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ExpressVPN vs NordVPN – [2020 Comparison]

ExpressVPN vs NordVPN Comparison

While there are hundreds of VPN services available today, there is a handful that stands out from the rest of the pack. ExpressVPN and NordVPN are two of those standouts. In this ExpressVPN vs NordVPN article, we’ll be comparing these two quality services head-to-head to help you decide which is the best option for your […]

ExpressVPN vs NordVPN – [2020 Comparison] was originally found on Blokt – Privacy, Tech, Bitcoin, Blockchain & Cryptocurrency.

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While there are hundreds of VPN services available today, there is a handful that stands out from the rest of the pack. ExpressVPN and NordVPN are two of those standouts.

In this ExpressVPN vs NordVPN article, we’ll be comparing these two quality services head-to-head to help you decide which is the best option for your particular needs and circumstances.

NordVPN and ExpressVPN are always in our top 5 best VPNs in every category. There is a reason for this, they never stop innovating and improving. However, in a head-to-head comparison which one comes out on top?

ExpressVPN and NordVPN Comparison
ExpressVPN or NordVPN – Which one is the best?

Note: There is intense competition in the VPN space. Details like average download speeds, numbers of servers in the network, and specific features change frequently. The information in this report was current as of June 2020.

Introducing the Contenders

Here’s a really quick introduction to the two VPNs we are looking at in this article:

ExpressVPN

expressvpn-logo

ExpressVPN is a premium no-logs VPN at a premium price.

Based in the British Virgin Islands (BVI), ExpressVPN is known for state-of-the-art features, top-notch encryption, high performance, and excellent customer support.

Frequently touted as the best VPN, ExpressVPN supports the Windows, Mac, and Linux desktop operating systems, along with the Android and iOS mobile operating systems, including the iPhone.

They also have browser extensions for Chrome and Firefox. Beyond this, ExpressVPN can run on many different routers and assorted other devices, such as routers, tablets, games consoles such as the PlayStation 4 and Xbox One, and even e-readers like the Barnes & Noble Nood HD and Amazon’s Kindle.

ExpressVPN guarantees access to streaming services such as Netflix, Prime Video, and Hulu, and also sports streaming channels from around the world such as ESPN, SkySports, and European channels such as BBC and ITV.

ExpressVPN Supported Devices

nordvpn-logo

NordVPN is a quality no-logs VPN service with very attractive pricing on multi-year subscriptions.

Based in Panama, they are known for top-notch encryption, strong privacy and security protections, and a generous connection policy.

NordVPN supports the Windows, Mac, and Linux desktop operating systems, along with the Android and iOS mobile operating systems.

They also have browser extensions for Chrome and Firefox. Beyond this, NordVPN can run on Android TV, many different routers and other devices, including Raspberry Pi.

NordVPN also provide access to a huge number of streaming services, which includes Netflix, Amazon Prime, BBC iPlayer, and more.

If you have many devices on many different operating systems then NordVPN has you covered.

NordVPN Supported Devices

How We Compared Them

We compared these two great services using the following criteria:

  • Speed – Which one is the fastest head to head?
  • Security and Privacy – One of our top criteria: do they keep logs? is there any DNS leaks? And so on.
  • Geographic and Legal Considerations – Another very important criteria, are they based in a country which would force them to give up data, or would actively spy on them?
  • Global Coverage – Do they have enough servers in different countries and regions?
  • Streaming and Torrenting – Do they allow streaming and torrenting, which is a important feature for many users.
  • Connections, Price, and Value – How does the price compare vs others in the space
  • Customer Support – If something goes wrong, can you expect them to fix it quickly?

Ready? Let’s start.

Source: Shutterstock.com

Testing the speed of a VPN is difficult. There are so many variables to take into account. Some factors that can affect the results include:

  • The location of the computer doing the testing
  • The location of the VPN server (or servers) being tested
  • The time of day
  • The type of data used in the test

Happily, in 2018 AV-TEST GmbH published its VPN Comparative Test report. This report was commissioned by AnchorFree, the publisher of HotSpot Shield Elite. For this test, they compared 12 VPNs, including both NordVPN and ExpressVPN.

In these tests, both NordVPN and ExpressVPN scored well for latency and download speed. NordVPN also did well on upload speed, with ExpressVPN several percent behind. See page 10 of the report for the full performance breakdown.

