2020 has been quite the year already, and we’re only halfway through! Although the crypto market, like all markets, has been extremely volatile this year, many investors are simply holding their investments rather than buying or selling. 2020 has been quite the year already, and we’re only halfway through! Although the cryptocurrency market, like all markets, has been extremely volatile this year, many investors are simply holding their investments rather than buying or selling. We have a few quick tips for those of you who are investing for the long haul in hopes of long term financial gains. 1. Ignore (some of) the News Cryptocurrency news can be guilty of sensationalism just like other media channels. It can be tempting to stay up-to-date all the time on what is happening with your crypto investments and of course that is not a bad idea, but if you notice yourself having emotional reactions to the articles you are reading, perhaps you may need to cut back. Emotion can cause investors to prematurely sell based on a quick decision. It is also never a good idea to buy based on emotion. Try to take a step back and trust that the market will take care of itself. It’s ok to ignore some of the day to day volatility the crypto market exhibits. 2. Wallet If you don’t already have a good wallet for your bitcoin, you need one. A secure, offline wallet is the best way to protect your cryptocurrency. Since bitcoin’s inception millions of dollars in crypto have been fraudulently hacked and taken. Coinbase is probably the one most people trust with their crypto, but there are plenty of great options out there! 3. Make Taxes Easier Hopefully you’ve already been paying taxes on your crypto investments as the IRS has been requiring it for some time now. Navigating the tax forms can be tedious. If you are someone who is holding onto their cryptocurrency then you’ll have to fill out Form 8949 and if you’ve been mining or earning crypto currency as payment you’ll have to report it as income on your schedule 1. You’re in the crypto game for the long haul, so don’t try to do your taxes without help year after year. Try out Taxbit to help simplify keeping track of your investments and preparing your tax statements. 4. Diversify Your Portfolio Just like your stock, it’s smart to invest in multiple cryptocurrencies – not just one. Over the last few years many new cryptocurrencies have emerged and many of them have gained significant traction. Diversifying your Bitcoin portfolio into currencies like Ethereum, Litecoin, and Ripple can help solve for some of the immediate volatility of one currency or another. This is the same idea behind mutual funds for stocks and is tried and true in that market. Spreading your investments out may cause you to miss out on capitalizing on some short-term gains, but over time it will prove to be the safer way to go for the long run. Post fetched from this article
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy
Privacy Overview
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.