Eight Of The Most Daring Crypto Thefts In History

Crypto Olympics, or the full gamut of blockchain attacks: the biggest, most sophisticated, most audacious cryptocurrency heists of all time read more

What is a DeFi Portfolio?

As the world has moved toward digital for just about everything, it was only a matter of time before financial innovations sprang from the tech sector. While things like online banking have been standard for years, alternative financial solutions like cryptocurrencies have made huge leaps forward to become both valuable investments and ways to store and spend wealth.

The decentralization movement plays a large role in crypto. This movement has a name – decentralized finance or DeFi. When someone says they have a DeFi portfolio, they usually mean that they have a portfolio that is made up of decentralized financial assets. Oftentimes, these portfolios are put together by brokerages. Each brokerage's DeFi portfolio offerings can be different, and they may also be rebalanced on an ongoing basis.

How Trackers Benefit Investors

A DeFi tracker can be used in conjunction with portfolio services to check the performance of assets across various exchanges, blockchains and wallets. The use of a tracker is ideal for investors who want to ensure their portfolio is performing as expected. This can also alert investors to make changes to their portfolios if something isn’t right.

A brokerage will usually be the entity to contact to alter a portfolio, but some portfolios are solely managed by a broker. This means that individual cryptocurrencies or other decentralized assets can’t be changed by the investor.

The Tax Implications of Holding a DeFi Portfolio

Whenever you conduct any type of financial activity in the United States, you can bet the IRS will want a piece of the action. Decentralized finance taxes are a hot topic right now since more and more people have been investing in cryptocurrency in recent years. You will still likely be liable for decentralized finance taxes if you’ve made any type of capital gains on a DeFi investment, but only a tax specialist can guide your specific situation.

Disclaimer: The above is not investing advice. Consult with a financial professional to discuss whether a DeFi portfolio makes sense for you.

Read a similar article about what is crypto staking here at this page.

What is XRP in Crypto?

XRP is a cryptocurrency used by the Ripple network. It’s considered one of the more mainstream options in crypto trading and investing, but it doesn’t garner as much attention as Bitcoin or other big names in cryptocurrencies. More specifically, the XRP ledger is what most people mean when they discuss XRP. The ledger is the technology behind XRP that allows it to operate at lightning speed, and it uses the Ripple transaction protocol to enact transfers for investors. Most XRP transactions can be completed within seconds across the world.

The Foundation of Ripple and XRP

XRP is backed by a plan that was designed to control the cryptocurrency and protect it from inflation and forgery. Ripple created 80 billion coins, of which 55 million were placed in escrow. This was to ensure a steady supply of XRP for many years to come.

Next, XRP was designed to utilize less energy compared to mining other cryptocurrencies. This is used as a selling point because it allows XRP to be mined by people who may not want to spend the energy resources typically required to obtain other cryptocurrencies. There have been many stories in the news recently about how cryptocurrency mining is a problem for energy companies, and many crypto enthusiasts quickly find out that the cost of mining can be exponentially high as mining operations grow.

Is XRP a Good Investment?

As for whether you should invest in XRP, interested individuals are encouraged to consult an XRP price chart before making any investing decisions. In addition to looking at and reviewing an XRP price chart, potential investors are also encouraged to consult with financial advisors who specialize in cryptocurrencies. Although a traditional financial advisor may be able to help you make sound investment decisions, a professional who specializes in crypto will have a deeper understanding of the technology behind an option like XRP.

Disclaimer: The above is not financial advice. Always consult with an investment advisor before investing in cryptocurrencies. Investing carries the risk of loss.

Read a similar article about tether price chart here at this page.

Do I Have to Report Crypto on My Taxes Every Year?

Cryptocurrencies are still a relatively new form of monetary value. Whether you trade and invest with crypto or use it to make purchases or settle debts, it’s important to know whether you have tax liabilities on your crypto holdings, losses or gains.

Currently, the tax laws surrounding crypto and how it will be treated in the future are a bit unsettled. The Internal Revenue Service is still debating about how crypto is to be treated, but for now, crypto is looked at as property. Additionally, you must report losses and gains on crypto investments to the IRS on your annual tax return. There are various forms available from the IRS to handle reporting of crypto, and new forms may be on the horizon that deals directly with cryptocurrency investments.

Changes in Crypto Technology

One of the reasons it remains difficult to pin down laws regarding crypto as it pertains to taxes is that crypto technology continues to evolve. At first, cryptocurrencies like Bitcoin were simply lines of code that were stored in virtual wallets. Over time, blockchain technology and smart contracts have made crypto trading and investing more complex, and tax laws may need to change over time alongside the evolution of cryptocurrencies.

