to capital gains tax, and income tax applies to crypto-based earnings like mining or payments. Tax reliefs could apply to several activities, including gifting to spouses, holding crypto, and receiving airdrops without service exchange.Crypto investors should carefully research every country’s tax regulatory compliance and, if necessary, seek professional advice to help optimize tax strategies.
When it comes to crypto and tax, location does matter. While most countries impose strict capital gains and income taxes on digital asset transactions, others offer zero or near-zero rates. To maximize your crypto wealth, you might want to identify crypto tax-free countries since the level of payable taxes and the bureaucracy involved could curtail your financial freedom.

Considering that some countries offer tax incentives to cryptocurrency investors and have clear rules, this guide dissects the top countries with no crypto tax, including their tax policies and how you can benefit from them.

Top 21 Countries With No Crypto Taxes in 2026
While crypto-friendly countries may allow you to own and trade digital assets within their jurisdiction, the rubber meets the road when it comes to taxation. Among the countries we mention here, some don’t have capital gains tax or income taxes, which make crypto gains completely tax-free. In contrast, others treat digital assets as nontaxable capital or use territorial taxation that ensures foreign-sourced cryptocurrency income isn’t taxed domestically. Sometimes, you must become a tax resident to enjoy tax-free crypto since merely investing there may not be enough.

In crypto tax havens, they offer clear rules and tax incentives, and some have strong legal infrastructure that encourages seamless crypto trade and investment. Here is our list of countries where you can deal with tax-free crypto:

1. Portugal

Portugal is the first country on our list with no crypto tax and is considered one of the most Bitcoin-friendly countries globally. The country offers a Golden Visa program that enables investors to obtain residency if they plan to make a significant investment, including cryptocurrencies.

Portugal is famous for offering an extremely low tax environment for crypto investors, including zero tax on crypto-to-crypto trading. Currently, the country is the go-to destination for blockchain and crypto startups, with thousands of digital nomads and investors landing there for the double blessing of a good quality of life and existing investment opportunities.

2. Singapore

Singapore is considered one of the best crypto tax havens in the world today. It is among those countries with no capital gains tax and a dynamic business ecosystem. The local government provides clear, easy-to-understand crypto rules and regulations that have created a thriving environment for blockchain, crypto exchanges and crypto startups to grow and develop.

The combination of a robust Fintech industry and a progressive attitude has made Singapore the choice destination for investors interested in cutting-edge innovation and a crypto-friendly tax regime. Crypto investors are relocating to Singapore in large numbers to enjoy the tax breaks and take advantage of a thriving fintech space.

3. Germany
Germany makes it to this list because, compared to other countries, the government has an incomparable attitude towards cryptocurrencies. Under German law, digital assets are considered private money, meaning they cannot be compared to other assets like goods or stocks. Moreover, Germans can enjoy tax-free crypto for a whole year if they simply store it, no matter what the amount.

Additionally, any crypto asset stored for less than a year can be sold, and residents will not incur income taxes unless the amount they earn exceeds USD 692 or EUR 600. This situation is unique to cryptocurrency investment because all other businesses and startups registered by foreigners in the country must pay corporate income on all their cryptocurrency investments.

4. El Salvador

El Salvador is among the pioneer crypto tax havens, having been the first country to adopt Bitcoin as legal tender in 2021. The day-to-day use of BTC is treated like fiat currency under the country’s law; cryptocurrencies are not subjected to capital gains tax. Investors don’t incur capital gains tax or income tax on earnings from Bitcoin investment, with a robust crypto framework supported by a pro-crypto president and plans for a “Bitcoin City” in place.

Any crypto-focused business pays regular corporate tax for any non-crypto income, but BTC transactions themselves are tax-free, in addition to some tax break incentives for tech innovations. Crypto investors are incentivized with a special residency program where investing 3 BTC qualifies one for permanent residency or “Bitcoin Citizenship,” available for a $1 million investment or donation.

