Cryptocurrencies

Metaverse NFT/Metaverse Real Estate

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Metaverse real estate refers to a virtual real estate or an NFT (non-fungible token) asset in the digital world. It is a virtual space in the metaverse that represents a scarce and limited piece of virtual land and that is there in the metaverse. 

You can purchase this virtual real estate using your cryptocurrency. So, it means it is an effective way to manage your cryptoportfolio. In this article, we are going to discuss this matter in more detail to find out what it is all about, so keep reading. 

What is Metaverse NFT?

Of course, the metaverse is an immersive but shared virtual world where avatars represent players and they can interact with one another. They can construct or develop various experiences, and create different in-world objects or even landscapes. In other words, you can use these NFTs to buy and sell different digital things using cryptocurrency and manage your cryptoportfolio. 

Metaverse NFTs are non-fungible tokens or digital assets that cannot be replaced with anything else. For instance, bitcoin is fungible, because you can trade wine bitcoin for another and you will have the same thing. But how about a unique trading card, that thing is an NFT or non-fungible token. 

After the trade, you will have to replace it with another card, which is not similar. So that card is an NFT. So is a virtual clip-art of rocks or some kind of a virtual painting that you have created, and it can be digital space within the metaverse. 

But How Does It All Work? 

At the top level, most of these NFTs are part of the Ethereum blockchain. Ethereum is a cryptocurrency just like Litecoin, Dogecoin, or Bitcoin. Blockchain supports all these currencies and many others. Different blockchains can implement their own NFT versions. 

But what is it all worth? As NFTs can be anything that is digital, a lot of hype is to sell digital art and space using tech. Copies of these NFTs can be downloaded but the original rights remain with the owner or creator. 

If you have a really cool-looking digital art or an awesome-looking sticker then you can sell it as an NFT. The items you can sell as digital art are something that you cannot sell anywhere else. As a buyer, you can really support an artist by appreciating his/her work. 

NFTs and Real Estate

In recent times the real estate industry has really shown that it can use NFTs pretty well. As these NFTs are associated with digital things. But there is a game where players can sell and buy digital land in the Virtual real estate market and it’s called Decentralnd. 

These properties are bought and sold as NFTs. You will get a deed that shows your ownership proof. And you can buy and sell this piece of virtual land using cryptocurrency (Mana Coin). 

But Etherland is a new NFT project that incorporates real-world properties and links them with NFTs. So you have a unique property, and you can NFT it using the Ethereum block, a pretty secure cryptocurrency.  

Top Metaverse NFTs

Here is a list of top metaverse NFT projects that are completed or are in the works,

  1. Beeple or Mark Winklemann’s digital artwork called the Everydays: the First 5000 Days went for USD 69.3 million in 2021. 
  2. There is another Beeple piece called the Crossroad, a 10-second video showing animated pedestrians walking past a Donald Trump figure that went for USD 6.6 million in March 2021. 
  3. Curio Cards is a set of 30 unique cards that went as a part of Ethereum Blockchain and sold for USD 1.2 million.
  4. Within a game, you can buy or sell pieces of land as NFTs. These pieces are controlled by the users and not the game developers. 
  5. You can also buy and sell game artifacts as NFTs. 
  6. Various games have virtual worlds in them. Games like Decentraland, Star Atlas, Sandbox, Somnium Space, CrytpoVoxels allow you to purchase virtual lands as NFTs. in 2021, a virtual plot of 16 acres in Decentrland went for USD 913,228.
  7. You can benefit from it as a musical artist as you tokenize your work and then publish it. Moreover, artists use NFTs during the pandemic to recuperate from their income losses. In February 2021, 3LAU sold the 33-NFT collection for USD 11.7 million to commemorate the third anniversary of his Ultraviolet album. 
  8. In March 2021, Kings of Leon released their new album, When You See Yourself, in NFTfor USD 2 million in sales. Other musicians that have used NFTs include Lil Pump, Shepard Fairey with Mike Dean, and Eminem. 
  9. In May 2018, 20th Century Fox paired with Atome Tokens to release Deadpool 2 digital posters as NFTs. 
  10. In March 2021, Claude Lanzmann: Spectres of the Shoah by Adam Benzine was the first documentary to be NFT-auctioned. 

