It Gives Your Crypto Time To Grow
Even though most buyers look at crypto as an investment, many aren’t using the best investing strategy. The approach that has stood the test of time is investing for the long haul. Buy cryptocurrencies that you believe will increase in value, and hold on to them for at least three to five years.
To date, this has been the method that has produced the biggest gains with cryptocurrency. Here are examples of gains the top coins have made over the last five years:
- The second-largest cryptocurrency, Ethereum, turned $10,000 into $1.85 million.
If you had bought either of those five years ago and sold within the year, you could have made money. But you wouldn’t have made nearly as much as you would have by holding on for longer.
There’s no guarantee that you’ll profit by keeping crypto for years. It’s a high-risk investment, and it’s very volatile. Long-term investing simply gives you the best chance of success. Short-term investing is much more difficult, because success depends on getting in at the right time, and it’s impossible to predict price movements.
If you don’t plan to stick with your investment for the long haul, you may be pressured to sell at the first big price drop. Or, if the price increases, you could feel tempted to take your profits and potentially miss out on future gains.
Crypto Taxation In The Us
The Internal Tax Revenue Service in the United States is bearing down on digital currencies and it has developed a taxing structure for the industry. It is important that potential or active investors in the United States know the basics of this structure to stay on the safe side.
The tax rate for cryptocurrency for federal taxes is the same as the capital gains tax rate. Majorly, there is a classification for cryptocurrency taxes as short-term and long-term capital gain taxes. The ratio is from 10 to 37% for short-term capital gain taxes and 0 to 20% for long-term capital gain taxes in 2021.
For short-term capital gains, the tax rate is measured based on the holding period. If you hold your crypto for less than 365 days, the IRS would classify it as ordinary income and therefore subject to the short-term capital gains tax.
The rates at which short-term capital gains are charged depending on the value of your crypto and the entity holding it. On the other hand, long-term capital gains are subject to tax once the crypto has been in the individual or collective possession for a period above 366 days. The tax rate is between 0-20 percent as the actual taxing begins from $40,401.
Your crypto also is subject to tax if you earn crypto interest from decentralized finance, earn airdrops, crypto payments, staking pools, and crypto mining. To learn more about cryptocurrency taxing in the US, visit the IRS FAQs section.
Convert Cryptocurrency To Cash: How To Cash Out Bitcoin And Ethereum
This guide will outline how to convert cryptocurrency to cash, including wallet creation, sending tokens and how to cash out Bitcoin and Ethereum to your bank. But first, lets start with a little bit of background.
We are at an exciting time! It took nearly 50 years to the internet to come from an idea to a concept adopted in mass.
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How many years did it take for esports to come from local LAN competitions to what we are experiencing right now? As for the blockchain technology, the Bitcoin white paper came out in 2008 from an idea that was born in Stuart Haber and W. Scott Stornettas minds in 1991. As you may have understood, the crypto fever may have not even started yet.
However, pending a very likely mass adoption allowing anyone to pay for food and shelter in cryptocurrency, several steps are necessary to be able to spend the cryptocurrency you own.
Unless you live in a big city, there is a high chance that you still need to convert cryptocurrency to cash before spending it for your daily uses. Even so, do not expect your local London grocery store to accept cryptocurrencies as a mean of payment just yet. Or a cryptocurrency ATM at every corner.
In order to take full advantage of the crypto-revolution, we will explain how to:
- Create a wallet.
Converting crypto to cash is actually the crux of the crypto-economy pending its adoption, as it is directly referring to its in-real-life value.
Also Check: How To Invest In Bitcoin Gold
Sell Bitcoins In Europe
If you live in Europe, BitPanda is likely the easiest way to sell Bitcoin for cash. BitPanda allows users to buy and sell Bitcoin online with a credit card or through their bank account. You can even deposit fiat currency into your PayPal account.
Users who have used CoinBase in the past know that they charge hefty fees when buying and selling Bitcoin, but BitPanda charges a smaller fee.
Cryptocurrency Transfer To Your Wallet
Now that you have chosen the most convenient wallet for your use, you can receive cryptocurrency. Remember it is important you give a Bitcoin wallet address if you are about to receive Bitcoins or an Ethereum wallet address if you are about to be sent Ethereum or ERC20 tokens.
ERC20 token address example: 0x6991674655E51b95956dD84056dAC212e2a098CE
Bitcoin address example: 3BwGrdAeLicoHEt4Vj9bkZJsfx48BXrGo9
The same is true with any other cryptocurrencies: always check that the wallet address you are communicating is able to receive the given cryptocurrency. This is important to consider as there are more than 1,500 out there and counting. Some names can be confusing for people entering the cryptocurrency world.
