Investing in Cryptocurrency. Bitcoin is reportedly selling $22,514.60 U.S. dollars at the time of writing this post. The cryptocurrency just leaped over the $20k mark 24 hours ago and has skyrocketed fast, showing no signs of slowing down.
Cryptocurrency has been a big problem for investors over the past few years. We’re talking about stuff like Bitcoin, Ethereum, and some other currencies. Bitcoin’s price is constantly rising.
It goes without saying that investors are really enthusiastic about investing in cryptocurrencies, but they need to be cautious.
Here are three things that you need to know about investing in Cryptocurrency.
1. Cryptocurrency is far more volatile:
They are highly risky than stocks or shares or any of the securities that investors currently invest in. Investors need to be mindful that the value of these currencies will increase by 20% in minutes or fall in the very next minute.
2. Look out for the scammers:
Particularly now that Bitcoin and Ethereum have become so valuable, hackers are working hard to hack your account. Any exchanges have already been compromised. One needs to be exceedingly cautious of that.
3. You have to pay your taxes:
Even though cryptocurrency is different from the traditional investments that people use to invest in, you will need to pay the taxes. The IRS is after some investors who have made huge money in this cryptocurrency but have not paid their taxes in the U.S. In reality, just a few people reported their profits to the IRS last year. Cryptocurrency is the next huge trend, much bigger than the Internet bubble of 2000.