Final Thoughts

Metaverse NFTs are quickly becoming real digital assets, and people are pretty serious about buying these assets. It means if you are a creator, you can pounce upon this opportunity and really hit some good numbers in your cryptocurrency efforts. It is a pretty effective way to manage your cryptoportfolio too.

Everything You Need to Know About Metaverse

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Ever since Mark Zuckerberg announced the name change of Facebook to Meta, everyone in the world has a new buzzword. 

Mark announced earlier in 2021 that the future of Facebook will be in the metaverse, and now all the companies are in the metaverse business and we have so many experts on metaverse too. 

But what is this Metaverse and why does it even matter? Should you worry about it if this metaverse is the next chapter of the internet? 

But one thing’s for sure, you should not be standing flat-footed when the wave of metaverse catches you on. Metaverse is going to fuse cryptocurrency and embed it with your online world.  

So scroll down to read further about this metaverse and what does it has to offer that can assist you in managing your cryptoportfolio,

What is Metaverse? 

At its core, the metaverse is an engulfed internet, a social sphere where people can meet with one another to assist in avatar personalization and allow them to be more present than just a simple video call. 

This metaverse is synchronous and it feels like real life compared to the present-day social media which is feed-based. You will not catch up on what others are doing, you can meet them in real life. 

This experience can be persistent just like the world around us. And when you get back to your metaverse space, you will not have to start from scratch. 

Just like your real life, it will have all kinds of things that you love to do with your company. Of course, you can also go to your favorite concerts and other events. Plus, you can play games, work, shop, date, and hang out. It is going to integrate cryptocurrency and you can even manage your cryptoportfolio using it.  

Where is This Metaverse? 

This metaverse does not exist at the moment. But we do have some predecessors to this metaverse that are currently in place and people love using them. These predecessors are, 

Virtual reality

People often confuse virtual reality or VR with the metaverse. They both provide you with a feeling of an embodiment so it is understandable that people often confuse them. If you wear the headset, this embodied feeling becomes much more real. You are not controlling any avatar with your keyboard or gamepad.

Augmented reality, virtual reality, and other capital computing forms will be part of this metaverse, it will work across multiple devices. It will not be something that you can dive in and out of anytime you want. Instead, it will be something that will remain with you throughout the day on your phone, with your AR glasses, or your VR headsets.

Roblox and Fortnite

Both games are considered to be the early incarnations of this metaverse. Both these games do check a couple of boxes in comparison with the metaverse. Moreover, both games are social spheres, and they have avatars with in-world economies. 

There are massive live events, and they both are way more than just gaming. You cannot take your Fortnite avatar to your Microsoft Teams meetings, and you are not going to find any business outside Roblox that accepts Robux payments.  

Some of these games already allow you to trade in cryptocurrency. Therefore, they will become an obvious source for cryptoportfolio management in the future. 

Metaverse Stocks

In the latest stock market news, you might have heard about those metaverse stocks. These metaverse stocks are the companies with a business that brings metaverse more increasingly to real life. 

Metaverse is a virtual space where people can interact with one another seamlessly for numerous reasons. And companies that are making these technologies more real and accessible for people are metaverse stocks. 

The best metaverse stocks in the market today are,

  • Facebook Inc.
  • Unity Software Inc. 
  • Autodesk Inc. 
  • Amazon Inc.
  • Microsoft Corp.
  • Roblox Corp.
  • Nvidia Corp. 

Metaverse Gaming

Metaverse gaming will not be something like Spielberg’s dystopian sci-fi Ready Player One based on Ernest Cline’s book. But it is an online area where decentralized finance or DeFi fuses cryptocurrencies. 

These games are virtual worlds that are driven by artificial intelligence. There are various products already available on the market where people can interact with one another, But metaverse takes it to the next level. In these worlds, players will exist in their avatars and participate in different events across the globe. 

NFTs

Non-fungible tokens are digital content linked to the blockchain, and they underpin cryptocurrencies like ethereum and bitcoin. But these crypto are fungible. It means that you can replace them or exchange them with another identical one with the same value, just like a dollar bill. 

