Huobi Token (HT) is the native token of the popular crypto exchange, Huobi. HT is an ERC-20 token issued on Ethereum, that gives holders exclusive benefits when trading on Huobi exchange, including fee discounts, sub-token rewards, and exclusive invitations and rebates. But if you’re trading or staking HT, you may need to pay tax. Don't worry, Koinly can help you calculate taxes for 400,000+ ERC-20 tokens, including HT. Here's how.
The tax you’ll pay on your HT transactions all depends on the transactions you’ve made and where you live, so be sure to check out the rules in your country in our crypto tax guides. But generally speaking, two taxes may apply to your Huobi Token transactions:
Huobi no longer operates in the US, so it’s very unlikely Huobi themselves will be reporting any HT transactions to the IRS.
Of course, you can use your Huboi Tokens on other exchanges and hold them in other wallets and in these instances, the IRS may well take an interest in what’s in your wallet.
There are a couple of methods the IRS uses to do this including collecting information from exchanges via John Doe Summons, as well as through 1099 forms. If your exchange has been issued a John Doe Summons by the IRS or issued you with a 1099 form - the IRS may already know about your HT or other crypto.
As well as this, the IRS has dedicated agents focused on tracking cryptocurrency transactions in order to ensure tax compliance. While crypto is often thought of as anonymous, most blockchains -including the Ethereum blockchain HT is issued on - are public ledgers. All you need is an address and anyone can search through the transactions made relating to that address - including the IRS.
Learn more about how the IRS tracks crypto.
Your crypto tax reporting requirements will depend on where you live, but usually, investors will need to report gains, losses, or income as part of their annual tax returns.
You’ll need to start by identifying all your taxable transactions with HT - including any time you sold or swapped HT and anytime you earned new HT. From here, you’ll need to calculate any gains or losses from each time you sold, swapped, or spent HT, as well as the fair market value of any income from in your fiat currency on the day you received your HT.
Not only do you need to do this for your HT - but for all your transactions on Huobi, as well as for any other exchange or wallets you're using. This is why most investors opt to use a crypto tax calculator like Koinly to save hours. Koinly can calculate your gains, losses, and income for more than 450,000 ERC-20 tokens - including Huobi Token.
All you need to do is connect to Koinly and it’ll do the rest. Here’s how.
To import your Huobi Token transactions to Koinly, you’ll need to connect any blockchain, exchange, or wallet with Koinly where you have HT transactions.
There are a couple of options here and it will all depend on where you’ve traded Huobi Tokens. For example, if you’ve only traded Houbi Tokens on Huobi, you’d be able to sync your Huobi account with Koinly and all your HT transactions will be imported. Find out how to connect Huobi with Koinly.
But, if you’ve traded Huobi Tokens on other exchanges, you’ll need to connect these exchanges too. Or if you’ve held HT tokens in a non-custodial Ethereum wallet, you’ll need to connect to Koinly using your public address.
You can find steps on how to connect a variety of popular wallets and exchanges to Koinly on our integration pages, but here’s an example of how it generally works.
1. Remember, you’ll need to do this for every wallet or exchange you use to interact with Huobi Tokens (and any other tokens!) in order to calculate your crypto taxes correctly.
2. It’s really helpful to name your wallets when you’re adding them to Koinly. This can help you easily navigate your transactions in Koinly later on.
3. You may also be able to upload your transaction history to Koinly as a CSV file instead of connecting using your public address if you prefer, but this depends on the wallet or exchange you’re using. You can search for your wallet on our integration pages to find out more about how to get a CSV file from your integration.
If you have any issues setting up Koinly or importing data, there’s plenty of help at hand:
Sign up free to calculate your HT taxes
Huobi token is an ERC-20 utility token, issued on the Ethereum blockchain by Huobi. Huobi token holders receive exclusive benefits relating to the Huobi exchange like reduced trading fees, exclusive products and early access to new features, and more.
Unsurprisingly, you can buy Huobi Tokens from Huobi, as well as KuCoin. Alternatively, if you'd rather use a decentralized exchange, you can swap ETH or other ERC-20 tokens for HT on dexes like Uniswap.
Huobi Token holders receive exclusive benefits on Huobi exchange, for example, discounts on trading fees, early access to newly listed cryptocurrencies, and voting rights for the development of the exchange.
It very much depends on your investment strategy and whether you use Huobi or not. Huobi maintains the value of HT using a repurchase and destruction (burn) formula, whereby 20% of the revenue from HT and 20% of the revenue from Huobi is used for the repurchase and destruction of HT. But this doesn’t guarantee value in the future. You should always DYOR to ensure you understand the risks involved before investing.
Huobi Token is an ERC-20 token issued on the Ethereum blockchain.
Huobi is a widely used and popular exchange and it is Huobi that issues Huobi Tokens. This said, Huobi has faced some criticisms from investors, so you should always do your own research as well as follow best practices to store your crypto safely.
You can stake HT using Huobi Earn to earn passive income from your investment.
Yes, you need to report any capital gains, losses, or income relating to your HT tokens and other crypto investments to the IRS as part of your annual tax return. If you don't you may face steep penalties.