Ethereum Classic is different from Ethereum, even if there is a way to recover one in case you sent it to the others address. Bitcoin is different from Bitcoin Cash, Bitcoin Gold, Bitcoin Diamond, Bitcoin Green etc.
While it is important to keep your private keys the safest possible, your public keys are used as addresses to receive cryptocurrency. No one can access or alter your wallet with your public key only. To receive cryptocurrency on a wallet, you just need to communicate your public key to the sender.
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Why Transfer Bitcoin To Your Bank Account
The ultimate idea is that bitcoin will replace traditional currencies. People are currently investing in bitcoin because they view it as a commodity that will grow in value over time. If you have bitcoin, you may want to hold on to it for that reason. But, since demand has increased recently, you may be able to make a profit if you sell your bitcoin now and transfer the equal value to your bank account.
In theory, you will one day be able to use bitcoin for any type of sale. For now, there are still few businesses or individuals that accept payment in bitcoin. That is one reason you may want to convert your bitcoin to cash to use the value of your bitcoin to buy actual things.
Best Wallets To Store Cryptocurrencies
Cryptocurrencies are a digital form of money and because they are tied to a value, they deserve to be secured. Crypto wallets are simply like the conventional wallets that you are familiar with but this time, in the digital aspect.
However, there are physical crypto wallets like the Ledger, users can store their crypto assets physically using it. Nevertheless, digital crypto wallets are the most popular and are widely used by several investors globally.
They function as a haven for digital assets like Bitcoin, Ethereum, Ripple, Litecoin, and others. Below are a few of the most efficient digital wallets.
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Do I Like The Novelty Of Owning Bitcoin
As an asset class, Bitcoin is a new kid on the block. Each time a speculative bubble occurs, funding drives the evolution of this technology and financial infrastructure. If youre comfortable with risk and got in on the ground floor or during one of Bitcoins previous ebbs in the market you might appreciate watching this cryptocurrency evolve, knowing that youre part of its community.
How And When To Take Profits From The Crypto Market
Let’s do some real talk about selling your crypto.
This is something I’ve been putting some real thought into lately.
With all the buzz and enthusiasm about crypto, it is easy to always think it goes up and up. But, we all know that isn’t true.
Or you could take the utopian view. That BTC is superior to all else and you should have “diamond hands” and never sell – ever.
But, here’s the thing…
We’re still really early in this new cryptocurrency world. And yes, long term, I think it goes way higher than where we are right now. But, does that mean you never sell any?
If you don’t take profits, then what’s the point? Just holding it does nothing but make big numbers on your computer screen. For you to actually have any real-world impact on your REAL, physical life, you’ve got to sell some of your crypto back into fiatFiat, or fiat currency, is a currency that exists and has value merely because it’s home government says so. A fiat curr… and then use that to buy things.
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How To Sell Bitcoin
If youre investing in cryptocurrencies, you need to know how to buy Bitcoin. You also need to know how to sell it. Unless youre a true evangelist waiting for it to displace fiat currencies, then knowing when to take your profits is important and being able to do so, even more so.
Digital Trends isnt about giving out investment advice thats not our forte but we can break down the technical fundamentals for you, like how to sell Bitcoin.
There are different ways to go about it, depending on whether you want to sell on an exchange or directly, but here are some steps to take to sell your Bitcoin fast and easily.
How To Choose The Best Way To Sell Bitcoin
The best way to sell Bitcoin is very subjective and will vary based on an investor’s circumstances. What works well for one person might not necessarily be a good fit for the next. Instead, it’s all about working out which option is the right choice for you. You can do this by asking yourself a few important questions:
- Do you want to sell Bitcoin for fiat or another cryptocurrency?
- How quickly do you want to sell your Bitcoin?
- Are you willing to accept a price well below the market rate, or do you want to negotiate the best price possible?
- If selling for fiat, how do you want to receive payment?
These questions should help you decide how you want to sell your Bitcoin, and you can then figure out which platform has all the features you need. When comparing different cryptocurrency exchanges, make sure you consider:
There are several other important factors, such as where an exchange is regulated and the payment methods accepted by peer-to-peer trading sites. For a full breakdown of the features to look out for check out our cryptocurrency exchange guide and discover tips on how to choose the right platform.
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When Should I Sell
The crash that came soon after Bitcoins peak in 2017 saw its effects spread out over the first half of the following year. Through ups and downs, BTC oscillated lower and lower, repeatedly testing the $6,000 support to no avail.
In just two weeks between mid-November and early December, Bitcoin plummeted to $3,500, inciting fear, uncertainty, and doubt into the minds of crypto investors worldwide. Of course, BTC would recover to over $12,000 by Q2 2019, but fearful traders could never have known this at the time.
