⚠️One of Our Follower from India Asked if there is 1% TDS on Fiat to Crypto, Crypto to Crypto and Crypto to Fiat Transaction and if he has 100$ portfolio, what will be his balance after 100 trades assuming he is making 0 profit or loss on every trade:
Let's break down the scenario step by step:
Initial balance: $100 USD
1% TDS to buy crypto from fiat: $1 (1% of $100)
Balance after buying crypto: $99 ($100 - $1)
1% TDS on every crypto to crypto trade or swap: $0.99 (1% of $99)
Balance after crypto to crypto trade: $98.01 ($99 - $0.99)
We repeat this step 100 times
R=B×(1−0.01)3n
Where:
B = $100 (initial balance)
n=100n=100 (number of trades)
R is the balance after 100 trades
R=100×(1−0.01)3×100
R=100×(0.99)300
Calculating this value:
R≈100×0.049836
R≈4.9836
So, after 100 trades, the balance would be approximately $4.98 USD
1% TDS to cash out from crypto to fiat
After cashing out with a 1% TDS, the final fiat balance would be approximately $4.93 USD
We also ignored 0.1% Maker and Taker Fee of Exchange for Every Trade, So Final Balance can be even less than above calculated amount
And If a trader made some profit:
For Example:
The trader made a profit of $50 on an initial balance of $100
The trader then lost everything in the next trade
First, let's calculate the tax on the profit of $50, considering a 30% tax rate of Our Follower's Region:
Tax=Profit×0.30
Tax=50×0.30
Tax=15
The trader would owe $15 in taxes on the profit
Now, If the trader lost everything in the next trade, the total loss would include the taxes paid plus the entire initial balance:
Total Loss=Tax+Initial Balance
Total Loss=15+100
Total Loss=115
Therefore, the trader's total loss would be -$115 😵💫
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