Bitcoin is currently trading at $ 22,514.60 United States Dollar at the time of writing this article. The cryptocurrency recently exceeded the $ 20k barrier in the last 24 hours and has risen sharply and shows no signs of slowing down.
Cryptocurrency has become a major topic for investors over the past few years. We are talking about things like Bitcoin, Ethereum and other currencies. The price of Bitcoin is constantly rising.
Needless to say, investors are very excited about investing in cryptocurrency but they need to be careful.
Here are three things you need to know about investing in cryptocurrency.
Cryptocurrency is highly variable:
They do not change much than stocks or bonds or any of the currencies that investors often invest in. Investors need to be aware that these value propositions can increase by 20% in a matter of minutes or strike the next minute.
And See: Bitcoin, a man buys a house for a profit of about $ 1.3 million
Beware of scammers:
Especially now that Bitcoin and Ethereum have become so important, hackers are working hard to get into your account. Even some trades have been hacked. One has to be extremely careful.
You need to pay your taxes:
Although cryptocurrency is different from the standard currencies that investors are used to investing in, you still have to pay your taxes. The IRS is behind some investors who have made huge profits from this money but have not paid their taxes to the U.S. Infact, only a few people have reported their profits last year to the IRS. Cryptocurrency is the next big thing, much bigger than the online boom of 2000.