Twollow
  • Tech
    free virtual phone number for whatsapp

    How to Get Free Virtual Phone Number for WhatsApp Installation

    Commercial PA System

    Who Can Benefit From a Commercial PA System and How to Choose One

    cyber security password

    Cybersecurity Reinvented: Exploring the Impact of Passwordless Methods

    system board

    Types of Surface Mount Technology Components – Ferrite Beads & More

    cloud computing

    Cloud Migration Mistakes and How To Avoid Them!

    Peer-To-Peer

    The Ultimate Guide to Understanding Peer-To-Peer Recognition

    How Much Do Laptops Weigh

    How Much Do Laptops Weigh

    How To Turn On Smartwatch Without Power Button

    How To Turn On Smartwatch Without Power Button

    technology

    Demystifying Usenet: Its History and Purpose

  • Apps
    canva design

    An In-Depth Look at Canva Pro Pricing: Is it Worth the Investment

    Food Delivery Apps

    Why White-Label Food Delivery Apps Are Best To Start in 2023

    Why Should You Buy Views for Instagram

    Why Should You Buy Views for Instagram | Top Advantages

    News Mobile App

    Best Practices For Creating Engaging News Mobile App

    app development

    InsiderTech No:1 Web Application Development

    Efficient Hosting Solutions

    Why Businesses Should Use Highly Efficient Hosting Solutions for Their Sites

    How To Build Android Apps With Node JS Using Android JS

    How To Build Android Apps With Node JS Using Android JS

    Is Powerapps Service The Future Of App Development?

    How To Make Night In Little Alchemy

    How To Make Night In Little Alchemy?

  • How To
    How To Reset Cricut Explore Air 2

    How To Reset Cricut Explore Air 2

    How To Turn On Smartwatch Without Power Button

    How To Turn On Smartwatch Without Power Button

    How To Reset Ebike Battery

    How To Reset Ebike Battery

    How To Remove Pressure Marks From Laptop Screen

    How To Remove Pressure Marks From Laptop Screen

    How To Set Time On Smartwatch Without App

    How To Set Time On Smartwatch Without App

    How To Reset Shark Robot Vacuum

    How To Reset Shark Robot Vacuum

    How To Reset Inverter Overload

    How To Reset Inverter Overload

    How To Reset Induction Cooker

    How To Reset Induction Cooker

    How To Reset A Microwave

    How To Reset A Microwave

  • Business
    • All
    • Finance
    business operations

    Maximizing Efficiency in Business Operations: 7 Strategies for Success

    PPC

    Integrating sustainability and climate action in the business sector

    business intelligence

    Tech That Will Help You Run Your Business

    account

    The Top 4 Reasons to Start a Bonus Savings Account

    invest

    Are Investment Returns Guaranteed in a ULIP?

    consulting with client

    How Sapper Consulting Can Help Your Budding Company

    Should Commercial Vehicles Be Insulated

    Should Commercial Vehicles Be Insulated?

    customer service tip

    The 5 Best Customer Service Tips for Online Retailers

    How Land Developers Can Cash In On The Solar Trend

    Factors To Keep in Mind When Importing Solar Panels

  • Marketing
    Email marketing and many envelopes in smartphone screen

    Top Holiday Email Marketing Tips: Labor Day Edition [+ Bonus with Top 20 Subject Lines]

    Email Marketing

    Email Marketing 101: 3 Foundational Insights for Your Business

    ux designer

    Adapting Assessment Platforms for Diverse Tech Roles

    Best Chicago SEO Agencies

    Best Chicago SEO Agencies

    web scrap

    Unveiling Global Opportunities: The Whys and Hows of Web Scraping in International Websites

    ecommerce sale

    Boost Sales on Your E-Commerce Site with These 4 Cool Improvements

    How to Construct an Efficient and Solid Base of B2B Sales Leads

    How to Construct an Efficient and Solid Base of B2B Sales Leads

    Ecommerce Conversion Funnel

    Selling More with the Right Ecommerce Conversion Funnel

    Incident Response Assistance Solution. Service Team of Data Center Help Desk helping with a customer for technical problems and resolving. Customer Satisfaction and Feedback.

    Integrating CRM With Marketing Automation: A Winning Combination

  • General
    workplace saftey

    8 Types of Safety Clothing in the Workplace

    food industry

    The Importance of Agricultural Standards in the Australian Food Industry

    Music learning

    5 Stress-relief Gifts to Help Employees Relax

    Is Xtorch Still In Business

    Is Xtorch Still In Business

    Are Converse Business Casual

    Are Converse Business Casual

    divorce

    Divorce in Milwaukee: Your guide to getting started

    Can Police Drones See In Your House

    Can Police Drones See In Your House

    How Many Times Can A Felony Case Be Reset

    How Many Times Can A Felony Case Be Reset

    How Much Is Crossfit Membership

    How Much Is Crossfit Membership

  • Reviews
    detecting plagiarism

    Editpad’s Plagiarism Checker Review: Is it best in detecting plagiarism?

