There are many ways to invest and make dividends from your investments. Stocks, shares, and long term saving options are just a few of the investment methods that are open to you.
In today’s modern world, another investment route has opened up, and that is investing in cryptocurrency. As cryptocurrencies can also pay dividends, it is important to debunk some of the common myths around them should you ever choose to invest. Here are just a few of them.
Thought #1: Cryptocurrency isn’t a wise investment choice
When it comes to making investment choices, many people prefer to use those methods that produce physical wealth. As investing in cryptocurrencies involves trading in digital currencies, some people are quick to dismiss it.
Investing in cryptocurrencies has also been deemed an unsafe investment choice. Because of the volatility of the bitcoin market, and because you can’t see who you are trading with, some consider this type of investment to be a risky business.
Admittedly, this type of investment isn’t for everyone, especially those who want to produce cash for a dividend portfolio. However, to call it unwise is unfair, as there are many bitcoin millionaires out there. Sure, there are risks, but there are risks with most types of investing. It’s only unwise to invest if you don’t know what you’re doing and if you have no interest in digital currencies. The key is to commit to research, as the more you know about investing in bitcoin, the wiser you will be.
Thought #2: Cryptocurrencies aren’t taxable
For those currently investing in bitcoin, you do need to know that cryptocurrencies are taxable. Some people have believed this isn’t the case due to the digital nature of the currency, but if you make a net gain from them, you do need to report them on your tax return. If you don’t inform the IRS, you could face a huge fine or a jail sentence. So, don’t take that risk. Research the tax laws that surround cryptocurrencies, and when it comes to doing your taxes, use a Crypto Tax Calculator to make your life easier.
Thought #3: Online stores don’t accept bitcoin
Cryptocurrencies were once considered illegal, and the only people doing business in them were those buying and selling on the dark web. Some people have assumed, therefore, that digital currencies can’t be spent legally. However, times have moved on, and while cryptocurrency is still illegal in some countries, it can still be used in those places where it has been legalized. As of February this year, the UK, the USA, and most other developed countries have allowed the use of digital currencies. What does this mean? Well, it means that popular online stores such as Etsy, Shopify, and a range of other major websites accept bitcoin as legal tender, and the list of where they will be accepted is growing on a regular basis.
These are just a few of the myths surrounding cryptocurrencies, so don’t be fooled by them. And there are all kinds of other myths out there, so do your research, Even if you’re not interested in investing in them now, it is still worth finding out a little bit more about this type of investment, as you might consider the option down the line.