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[OP]
Sr. Member
Aug 27, 2004
922 posts
35 upvotes
Toronto

Zcash Mining

For those of you mining Zcash (ZEC), what's the most profitable way of exchanging it to Canadian Dollars? I want to regularly (say monthly) convert what I've mined into CAD to pay for the cost of the rig and electricity so keeping significant portions of it for long term is not a part of my plans right now.

How do I do this while minimizing fees and exchange rates?
5 replies
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Aug 22, 2011
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What are your earnings, if I may ask?
I'm mining via nicehash, but looking to switch to zcash eventually.
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Mar 14, 2009
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OP, you're going to have to convert the Zcash to Bitcoins using either an exchange or else the shapeshift feature within the Jaxx wallet. Just be careful with Jaxx, it's hard to tell what kind of fees they charge, they claim they don't charge any but I am wary of it, personally. Once you have it converted into Bitcoin you will need to sell it on QuadrigaCX. Just be aware of the fact that once you cash out though, you need to start declaring it as income on your taxes. It counts as a capital gain and you have to claim 50% of it. I have heard of people writing off their hardware and electricity costs also.
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[OP]
Sr. Member
Aug 27, 2004
922 posts
35 upvotes
Toronto
vkizzle wrote: What are your earnings, if I may ask?
I'm mining via nicehash, but looking to switch to zcash eventually.
I'm still watching things closely and tinkering with the gpus for optimum Sol/W but projecting something around 1.3 - 1.4 ZEC per month.
SickBeast wrote: OP, you're going to have to convert the Zcash to Bitcoins using either an exchange or else the shapeshift feature within the Jaxx wallet. Just be careful with Jaxx, it's hard to tell what kind of fees they charge, they claim they don't charge any but I am wary of it, personally. Once you have it converted into Bitcoin you will need to sell it on QuadrigaCX. Just be aware of the fact that once you cash out though, you need to start declaring it as income on your taxes. It counts as a capital gain and you have to claim 50% of it. I have heard of people writing off their hardware and electricity costs also.
I stayed away from Jaxx for now and have been using Zcash4Win. Thanks for the heads up about the capital gain part. Yes, at that point it makes sense to report the costs alongside the earnings for tax purposes.

I want to optimize the exchange path from my wallet to my bank account and avoid losing 2% here, 3% there for exchanging it multiple times into different currencies as much as can be avoided.

Any suggestions around that considering my zec is sitting on a local wallet and not on some web wallet / exchange service? Is QuadrigaCX and converstion to Bincoin and then to CAD my best bet or are there any other conversions or exchange services that may charge less?

Thanks.
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Mar 14, 2009
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Boss_Scorpius wrote: I'm still watching things closely and tinkering with the gpus for optimum Sol/W but projecting something around 1.3 - 1.4 ZEC per month.


I stayed away from Jaxx for now and have been using Zcash4Win. Thanks for the heads up about the capital gain part. Yes, at that point it makes sense to report the costs alongside the earnings for tax purposes.

I want to optimize the exchange path from my wallet to my bank account and avoid losing 2% here, 3% there for exchanging it multiple times into different currencies as much as can be avoided.

Any suggestions around that considering my zec is sitting on a local wallet and not on some web wallet / exchange service? Is QuadrigaCX and converstion to Bincoin and then to CAD my best bet or are there any other conversions or exchange services that may charge less?

Thanks.
Typically the exchanges only charge a 0.2% fee, it's absolutely minuscule. The bigger issue is the Bitcoin transaction costs, depending on the value of the Zcash you are converting. Every time you convert to or from Bitcoin, there is a transaction cost. Right now they are way down to around $2-3, but that adds up if you keep on buying, selling, and converting back and forth. You will also pay a Bitcoin transaction cost when you send your newly converted Bitcoins over to QuadrigaCX. You would probably save a bit on these fees by going straight to Ethereum if you can. It has lower fees, and I believe QuadrigaCX lets you sell that also.

The other thing I will tell you is that I find that QuadrigaCX's Bitcoin sell value is typically 5% below market value. I don't know the reason.
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Jul 7, 2003
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SickBeast wrote: Just be aware of the fact that once you cash out though, you need to start declaring it as income on your taxes. It counts as a capital gain and you have to claim 50% of it. I have heard of people writing off their hardware and electricity costs also.
According to this article by these lawyers - "MINING CRYPTOCURRENCY - The CRA sees the "mining" of bitcoin as being either a business or a personal hobby (non-taxable).[7] If the taxpayer mines in a commercial manner, the income from that business must be included in the taxpayer's income for the year."
https://gowlingwlg.com/en/insights-reso ... n-CA#_ftn7

That said buying and selling coins or mining as a business is definitely taxable.
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