5. Switzerland

It’s in Switzerland that you find a location officially called the “Crypto Valley,” meaning in addition to everything else, crypto investors enjoy tax benefits under existing laws. Any qualified individual who profits from crypto transactions through trading or investment is exempt from local income tax laws. Cryptocurrency mining is the only aspect of digital asset investment that is taxed. However, the applicable tax applies to the total amount of BTC mined and is added to the miner’s taxable value.

Switzerland is famous for its solid-rock economy, making it a dream destination for crypto investors seeking stability. Hundreds of blockchain and crypto companies call the Zug Valley home, where they enjoy an ecosystem that thrives on innovation and business-friendly policies. Swiss crypto regulations are clear and transparent and include extremely low tax rates on crypto profits.

6. Malta
Also known as the “Blockchain Island,” Malta is one of the most progressive countries in its stance on blockchain and crypto technologies. Crypto investors can earn the island’s citizenship through investment, meaning they get access to the European Union market and enjoy the tax advantages granted to investors on their crypto gains.

The luxurious Mediterranean lifestyle and a dynamic blockchain and crypto sector make Malta an attractive destination for individuals interested in blending work, play, and crypto investment. Malta’s progressive approach to cryptocurrency regulation and attractive incentives make the country an appealing choice if you’re looking for a place to invest in crypto and enjoy a life of freedom.

7. Belarus

Since 2018, Belarus has progressively pursued favorable crypto-centric policies towards cryptocurrencies. It has also adopted a regulatory policy that has completely legalized crypto trade and investment activities in the country. Part of the regulations abolished all forms of taxes associated with crypto activities beginning in 2023.

According to Belarusian laws, crypto investments are considered personal and are, therefore, not subject to any form of taxation. The tax laws aim to incentivize the country’s digital economy by creating favorable conditions that attract investment. The move may also have been influenced by the fact that Belarus was ranked the 19th best overall country in the world in terms of cryptocurrency investment and trading in 202.

8. Cayman Islands

The Cayman Islands are among the world’s full-fledged crypto tax havens where individual and corporate investors can thrive. Note that crypto activities of any form aren’t subject to taxation on this territory, whether you’re an individual or a company selling cryptocurrency. This favorable tax policy makes the Cayman Islands the go-to place for crypto firms.

There is no direct taxation in this destination, meaning you’ll never hear anything about income tax, capital gains tax, corporation tax, property tax, inheritance tax, or payroll tax on crypto. Moreover, the country has no reporting requirements associated with crypto holdings or gains for taxation purposes.

9. Malaysia

Like many other crypto-friendly countries globally, Malaysia has no capital gains tax on any crypto investment, making it a prime destination for potential investors. Then, there is a special economic zone, the Labuan International Business Centre, a crypto-focused economic zone offering attractive inventions for digital asset investors.

All companies operating from Labuan can pay a fixed annual fee or a flat 3% tax on all their audited net profits. However, since this arrangement doesn’t work on all crypto-related businesses, you want to research to ensure yours qualifies for incentives offered under Labuan’s regulations.

10. United Arab Emirates

No other country in the world is on fire for crypto like the United Arab Emirates. Tax-free zones like the Dubai Multi Commodities Centre (DMCC), specializing in digital businesses, are ideal for investors with zero-Dubai crypto tax. That’s because crypto investors in the UAE are exempt from capital gains or income tax, meaning you can keep everything you earn.

The friendly environment in the UAE has made the city-state the go-to hub for digital innovators. The city hosts many modern projects within the blockchain and cryptocurrency spaces. The ultra-fast economy and world-class infrastructure have made Dubai a desired destination for any crypto enthusiast.

11. Georgia

Georgia has cut a niche for itself as the most crypto-friendly destination in Eastern Europe. It offers a clearly spelled-out legislated tax exemption policy for crypto investment, with individuals completely exempted from taxation on crypto gains. The policy is designed to attract Blockchain and IT innovation.