    Development of Cryptocurrency

    A Crypto.com Overview

    Ophthalmology eyesight examination

    Red Light Therapy Devices for Eyes: Where to Buy

    text to speech

    Best Text to Speech Converters Reviewed

    air purifier

    Where Can You Find the Best Air Cleaner Pro Reviews?

    How to Choose a Cheap Hosting

    Liquid Web Reviews: A Look At A Reliable Hosting Company

    Ionic Training

    Get Ionic Training and Improve Your Career Options

    Learning Experience

    Salesforce DX myTrailhead to Customize the Learning Experience

    Best Web Hosting Services

    10 Best Web Hosting Services 2018

  • Featured
No Result
View All Result
  • Tech
    free virtual phone number for whatsapp

    How to Get Free Virtual Phone Number for WhatsApp Installation

    Commercial PA System

    Who Can Benefit From a Commercial PA System and How to Choose One

    cyber security password

    Cybersecurity Reinvented: Exploring the Impact of Passwordless Methods

    system board

    Types of Surface Mount Technology Components – Ferrite Beads & More

    cloud computing

    Cloud Migration Mistakes and How To Avoid Them!

    Peer-To-Peer

    The Ultimate Guide to Understanding Peer-To-Peer Recognition

    How Much Do Laptops Weigh

    How Much Do Laptops Weigh

    How To Turn On Smartwatch Without Power Button

    How To Turn On Smartwatch Without Power Button

    technology

    Demystifying Usenet: Its History and Purpose

  • Apps
    canva design

    An In-Depth Look at Canva Pro Pricing: Is it Worth the Investment

    Food Delivery Apps

    Why White-Label Food Delivery Apps Are Best To Start in 2023

    Why Should You Buy Views for Instagram

    Why Should You Buy Views for Instagram | Top Advantages

    News Mobile App

    Best Practices For Creating Engaging News Mobile App

    app development

    InsiderTech No:1 Web Application Development

    Efficient Hosting Solutions

    Why Businesses Should Use Highly Efficient Hosting Solutions for Their Sites

    How To Build Android Apps With Node JS Using Android JS

    How To Build Android Apps With Node JS Using Android JS

    Is Powerapps Service The Future Of App Development?

    How To Make Night In Little Alchemy

    How To Make Night In Little Alchemy?

  • How To
    How To Reset Cricut Explore Air 2

    How To Reset Cricut Explore Air 2

    How To Turn On Smartwatch Without Power Button

    How To Turn On Smartwatch Without Power Button

    How To Reset Ebike Battery

    How To Reset Ebike Battery

    How To Remove Pressure Marks From Laptop Screen

    How To Remove Pressure Marks From Laptop Screen

    How To Set Time On Smartwatch Without App

    How To Set Time On Smartwatch Without App

    How To Reset Shark Robot Vacuum

    How To Reset Shark Robot Vacuum

    How To Reset Inverter Overload

    How To Reset Inverter Overload

    How To Reset Induction Cooker

    How To Reset Induction Cooker

    How To Reset A Microwave

    How To Reset A Microwave

  • Business
    • All
    • Finance
    business operations

    Maximizing Efficiency in Business Operations: 7 Strategies for Success

    PPC

    Integrating sustainability and climate action in the business sector

    business intelligence

    Tech That Will Help You Run Your Business

    account

    The Top 4 Reasons to Start a Bonus Savings Account

    invest

    Are Investment Returns Guaranteed in a ULIP?

    consulting with client

    How Sapper Consulting Can Help Your Budding Company

    Should Commercial Vehicles Be Insulated

    Should Commercial Vehicles Be Insulated?

    customer service tip

    The 5 Best Customer Service Tips for Online Retailers

    How Land Developers Can Cash In On The Solar Trend

    Factors To Keep in Mind When Importing Solar Panels

  • Marketing
    Email marketing and many envelopes in smartphone screen

    Top Holiday Email Marketing Tips: Labor Day Edition [+ Bonus with Top 20 Subject Lines]

    Email Marketing

    Email Marketing 101: 3 Foundational Insights for Your Business

    ux designer

    Adapting Assessment Platforms for Diverse Tech Roles

    Best Chicago SEO Agencies

    Best Chicago SEO Agencies

    web scrap

    Unveiling Global Opportunities: The Whys and Hows of Web Scraping in International Websites

    ecommerce sale

    Boost Sales on Your E-Commerce Site with These 4 Cool Improvements

    How to Construct an Efficient and Solid Base of B2B Sales Leads

    How to Construct an Efficient and Solid Base of B2B Sales Leads

    Ecommerce Conversion Funnel

    Selling More with the Right Ecommerce Conversion Funnel

    Incident Response Assistance Solution. Service Team of Data Center Help Desk helping with a customer for technical problems and resolving. Customer Satisfaction and Feedback.

