US Internal Revenue Service (IRS), a model for Cryptocurrency Taxation
16.07.2022
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Cryptocurrency emergence has been taunted by proponents as futuristic and a possible cause of change…
Investing in Cryptocurrency
Cryptocurrency investment is a new area where people keep putting their money and reaping big. So many people testify to make millions of profits from intelligently investing in different cryptocurrencies. In fact, early movers who have a high appetite for risks invested in crypto from the word go and have become veterans who’ve learned in the trenches. Probably if you luckily find an old successful crypto investor for a teacher, that may work magic in the investment journey.
WARNING: Investing in crypto, or other markets, can be of a high risk for your savings. Do not invest money you cannot afford to lose, because there is a risk for losing all of your money when investing in crypto, stocks, CFDs or other investments options. For example 77% of retail CFD accounts lose money.
Unlike traditional currency which are only traded in by certified entities such as banks and other accredited institutions, cryptocurrency is open for any inspired person. Anyone who wishes to take seriously into crypto looks at it as an investment and not an ordinary currency.
Why you need to invest in Cryptocurrency
Cryptocurrency is not your ordinary money to only use for buying and selling. It is an investment opportunity for anyone who wishes to earn from risking every day. There are actually no limits tow how and how much people can invest in crypto. Similarly, there are no pre-set limits to how much in maximum you can earn in profits from cryptocurrency investment.
While cryptocurrency investment is riskier than most of the common investment options, you will learn that intelligent systems can be set to limit how much loss an investor can incur on their transactions.
Among the reasons that should push people into cryptocurrency investment include;
- Cryptocurrency is an important part of finance and fin-tech that keeps growing to all time high.
- cryptocurrency gives consumers greater choice,
- With no need for intermediaries crypto give users a sense of independence,
- Crypto allows everyone an opportunity to be involved in financial investments
Starting a cryptocurrency venture
A decade ago, it would be laughable for anyone to stick out his neck in selling cryptocurrency. But those who risked big from the beginning are today an envy of every new entrant. While people still don’t entirely trust crypto, a lot more confidence is building. Today, you see the financial markets mentioning and listing various cryptos for trade.
Assuming you have a lot of information about crypto but is yet to put you first foot forward, it’s important to know where to start. The couple of things to take note of in your initial journey include;
1. Decide on which crypto to invest
Every day, new currencies emerge , get a hype and euphoria. As an individual investor, it would pay greatly to choose which of them would work best. Its also possible to pick more than one currency to trade in. Some of the dominant cryptocurrencies today include Bitcoin, Ethereum, or Litecoin, Cardano, Solana, Dogecoin and Stablecoins.
The choice of cryptocurrency to invest in will be largely guided by your individuals set goals in the broader cryptocurrency market. Ideally, investment in cryptocurrency is not like any other because it is based on speculation and volatility. You make your profit margins by buying cheap and selling high. This fluctuation takes place every second which makes it possible to make billions or lose in equal measure.
Some cryptocurrencies are more stable than the others, used for a far more transactions, and convenient for online transactions. So, just choose your cryptocurrency wisely. A good idea would be to select from among the established digital currencies like Ethereum and Bitcoin. However, because the whole idea is about risking and raking in fortunes rom it, trying other relatively new ones is good.
2. Choose where to buy your crypto
Cryptocurrency is not something you will go and pay for over the counter to get. As is common knowledge already, cryptocurrency is virtual money which means that it is only transacted online. To get your first cryptocurrency investment, a crypto exchange must come into the picture. The crypto exchanges are the certified brokers who sell and buy the currency to holders of ordinary currencies.
Because it’s a tall order for any ordinary person to imagine engaging in cryptocurrency mining, the only practical option is to buy it from a dealer. Dealers operate by giving an investor a crypto of choice whose value matches that of the normal currency they wish to put into it.
Think of cryptocurrency as an online investment, an asset and a means of facilitating online purchases. So what happens is that you give out your ordinary money to a broker who then allocates to you coins or commonly known as tokens of whichever cryptocurrency of choice. You can thereafter retain and grow your initial tokens, buy more or cash it when need be.
Popular crypto exchanges which starter investors can rely on for an interesting journey include;
- Coinbase:
- Gemini:
- eToro:
- com:
- Kraken:
- US:
- BlockFi
- US
- Webull Crypto:
Starting the journey of cryptocurrency investment is more psychological as it is also emotional. Remember, you are all betting on speculation and volatility in the market. Again, how your first few investments turn out to be will largely determine whether to continue or not. Once you choose a crypto exchange, it basically determines your lifeline in the industry. Unintentionally, you get attached to it for the long haul. It is for this reason that the choice of an exchange requires more than a ten cent decision making.
3. Decide how to buy your first Cryptocurrency
The world is fast moving to an all-digital payment system but to anyone’s surprise, some people may still be wondering which shop they can take their cash in exchange for crypto. Sorry if this is a thought that has crossed your mind. You are in a different world when talking crypto. It will be much consoling to kick away all those thoughts that there is some shop where you can pay over the counter for crypto. You do all these stuffs online! so, you must be an online person to invest in crypto. that’s the bare minimum.
From the word go, you need to know which form of online payment is accepted by your selected crypto exchange. You can use a fiat currency held in a bank account somewhere to buy your crypto. It does not necessarily matter which currency you have in your bank account. Be it US dollar, UK pound, Japanese Yen or any other. The exchange will automatically convert for you how much the crypto coins or tokens you wish to buy is worth in whichever currency to be used in payment.
In case you already have a fledgling foothold of the cryptocurrency trade, it would still be okay to use one type of crypto to buy another. For instance, it is still possible to exchange Coinbase for Bitcoin or whichever you need.
4. Create your crypto trading account
Cryptocurrency going by its name is encrypted using software which means that anyone interested in handling them must create some form of an online presence. You must create some space in the virtual environment that allows you access to the currency of choice. It is the chosen exchange that allows you to create an account where your fiat currency and crypto will be interacting.
It is the account that you create for the purposes of buying and selling crypto that will be linked to funds in ordinary money. So all you need is a debit or bank transfer from the normal financial system into your digital wallet. It’s important to take note of the fact that the amount to spend on buying your crypto will depend on what you’re buying and how you’re buying it.
My 10 cents about cryptocurrency investing
Cryptocurrency is an intelligent type of money which is why it requires an equal high level of information among investors. You can’t afford to be lazy when investing in crypto because the result can turn out to be astoundingly shocking. It actually pays to bid your time, just take your sweet time before making a decision. If you make the best decision at the first instance of investing in cryptocurrency, the bile that people have about this venture will sound strange all the time.
