Bitcoin and the several other cryptocurrencies that followed are gaining real traction in the investment community. Much of this is due to astronomical returns investors have seen in a matter of mere months.
As more and more people are investing in cryptocurrencies, the Internal Revenue Service is getting more serious about taxing these new financial instruments. However, many people have jumped on the cryptocurrency bandwagon without completely understanding what they’re buying. This can have a substantial impact down the road. However, we don’t all need to become tech experts to understand the value of this new financial product.
Just like with traditional investments, consulting with financial and tax professionals is a smart way to keep your cryptocurrency portfolios on track. Happy Tax employs the most skilled and experienced Certified Public Accountants (“CPA”) to help you understand and minimize tax exposure within your virtual currency wallet.
What Is Cryptocurrency? Few of Us Really Know
If you don’t know, don’t be embarrassed – you’re not alone. In a recent research survey, most Americans reported having at least heard about Bitcoin, the largest virtual currency. However, only around 15 to 20 percent reported any plan to invest in the cryptocurrencies.
Most of us don’t invest in cryptocurrencies because we just don’t understand them. Research on the topic brings up articles on mining and protocols, and we are quickly overwhelmed by the technological details of running a blockchain on decentralized networks. This level of detail quickly becomes overwhelming.
When this happens, don’t get discouraged! Instead, reach out to a qualified professional who can help you understand the ins-and-outs of cryptocurrency. Happy Tax professionals can give you tax advice and planning services specifically focused on cryptocurrency.
Need-to-Know Information Before Buying Cryptocurrency.
Ok, so we don’t need to know how our smartphones work to know that they’re amazing technology that is useful to just about everyone in the world. The same is true about virtual currencies, which are basically a proof-of-concept for a new technology – the so-called “blockchain” – that will change financial markets forever.
An informed cryptocurrency investor doesn’t necessarily need to understand every detail of how a new technology works in order to see its potential value. Bitcoin has increased in value 2,383% year-over-year from December 17, 2016 through December 16, 2017. Bitcoin alternatives, like Ether, Litecoin, Bitcoin Cash, and hundreds of others, have attracted billions of dollars to this new market. With more cryptocurrency futures trading and ETFs on the horizon, virtual currencies are quickly approaching the financial mainstream. So, how can investors participate in this exciting trend without taking on excessive risk?
When in Doubt, Consult a Professional
Happy Tax CPAs have been trained in the rules and regulations specific to cryptocurrencies. As a result, you can count on Happy Tax to get you the tax planning and preparation services you need to manage your cryptocurrency investments effectively