Crypto guides
Clear, practical explainers on the concepts behind our tools — from liquidation and DCA to position sizing and risk-adjusted returns.
How to Calculate Liquidation Price in Crypto Futures
Understand exactly how liquidation price works on leveraged crypto positions, the formula behind it, and how to trade with a safety buffer.
Read guide →Dollar-Cost Averaging (DCA) in Crypto: A Complete Guide
What dollar-cost averaging is, why it works in volatile crypto markets, its pros and cons, and how to model your own DCA plan.
Read guide →Position Sizing & the Kelly Criterion for Crypto Traders
How much should you risk per trade? Learn fixed-fractional sizing, the Kelly Criterion, and why half-Kelly is the practical sweet spot.
Read guide →The Sharpe Ratio Explained: Measuring Risk-Adjusted Returns
What the Sharpe ratio is, how to calculate it, what a good value looks like, and why volatile crypto portfolios often score lower than you'd expect.
Read guide →APR vs APY in Crypto: What's the Difference?
APR and APY look similar but can mean very different returns. Learn how compounding turns APR into APY and why it matters for staking and yield farming.
Read guide →Impermanent Loss Explained (With Examples)
What impermanent loss is, why liquidity providers suffer it, how big it gets at different price moves, and when fees make up for it.
Read guide →Grid Trading in Crypto: How Grid Bots Actually Make (and Lose) Money
How a grid bot works, why the spacing has to clear twice your trading fee, what happens when price leaves the range, and how to size a grid you can live with.
Read guide →Crypto Taxes Explained: How Capital Gains Work
A beginner-friendly overview of how crypto is taxed — capital gains, taxable events, short vs long term, and how to estimate what you owe.
Read guide →Risk/Reward Ratio & Stop-Loss Placement
How the risk/reward ratio works, why it decides your break-even win rate, and how to place stop-losses that respect it.
Read guide →What Is Crypto Staking and How Are Rewards Calculated?
Staking pays you for helping secure a proof-of-stake network. Here is where the yield actually comes from, what it costs you, and how to work out what you would earn.
Read guide →Understanding Leverage in Crypto Trading
Leverage multiplies your position, your profit, your loss and your chance of being liquidated. Here is exactly what 10x does to your account — and how traders survive it.
Read guide →Crypto Market Cap Explained (And Why Cheap Coins Aren't Cheap)
Market cap, circulating vs fully diluted supply, and the arithmetic that shows why a $0.001 coin reaching $1 is usually impossible.
Read guide →Perpetual Funding Rates Explained
Funding is the payment that keeps perpetual futures pinned to spot. Learn how it is charged, what it costs a held position, and how traders read it as sentiment.
Read guide →Drawdown and Risk of Ruin: The Maths of Staying in the Game
Why a 50% loss needs a 100% gain to recover, how long losing streaks really get, and how to size trades so a bad run cannot end you.
Read guide →Crypto Wallets Explained: Hot vs Cold, Custodial vs Self-Custody
A wallet does not store your coins — it stores the key that moves them. Here is what actually differs between wallet types, and how to pick one without losing everything to the wrong choice.
Read guide →How to Choose a Hardware Wallet (And Set It Up Properly)
Every hardware wallet keeps your keys offline — that part is solved. What differs is the security model, the coins supported, and how easy it is to make an expensive mistake. Here is how to choose and set one up.
Read guide →Ethereum Staking Guide: Solo, Pooled, Exchange and Liquid Compared
Four ways to stake ETH, with genuinely different economics and risks. What the yield is made of, what each route costs you, and how long your money is actually locked.
Read guide →Liquid Staking Explained: stETH, rETH and the Risks Behind the Yield
Liquid staking lets you earn staking rewards without locking your capital. That convenience is real — and so are the depeg, smart-contract and leverage risks it introduces.
Read guide →Crypto Taxes in the US: IRS Rules, Rates and Forms
The IRS treats crypto as property, which makes almost every trade a taxable event. Here are the current rates, the forms you file, and the two rule changes that caught people out this year.
