Crypto Currency Investing Chapter 9 Summary: FAQ’s

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Crypto is still relatively new, and as such, it’s not heavily regulated.

This lack of regulation brings with it a lot of gray area and it is understandable that crypto investors, both new and experienced, have questions.

Hopefully, the following information will shed some light on some of the more common queries.

Investing in crypto for the long term, especially in the front runners such as Bitcoin and Ethereum, may bring larger yields than your current retirement plan and is a good form of diversification.

In the US, it is possible to use your IRA, but for now, it will need to be a self-directed IRA.

It is also technically possible to own crypto in your 401(k) if you are not under an employee-sponsored plan.

As of 2022, cryptocurrencies do not have the ‘medium exchange’ status, which means they do not have the same tax treatment as stocks.

However, you do have to pay tax on capital gains.

Donations of crypto and inheritance are taxed the same as traditional assets. Gifts of less than $15,000 are not taxed.

Obviously, every country and region is different. It is always recommended to keep all your records and consult a local tax professional.

A hard fork occurs when there is a protocol change on a blockchain. New coins have different features and so the old currencies on the network are dropped.

When this happens, holders of the old currency are usually allotted new coins.

Read the next chapter here.

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