55% Bitcoin Investors started in 2021. Things to Know if You’re New to the Crypto Space :

If you feel many people entered the crypto market in 2021 then you are right they did enter prior to the 2021 bull run.

More than 50% of BTC investors say they started buying bitcoin in 2021, according to a report from a firm in Grayscale Investments. Experts generally consider Bitcoin, along with Ethereum, a better fit for holding than other altcoins, which remain much more speculative.

Things to know before investing in Crypto :

1. Enhance you Crypto knowledge :

Doesn’t matter if you own a little amount of BTC or ETH. Before you plan to invest big chubk of your money it is recommended to do research and having an basic understanding of the crypto you’re investing in. It may take time to build up the knowledge you need to make a decision, so think of it with a long view in mind and don’t go looking for quick, easy money.

2. Ignore the Noise :

There are more than 15,000 cryptocurrencies in the market and it can get messy and confusing at the beginning. That’s why it is important to keep yourself updated with essential informations.

3. Think about the tax :

Another important thing to keep is the taxes, Crypto holdings are taxed in few countries, similar to how other assets like stocks and commodities are taxed.

You can file taxes on your own or you can bring in a tax professional for help. According to few experts, tax filing for crypto in your return is little easy if you traded crypto within online exchanges like Coinbase, gemini, FTX etc. There are plenty of free software programs available, such as CoinTracker and TokenTax, that can help you generate the cost basis for your crypto trades and determine your capital gains and losses.