Know these precautions before investing in crypto
When entering the world of cryptocurrencies, you cannot be an amateur and enter with concern exclusively on the price of Bitcoin. The entire cryptocurrency sector appears to be one of the most profitable asset classes of the last decade. However, those who know the least about the financial world are well aware that the greater the return, the greater the risk.
Let us start with a step by step so you can start this new experience in practice, with the least possible risk.
Have your emergency fund
That is right. You must start buying your cryptocurrencies after you have collected your emergency reserve money. The world of cryptocurrencies is very volatile, meaning prices fluctuate a lot within a day. One day you will have money to buy a cell phone and the next day you may not even be able to buy bread at the bakery. So, make your emergency reserve. Remember that this role can be highly valued in the future.
Precaution when buying
Know the crypto trading platform in detail. It seems obvious, but this is important. You are free to buy from a third party or via a trustworthy platform. Do an internet search for complaints and read references from other customers. Research well beforehand and do not fall for the very cheap price. If you are looking for more information, we recommend you visiting this link bestcrypto-tobuynow.com. You will get latest news, press releases, blogs, crypto multicurrency real time updates, and much more.
Print the passwords and keep them in a safe like gold
All individual wallets have a wallet number (usually numbers and letters) and a 12-word password. Whenever you make a wallet, print these two pieces of information (if you have another password, print it too) and keep it in a safe place. Do not just leave it in a file on your computer, let alone somewhere on the internet. Remember that you can be hacked too. There are even specific USB for this, but at first, you can keep it on paper.
Declare your cryptocurrencies in the Income Tax
This is very debatable due to the origin of cryptocurrencies. Nevertheless, that last tip is important because it will protect you from surveillance. Imagine that your cryptocurrencies have a huge appreciation and 2 years from now, you have 2 million dollars. How will you explain this gain to the Revenue?
If you declare when you buy, when you sell, you can justify and you will not have problems being accused of money laundering. After all, what good is being a millionaire and being stuck with frozen assets?
Leave your cryptocurrencies in your individual wallet
After buying your cryptocurrencies, the tendency is for you to leave it at the exchange and relax. Nevertheless, do not leave it there. This world of digital currencies is very broad and it is worth knowing in practice and having this experience. Despite all the risks, if you follow our tips, you will be able to reduce the risk of this purchase well.