Investing in cryptocurrencies is a fabulous opportunity for those looking to expand their portfolio with a new and fast-moving commodity asset. Cryptocurrencies are unique assets that are new to the world of institutional investing. Yet nearly 50 million Americans now own “shares” of Bitcoin (BTC) and many other crypto coins like Ethereum (ETH), Bitcoin Cash (BCH), or Litecoin (LTC).
The U.S. market for crypto assets is booming, and as more and more investors flock to the decentralized investment opportunity, the larger the marketplace becomes. The beauty of crypto assets is their dominant performance alongside new-age marketing techniques.
Momentum from positive feedback inspired by Elon Musk and many, many others can send these commodity prices soaring to new heights. While this may seem like an odd marker for future success, remembering that cryptocurrencies trade like fiat currencies and behave, partially, like stocks can account for this unique pattern of price fluctuation.
Cryptocurrency provides a phenomenal platform for growth if you build a strategy for leveraging these holdings in a way that fits your overall needs and risk tolerance as a data-driven investor. Investors all over the world are taking advantage of cryptocurrencies and crypto-inspired solutions. Yet it’s important to remember that these investment assets come along with a tax burden just like any other investment.
Utilizing a crypto tax calculator is a great way to mitigate the trouble that first-time crypto investors face during tax time. For example, searching online for “crypto tax Australia” can get you all the help you need in one localized space. Take these notes under consideration when approaching the crypto exchange for maximum impact.
Cryptocurrencies offer a dual-threat opportunity.
One of the most impressive functions of the crypto exchange marketplace is the underlying value of cryptocurrency assets that can operate within two unique financial fields.
Crypto assets can be traded or held like stock investments, and they can be spent like a dollar bill on any type of purchase you might think to make in your daily life. Investors who are looking to lock in the performance boost that these coins and tokens provide will need an ally though.
Using a site like CryptoVantage is the best way to conduct all your cryptocurrency research in one place. In order to take advantage of the buying power that Bitcoin or Ethereum offer while still maintaining your portfolio’s competitive edge, constant research with a trusted source is essential.
While traditional fiat currencies operate in a constant state of flux, the price movements that occur here rest within the fractional cent range. Crypto assets can explode overnight by a factor of two, five, or ten, given the right circumstances. For those looking to leverage Bitcoin or Ethereum holdings for expanded purchasing power, tapping into these wild price swings can drive a unique means of inflation-busting power.
Crypto assets can earn better interest for savers as well.
Another unique power locked into the cryptocurrency market is the savings power that crypto capital gains can provide. Exchanges like Coinbase, Kraken, or Binance need a large liquid base of currency tokens in order to facilitate the constant trading volume that their servers see. In order to incentivize this, they provide staking as a routine means of earning additional coins in the form of interest on your existing digital assets.
This can vary from a few percentage points to well into the double digits. The interest rates are paid out daily and put traditional savings accounts to shame.
Cryptocurrency is a global and digital phenomenon. Wherever your trading takes place, make sure you remember these cornerstones of the cryptocurrency world in order to continue to see excellent returns on your investments.