Navigating the world of cryptocurrency can feel overwhelming, especially when it comes to security, taxes, and how digital assets are stored and traded. Whether you're new to crypto or looking to better understand your current holdings, this guide answers the most common questions—helping you make informed decisions with confidence.
Cryptocurrency is more than just a digital trend; it’s a financial tool that requires awareness and responsibility. From understanding how your assets are safeguarded to knowing your tax obligations in Denmark, clarity is key. Below, we break down everything you need to know in a clear, structured way.
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Can You Transfer Cryptocurrency to External Wallets?
One of the most frequently asked questions is whether you can move crypto to or from external wallets. The short answer: no, if you're using certain platforms like Lunar Block.
To maximize security, transfers to or from outside wallets or third-party platforms are not supported. This closed ecosystem helps protect users from common risks such as phishing attacks, unauthorized access, and loss due to mismanaged private keys.
While some platforms offer full wallet interoperability, restricted transfer systems prioritize safety over flexibility—especially beneficial for beginners who may not yet be familiar with advanced crypto security practices.
How Do You Report Crypto Transactions to SKAT?
In Denmark, all cryptocurrency sales are taxable, and it's your responsibility to report capital gains or losses to SKAT (the Danish Tax Agency). While this might sound daunting, the process can be straightforward with the right tools.
At the end of each year, you’ll receive a detailed summary of your crypto transactions. Alongside this report comes a step-by-step guide specifically designed to help you file accurately and efficiently. With this documentation, reporting your crypto activity in your annual tax return typically takes just a few minutes.
The goal is to simplify compliance without sacrificing accuracy. You’ll get all the essential data needed—such as sale dates, amounts, and profit/loss calculations—so you can confidently complete your self-assessment.
👉 Learn how top platforms support seamless tax reporting for crypto users.
What Are the Fees for Buying and Selling Crypto?
Trading fees vary depending on two main factors: your subscription plan and your trading volume.
Platforms often use a tiered fee structure—meaning the more you trade or the higher your membership level, the lower your fees may become. These fees apply to both purchases and sales of digital assets.
While exact percentages aren’t listed here, transparency about costs is crucial. Always review the fee schedule within your provider’s app or support section before executing trades. Understanding these charges helps you calculate net returns and avoid surprises during settlement.
Keep in mind that while low fees are attractive, they shouldn’t be the only factor in choosing a platform—security, ease of use, and regulatory compliance matter just as much.
What Is the Minimum and Maximum Amount You Can Trade?
When buying cryptocurrency, there are set limits:
- Minimum purchase: 99 DKK
- Maximum purchase: 75,000 DKK per transaction
These thresholds balance accessibility with risk management. The minimum ensures efficient processing across blockchain networks (where very small transactions could incur disproportionate fees), while the cap helps mitigate fraud and supports responsible investing behavior.
If you wish to invest beyond the daily limit, check whether your provider allows increased limits through identity verification or account upgrades.
Where Can You Find Your Agreements and Transaction Documents?
All terms and conditions related to your crypto services are accessible directly in the Profile section of the Lunar app under "Agreements." Once you sign up, you agree to these legal documents, which outline your rights and responsibilities.
Additionally:
- Agreements are sent to your registered email.
- After every completed transaction, you’ll receive a trade confirmation email containing full details such as date, amount, price, and fees.
Having digital records ensures transparency and makes tax reporting easier. Be sure to save or archive these emails securely—they serve as official proof of ownership and transaction history.
Where Is Your Cryptocurrency Stored?
Your digital assets are stored in what’s known as a custodial wallet—a secure system managed by the service provider (e.g., Lunar Block). Unlike non-custodial wallets where users control private keys, custodial solutions centralize storage for enhanced protection and usability.
Key features of this model include:
- Segregated accounts: User funds are held separately to reduce risk.
- Cold storage via Copper: A significant portion of assets is kept offline using Copper’s institutional-grade custody solution.
- Trading via FalconX: The platform executes trades across multiple exchanges through its partnership with FalconX, ensuring competitive pricing.
Cold storage means private keys are stored on devices disconnected from the internet—making them immune to remote hacking attempts. This method drastically reduces the risk of theft compared to hot wallets connected 24/7.
By maintaining a closed interface, providers minimize incidents of lost keys or forgotten passwords—common pain points in self-managed crypto setups.
How Are Cryptocurrency Prices Determined?
Crypto prices are highly dynamic, fluctuating 24/7 based on global supply and demand. The rates displayed in your app reflect real-time market data aggregated from various exchanges.
However:
- The final price at execution may slightly differ from the quoted rate due to market volatility.
- You’ll always see price updates instantly in the app.
- You never pay more than the amount you confirm during checkout.
It’s important to note that platforms do not provide investment advice. While historical price trends may be shared for informational purposes, past performance does not guarantee future results.
Always conduct independent research before making trading decisions. Market sentiment, regulatory news, and macroeconomic factors all influence price movements.
Frequently Asked Questions (FAQ)
Are cryptocurrency gains taxed in Denmark?
Yes. Any profit from selling cryptocurrency is considered taxable income under Danish law. You must report capital gains or losses to SKAT annually.
Can I lose my crypto if I forget my password?
With custodial wallets like those used by Lunar Block, recovery options exist because the provider manages security. This reduces the risk compared to self-hosted wallets where lost keys mean permanent loss.
Is cold storage safer than hot storage?
Yes. Cold storage keeps private keys offline, protecting them from cyberattacks. It's widely regarded as one of the safest methods for holding large amounts of crypto long-term.
Do I own the crypto I buy on the platform?
Yes. Even though the provider manages storage, you retain ownership of your digital assets. Each transaction confirms your entitlement to the purchased coins or tokens.
How quickly are trades executed?
Most trades are processed instantly during market hours. Settlement time depends on blockchain confirmation speeds and internal processing protocols.
Can I increase my trading limit?
Some platforms allow higher limits after completing additional verification steps. Check your account settings or contact customer support for upgrade options.
👉 Explore secure ways to start trading crypto with trusted tools.
Understanding how cryptocurrency works—from storage and pricing to taxes and transfers—empowers you to participate safely and responsibly. With reliable platforms offering built-in safeguards and clear reporting tools, managing digital assets doesn’t have to be complicated.
Stay informed, keep records organized, and always prioritize security when handling your investments.