Read guide →Crypto Tax in the UK: HMRC Rules, CGT Rates and Share Pooling
HMRC has no separate crypto tax — it uses Capital Gains Tax, an income tax charge on rewards, and share-pooling rules that decide which coins you actually sold. Here is how all three work.
Read guide →Crypto Arbitrage Explained: Does the Price Gap Actually Pay?
Arbitrage sounds like free money — buy low on one exchange, sell high on another. Here is why most spreads evaporate after fees, and how to tell a real edge from a mirage.
Read guide →Sortino vs Sharpe Ratio: Which Measures Crypto Risk Better?
The Sharpe ratio punishes all volatility; the Sortino ratio punishes only losses. For high-upside, high-volatility crypto strategies that difference changes the verdict.
Read guide →Value at Risk (VaR) Explained for Crypto Traders
VaR compresses 'how much could I lose?' into one number. Here's how to read it, how to calculate it, and — crucially — why crypto's fat tails make it dangerous to trust alone.
Read guide →Token Unlocks and Vesting: How Supply Shocks Move Price
A big unlock can dump a year's worth of new supply onto the market in a day. Learn how vesting schedules work, how to read them, and how to size the dilution before it hits.
Read guide →Crypto Trading Fees Explained: The Silent Tax on Every Trade
Maker, taker, spread, funding, withdrawal — fees come in more flavours than most traders realise, and they compound. Here's what each one is and how to stop them eating your returns.
Read guide →CAGR vs APY vs Total Return: Which Growth Number Is Honest?
Total return, CAGR and APY describe the same growth in very different-looking numbers. Confusing them makes a mediocre investment look great. Here's how to read each one correctly.
Read guide →Crypto Tax in Germany: The One-Year Rule, §23 EStG and the €1,000 Limit
Germany treats crypto unusually kindly: hold for more than a year and the gain is completely tax-free. Here is how §23 EStG works, the €1,000 exemption limit, staking rules and the new DAC8 reporting.
Read guide →Crypto Tax in Australia: ATO Rules, the 50% CGT Discount and Personal Use
The ATO taxes crypto as a CGT asset, but a 12-month hold halves your taxable gain. Here is how the 50% discount works, when the personal-use exemption applies, and how staking is taxed.
Read guide →Crypto Tax in Canada: CRA Rules, the 50% Inclusion Rate and ACB
The CRA taxes crypto as a commodity, with only half your capital gain taxable — the feared increase to two-thirds was cancelled. Here is how the ACB method, the superficial loss rule and CARF work.
Read guide →Crypto Tax in France: The 30% Flat Tax, the €305 Rule and Tax-Free Swaps
France taxes crypto only when you cash out to euros — crypto-to-crypto swaps are tax-free. Here is how the 30% flat tax (PFU) works, the €305 exemption, the portfolio gain formula and the account-declaration trap.
Read guide →Crypto Tax in the Netherlands: Box 3 Wealth Tax, Not Capital Gains
The Netherlands does not tax your crypto profits — it taxes a deemed return on what you hold on 1 January. Here is how Box 3 works, the 2026 tax-free allowance, actual-return claims and the big change coming in 2028.
Read guide →Crypto Tax in Singapore: No Capital Gains Tax — With Fine Print
Singapore has no capital gains tax, so individual investors pay nothing on crypto profits. But trading as a business, or earning crypto as income, is taxable. Here is exactly where the line falls.
Read guide →Crypto Tax in Portugal: The 365-Day Rule and the 28% Flat Rate
Portugal is no longer fully tax-free, but it still rewards patience: hold for more than a year and your gain is exempt. Here is how the 28% short-term rate, the 365-day rule and category classification work.
Read guide →Crypto Tax in the UAE (Dubai): 0% for Individuals — and the Fine Print
The UAE charges individuals no personal income tax and no capital gains tax on crypto. But corporate tax, VAT on mining and residency rules matter. Here is where the zero-tax story holds and where it doesn't.
Read guide →Moving to Dubai for Crypto: What Is Actually Tax-Free
The UAE charges no personal income tax on crypto — but that is rarely the number that decides your bill. What the rules really say, and what the country you leave does about it.
