Ways To Invest In Crypto

Jul 21, 2021 | Investing

Wallets, cold storage, exchanges, etc. When it comes to investing in cryptocurrencies, it can be quite confusing. Karl Eggerss was on CBS discussing the various options.

Sharon Ko:

It’s easy investing in cryptocurrencies. You have all kinds of exchanges to choose from online, and with a few clicks, you’re trading or selling crypto. GOBankingRates, a personal finance website says, “The uncomplicated process is why more young people are jumping in.” Check out this stat. 72% of those surveyed in the 18 to 24 year age group who are currently invested in the stock market started investing in stocks and or cryptocurrency within the last six months. If you’re not there yet and in the camp of “I’m thinking about getting in,” here’s some things to think about.

Karl Eggerss:

Investors really need to ask themselves why are they buying cryptocurrencies in the first place. The people that started cryptocurrencies, the whole reason behind it was decentralized, to get away from the banking system. They don’t trust the banking system, and there are those group of people, but I believe the vast majority of people buying it in 2021 are buying it to make a profit.

Sharon Ko:

So, if you’re buying, you need to store crypto somewhere. There are different options like leaving it on the exchange where you bought it, where it’s connected to the internet, but could be vulnerable to hacking. There’s also what’s called cold storage.

Karl Eggerss:

They literally not be online. A thumb drive that you can literally take out. Nobody can get to that thumb drive when it’s not online, so it is safer. It just introduces other risks.

Sharon Ko:

Here’s one more thing to think about. Uncle Sam, the IRS views digital currencies as property.

Karl Eggerss:

The IRS is going to crack down and they’re going to want to see who’s trading it, how often, and what their gains are. We’re kind of on the Wild West of the cryptocurrency world. There’s not great reporting, and I think there’s a lot of people trading it that don’t realize they should be paying taxes on it.

Sharon Ko:

The IRS breaks on the tax rules with cryptocurrencies. You can head here for more.

 

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