While neither of these VPNs are the fastest in the world, they are both better than average performers that should be adequate for any use.

Update June 2020 – With the release of NordLYNX we can finally say that NordVPN is the fastest VPN around. They have managed to hack Wireguard to make it perform at amazing speeds that are faster than OpenVPN. At the same time they have also managed to do it while getting around privacy issues associated with using Wireguard. Well done NordVPN, very impressive.

Security and Privacy

Privacy and Security – Source: Shutterstock.com

How well they protect your security and privacy are two of the key things to look for in a VPN. Let’s look at how these two products stack up.

Security and Privacy Technology

Both of these products offer high-end encryption technology and the industry-standard OpenVPN protocol. They both protect against IP and DNS leaks.

Recently NordVPN made some big advances in both speed and security by releasing NordLynx which is built using wireguard and NordVPN’s own NAT (Network Address Translation) system. Basically this means that it is even faster than before, but with all the same security and privacy features we have come to expect. According to Nordvpn, it is the fastest VPN protocol they have ever used.

While ExpressVPN is secure against WebRTC leaks, NordVPN did sometimes leak during the 2018 AV-TEST testing program. Based on this blog post, NordVPN seems to have the WebRTC leak issue under control now.

ExpressVPN does have a big advantage over NordVPN when it comes to Kill Switch technology. Network Lock is ExpressVPN’s Kill Switch. When triggered by a problem with the connection to the VPN network, Network Lock blocks prevent any traffic from entering or leaving your device.

Network Lock is enabled automatically when you launch the VPN client. By automatically blocking all traffic to and from your device, ExpressVPN prevents your real IP Address from being exposed.

NordVPN Kill Switch technology doesn’t protect your privacy, as well as Network Lock, does. Instead of blocking all message traffic, NordVPN shuts down applications you specify when the VPN connection is lost.

The NordVPN team recognizes the limitations of this approach and are working on a solution that will shut down all communication automatically.

ExpressVPN is definitely ahead in this area for now.

Privacy Policies & Confirmation of No-Logs Status

Both of these services have solid “no-logs” policies. There is some controversy over the use of the term “no-logs” because all VPNs have to keep some logs to function properly.

Perhaps the best thing to do is to treat, “no-logs” as short for, “no connection or activity logs that could be used to connect a specific user to specific activities.”

Using this definition, both ExpressVPN and NordVPN are confirmed as no-logs VPNs.

This was shown for ExpressVPN in 2017 when the Turkish government tried to get user data from them.

ExpressVPN – “The best anonymous VPN protection”

After the company refused to cooperate with Turkish authorities because it felt the Turks had no jurisdiction over them, the Turkish police raided the data center and seized the server.

Even with the server in hand, the authorities were unable to get any useful information since ExpressVPN doesn’t log that information.

NordVPN took a more proactive approach to confirm its no-logs status. In 2018, they engaged PriceWaterhouseCoopers AG to audit their claim.

According to this post in the NordVPN blog:

“The auditors’ goal was to see if our service lives up to our claims of providing a no-logs VPN service, and we believe we’ve passed the test.”

NordVPN – “5 reasons why NordVPN is the best service for privacy”

While we do not have access to the results of the audit, we have not seen anything that contradicts NordVPN’s claim of providing a no-logs VPN service.

NordVPN recently passed a second audit, in June 2020, again commissioned by third-party assurance firm PwC Switzerland, which confirmed a second time that NordVPN never kept user information on file.

Call this one a tie, with both services ranking near the top among all VPNs when it comes to protecting your privacy.

Geographic and Legal Considerations

Source: Shutterstock.com

While we seldom think about real-world geography when doing things online, geographic considerations are important when it comes to your VPN. There are several reasons why this is so. They include:

  •   Legal Jurisdiction:
Source: Shutterstock.com

Where a VPN service is located determines whose laws they are governed by. ExpressVPN is located in the British Virgin Islands (BVI), while NordVPN is located in Panama.

Neither of these countries imposes any mandatory data retention policies on VPN services.

However, because the BVI is part of the British Commonwealth, there is some small chance they could be pressured into applying England’s policies. Those policies are not privacy-friendly at all.

