Here is the best Crypto Advice for 2019
Crypto Advice for Newbies and Investors
The crypto market had witnessed a huge rise since its inception in 2009 in the form of bitcoins. The market expansion for cryptocurrency had increased enormously, and had witnessed a growth of market cap up to 4000%! Back in 2017, the market cap for the crypto currencies was found to be $21 billion, which has risen to $454 billion. However, the rise does not indicate that the market is free from threats of downfall. Hence, it is essential that you should follow a certain crypto advice for better investments as well as returns.
First Crypto Advice for Investment
The first crypto advice for investment is to capitalise in Bitcoins. The market share of the bitcoin is 40%, and has a competitive edge in the market of cryptocurrency. In the past years, bitcoin had witnessed huge rise in the value; however, the recent fall of the value had restricted the mind-set of the crypto-investors in Bitcoin. However, as the phrase says ‘bygones are bygones; bitcoin has revived with index of nearly 13020, a refreshment to the 17-months highs within the US trading hours. This has opened the dimension for cryptocurrency to reach to a triple digit value.
Second Crypto Advice for Investment
Many of you will be worried considering the rapidity at which the values are rising and falling. Hence, it becomes quite difficult to decide when to invest your hard-earned money. The past trends have shown that the value of Bitcoins had risen significantly owing to the technical enhancements as seen during the splitting of the bitcoin currency into bitcoin and bitcoin cash. Thus, the second piece of crypto advice for investment is that grab your opportunity during the course of technical developments. The next crypto advice is invest your money when there is a drop in the price value as this will help you to get the bitcoins at a much lower price. Then just wait and see the magic!
Third Crypto Advice
The net crypto currency that is worth to be considered for the investment to be made in the year 2019 is Ethereum (ETH). ETH had witnessed a good rise in January 2018 when its value climbed to $1423 with a total market cap of $138 billion. Back then in 2017, it was claimed as the second largest cryptocurrency as it grew by 3000%. Although, ETH faced a downfall due to the loss of $60 million owing to the hacking in 2016, yet it stands out to be a best option for crypto investment. It would be wrong to consider this cryptocurrency only as a digital currency, as it provides scope to you to build your own block chain. Further as per the words of the block chain expert, Julian Hops there is a huge possibility that Ethereum will witness a rising phase of nearly $200 billion by the end of this year. Therefore, what do you think, isn’t it worth investing?
Fourth Crypto Advice for Investment
Last but not the least, the best crypto advice for investment is – do contemplate investing what you can manage to lose in every crypto currency available. This greatly reduces the risk of encountering huge losses.
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Cryptocurrency has digitalised the monetary world. It is a digital currency that utilises the encryption technique in order to regulate currency generation, and verification of transfer funds. With the inception of Bitcoin, the decentralised cryptocurrency, an outlet for personal wealth, has been established, which is beyond restriction as well as confiscation. Since the beginning of the era of the crypto world, a number of people have been associated with this currency. However, a lot still hesitate to invest and adopt this currency system. As the proverb says “NO RISK NO GAINS”. Therefore, cryptocurrency is a way that can make you reach the heights, not in a single night, but in the long run. Thus, the best crypto advice for investment is to opt for a platform that is reliable, and keeps a concern of your pocket value.
Tax Advice for Cryptocurrency Investors
On time tax planning helps the investors to achieve their financial goals, and helps them to save big. However, pursuing with taxes is often taxing, beyond the stress of interest along with penalties. Hence, here is a list of taxation crypto advice for your investments.
Maintain a complete record of your crypto transactions. The record should be highlighting all the necessary aspects of the transaction such as the purchase date, dollar value, and the sold date etc., along with the proceeds. Doing it manually often can be boring, so you can make use of software that calculates the cost basis and capital gains automatically! By gathering all the information, you will be able to identify those expenses that could be easily deducted from your return. Thus, by following this piece of crypto advice, you will be able to helping the tax preparer in calculating the tax bill.
Play Wise: Decrease Your Gains and Increase Your Loss
IRS treats cryptocurrency as a property. This implicates that all trades, purchases as well as the sales are under the norms of taxation. Keeping this in mind, here is a crypto advice that will help you to minimise your capital gains, tend to be a long-term investor. If the investments are maintained for more than a year, the capital gains taxes decrease significantly. Further, the capital gains tax can be lowered by harvesting loss. It means that you need to sell your crypto currency such as bitcoin, ETH and so on at a price lower than what you invested in purchasing them. The other means to do so is by gifting or donating the unsold crypto. In this case, the tax rule makes you free of taxation for gifts worth of $15,000
Be Careful with Your Deals
Swaps can be most dangerous if carried out without considering its aftermaths. Hence, it is advisable to get some crypto advice before making a swap. Nearly all swaps lead to taxation to both the parties. IRS considers even a smaller swap. For instance, use of a bitcoin to purchase a watch will bring both the sides under the norms of taxable transaction.
Look Forward to Deductions
The Tax Cuts and Job Acts of 2017 has changed the scenario of the implication of deductions in the year-end tax planning; yet there is a lot to explore that could lead to the reduction of your tax bill. Thus, in this context the crypto advice on taxation is that, go for standard deductions. The standard deduction has been doubled since 2018. For single filers, it is $12,000, while for the married ones, it is $24,000. The next set of crypto advice on deductions is go for itemised deductions such as medical expenses, state income taxes, state property taxes, charitable contribution, business expenses and so on.