There are a few things you should know before taking a second mortgage on your home and buying bitcoins. I, by no means, am an expert but have invested in multiple Cryptos over the past few months and have done rather well. The first thing is don’t be frustrated if you don’t understand everything right away; the whole concept is relatively complex for anyone to look at and I still don’t understand everything! Secondly, this isn’t a get rich scheme or make a million dollars overnight like some people portray it as, NEVER INVEST MORE THAN YOU CAN AFFORD TO LOSE.
Personally I started investing in the top three coins at the time, BTC (Bitcoin) ETH (Ethereum) and LTC (Litecoin). I quickly realized I would have more fun trading my currencies than holding onto them for years and hoping they would be worth much more then. I took a look at www.coinmarketcap.com and saw all these coins I had never heard of going up 150% overnight and just wanted to be on that train! At that point I decided to take $50 and throw it in to see what I could do in a month. After a month of pretending like I knew what I was doing I was up more than five hundred dollars and realized this was a real thing that I should be paying more attention to. I can highly recommend throwing a small amount of money into crypto and really trying to understand it more before investing with a large sum.
One website to get you started that I used is www.coinbase.com. Coinbase is a website used to deposit money from your bank account and exchange it for BTC, ETH, or LTC. A lot of the different coins that are smaller and aren’t on coinbase will accept any of those in exchange for their currency. I would recommend going with BTC or ETH just because they are more readily accepted. I then took my $50 dollars of BTC and transferred it to www.bittrex.com a website based more towards “alt coins” (the smaller coins that are up and coming). At this point my 50 USD is in my BTC wallet in the form of approximately .00425 BTC. After you have gotten this far you are free to take your BTC and purchase other forms of currency such as SIA, XMY, or NEO. After that, owning the coins is basically like owning stocks: you hope the price goes up and then sell high and buy low.
One important note as far as taxation on crypto goes. If you don’t own the coin for more than 12 months it is considered taxable as just normal income. If you hold it for more than 12 months then cash out whatever money you made is considered capital gains and could potentially have a lower tax rate. Another thing to note is whenever you buy/sell or use crypto to buy something in your day to day life, it is considered a capital gain and you have to record that for tax purposes. There is still a ton of money to be made in crypto in my opinion and it isn’t too late to start learning about it. If anyone is wanting to know more or has any specific questions feel free to reach out and I will try my best to answer any questions.
PLEASE BE AWARE THIS IS JUST MY EXPERIENCE. I AM NOT A PROFESSIONAL TRADER OR GIVING EXACT ADVICE. BUT WOULD LOVE TO CHAT WITH YOU ON THIS BUZZ WORD CYRPTO!