In the meantime, Panama is a privacy-friendly jurisdiction but imposed an extremely strict copyright law in 2012. This law can result in huge (as in $100,000 US dollars huge) fines for downloading copyrighted material. In theory, the government could someday pressure NordVPN to log user activity in an attempt to collect more fines from their citizens.

A good way to reduce the risk that you will be affected by jurisdictional issues is to never use a VPN based in your home country. The odds of a country going after a non-citizen for violating local laws are far smaller than for a citizen.

Neither of these services is legally located on United States territory, which provides a little protection against US government snooping. But it is probably best not to use a VPN server that is physically located on US territory since that makes the data on that server subject to US surveillance laws.

  •   Physical Distance:
Source: Shutterstock.com

When you use VPN signals travel back and forth between your computer and the particular VPN server you are using.

The further apart these are physically, the longer it takes to pass information back and forth. Using a VPN with servers located physically close to you allows you to minimize this delay.

Each of these services has thousands of servers distributed across dozens of countries around the world.

You should be able to connect to a VPN server close to you or to the website or other resources you want to view, thereby minimizing the impact of this factor.

  •   Censorship and Surveillance:
Source: Shutterstock.com

In some countries the government censors news and information that it doesn’t want the local populace to see.

In other countries, you may not be prevented from viewing certain content, but the police and intelligence agencies watch everything you do.

No good can possibly come of the government recording your actions for future use.

To minimize the risks of this, it is best to avoid using a VPN service that is based in your home country.

Call this one a tie as well.

Global Coverage

In general, you want your VPN service to have as many servers as possible, located in as many different countries as possible. This gives you the most options for access to content that might be geo-blocked.

Results are mixed on this one. While these numbers fluctuate, ExpressVPN has servers in far more countries, but NordVPN has far more servers overall.

Further complicating things, both services provide multiple server locations within specific countries.

For example, NordVPN has over 1,800 servers in the USA, spread across 20 locations.

NordVPN Server Locations USA

ExpressVPN has its USA servers spread across 32 locations.

ExpressVPN Server Locations USA

To add yet another layer of confusion to what once seemed simple, not all servers are the same. Both services offer general-purpose servers.

But they also offer servers that are optimized for specific protocols, for torrenting (P2P), for people who need a dedicated IP Address, and so on. Users can choose an IP from a wide selection of countries, meaning they can access geo-locked services such as streaming, gaming, or using a Bitcoin casino.

What’s the final call?

If you are a general VPN user, both of these services provide thousands of servers spread across the countries you are most likely to be interested in.

If you have specialized VPN needs you will need to contact the support team at each company. Alternately, you can investigate their server locations and capabilities yourself.

Streaming and Torrenting

The first thing that people look for when talking about streaming and torrenting is the speed of the VPN.

Both ExpressVPN and NordVPN are generally fast enough for this, in that they both provide fast connections, with no bandwidth limits or throttling. They are both frequently referenced as the best VPN for torrenting.

ExpressVPN – “Use a uTorrent VPN for safe, fast downloading”

According to the 2018 AV-TEST GmbH report, both were far faster for torrenting than most VPNs tested, with NordVPN just slightly the faster of the two (see page 13 of the report).

NordVPN was also faster when it came to streaming, although the difference in speed was only about 1% (page 12).

But things can quickly get complicated. How you connect to the source of the content you want to download is one factor.

If you connect using a VPN server that is physically further from the source than you are, it can slow things down. If you use one of your VPN’s servers that are optimized for streaming, it can speed things up (relative to an unoptimized server).

NordVPN – “Best VPN for streaming”

In some rare cases, using one of these VPNs may even speed up your connection when streaming. Sometimes ISPs will throttle your connection to streaming services to reduce the load on their network, or even completely block certain sites due to local laws.

In these cases, the encryption provided by the VPN may let you avoid this throttling and deliver higher downloads speeds than otherwise.

Speed Isn’t Everything

While speed is important for streaming and torrenting, it is not the only consideration.

When torrenting in particular, you want to be sure that your VPN will never expose your real IP Address. Both of these VPNs have you covered here. With their automatic kill switches and IP leak protection, a glitch might kill your download, but it won’t expose your identity.

Both NordVPN and ExpressVPN have proven over time that they can unblock Netflix. Netflix goes to great lengths to try to force you to use the Netflix library assigned to your physical location.