Since there is a 0% tax on individual crypto profits, you can buy, sell, or hold crypto and won’t be liable for any taxes. Businesses are subject to a flat 15% corporate tax on profits, but corporations can reinvest crypto gains tax-free until distribution. Georgia has a liberal visa policy enabling investors to reside in the country for up to one year as they work on their residency papers.

12. Puerto Rico

Also called America’s “Crypto Tax Paradise,” Puerto Rico has long had a 0% tax policy on crypto gains. However, the Puerto Rico legislature recently passed a bill that imposes a measly 4% tax on capital gains. The territory home to many crypto millionaires is under immense pressure from the US Congress to seal the “loophole” that has made it an attractive place for crypto investors.

At the moment, individual investors don’t pay any capital gains tax on digital assets or any other investment profits once they become residents. Once a resident, you can buy, sell, or hold crypto and keep all your earnings tax-free. Corporations are subject to a 4% corporate tax with a few exemptions, which makes them attractive to many crypto funds.

13. Hong Kong

Hong Kong prides itself on being a revered crypto-friendly hub within the Asian subcontinent. It offers clearly spelled-out no-taxes on capital gains derived from cryptocurrencies and tax-free trading for well-structured offshore businesses. The City-state stands apart from other Asian jurisdictions due to its open approach to crypto compared to Mainland China’s restrictive approach.

The lack of capital gains tax gives crypto traders a natural advantage because they don’t have to apply for special exemptions. Important factors that differentiate crypto trading from investment, such as holding period, frequency of transactions, and others, determine whether you qualify to receive tax-free incentives in Hong Kong.

14. Bermuda

Bermuda remains open to crypto investors and was among the first governments globally to accept crypto taxes. For digital asset investors, there is no capital gains tax or personal income tax and no withholding tax on crypto investment income. All your profits here on trade or investment aren’t taxed for individuals.

Since Bermuda levies payroll tax on employees’ salaries instead of tax corporate profits, crypto companies in the country don’t pay income tax or profit taxes, which is why many fintech firms and exchanges choose Bermuda as the place to open and run their businesses. The country has no citizenship-by-investment program, but one must demonstrate financial independence before residing.

15. British Virgin Islands

The British Virgin Islands (BVI) is a popular, renowned offshore financial hub because of its flexible regulations for blockchain and crypto enterprises. BVI operates a tax-neutral policy, meaning there are no capital gains taxes, withholdings, or income taxes associated with any crypto transactions. While businesses are not obligated to file income tax returns, they’re required by law only to make an annual economic and substance declaration.

The country doesn’t impose taxes on users establishing offshore bank accounts, as it doesn’t have tax treaties with any other nation. This means users’ financial privacy in bank accounts remains protected. This makes it easier for crypto businesses incorporated in BVI to transfer their profits to any other company or trading investment while protecting their financial privacy.

16. Slovenia

Slovenia has long been a crypto-friendly country, but changes could be coming soon. The government recently introduced a 10% tax on crypto-based payments and withdrawals for private individuals. The tax applies when one converts crypto to fiat currency to pay for goods and services.

On the positive side, capital gains tax isn’t applicable for the occasional crypto trade. Still, a slightly different set of rules applies if you run a business that trades crypto frequently. However, Slovenia doesn’t levy capital gains tax on crypto profits as long as the government doesn’t consider your trading a business activity. Income from staking or crypto mining is subject to income tax.

17. Panama
Panama operates a 0% crypto tax treatment policy for foreign-sourced crypto gains, meaning the territorial tax system only taxes income earned within the country. All profits made from crypto trading or investment are considered foreign-sourced income if you use an international exchange and are, therefore, not subject to local taxes.

There is no capital gains tax levied on crypto, but domestic securities are subject to a low 10% tax, and crypto isn’t considered a security. Additionally, the country doesn’t impose VAT on crypto purchases or any other taxes on crypto transactions. Residing in Panama allows you to trade crypto globally and receive zero taxes.