But non-fungible tokens are non-interchangeable and can be associated with easily reproducible items like audio, videos, photos, or other media to provide proof of ownership. These are useful for video games, digital collectibles, music, and artwork. 

Final Words – Why Does It All Matter? 

More and more people are rushing to the metaverse by adopting social gaming platforms with avatars. Plus, the pandemic has allowed them to explore new forms of real-time interaction. 

All major tech giants are looking to explore the next big thing after smartphones. And while they explore the new trends, some other questions need to be answered. 

  • Who will be the new gatekeepers? 
  • What about the safety, privacy, the mental health of the users? 
  • And who will pay for it all? 

This metaverse will allow people to interact with one another using their avatars. They will participate in different events and even interact with distant friends and family and log in with coworkers. The metaverse might be decades away, but the foundations for the next chapter of the internet have been laid. Many of these online games are already accepting cryptocurrency transactions and you can manage your cryptoportfolio using these games pretty effectively even if it is pretty limited.

Follow these personal finance experts if you’re curious about crypto

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There’s a lot of bad crypto advice out there.

For every even-keeled crypto investor, there are five meme accounts imploring you to put all of your money into Bitcoin, and others trying to convince their followers that some new altcoin is the crypto of the future.

The reality is a bit more nuanced, experts say. “Optimal investing is very simple and boring,” says Jeremy Schneider, the creator behind Personal Finance Club on Instagram. “Today this crypto craze and meme stocks are making headline news, and for young investors, who [are new] to investing, they’re trying to figure out how to navigate that.”

Financial advisors and experts we’ve talked with about crypto investing warn people against allocating too much of their portfolio to crypto, or not understanding the risks. Make sure investing in cryptocurrency doesn’t hold you back from saving and maintaining an emergency fund, paying off credit card and other high-interest debt, and saving for retirement with a more conventional investment strategy.

1. Jeremy Schneider, Personal Finance Club

Schneider has been familiar with Bitcoin since its inception.

“I remember the day in 2010 when I learned about Bitcoin. For about 30 minutes I pondered buying some Bitcoin and decided there was no way it could ever reach $1,” says Schneider. Bitcoin, of course, blew past $1 on its way to a high of more than $60,000 in April 2021; it currently sits just under $40,000 after a tumultuous May.

Still, Schneider warns against letting investing FOMO pressure you into making your decisions. Instead, Schneider constantly reminds his followers of two simple rules for building wealth: live below your means and invest early and often (preferably in index funds).

Schneider says his net worth is about $4.1 million. Of that, he has about $2,000 in cryptocurrencies — far less than even 1%. For those interested in playing around in the space, Schneider recommends making a similarly small investment compared to your net worth.

“At its core, I don’t see it as a productive asset. If you buy an index fund or real estate, you get dividends or rental income, whereas if you get crypto you’re basically just hoping someone pays you more money for it in the future,” says Schneider. “I can imagine a world 30 years from now where crypto could go to zero, or a different coin emerges, whatever. But I can’t imagine a world in 30 years where index funds and real estate don’t make you very wealthy.”

2. Jully-Alma Taveras, Investing Latina

Jully-Alma Taveras, who goes by “Investing Latina” online, thinks there’s a great opportunity to diversify your holdings with a cryptocurrency asset.

“It’s something people should start learning more about, at the very least,” says Taveras. “It’s not something anyone should be putting all of their money or fortunes into, but I think it’s something that we should include in a diversified portfolio.”

As a new and uncertain new investment asset, Taveras recommends keeping your allocation to 1% of your total assets. She’s also sticking to the two largest cryptos for now.

“I have Bitcoin and Ethereum, and that’s as far as I’ve gone in my personal portfolio,” says Taveras.

Comparing crypto to the conventional stock market misses the mark, Taveras says. “It’s not the stock market. It’s a completely different world,” says Taveras. And the new world definitely comes with uncertainties. “The stock market has been around for over 100 years, and blockchain technology has only been around for a little over a decade.”