Use NordVPN or ExpressVPN to unblock Netflix – Source: Shutterstock.com

In other words, if Netflix thinks you are in the UK for example, it will try to force you to use Netflix UK, and block you from using logging into your Netflix US account.

While this kind of blocking may serve Netflix’s contractual obligations to their content providers, it only makes your life more difficult.

You may have a paid subscription to Netflix US, but if they think you are in the UK right now, they are going to try to force you to watch only Netflix UK. And pay for that too!

ExpressVPN – How to watch Netflix with a VPN in 2020

In their ongoing war with Netflix, both of our contenders have generally done a good job of getting past the blocks Netflix tries to impose.

If you log into a server located in the USA (continuing our example from a moment ago), both of our VPN services do some techno trickery to convince Netflix that you are in the USA, so you can log into the account you pay for.

In other words, while we can’t give you hard numbers or 100% guarantees, we believe you will find both of these VPN services to be fast enough for streaming or torrenting, good enough at getting past blocks to give you the access you want, and secure enough to protect your identity while doing so.

NordVPN – “Enjoy the internet with no restrictions”

Connections, Price, and Value

While all the technical details we’ve looked at are important, they aren’t the only things to consider when choosing a VPN.

Let’s look at three more characteristics that could help you choose between ExpressVPN or NordVPN.

Connections

These days, most of us have several devices that we want to protect with a VPN. At a minimum, a computer and a smartphone. Or maybe two computers. And what about the rest of the family? It is easy to see how the need for connections can multiply.

NordVPN – Connect up to 6 devices with 1 account

VPN services normally place a limit on the number of simultaneous connections they allow. You can have the VPN client installed on any number of devices. But only a certain number of them are allowed to connect to the VPN at any one time.

  • ExpressVPN gives you five (5) simultaneous connections.
  • NordVPN gives you six (6) simultaneous connections.

Assuming you have a need for more than 5 simultaneous connections, NordVPN offers one more so that might work better for you.

ExpressVPN – 1 Subscription. 5 Devices

What about running the VPN on your router?

But what if you need more than 5 simultaneous connections and you prefer ExpressVPN? Or what if you need more than 6 simultaneous connections?

If your router runs the VPN software, then every device connected to the router will automatically be connected.

Both NordVPN and ExpressVPN have apps that can be installed on routers. Not all models of routers are supported by either company and setting this up is more complicated than installing the VPN app on your computer or phone.

If you want to explore this further, follow these links:

Unless you are willing and able to install VPN software on your router, give NordVPN the win for this feature.

Price is another area where NordVPN tends to lead ExpressVPN. Here are their prices as of March 2020:

ExpressVPN Pricing
NordVPN Pricing

As you can see, while their pricing models don’t match exactly, for 1-year and longer plans, NordVPN is significantly less expensive than ExpressVPN. It might seem risky to sign up for NordVPN’s multi-year plans to get the lowest price, but try running the numbers.

ExpressVPN would cost you $99.95 for 15-months of service, then $99.95 ever 12 months thereafter.

NordVPN would cost you $95.75 for their 24-month (2 years) Plan. Even signing up for NordVPN’s 3-year plan costs only a few dollars more than ExpressVPN’s 15-month special.

NordVPN is definitely the less expensive option.

Note: Both NordVPN and ExpressVPN offer 30-day money-back guarantees, so you can test them out for a bit without being locked in.

We can’t give you a definitive answer for this one. With a lower price and double the number of connections, NordVPN looks like the better value. But that assumes that all other factors are equal.

As we’ve seen throughout this article, while these services are similar, they each have unique characteristics that may make one or the other more suitable for your particular situation. You’ll need to do that evaluation yourself.

What we can say is that both of these are quality VPN services, and for typical usage patterns (browsing the web, streaming content) both offer good value.

If you are on a budget, or you want a cost effective and cheap way to cover the entire family’s devices, then NordVPN is a clear winner on price, costing just a fraction of ExpressVPN over a longer subscription period.

Customer Support

customer support expressvpn vs nordvpn vpn services
NordVPN and ExressVPN customer support – Source: Shutterstock.com

While you hope to never need it, the odds are good that at some point you will need to contact customer support. When you do, you’ll be glad to know that both NordVPN and ExpressVPN offer a full range of support options. But which is best out of ExpressVPN vs NordVPN?