Talk With a Tax Expert

Because laws and regulations are changing rapidly about cryptocurrencies, your best bet is to speak with a tax professional if you have any questions. A tax expert will be able to examine the specifics of your unique situation to provide advice and guidance to help you remain within the law.

You may also want to look into using a tax platform for crypto when filling out and filing your taxes. A tax platform for crypto will usually have the latest information from the IRS already programmed into how it handles data. Using such a platform will provide answers for your situation based on the information you input.

Disclaimer: The above is not intended to be tax advice. For the latest information about your tax liabilities, consult with a tax professional.

Read a similar article about US crypto capital gains tax here at this page.

How are Capital Gains Handled with Crypto?

Crypto burst into the mainstream years ago as an innovative alternative to traditional finance. Today, it presents a popular investment opportunity for those looking to grow their wealth. But even still, there's confusion about tax obligations.

In the UK, His Majesty's Revenue and Customs (HMRC) requires you to pay income and capital gains tax. Despite crypto's decentralized nature, the HMRC can gather information about your crypto activity.

How Does the HMRC View Crypto?

Crypto rules and regulations vary throughout the world. In the United Kingdom, it's not treated like traditional currency. Instead, the HMRC separates cryptocurrencies into four categories.

The first is exchange tokens. These assets are what you can use to make payments. Most popular coins like BitCoin fall into this category.

The second is utility tokens. When you use a utility token, you have the right to access a good or service.

Next is security tokens. With security tokens, you have the right to profit and loss in a business venture.

Finally, there are stablecoins. Stablecoins are attached to other assets like fiat currency or precious metals.

What are the Crypto Capital Gains UK Rules?

If you hold crypto as a personal investment, you're subject to capital gains tax. This tax applies whenever you dispose of a virtual asset. Typically, that means you sell or exchange it. The capital gain is the profit you gain. So if you buy a coin for a bargain and sell it for a much higher price, the difference between those values is a capital gain. Conversely, selling for less than what you bought it for is a capital loss.

Crypto capital gains UK law requires you to report gains and losses. Tax responsibilities will vary based on how much you gain and how long you hold your assets.

Like all other capital gains, you have an allowance. The UK provides a non-taxed limit of up to £12,300 for 2022. Anything above that figure is subject to capital gains taxes. The UK also has separate rules for crypto earned as income or through a business.

Read a similar article about platform for non fungible tokens management here at this page.

How Scammers Steal Cryptocurrency From Twitter Users

The best way to avoid falling for scams is to always think critically, even skeptically read more

How Much Should I Spend on Crypto?

For many investors, cryptocurrency is a new venture filled with promise. Some currencies skyrocketed in value over the last few years, turning humble tech enthusiasts into millionaires virtually overnight!

Seeing those success stories may have you eager to put money down. But how much should you spend on crypto?

Generally, financial experts recommend a more conservative approach when investing in crypto for the first time. Many recommend limiting crypto to just five percent of a larger portfolio. Of course, what you choose to do is up to you. Here are a few things to consider when planning your investment strategy.

Risk Tolerance

One of the most important things to consider is your overall risk tolerance. How much can you afford to lose to experience big gains?

Crypto works very differently than other investment types. It's highly volatile, experiencing dramatic highs and lows. At its peak, some virtual currencies were worth thousands. Take Bitcoin as an example. It exceeded $65,000 during the last quarter of 2021.

However, that value was short-lived. Many crypto prices are 90 percent less than their all-time high! Who knows when or if it will reach those peaks again?

Crypto is inherently volatile, and you must assess your risk tolerance before developing a strategy. Financial experts recommend limiting crypto to five percent of your portfolio to offset those risks. You can experiment but won't lose everything if things go south.

Long-Term Investment Goals

Another factor to think about is how you want your investments to perform in the long term. There's plenty of liquidity in the market, but whether crypto prices will rise again is unknown.

Realizing short-term gains may not be possible. However, investors may see returns if they're willing to sit on investments for months or years.

Prioritize High-Quality Projects

Like traditional stock, virtual currencies have varying levels of potential. Tried and true coins like Ethereum and Bitcoin will likely remain valuable for years. Many upcoming projects are also gaining traction.

Avoid low-quality coins that serve niche markets. To maximize your return, you must focus on coins with upside potential.

Read a similar article about Bitcoin price chart here at this page.