3. Kiana Danial, Invest Diva

Kiana Danial started tracking crypto markets in 2016 but didn’t actually start investing until the end of 2018. Danial, who runs an account called @InvestDiva on Instagram, recommends giving plenty of thought to your investing goals before buying cryptocurrency.

“Are you buying it because you want a lottery ticket to make a million dollars in a year?” Danial asks. If that’s the case, “then you might want to reconsider your investment strategy because some people have got lucky, but a majority of people have got burned,” Danial told us recently.

But if you’ve done your research and are OK with the risk, Danial says it might make sense for investors who still have a lot of time before retirement to allocate as much as 20% of their portfolio to crypto. But “please don’t invest in cryptocurrencies based on trends on Twitter.”

4. Marc Russell, Betterwallet

As the creator of @BetterWallet on Instagram, Marc Russell’s investing philosophy is to “stick to the basics,” he says. “Long-term, boring strategies that work every single time is really where I focus my attention.” However, Russell acknowledges crypto may have a place in your longer-term strategy.

“I think a lot about asset allocation, and just making sure that you have the appropriate mix of stocks, bonds, and alternatives, which is where cryptocurrencies kind of fall under for the simple, long-term investor,” says Russell. For educated investors, Russell recommends allocating about 5% to cryptocurrency but would caution going beyond 10%.

Like others, Russell warns of getting swept up in the headlines and the emotional rush of getting in on crypto without doing proper diligence. “People don’t understand the other side of the spectrum, where you can make 50% on your investment, but you can also lose 50%. They think you’re either making 50% or you’re making 30%, and it doesn’t work that way,” says Russell. But for those who are educated on the market, and know what’s at risk, “it’s an excellent diversifier because it’s not correlated to the [stock] market for the most part. And when you’re looking for something to diversify you, that’s essentially what you’re looking for,” says Russel.

5. Humphrey Yang, Humphrey Talks

Humphrey Yang’s personal finance advice has gone viral on TikTok and YouTube. He’s a strong believer in index funds, “but most people don’t want to do that because it’s too passive and not fun, it’s a little bit boring,” says Yang. “But that is honestly the best advice I can give any average investor, is just put your money in an index fund and check it once per year.”

As an experienced investor, Yang considers cryptocurrency a speculative investment. He likes to put between 5% and 15% of his total portfolio there, an amount he says limits his exposure on days when it’s falling. He also sticks with two of the better-known cryptocurrencies out there.

“I don’t really believe in too many altcoins,” says Yang. “I do Bitcoin and Ethereum because they’re the two most stable ones and have the most history.”

6. Tori Dunlap, Her First 100K

Tori Dunlap has had her doubts about crypto.

“It still feels very speculative,” says Her First $100K creator Dunlap, who saved her first $100,000 by age 25 and shares personal finance advice on TikTok and Instagram. But she also recognizes the big interest in crypto investing, “even if it’s just a small amount of money.”

But when people ask her about it, she recommends following the 5% rule. “You don’t want to contribute more than 5% of your portfolio toward these things that haven’t been proven over time,” says Dunlap. “If you are investing a certain amount of money, you should maybe be OK losing that amount of money.”

7. A’Shira Nelson, Savvy Girl Money

A’Shira Nelson of Savvy Girl Money on Instagram is the ultimate retirement-minded investor.

“My strategy is to max out my retirement accounts. For the most part, I only invest in low-cost index funds,” says Nelson. “I know that I can see history on that. I can read books on that.”

That’s one of the biggest deterrents for her from investing in cryptocurrency — a lack of history and study on the space. But she’s quick to remind her followers that there are many other types of investments you can make outside of the stock market and cryptocurrency if you want diversification.

“I do a lot of real estates investing,” says Nelson. “My husband helped me spice up my portfolio with real estate, and it’s an easy way to have fun with it, too.”

4 Personal finance tips every entrepreneur should know

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Being a business visionary is significantly really intense — both actually and intellectually — than the vast majority think. Most of the business people work definitely over 40 hours every week, and most don’t get close to as much cash flow as they would in case they were working a corporate occupation in a similar field.