We’re talking about 24/7 support with:

  • Live Chat
  • Email
  • Knowledge Base
  • FAQ

NordVPN also have a special email address for business users, so if you need a VPN to cover a whole office or your business computing infrastructure, you can get put through to a specialist team straight away. This service is called ‘NordVPN Teams‘, and it offers a number of cost effective ways to cover your work communications.

While we haven’t used either service’s Customer Support very much, both teams have a good reputation. We would rank them both to be better than practically any other VPN support team.

ExpressVPN vs NordVPN – Which Should You Choose?

There isn’t a clear-cut winner here. As we’ve seen, there are only a few areas where one of these services is clearly better than the other. So what we’ve done here is put together two tables.

One summarizes the case for choosing ExpressVPN over NordVPN and the other summarizes the case for choosing NordVPN over ExpressVPN.

The Case For and Against ExpressVPN vs NordVPN

For Against
Premium reputation Premium price
Better Kill Switch than NordVPN Thousands of fewer servers than NordVPN
No WebRTC leaks Based in BVI, part of the British Commonwealth
Servers in more countries than NordVPN Five (5) connections per subscription
Turkish court case confirmed No-Logs VPN claim

That’s the case for and against ExpressVPN. Now let’s flip things around and look at the case for and against NordVPN.

The Case For and Against NordVPN over ExpressVPN

For Against
Outside auditor confirmed No-Logs VPN claim Kill Switch needs to be updated
Low price than ExpressVPN Servers in fewer countries than ExpressVPN
Thousands of more servers than ExpressVPN Reported WebRTC leaks (fix being developed)
Six (6) connections per subscription

You now have all the information you need to choose between the two services.

If you are still not sure, remember that both offer 30-day money-back guarantees. Install the one that looks best to you and try it out for a few weeks. If you are happy with your choice, perfect.

If you are not happy with your initial choice, grab the refund and install the other VPN. Since these are both quality products, one or the other of them will almost certainly satisfy you.

References

Blokt is a leading independent privacy resource that maintains the highest possible professional and ethical journalistic standards.

Source: https://blokt.com/guides/expressvpn-vs-nordvpn-comparison

Blockchain

Bitcoin’s Halving May Not Pump Price Like Last Time – Here’s Why It Doesn’t Matter

With sideways trading, a bearish sentiment, and a slowing two months, Bitcoin has seen a slump from $14,000 USD highs to under $7,000 USD in recent weeks. With the Bitcoin Halviening less than 6-months away, will the market change pace and fuel the bull run that we’ve all been hoping for? While camps are divided, … Continued

The post Bitcoin’s Halving May Not Pump Price Like Last Time – Here’s Why It Doesn’t Matter appeared first on CryptoCanucks.

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With sideways trading, a bearish sentiment, and a slowing two months, Bitcoin has seen a slump from $14,000 USD highs to under $7,000 USD in recent weeks. With the Bitcoin Halviening less than 6-months away, will the market change pace and fuel the bull run that we’ve all been hoping for?

While camps are divided, here’s why we believe this Bitcoin halving will be beneficial for the market and help propel the industry to new heights.

bitcoin clock

Understanding the Potential Downside:

Bitcoin halvenings occur every 210,000 blocks. This is, on average, about every four years and was likely designed as a way to maintain a stable circulating supply and avoid hyperinflation.

When this happens, a miner’s reward per block is cut in half. As the reward level for a block decreases and difficulty for the block increases (as there are more miners competing for a smaller block reward), opportunistic miners are effectively priced out of the competition. The idea is, theoretically at least, that low-end miners cannot afford to continue mining.

As rewards for the block decrease, miners need an ever more efficient way of competing in the marketplace. Those that cannot compete, sell-off Bitcoin in an effort to cut losses and take their gains.

Historically this has only happened after Bitcoin halvenings after reward blocks are cut in half. The worry is that even with low prices now, after the halvening there will be additional selloff because of reduced block rewards, and there may not be a significant upward move for Bitcoin for months to come.

donedonedone

(source: Digital Asset Research – statistical model, not price predictions)

 The above chart as an example shows what happens with the price (light blue line) after halvenings (dotted red lines) occur. What we’re seeing here, is that there was no price increase after the last halvening. Instead, the price started increasing in the middle of the cycle, suggesting that the increase may have already been priced in. Or said another way, that the price increase from $3,000 levels earlier this year, up to $12,000 levels already represent potential gains that might have otherwise occurred after the halvening.