Read guide →Crypto Tax in India: The 30% Flat Tax, 1% TDS and No Loss Offset
India runs one of the world's harshest crypto tax regimes: a flat 30% on every gain, a 1% TDS on each transfer, and no way to offset losses. Here is exactly how Sections 115BBH and 194S work.
Read guide →Crypto Tax in Spain: Savings-Income Rates, Swaps and Modelo 721
Spain taxes crypto gains as savings income on a 19%–28% sliding scale, treats every swap as a disposal, and makes you declare foreign holdings on Modelo 721. Here is how the whole system fits together.
Read guide →Crypto Tax in Italy: The 26% Rate Rising to 33%, Plus the 0.2% Wealth Tax
Italy taxes crypto gains at a flat 26% for 2025, rising to 33% from 2026 as the €2,000 exemption disappears — and levies a separate 0.2% wealth tax on holdings. Here is how it all fits together.
Read guide →Crypto Tax in Switzerland: No Capital Gains Tax — But a Wealth Tax
Private investors in Switzerland pay no capital gains tax on crypto. Instead there is an annual wealth tax, income tax on staking, and a professional-trader trap that can flip your gains to taxable.
Read guide →Crypto Tax in Brazil: The Flat 17.5% Rule and the End of the R$35,000 Exemption
Brazil scrapped its tiered system and monthly exemption. From 2026 a flat 17.5% applies to all crypto gains — including self-custody and offshore wallets. Here is what changed and how it works.
Read guide →Crypto Tax in Japan: Miscellaneous Income Up to 55% — and the 20% Reform
Japan taxes crypto gains as miscellaneous income at progressive rates that can reach around 55%. A reform to a flat 20% is advancing but not yet law. Here is the current system and what may change.
Read guide →Crypto Tax in South Korea: No Gains Tax Yet — 22% Arrives in 2027
South Korea still does not tax individual crypto gains. A 22% tax on gains above ₩2.5 million is legislated to start in January 2027 after three delays — but its future is still contested.
Read guide →Crypto Tax in Ireland: 33% CGT, the €1,270 Exemption and the 15 December Trap
Ireland charges 33% Capital Gains Tax on crypto disposals after a €1,270 annual exemption — but the payment deadline comes almost a year before the return is due. Here is how the Irish system actually works.
Read guide →Crypto Tax in New Zealand: No CGT, But Almost Everything Is Income
New Zealand has no capital gains tax — and that is exactly why crypto is taxed so heavily. IRD treats most crypto profit as ordinary income at up to 39%, and it already holds data on 355,000 NZ crypto users.
Read guide →Crypto Tax in South Africa: 18% Effective CGT or 45% Income — SARS Decides Which
SARS taxes crypto either as capital gains (40% inclusion, 18% maximum effective rate) or as ordinary income at up to 45%. Which one applies is a question of intention — and the annual exclusion just rose to R50,000.
Read guide →Crypto Tax in Poland: Flat 19%, Crypto-to-Crypto Is Free, and Costs Never Expire
Poland taxes crypto at a flat 19% on PIT-38, does not tax crypto-to-crypto swaps at all, and lets unused acquisition costs roll forward indefinitely. It is one of Europe's cleanest regimes — with two sharp edges.
Read guide →Crypto Tax in Hong Kong: 0% on Investment Gains — Until You Look Like a Trader
Hong Kong has no capital gains tax, so a genuine long-term crypto investor pays nothing. But profits from a crypto trade are chargeable to profits tax, and the badges of trade decide which you are.
Read guide →Crypto Tax by Country: Rates and Rules in 22 Countries Compared
How crypto is taxed in 22 countries, side by side: the headline rate, whether long-term holding helps, and whether a crypto-to-crypto swap is itself a taxable event.
Read guide →How to Store a Seed Phrase (Without Losing It or Leaking It)
Your seed phrase is the wallet. Storing it badly is the single most common way people lose crypto — and the two failure modes, theft and loss, pull in opposite directions. Here is how to balance them.
Read guide →How to Move Crypto Off an Exchange Safely
Withdrawing to self-custody is the step where beginners lose money — wrong network, missing memo, fat-fingered address. Here is the order of operations that makes it routine.
