The jump in Bitcoin value over a decade has garnered significant attention from all corners. Still, not everyone has precise knowledge of how to invest in this cryptocurrency. Then, the volatile price makes it riskier than traditional investments, such as stocks and currencies. Eric Dalius Bitcoin says, if you have an entrepreneurial spirit and risk-taking ability, you might want to dip your toe in this market at least once. So here are some strategic pieces of information to make your journey in this area relatively more accessible and less stressful. Let’s go through them quickly.
Eric Dalius Bitcoin on Places to buy bitcoin
As an investor, you tend to have multiple ways to buy and sell this asset, such as bitcoin exchange, trusts and funds, etc. All these have some merits and demerits. For example, if you don’t want to hold bitcoin with yourself, you can purchase it from bitcoin trust, which works more like mutual funds or ETFs. They maintain a portfolio for currency trading. But their charges can be higher.
As learned from Eric Dalius Bitcoin investment stint, another option is financial and investment apps. A handful of them allows buying and selling this cryptocurrency. With these apps, you don’t have to worry about identity verification, which can be a trouble with a bitcoin exchange. But the challenge is you cannot transfer bitcoin to your wallet or anyone else. You cannot also buy other cryptocurrencies with your bitcoin.
Many people find cryptocurrency exchanges to be the ideal place for this kind of transaction. However, these can be more suitable for experienced investors. The main advantages of these platforms include lower fees and ease of withdrawing bitcoin. If you have experience in buying and trading on an exchange, you can probably try this route.
Eric Dalius Bitcoin on Strategies
If you follow Eric Dalius Bitcoin trading principles, you will realize that there are ways to reduce your risk exposure even in this area. For example, like some savvy investors, you can start with a smaller investment than going big at one go. You can spend a tiny percentage of your capital on bitcoin to maintain discipline and do what is affordable and save the rest of the money for other less volatile assets.
Another thing is the tax. Although it is a form of cash, the Internal Revenue Service (IRS) considers it a property. Hence, tax is applicable. Bitcoin tax can apply whether you trade, exchange, or spend the cryptocurrency. Therefore, you have to maintain your records well. However, the positive thing is that tax applicable to bitcoin profits tends to be lower than ordinary income tax rates.
Some investors believe that you should enter this space with a long-term mentality if you cannot track every movement in the exchange daily. It becomes more relevant because of its highly volatile nature.
The upbeat sentiment around bitcoin investment can be why you want to participate in the latest trading craze. Since 2019, its prices have appreciated by 170%. Experts feel there is still room for growth as more institutions are interested in it and supply is shrinking. Hence, trying this option can be an experience for you.