Business people are additionally liable for the entirety of their monetary commitments outside of the business, including protection, investment funds, and retirement. While it tends to be not difficult to remain laser-zeroed in on your business, plan ahead and plan appropriately.

In the long run, retirement will deal with you directly, and in case you’re not ready, it very well may be a severe shock. There are additionally shocks that you could confront while maintaining your business that you should be ready for. Being ready for the direst outcome imaginable is consistently the best methodology.

The enterprising way can be fulfilling, and it can likewise be amazingly upsetting and brimming with difficulties. Here are some individual accounting tips that will assist you with exploring through the pioneering travel and set you up for the future, just as ensure you en route.

1. Make an individual month to month financial plan

Be focused with regard to your funds, particularly when you are beginning a business. The less fatty you can run both your business and your own life, the more cash you can keep on moving once again into the business and fuel its development.

Numerous business people center around looking effective instead of becoming fruitful. Keep away from huge homes, extravagant vehicles, costly feasting, and other superfluous costs.

Make a financial plan containing the minimum essentials alongside some extra for diversion (you need to get out and have a ball once in a while!) When you have a set arrangement and stick to it, you put yourself and your business in a good position.

2. Put resources into quality protection items

At the point when you work for yourself, that leaves all external obligations on your shoulders, and one of the most significant is protection. Try not to attempt to pursue faster routes with regards to ensuring yourself and your business.

Get a solid medical coverage strategy that covers you and your family, and make certain to have life and inability protection set up. It is in every case better to plan for the absolute worst circumstances instead of attempt to save a couple of dollars.

One thing numerous business people disregard is business protection. It doesn’t make any difference in the event that you have a worldwide business with a large number of workers and you are selling a great many actual items a month, or you are a solopreneur. Ensure yourself with a business protection strategy that covers obligation for whatever it is you sell.

3. Assign cash towards a just-in-case account month to month

Most entrepreneurs don’t have a hold set aside that would permit them to work for a while without income coming in. The Covid-19 circumstance constrained a ton of organizations to close for great since they couldn’t keep the lights on.

Put cash into a business bank account every month. Ideally, you won’t ever need to contact these assets, and they will keep on working over the long haul. In any case, in the disastrous occasion that you need to keep afloat for a couple of months during a plunge, it will assist you with keeping afloat.

It’s a smart thought to have somewhere around 90 days of functional costs set aside to cover everything, accepting there will be no approaching income. On the off chance that you can, a half year of stores is great.

4. Stay away from individual obligation no matter what

To fabricate and maintain a fruitful business, you need to dispose of whatever number distressing circumstances as would be prudent. This permits you to zero in additional on the main jobs. One of the greatest genuine reasons for pressure includes obligation.

Piles of individual obligation — from charge cards to mind and home credits — can pull your concentrate away from your business. Keep away from obligation no matter what, and on the off chance that you totally should put a few costs on a charge card, do all that could be within reach to take care of it rapidly.

Numerous business visionaries attempt to maintain an unrealistic lifestyle, and in the event that they just cut back in the beginning phases and zeroed in on building an effective business, the cash and independence from the rat race would come quicker.

Strategies for safe cryptocurrency trading

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Cryptocurrency trading can be very profitable and rewarding, but you can also lose a lot of money if you take unjustified risks. Of course, even if you don’t, the market is unpredictable and you can always end up in the red. If you want to minimize the risks of doing so, these six strategies show you how to stay safe when negotiating cryptography.

1. Don’t invest more than you can afford to lose

I believe you’ve heard of this rule before, but it never hurts to repeat it – don’t invest more than you can afford to lose. Crypto markets are volatile, and huge fluctuations in the price of a currency happen all the time. While it is highly unlikely that your coins will end at 0, it is entirely possible that your value will drop two, three or more times in a day or two. Sure, it can go up in a week or more, but don’t bet your life on it. To sleep well, do not invest more than money in your pocket – at least not in the beginning, when you are new to the crypto trade.

cryptocurrency trading

2. Diversify your portfolio

If you are trading only one or two currencies, you can lose a lot if / when those currencies fall. If these coin (s) win, you can also win big, but don’t count on it. To stay on the safe side, always trade multiple currencies, not just one or two. There is not an ideal number of currencies to trade, but at least five or ten is a good bet. In this way, even if one or two currencies fall, your total will still increase if the other currencies perform decent.