No one can time the market perfectly, but its important to create a strategy for how youre going to profit from cryptocurrencies before fully diving in. A prepared investor is a calm investor, and only a relaxed mind can tame the unpredictable waves of cryptocurrency markets.
Buy And Sell Crypto On An Expert Picked Exchange
There are hundreds of platforms around the world that are waiting to give you access to thousands of cryptocurrencies. And to find the one that’s right for you, you’ll need to decide what features that matter most to you.
To help you get started, our independent experts have sifted through the options to bring you some of our best cryptocurrency exchanges for 2021. Check out the list here and get started on your crypto journey, today.
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How To Invest Safely In Crypto
Cryptocurrencies have come a long way up in a short time. Bitcoin, the first and leading digital asset was launched in 2009 and has grown thousands of times over, benefiting investors in the long run. Other digital assets have done so too, with some sprouting up rapidly in months and some cases, weeks. This highlights the positive side of the innovation and the potentials they wield in long-term proportions. However, this does not insinuate that cryptocurrencies are entirely safe crypto is one of the most speculative financial markets in history.
There are hundreds of reports about investors that lose large amounts of money to the volatile crypto market. The reason is often that these traders rarely research the digital assets that they are investing their money into. In other cases, most investors jump in on crypto assets based on FOMO .
When investors are not careful enough to make analyses, fundamental and technical, they risk losing their trading capital. Since crypto is an evolving industry, it would be profitable to look before your leap to ensure that you are investing in good digital currencies with the potential to make you good returns based on your expectations.
To invest safely in cryptocurrency, here are a few measures you can capitalize on to ensure that you are protecting your funds from unnecessary losses.
How To Sell Your Mining Crypto For Money
Once your Crypto is in your wallet, if you are looking to sell for fiat then you will need to use a Crypto exchange! There are lots of options out there with different fee structures, so make sure you pick the one that best fits your needs!
Below are some options and recommendations from HelpMeStartMining these are all exchanges we have tried and used in 2021!
The most important factors to take into consideration are: coin pair selection, exchange fees, deposit fees, and withdrawal fees. These will vary depending on your Crypto and your fiat choices.
We are not directly sponsored by any of the exchanges, and the below is our personal experiences and opinions. Where we have used personal affiliate links these are highlighted below.
- Fiat: Real world currency, such as USD, GBP, EUR.
- Crypto Exchange: Market for trading Crypto currencies for other Crypto or for fiat currency.
- Coin pair: Exchanges offer pairs of coins, meaning a buyer or seller can trade one for the other. ETH/USD for example means you can buy or sell Ethereum for USD on the exchange.
Biggest Crypto exchange in the world based on trading volumes , US based Binance also offers competitive fees and a huge selection of Crypto coins to sell. Active for years and huge user base, as well as good security features.Earn 5% cashback on your trading fees if you use our sign up link : binance.com
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How Are Sales Items Priced
Sellers can select one of 2 pricing models when they list a collectible for sale:
Fixed price model
The seller sets a fixed price for the item.
The buyer purchases the item at its fixed price.
The seller puts an item up for auction by inputting the end date and minimum bid amount.
The buyer places a bid, which has to be higher than the previous highest bid by 5% or $10, whichever is higher. Please note the highest bidder cannot cancel his/her bid.
Sellers can choose to end the auction earlier by a) canceling the auction, and the current top bidder gets a refund or b) terminating the auction early, and the current top bidder wins the bid**. When the auction ends, the current top bidder wins the bid. If it ends without any bids, the item goes back to “Not for sale” status
* Each edition can be a standalone auction, meaning that a collectible with 100 editions can at most have 100 auctions happening simultaneously.
** Auctions cannot be ended by sellers within 24 hours prior to the expiration time.
Can I Spend My Cryptocurrencies Without Converting Them
A few years ago, various peer-to-peer exchanges noticed that people in China were spending Bitcoin to purchase iTunes gift cards from the United States. These gift cards allowed people in China to access western media on the iTunes store, a kind of loophole around the nations Great Firewall.
Where theres demand there will be a supply, and at the moment, Bitcoin is very much in demand. Whether youre shopping for Amazon gift cards or just topping up your Google Play balance, there are countless services available that let you trade your cryptocurrencies for platform-specific vouchers.
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Sell Cryptocurrency With Coinbase
Perhaps the best-known crypto exchange in the world, Coinbase leads in fiat currency management. The site operates in over 30 countries, is fully regulated and allows verified US users to withdraw fiat currency direct to their linked bank accounts.
Coinbase supports Bitcoin, Litecoin, Ethereum and Bitcoin Cash.
Once youve connected a bank account to your exchange account, withdrawing fiat is as simple as clicking. Note that fiat withdrawals are not currently available in Wyoming, Hawaii, or Minnesota due to state regulations.
Image from Coinbase.com