But this is only part of the story.

Reviewing the upside:

Weeding out inefficient miners effectively helps boost the long-term health of the overall market. Both halvenings and low prices help drive this. With continued low prices, this might actually mean that we’ve already priced in ‘miner reduction’ simply because of the current sluggish Bitcoin prices. Only the most efficient Bitcoin miners can sustain a drop in price from $14k to current $7k levels. Many miners have already been forced to shut down their rigs.

Which could mean that the halvening may not force as much sell-off as initially thought.

If it does force additional sell-off, there could be a temporary downslide before a strong bullish movement forward. If it doesn’t force additional sell-off, the halvening will only support a strong bullish trend as supply is limited, rewards are halved, and only the strongest miners remain.

Industry Strength

If we take a step back and look at long-term projections, both cases are more than positive for the industry as a whole. While short-term gains may suffer in the worst of cases, the Bitcoin halvening should help drive a long-term bullish trend.

A simple supply and demand scenario is the easiest explanation, although there are many more nuanced theories.

As halvening difficulty increases, supply is reduced. As supply is reduced the cost of each Bitcoin is likely to rise due to scarcity. Additional factors, such as global economics, increased awareness about cryptocurrency, and increased demand for Bitcoin itself should add fuel to a bullish rally.

It has yet to be determined, and the narratives surrounding the halvening are mixed at best. Yet when we look at the long term possibilities on the state of the industry, two things are very clear.

One – cryptocurrency is here to stay. And two – in the long-run Bitcoin will see a bullish movement forward.

Are you ready to take advantage of the future?


CoinBerry

Buy Bitcoin safely and securely with Coinberry – the only FINTRAC registered & PIPEDA compliant digital currency platform trusted by Canadian Government municipalities.

Buy Bitcoin, Ethereum, XRP, and other cryptocurrencies on Coinberry

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Disclaimer: CryptoCanucks.com is not intended to provide tax, legal or investment advice, and nothing on CryptoCanucks.com should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any asset by CryptoCanucks.com or any third party. You alone are solely responsible for determining whether any investment, asset or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. You should consult an attorney or tax professional regarding your specific legal or tax situation.

Source: https://cryptocanucks.com/bitcoins-halving-may-not-pump-price-like-last-time-heres-why-it-doesnt-matter/

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Blockchain

What Are “Crypto/Digital Assets” and How Can They Be Taxed?

By: Amanda Rosenstock and Aaron Grinhaus Thinking about buying or selling digital, or “cryptographic” assets such as Bitcoin, Ethereum and other cryptocurrencies? Does your business already deal with digital assets? Regardless of whether you’re an investor or a business owner, you should be aware of your potential tax liability when managing your Digital Asset portfolio. … Continued

The post What Are “Crypto/Digital Assets” and How Can They Be Taxed? appeared first on CryptoCanucks.

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By: Amanda Rosenstock and Aaron Grinhaus

Thinking about buying or selling digital, or “cryptographic” assets such as Bitcoin, Ethereum and other cryptocurrencies? Does your business already deal with digital assets? Regardless of whether you’re an investor or a business owner, you should be aware of your potential tax liability when managing your Digital Asset portfolio. Read on to learn more!

What are “Digital Assets”?

A Digital Asset is a cryptographic, often Blockchain-based, unit of value that is exchanged through a decentralized ledger system, based on cryptographic verification as opposed to a traditional third-party verifier such as a bank. “Blockchains” are decentralized payment systems, which allow parties to transfer and verify value exchanges directly, without the need for an intermediary.

Digital Assets are also called “Coins” and “Tokens”. Coins operate on their own Blockchain, store value and can be thought of as an asset intended to replace government-created, or “fiat”, currencies. Tokens are typically Digital Assets that convey information or value on a Blockchain platform created for a specific purpose.