18. South Korea

In addition to being one of the most crypto tax-free countries in the world, South Koreans also rank among the most active and enthusiastic crypto traders and users, leading in terms of digital asset adoption. Relative to its population, the country has the largest number of users, crypto exchanges, and merchants accepting cryptocurrency as a form of payment.

The South Korean government legalized crypto activities, requiring crypto service providers to obtain licenses under the Act on Reporting and Use of Specific Financial Transaction Information. This Act requires them to partner with local banks to offer real-name accounts to their customers. Taxes on crypto profits are charged at a flat rate of 20%.

19. Saint Kitts and Nevis

Like a few other Bitcoin-friendly countries, St. Kitts and Nevis operates a 0% tax policy on crypto gains and no capital gains or income tax for individuals. That means all your crypto trading or investment profit isn’t taxed. Individuals who structure their crypto businesses by operating under a locally registered entity aren’t subject to taxes on the income accrued through those firms.

The federation does not tax foreign-sourced income, and it includes cryptocurrency activities when you trade on an international exchange. Businesses do not pay corporate or income tax, but they may incur some fees and a business tax if incorporated locally. St. Kitts and Nevis runs a dynamic citizenship-by-investment program if you can invest or donate at least $150K. You must only obtain a passport to maintain citizenship or tax-free status.

20. Vanuatu

The South Pacific Ocean island of Vanuatu is not only a fancy place to live in but also one of the countries without crypto. The country is perhaps the first and only country to offer citizenship and accept Bitcoin payments for it, in addition to offering one of the fastest investment immigration programs globally.

When it comes to crypto regulation, investors can acquire citizenship through a BTC investment, making Vanuatu the ideal place for the prospective crypto immigrant investor. Through investment, you qualify to receive a Vanuatu passport. Moreover, Vanuatu is considered among the easiest places on earth for one to receive investment citizenship.

21. Gibraltar

Gibraltar is known for its crypto-friendly status and progressive regulations that fully support the digital asset economy. The country’s Financial Services Commission supervises crypto businesses under a competitive tax regime that offers numerous advantages to crypto companies.

Registering a crypto company is fast and straightforward, meaning you can begin operations almost immediately. Plus, there are clear guidelines to support compliance with local laws and prevent money laundering. The country’s supportive regulatory approach and low taxation regime has become the magnet for worldwide crypto business. The government charges a 10% corporate tax on crypto trading, but capital gains tax is not levied on crypto investments.

Common Crypto Tax Mistakes to Avoid
Filing taxes related to crypto use, trade, or investment can look complex, but you can make the process more manageable by knowing the common mistakes to avoid. You could also look for professional help if you’re unsure or find it challenging to avoid making potential mistakes. Here are some common pitfalls to prevent when filing your crypto taxes:
Failure to Report Crypto Transactions: Many tax regimes treat cryptocurrencies as property, so you must report all your transactions. This could include selling crypto for cash or exchanging it for another type of crypto, including the smallest transactions.Ignore Taxable Events: While not all crypto activities may be taxable, most are. The most common taxable events include selling or exchanging crypto and using digital assets to make payments while holding crypto, which may not attract taxes—research taxable events in your jurisdiction.Miscalculate Gains and Losses: Keeping a record of gains and losses can be a challenge, but it’s important to track your cost basis accurately, as it will determine your profit or loss when you sell and applicable taxes. You can make this easier by using reliable software to track crypto to help with accurate reporting.Failure to Keep Good Records: Poor records always lead to complications when filing taxes. Make it easier for yourself by maintaining a detailed log of crypto-based transactions. Correct documentation is handy if your local tax agency ever audits you.Overlook Tax Deductions: If you’re ignorant, you may be unaware that you qualify for specific tax deductions as a crypto investor. Familiarize yourself with local taxes and applicable deductions to help reduce your tax burden and maximize refunds.