You can CLICK HERE to read the first part of this series if you had missed it. Today, majority of people still believe that cryptocurrencies are the hottest investment currently available.
Truly, many people have become millionaires through their cryptocurrency investments. Bitcoin is the most popular digital currency to date. Last year, many cryptocurrencies did more than 1000x in return on investment (ROI).
However, it is important to note that cryptocurrencies are high-risk investments and susceptible to high market fluctuations. For instance, Bitcoin recorded an all-time high of over $20,000 in December 2017, but has fallen by over 75% since then.
Moreover, it is still largely unregulated, there is always a risk of them getting banned in certain territories and any cryptocurrency exchange can potentially get hacked.
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Uses of Cryptocurrencies
If you decide to invest in cryptocurrencies, Bitcoin is obviously still the dominant one and has dominated the entire market capitalization by over 51% for a very long time now.
There are many alternatives currently available in the industry, with some coins being privacy-focused, others being less open and decentralized than Bitcoin and some are just copy-cat of Bitcoin. Bitcoin is traded in different crypto exchanges in the world.
As with any other investment, you need to pay close attention to the cryptocurrencies’ market value and to any news related to them. Coinmarketcap is a one-stop solution for tracking the price, volume, circulation supply and market cap of most existing cryptocurrencies.
Depending on the jurisdiction you live in, once you’ve made a profit or a loss investing in cryptocurrencies, you might need to include it in your tax report. In terms of taxation, cryptocurrencies are treated very differently from country to country. In the US, Bitcoins and other digital currencies are taxed as property, not currency. The capital gains rate is applied to accrued long-term gains and losses from cryptocurrency trading.
There are still other uses of cryptocurrencies and these will be covered in our subsequent articles. In the time been you can decide to read more about SPLITT CLOUD MINING should you decide to invest in crytpo. Splitt is relatively safe and its been in operation for the past four months.