Tax Treatment of Digital Assets

 The way that a transaction involving a Digital Assets is taxed depends on the nature of the transaction. One way the proceeds of disposition of Digital Assets purchased and held for investment may be viewed is as a capital gain. For example, when cryptocurrency that has increased in value is subsequently sold for fiat, the gain will be included in the calculation of an individual’s income for tax purposes in accordance with the current capital gains inclusion rate. On the other hand, when Digital Assets such as cryptocurrencies are exchanged for goods or services, or different cryptocurrencies are exchanged, any gains or losses associated with these transactions may be taxed as business income or barter income. Furthermore, cryptocurrency that is sold for fiat currency will be recognized as business income if trading volumes are frequent and short-term profits are consistently realized. Any profit that is made is fully taxable as business income, subject to any allowable deductions for business expenses. While business income is fully taxable, presently only 50% of capital gains are subject to tax, therefore making it more desirable to handle your Digital Assets in a manner that will trigger capital gains.

Barter transactions occur when goods are exchanged for other goods instead of fiat money. If this is done in the course of business, the fair market value of the goods being exchanged is included in the income of each respective participant in the transaction. For example, if a dentist agrees to perform dental services worth $1500 on a carpenter who, in exchange, offers to build a new deck worth $3000 for the dentist, the dentist must include $3000 in her income while the carpenter must include $1500 in his. In the case of Digital Assets: if an individual trades cryptocurrencies on a daily basis as her primary source of income then every trade could trigger a taxable event, even if no fiat currency was received. This results in a tax liability on the part of the trader even though she didn’t actually realize any gains, which is problematic.

As one of Canada’s earliest law firms specializing in the tax treatment of Digital Assets, the lawyers at Grinhaus Law Firm have the knowledge and expertise required to properly structure your crypto and Digital Asset business and holdings and mitigate your tax consequences. If you are looking to buy, sell or structure Digital Asset holdings, call or email us right away to give you peace of mind regarding your tax liability.

You may also consult with the book published by our founder, Aaron Grinhaus entitled A Practical Guide to Smart Contracts and Blockchain Law (Toronto: LexisNexis Canada Inc., 2019).

PLEASE NOTE: THIS IS NOT INTENDED TO BE LEGAL ADVICE AND SHOULD NOT BE RELIED ON AS SUCH. IT IS IMPORTANT THAT YOU CONSULT WITH A LICENSED PROFESSIONAL.

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Disclaimer: CryptoCanucks.com is not intended to provide tax, legal or investment advice, and nothing on CryptoCanucks.com should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any asset by CryptoCanucks.com or any third party. You alone are solely responsible for determining whether any investment, asset or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. You should consult an attorney or tax professional regarding your specific legal or tax situation.

Source: https://cryptocanucks.com/what-are-crypto-digital-assets-and-how-can-they-be-taxed/

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Blockchain

The Most Common Types Of Cryptocurrency Scams in 2020

Millions of crypto investors have been scammed out of massive sums since the inception of cryptocurrencies. According to Reuters, in 2018, losses from cryptocurrency-related crimes amounted to $1.7 billion. At Coinberry, we have strived to provide our members with the safest and most secure cryptocurrency trading experience. In this article, we will cover cryptocurrency scams you … Continued

The post The Most Common Types Of Cryptocurrency Scams in 2020 appeared first on CryptoCanucks.

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Millions of crypto investors have been scammed out of massive sums since the inception of cryptocurrencies. According to Reuters, in 2018, losses from cryptocurrency-related crimes amounted to $1.7 billion. At Coinberry, we have strived to provide our members with the safest and most secure cryptocurrency trading experience. In this article, we will cover cryptocurrency scams you need to pay attention to the most and how to avoid them.

Crypto Scam 1: Fake Crypto Exchanges

The most common form of scam that you will come across is fake exchanges. These exchanges sprang up overnight and started bragging about their new features, low fees, and enticing promotions.

One needs to be very careful with such exchanges because once you trust them and deposit your coins or cash there, you have no way to get it back. To avoid this, you should stick with well-known cryptocurrency exchanges that comply with FINTRAC and other related government regulations such as Coinberry.

Crypto Scam 2: Fraudulent ICOs

The second most common way to pull off a scam by fabricating a fake ICO, creating marketing hype and persuading people to buy.

