Cryptocurrency is the current hot favorite of traders and people interested in becoming rich immediately. After all, crypto-currency is the major key to making your life comfortable if luck would have it.
Crypto-currency just like the stock-market has become a point of investing and earning for people. Though people like crazy are investing with the hope of getting something big out of it, you will be shocked to know that many people have no idea about the basic facts of crypto-trading and most of them are just myths.
There are many advertisements claiming to invest in the cryptocurrency because it values is regularly increasing, but why forget the part that the crypto-currency market is highly volatile and unstable so it means that it is quite risky to invest in the cryptocurrency market.
Ever since the launching of Bitcoin a decade ago in 2009 by Satoshi Nakamoto, there has been just a continuous rise in the interest and value of Bitcoins and what’s more that after Bitcoin there have been so many other crypto-currencies launched like Litcoin, Altcoin, Ripple and many more.
Many people are unsure about when to buy, sell or clearly why to buy a cryptocurrency when there is so much confusion about the protocols. The major downside of crypto-currency is that the protocols of Crypto-currency are different for different countries and that is where the confusion starts. It becomes really hard to get a straight answer on any issue of crypto-currency because crypto-currency is still not accepted by many countries and is considered an illegal way of earning money.
In the shocking turn of events, recently even Facebook banned some of the advertisements in bad lights displaying some really bad actors appearing on Facebook platform. According to them, these advertisements were wrongly promoting binary options, ICOs, and cryptocurrencies that are sadly not working in any one’s good faith as of now.
So, with so many new crypto-currencies launching and also so many misunderstand and myths also cropping up with it, we decided to help you bust some of the wrong myths before you get completely misguided by it.
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So, thank me later but first read down some of the Myths that I have busted regarding crypto-currency and honestly, that should have been done long back.
# 1 Myth: Crypto-currency is not regulated!
It is completely untrue and the report by 2017 SEC investigation says:
- Traders and distributors of ledgers are supposed to required to register with SEC and financial industry Regulatory Authority,
- The sale of the digital assets by “Virtual organization” is federal to securities law.
#2 Myth: No need to pay taxes
This is the worst myth that you are not liable to pay taxes when you are earning in cryptocurrency.
- If you have made profits in crypto-currency who are supposed to bring this to the knowledge of IRS.
- IRS views cryptocurrency as a property and not just currency for tax, so there you have your answer.
- According to IDRS, payments made in virtual currencies should also be reported to them.
# 3 Myth: you can use it wherever you like
Again sorry to burst your bubble, but not everyone is accepting crypto-currency as a standard method of payment thanks to its highly volatile nature. However, there are just a few companies like Microsoft that have come forward to show support by accepting Bitcoins as a medium of payment. Microsoft accepts it’s just for certain purchases only.
# 4Myth: the investment in crypto-currency will increase
It can’t be said so because of the highly volatile nature of crypto-currency.
- The rate of crypto-currency keeps varying according to forecasting.
- The fluctuations are highly influenced by the media.
