It’s very easy to overlook these 4 things when it comes to investing in the cryptoverse but being aware could really help you protect and grow your assets.
- Keep Detailed Records Of Trades As Back-Up And For Tax Purposes
Two things are certain in life – death and taxes. Not keeping accessible records can trip up anybody on the way to seeking their fortune. I previously wrote a post on a simple solution to this and it is one of the first things anybody investing in anything should take care of, especially in areas as complex as cryptocurrencies.
I wrote a previous post about a simple method I use to keep detailed records of all my trades and produce tax reports without any hassle.
How To Calculate Tax Due On Cryptocurrencies Easily
- Be Aware Of Normalcy Bias – Cryptos Are NOT The Stock Market
Many people enter the crypto-investing space with subliminally (or not so subliminally) planted ideas that investing in crypto is like investing in stocks, it’s not.
Sure, a big wave of cash into a coin can lift its price and a dump can drop it but a wise thing to remember is that cryptocurrencies are completely speculation driven and the long-term value will be utility driven
The stock market has a larger number of proven business models affected by a world we may have more understanding of. The peripheral threats to value of stocks can be more easily read (if you look in the right places) but crypto and the blockchain is a new education.
- Education Could Be Your Most Valuable Currency
The people that will do very well are the ones that understand that knowledge is very much power at this stage of cryptocurrency investing.
We’re in a new space and the value of assets could massively increase or decrease as the businesses behind our assets compete to adapt to the new technologies and opportunities.
Understanding the projects and keeping a close eye on the cryptocurrency world’s latest developments as well as your chosen investments is the key to maintaining and growing wealth.
If you’d have, for example, invested $1000 (maybe a stimulus check) in Theta in early 2020 you would have gained around $80K in around 12 months. It pays to be informed of where a project may be going.
- Spare Time Could Be Free Crypto Potentially Growing In Value
Lack of confidence in fiat currencies and the hope of decent gains is what drives many to the crypto investing space but also creates a dilemma. We currently need fiat to pay our bills and live.
One thing I (and many others do) is take the correct advice of ‘not investing more than you can afford’ but also use my down time to collect free crypto on a couple of reliable platforms to increase my potential investments.
I particularly like doing this as I treat it like a totally free spare time business - most people have spare time.
Many people don’t have a pension or substantial savings and any collected crypto assets are subject to a lot of potential growth as soon as you’ve collected them. I see this as an easy, long term way of potentially growing a decent income with no risk.
I wrote a previous post about what I do on a day to day basis here:
How To Build A Growing Long Term Income Collecting Free Cryptocurrencies
Have a great day friends
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