Doing a thorough analysis before investing in an ICOs is vital. Usual signs of fraudulent ICOs are as follows:

  • Anonymous team
  • No clear roadmap
  • Copied or fake whitepaper
  • Unusual hurry in execution
  • Fast ROI claims
  • Mismatch of written words on the website
Crypto Scam 3: Fraudulent Wallets

In an environment like the current cryptocurrency market, potential investors should be very careful to research what they’re putting their money into. With the rise of cryptocurrencies, many fraudulent android wallets have also been launched on Google Play Store.

Google is making efforts to root these posers and keep their platform more secure but they are not fully able to identify all these fraudulent apps. Avoid using unknown wallets that haven’t existed for long and are mostly shady. We recommend using only well-known wallets in the market.

Crypto Scam 4: Ponzi Schemes

This scam is the easiest to spot but many people still fall for it.

Investors are promised high returns and, at first, it appears to be successful and profitable. This attracts new investors to the system. The money from the new investors is then used to pay off the original investors and the cycle continues. This scam works on the model of scamming the one who enters the system later. Does it promise regular returns that exceed average market returns? It’s a Ponzi.

Crypto Scam 5: Phishing Scams

Phishing scams are one of the trickiest types of crypto scams.

Scammers send malicious emails to thousands of people with a great offer in the email that makes people believe that they win some money. They use psychological manipulation to make you believe that the site is legitimate. Naturally, this page looks exactly like a legitimate crypto-trading service. Once you enter your username and password, they get access to your information and steal your money. In order to make sure the website is legitimate, check out the domain name very carefully. There is no way that they can use exactly the same domain name as your original website.

Crypto Scam 6: Pump & Dump Groups

Pump and Dump scams are actually one of the oldest scams in the world. In fact, economic analysts argued that this type of fraud goes all the way back to the early 18th century.

It’s a plot aimed at inflating specific cryptocurrency prices in a bid to buy low and sell high. The scammers usually congregate over Facebook Messenger, Telegram or Slack. On average, such a group would total some 100,000 members. This scam works when the scammers dump their wrongfully acquired coins, the prices will plummet, leading to investors losing their money fast.

Crypto Scam 7: Crypto-Giveaways

Scammers use many different methods to scam people. One of the methods they use is offering free giveaways of bitcoin or other cryptocurrencies in exchange for sending a small amount to register to their crypto exchange store, or by providing some personal information. Don’t fall for these scams as there is no way that they will give you free giveaways without them getting something bigger in return.

Crypto Scam 8: Unrealistic Returns Bait

One of the scams that people usually fall into is Unrealistic Returns Bait. Companies offering you guaranteed high profits by trading on their platform or just simply signing up. These companies use fake reviews on different review sites to create trust. We recommend doing thorough research before you sign up for any platform. First, check out that site’s reviews on different review platforms and read the top Reddit comments. Secondly, check out their website carefully to see if there are any inaccuracies or unrealistic return claims made by the company.

Crypto Scam 9: Scammers Posing As Canada Revenue Agency (CRA) Employees

Arrests were made recently by the RCMP as part of their larger investigation into the CRA telephone scam, called “Project Octavia”. These are callers who pretend to be CRA, RCMP or other federal agents and intimidate victims into paying fines, and/or taxes. The reported losses are more than $30 million from such scams. In addition, CRA has put together resources on Canada.ca so you don’t fall for it.

Bottom Line

Scammers are clever and take advantage of the cryptocurrency market’s flexibility. We covered the most common scams in this article. For an extra layer of protection on your Coinberry account, we recommend turning on Two Factor Authentication (2FA).


CoinBerry

About Coinberry Limited 

Coinberry is a Toronto-based, FINTRAC-registered, financial technology solutions provider focused on blockchain and digital currency solutions. Coinberry operates the Coinberry.com cryptocurrency trading platform, offering members the safest and simplest way to buy, sell, and process payments made with Bitcoin and other cryptocurrencies in Canada.

Buy Bitcoin, Ethereum, XRP, and other cryptocurrencies on Coinberry

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Disclaimer: CryptoCanucks.com is not intended to provide tax, legal or investment advice, and nothing on CryptoCanucks.com should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any asset by CryptoCanucks.com or any third party. You alone are solely responsible for determining whether any investment, asset or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. You should consult an attorney or tax professional regarding your specific legal or tax situation.

Source: https://cryptocanucks.com/the-most-common-types-of-cryptocurrency-scams-in-2020/

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