all about cryptocurrency trading
All about cryptocurrency trading
And that led to another of Savage’s rules: Buy cryptocurrency on a legitimate crypto exchange like Coinbase or Kraken, or through an ATM that sells it — though ATM fees to do so are steep https://best-aucasinosites.com/keno/. (Coinbase isn’t that machine in supermarkets where you exchange your loose change for bills, I joked on the podcast; that’s Coinstar.)
Although cryptocurrencies are considered a form of money, the Internal Revenue Service (IRS) treats them as financial assets or property for tax purposes. And, as with most other investments, if you reap capital gains selling or trading cryptocurrencies, the government wants a piece of the profits. How exactly the IRS taxes digital assets—either as capital gains or ordinary income—depends on how long the taxpayer held the cryptocurrency and how they used it.
All about investing in cryptocurrency
Use dollar-cost averaging for crypto, which is making small, recurring purchases on a set schedule, such as weekly or monthly. Automate these purchases through an exchange rather than buying manually each time.
Many cryptocurrency networks charge a fee for any transaction, including buying or selling crypto as an investor. These can vary wildly, and high fees can cut into returns. Bitcoin transaction fees, for example, have varied between less than 50 cents and more than $100 per transaction over the last year, during periods of exceptionally low or high transaction activity.
Some cryptocurrencies even have built-in scarcity mechanisms, such as Bitcoin’s halving event, which reduces the number of new coins entering circulation. This scarcity can create a perception of value, similar to precious metals like gold.
All about cryptocurrency for beginners
You’ll learn about blockchain strengths and weaknesses from case studies and gain insights from interviews with several tech industry leaders to fully understand the economic and legal difficulties with blockchain and cryptocurrencies.
Crypto exchanges often simply refer to this practice as staking, but it’s more properly contributing your money for other people to do the actual staking. In practice, it’s a lot like a high-yield savings account, as you temporarily lose access to your money in order to make more.
Others see crypto as a hedge against the devaluation of regular currency, political instability, and meddling from third parties. Then there are those who view crypto investing as a speculative venture, aiming to profit from the ups and downs of crypto prices.
