What is the impact of physical year vs fiscal year on cryptocurrency trading?

3 answers

• karNov 26, 2024 · 8 months ago
  The difference between physical year and fiscal year can have various impacts on cryptocurrency trading. In a physical year, which is based on the calendar year, traders and investors may experience increased volatility and trading activity at the end of the year as they try to close positions and meet tax obligations. On the other hand, in a fiscal year, which may not align with the calendar year, the impact on cryptocurrency trading may be less pronounced. Traders and investors should be aware of the specific fiscal year used by the exchange they are trading on to better understand any potential effects on trading patterns and market dynamics.
  653

  327
• CuiJul 21, 2022 · 3 years ago
  The impact of physical year vs fiscal year on cryptocurrency trading can be significant for traders and investors. In a physical year, the end of the year can bring about tax-related selling pressure as investors try to offset gains or realize losses for tax purposes. This can lead to increased selling activity and potentially lower prices. On the other hand, in a fiscal year, the timing of tax-related selling may be different, which can affect market dynamics in unique ways. It's important for traders to stay informed about the fiscal year used by the exchange they are trading on to anticipate and navigate any potential impacts on cryptocurrency prices and trading volumes.
  682

  228
• Mojibul HoqueOct 03, 2023 · 2 years ago
  At BYDFi, we understand the importance of considering the impact of physical year vs fiscal year on cryptocurrency trading. While the specific effects may vary depending on the exchange and jurisdiction, it's crucial for traders and investors to be aware of any potential implications. In some cases, the distinction between physical year and fiscal year may lead to different tax obligations or reporting requirements, which can affect trading strategies and decision-making. Traders should consult with tax professionals or seek guidance from reputable sources to ensure compliance and optimize their trading activities throughout the year.
  642

  161