    Integrating CRM With Marketing Automation: A Winning Combination

  • General
    workplace saftey

    8 Types of Safety Clothing in the Workplace

    food industry

    The Importance of Agricultural Standards in the Australian Food Industry

    Music learning

    5 Stress-relief Gifts to Help Employees Relax

    Is Xtorch Still In Business

    Is Xtorch Still In Business

    Are Converse Business Casual

    Are Converse Business Casual

    divorce

    Divorce in Milwaukee: Your guide to getting started

    Can Police Drones See In Your House

    Can Police Drones See In Your House

    How Many Times Can A Felony Case Be Reset

    How Many Times Can A Felony Case Be Reset

    How Much Is Crossfit Membership

    How Much Is Crossfit Membership

  • Reviews
    detecting plagiarism

    Editpad’s Plagiarism Checker Review: Is it best in detecting plagiarism?

    Development of Cryptocurrency

    A Crypto.com Overview

    Ophthalmology eyesight examination

    Red Light Therapy Devices for Eyes: Where to Buy

    text to speech

    Best Text to Speech Converters Reviewed

    air purifier

    Where Can You Find the Best Air Cleaner Pro Reviews?

    How to Choose a Cheap Hosting

    Liquid Web Reviews: A Look At A Reliable Hosting Company

    Ionic Training

    Get Ionic Training and Improve Your Career Options

    Learning Experience

    Salesforce DX myTrailhead to Customize the Learning Experience

    Best Web Hosting Services

    10 Best Web Hosting Services 2018

  • Featured
No Result
View All Result
Twollow
No Result
View All Result

New Year, New Investment Ventures: A 2022 Beginner’s Guide to Cryptocurrency

by Muhammad Irfan Bajwa
December 15, 2021 - Updated on October 6, 2022
0
cryptocurrency investment
Share on FacebookShare on Twitter

As we approach the end of 2021, you may be reflecting on areas of improvement for the coming year. Maybe you would like to focus on your financial health. If this is important to you, you will likely be on the hunt for investment options that offer your investment’s best returns.

While traditional investment avenues like real estate and stock market securities have a high potential for returns, newer avenues promise equally excellent returns. You may be curious as to how viable cryptocurrencies are as an investment opportunity.

What is Cryptocurrency?

As the name suggests, cryptocurrency is currency—something you can use to buy or sell items. Unlike hard cash, however, it lacks a physical form; it only exists digitally, stored in virtual wallets on computer hard drives worldwide. Cryptocurrency is not backed by physical assets the way conventional currency is.

The first part of its name refers to the fact that this currency is encrypted to guarantee its security.

Common examples of cryptocurrencies include Bitcoin, LiteCoin, Ripple, and Ethereum.

Tokens, Coins, and Blockchains

You may have heard the words ‘coin’ and ‘token’ used interchangeably in crypto circles, but they don’t necessarily refer to the same thing. Both of these are based on blockchain, the basic unit of cryptocurrency. Blockchain is a collection of blocks; a block is a store of information; in this case, information about virtual currency transactions.

When transactions happen, cryptocurrency miners verify and update the transactions in blocks until the block reaches capacity. Miners will update subsequent transactions in a new block, which will be ‘chained’ to the previous one in chronological order.

A cryptocurrency with its own stand-alone blockchain is known as a coin, while one built on an already existing blockchain is known as a token. The popular cryptocurrency Bitcoin is an excellent example of a coin. Bitcoin introduced the world to the first-ever blockchain. If you would like to invest in and trade bitcoin, then you may want to consider doing so via the Crypto Bank Plattform. There are, however, lots of places you can do this.

Types of Cryptocurrency

There are different types of crypto, each having its own distinguishing features. The features and utility of a cryptocurrency go a long way in determining its viability. Here are some features to look for when looking at any potential crypto investment:

  • Rights – What rights are you entitled to when you buy into a given token? For instance, do you get voting rights within that particular currency’s ecosystem to decide on future projects’ funding?
  • Value Exchange – Do the tokens of the cryptocurrency allow you to buy and sell or get rewarded for completed tasks within its internal economy? If tokens don’t create such markets, the crypto may not be worth the investment.
  • Toll – crypto can be a gateway through which you access services on a particular platform. For instance, some tokens give you access to the processing power of cloud computers.
  • Function – Holders of tokens in particular environments can add features that enrich their experience.
  • Currency – Crypto should be a store of value, like conventional currency, allowing you to conduct transactions even outside of the cryptocurrency’s ecosystem.

