What You REALLY Need to Know About Crypto
A friend of mine was recently lamenting the current crypto market.
I reminded him that crypto is in a “bad mood” right now — and all good news is being ignored, no matter how positive things are for individual tokens.
This negativity fever will break soon and positive news should have a significant impact on the crypto markets.
We’re not there just yet.
While the crypto market has been churning this past week, I see multiple articles daily that demonstrate how bitcoin and crypto are being adopted by more countries, more companies and more individuals.
This is very good news for us as crypto traders…
Why Crypto’s Will Flourish Again
Most governments around the world haven’t banned crypto and instead are adopting a wait-and-see or welcoming attitude.
Japan, Australia and several other nations have decided to welcome crypto with both sensible regulation and open arms.
The United States has not cracked down on crypto either, as was expected. Instead regulators are imposing what appears to be sensible regulation on ICOs.
When it comes to established tokens, the SEC, CFTC and U.S. government appear to be sticking to their wait-and-see and only-step-in-as-needed attitudes.
Crypto will continue to flourish, and if you continue to hang in there and add to your positions, I believe 2018 is going to be a great year for you and your portfolio.
In the meantime, we’re getting a lot of great questions — so today I want to take some time to dive into the reader mailbag…
Your Questions Answered
Here’s a sampling of questions we received recently:
When buying smaller cryptos that cannot be bought with fiat and can only be bought with BTC or ETH, should we be focusing on the dollar-equivalent price of that other crypto or the BTC/ETH price of that other crypto when thinking of placing a trade?
When initially buying into crypto, Bitcoin (BTC) or Ethereum (ETH) are easily purchased with fiat currency. It’s almost always how you enter the crypto universe.
Now, when you buy secondary coins, many must be purchased using bitcoin or ethereum. You’ll want to look at these smaller coins in terms of not just the U.S. dollar price but the bitcoin or ether price as well. Since bitcoin and alt-coins tend to seesaw, a coin may be down dollarwise but it may be up against BTC or ETH.
Here’s another question on everyone’s mind. Especially as we wrap up tax season:
I’m concerned about the fact that the IRS considers crypto assets and imposes capital gains tax if they’re sold or traded. Will you address the issue?
You’re not alone. Everyone’s concerned.
The best thing you can do is keep good records. Anytime you buy any crypto token, jot down the following: The date you bought it, the price you bought it for, where you bought it and how much you bought.
When you sell it’s the same deal. Good record keeping will keep you protected.
That’s it for today folks.
We very much appreciate the questions. Keep them coming.
And I’ll be back again soon with more on the state of crypto markets and how to play the action.
For Technology Profits Daily,
Chief Cryptocurrency Expert