Read guide →Wallet Addresses and Networks: How Crypto Gets Lost in Transit
Same address, different chain. Token sent to a contract. Bitcoin format mismatch. Almost every permanently lost transfer comes from misunderstanding what an address actually identifies.
Read guide →Wallet Drainers, Token Approvals and Signature Scams
Most wallets are not hacked — they are authorised. Approvals, gasless permit signatures and the newer delegation attacks all rely on you clicking confirm. Here is what each one does and how to revoke it.
Read guide →Multisig Wallets Explained: When 2-of-3 Beats a Hardware Wallet
Multisig removes the single point of failure that every seed phrase creates. It also introduces new ways to lock yourself out. Here is how it works, when the trade is worth it, and what a workable setup looks like.
Read guide →Lost Access to a Crypto Wallet? What Is Actually Recoverable
Some losses are fixable in ten minutes, some need specialist help, and some are genuinely final. Knowing which is which stops you wasting months — or handing your remaining coins to a fake recovery service.
Read guide →Crypto Inheritance: Making Sure Your Coins Outlive You
Self-custody has no next of kin, no password reset and no probate department. Without a plan your holdings simply stop existing for everyone else. Here is how to fix that without putting your keys in a will.
Read guide →Crypto Tax Loss Harvesting: What It Saves, and What Your Country Allows
How selling a losing position cuts your tax bill, why the saving is smaller than the loss, and the repurchase rule for each country — from the US wash-sale gap to Canada's 61-day window.
Read guide →Crypto Diversification: Why Ten Coins Behave Like One Bet
The ten largest crypto assets moved at 0.80 average correlation over the past year. Here is what that number does to a portfolio, why holding more coins barely helps, and what actually reduces risk.
Read guide →Crypto Lending and Borrowing: The Yield, the Liquidation Price, and the Counterparty
What a crypto lending yield has to be worth to justify the platform risk, why the liquidation price matters more than the interest rate when borrowing, and what depositors actually recovered when the lenders failed.
Read guide →Bitcoin Mining Profitability: The Only Number That Decides It
Mining revenue per terahash is set by the network, not by you. Here is how to work out the electricity price at which your hardware breaks even, why difficulty erodes your share, and what the halving does to all of it.
Read guide →Reading Tokenomics: What to Check Before You Buy a Token
How to judge a token's supply design — the FDV gap, who actually holds the float, why unlocks should be ranked by share of supply rather than dollars, and whether burns do anything at all.
Read guide →How to Choose a Crypto Exchange (2026)
The things that actually matter when picking a crypto exchange — custody, availability, real fees, liquidity and track record — and the ones that don't.
Read guide →How to Do Your Crypto Taxes: A Step-by-Step Guide
The universal process behind every country's crypto tax rules — gather transactions, work out cost basis, calculate gains, apply your local rules, and report — plus the mistakes that cost people the most.
Read guide →Best Crypto Tax Software (2026): Koinly vs CoinLedger
What crypto tax software actually does, when you need it, and how the main options — Koinly and CoinLedger — differ. An honest comparison, plus the free way to do it yourself first.
Read guide →Hot Wallet vs Cold Wallet: Which Do You Need?
The real difference between hot and cold wallets, when each is the right tool, and the simple split most people should actually run.
Read guide →Best Crypto Grid Trading Bots (2026): How to Choose One
What a grid trading bot actually does, when it makes money and when it loses, and how to choose one in 2026 — plus a free calculator to size your grid before you automate anything.
Read guide →Crypto Wallet Security: The Complete Self-Custody Guide
Self-custody means you are the bank — and the whole job is not losing or leaking your keys. A start-to-finish path through choosing a wallet, protecting the seed phrase, and avoiding the ways people actually lose crypto.
Read guide →Best Hardware Wallets (2026): An Honest Comparison
Which hardware wallet should you actually buy? What separates the main options — Ledger, Trezor, Tangem and air-gapped devices — on security model, openness, coin support and who each one is really for.
Read guide →TheCryptoTools guides are for education only — not financial advice.