Rules and Regulations

According to the Internal Revenue Service (IRS), digital currencies are not considered legal tender. There are, however, transactions conducted in the cryptocurrency ecosystem that is liable to taxation. The IRS views cryptocurrency as property, just as it does with real estate or stock market securities. In the same way, you’re responsible for paying capital gains tax when you sell a property that has appreciated, you will also be expected to declare and pay the same if you profited from your crypto dealings.

To remain in good graces, you first will need to keep clear records of your crypto transactions. Whether you bought or sold your share of a cryptocurrency or were engaged in cryptocurrency mining, you need to keep detailed records of these transactions and include them when filing your tax returns.

This is typically true no matter where in the world you are based – for example if you live in Germany, this useful guide that explains wo kryptowährung kaufen (where to buy cryptocurrency) can help you to determine how to keep track of your records.

Recent changes have seen an explicit request for crypto transaction information included in Form 1040. Even if you were donated the crypto you got that year, the IRS wants you to declare it in the form.

Keeping tabs on your crypto transactions and correct filing can be a bit tricky, especially if you’re dealing with more than one cryptocurrency or multiple cryptocurrency exchanges. For this reason, you may want to consider hiring a cryptocurrency tax accountant who will help you record your transactions and accurately declare them to avoid looking shady to the IRS and incurring fines. Click here to learn more about cryptocurrency tax accountant services.

Getting Your 2022 Investment Right

For your 2022 investment to be successful, you need to do your homework beforehand. Be sure to research the current popular cryptocurrencies as well as any promising ones that are emerging. Figuring out how to efficiently and accurately complete your cryptocurrency tax from the get-go will ensure that all your transactions are well documented and filed using Crypto.

Muhammad Irfan Bajwa

Muhammad Irfan Bajwa

Irfan Bajwa is an emerging business enthusiast and passionate blogger and writer on a versatile level.

Related Posts

invest
Finance

Are Investment Returns Guaranteed in a ULIP?

When you're navigating the labyrinth of financial planning, you might stumble upon a product that promises both investment and insurance:...

by John Morris
September 13, 2023
Does Klarna Accept Chime
Finance

Does Klarna Accept Chime

Online shoppers and financial enthusiasts! Are you an avid user of Chime, the innovative online banking platform, and curious about...

by Daniel Oropeza
August 7, 2023
Why Invest in Gold
Finance

Why Invest in Gold & How to Choose the Right Dealer?

Worried about government deficits and the generally unfavorable economic situation in the entire country and the world for that matter?...

by John Morris
July 31, 2023
What Is Payroll Software And What Are Its Benefits
Finance

What Is Payroll Software And What Are Its Benefits?

Streamlining payroll management is crucial for businesses of all sizes, considering the increasing intricacy of payroll processes and regulations. However,...

by Tom Fogden
May 30, 2023

Recommended

free virtual phone number for whatsapp

How to Get Free Virtual Phone Number for WhatsApp Installation

September 24, 2023 - Updated on September 25, 2023
business operations

Maximizing Efficiency in Business Operations: 7 Strategies for Success

September 21, 2023
Email marketing and many envelopes in smartphone screen

Top Holiday Email Marketing Tips: Labor Day Edition [+ Bonus with Top 20 Subject Lines]

September 20, 2023

Who We Are

Twollow is one of the leading tech and business blogs, that is dedicated towards updated Technology & Business news, reviews, Apps, how-to, smart tricks, and tweaks.

Follow Us

  • Facebook

Categories

  • Apps
  • Business
  • Education
  • Featured
  • Finance
  • General
  • How To
  • Marketing
  • Reviews
  • Security
  • Tech
  • Uncategorized

Top Posts & Pages

  • 100+ Free Premium Minecraft Accounts & Passwords (Tested 2023)
    100+ Free Premium Minecraft Accounts & Passwords (Tested 2023)
  • How to Get Free Virtual Phone Number for WhatsApp Installation
    How to Get Free Virtual Phone Number for WhatsApp Installation
  • Ways to Encourage Social Development in Children
    Ways to Encourage Social Development in Children
  • Maximizing Efficiency in Business Operations: 7 Strategies for Success
    Maximizing Efficiency in Business Operations: 7 Strategies for Success
free virtual phone number for whatsapp

How to Get Free Virtual Phone Number for WhatsApp Installation

September 24, 2023 - Updated on September 25, 2023
business operations

Maximizing Efficiency in Business Operations: 7 Strategies for Success

September 21, 2023
Email marketing and many envelopes in smartphone screen

Top Holiday Email Marketing Tips: Labor Day Edition [+ Bonus with Top 20 Subject Lines]

September 20, 2023
  • About Us
  • Contact Us
  • Terms of Use
  • Privacy Policy
  • Disclaimer
  • Cookie Privacy Policy

No Result
View All Result
  • Home
  • Security