3. Don’t limit yourself to just one exchange

To spread the risk, in addition to trading multiple currencies, you must also plan for multiple exchanges. Again, there is not an ideal number, but if you divide your assets between at least three to five exchanges with perhaps three to five currencies in each exchange, this is a good diversification. In addition, you minimize the risk in the not-so-unlikely event that an exchange is hacked or disappears (along with your money), because if that happens, not all of your money will be lost.

4. Avoid risky trades, even if they appear profitable

Greed is a great motivator, and when you see a currency with good variations on the last day, week or month, you instinctively want to bet on it. However, this is less rational and more risky behavior. If there are large variations or drastic spikes in the price of a currency, it may be due to a bomb attack and dumping on that currency or simply a coincidence. As a result, it is very likely that the price of that currency will drop in the next few hours or days, along with your money. Always put your money in currencies with a more uniform trend – your profits may not be as high as when you trade risky currencies, but neither will your losses.

5. Play losers quickly to minimize losses

Even the best and most experienced traders cannot always predict the market and end up with currencies they would rather not have. In this case, a strategy is just to insure – that is, don’t sell the coins now, but wait for the price to rise again. In many cases, you don’t have to wait long – a few days or a week until the trend is reversed and the price is right (again).

However, in many other cases, the dive is over. This means not only that you have lost money in this transaction, but that the rest of your money is blocked and you cannot use it elsewhere. In such situations, the best you can do is to sell at a loss, to free up your money. Unfortunately, there is no recipe for when to insure and when to sell at a loss – you need to trust your intuition, but when you are a beginner, your intuition is not always wise.

6. Don’t lose your sanity with the crypto commerce

Finally, don’t let the crypto commerce take over your life! Don’t lose sleep (and sanity) with it, don’t spend fourteen hours a day in front of the computer and earn a living! Even if you make a lot of money as a crypto trader, it is hardly worth your health and social life – just know where to set limits.

I could give you more advanced tips on how to stay safe when negotiating cryptography, but as this is a beginner’s article, I’ll stop here. I have covered the basics and more, and I believe these tips will be useful for anyone who is starting out as a cryptocurrency or who is considering this option.

Smart Exit Strategy for cryptocurrency trading

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The courses are going crazy, maybe now is the time to sell the jackpot. But getting out of the bitcoin game, ether, ripple, and the like, you have to prepare in advance.

Having a wallet filled with cryptocurrency can be rewarding for the ego, but to make purchases, these funds must also be repatriated in hard and hard currency, in internationally accepted currencies (euros, dollars, or others).

Having hundreds of thousands of euros in cryptocurrency is therefore one thing. It is quite another to own those funds. There are, however, services to make a conversion. But here again, if for small sums the procedure is relatively simple, for large investors, the problem can turn out to be more complex.

cryptocurrency

Why leave the game?

Bitcoin is having a hard time. The cryptocurrency is experiencing one of the largest drops in its history with a drop in value of around 70% since its record level in December 2017. At the time, a bitcoin could be worth 20,000 dollars against only 6,000. currently. This tumble may motivate currency owners to retire.

Especially since the turmoil is inherent in the very existence of bitcoin. In November 2013, the currency was already experiencing one of its worst days. As Reddit points out, the face value was lower back then, but the coin’s price drop was still around 87%.

Still, this roller coaster may have got the better of your recklessness. In this case, there is an adage that a portfolio owner should always keep in mind: Buy low and sell high. It is, therefore, in principle, not useful to resell your assets in a low wave. Better to wait for a comeback. Unless you decide to play off the beat. In this case, it is recommended to have strong kidneys.

Services that exchange bitcoins/euros

Once the decision is made, it is advisable to go through a third-party service to transfer your assets to a traditional currency. But like a foreign currency, it is particularly important to spot the exchange rates and thus determine which will be the preferential rate to use. The “exchange rate” may indeed vary depending on platforms such as Bitfinex, Poloniex, Bitstamp, Coinbase, Binance, CEXio, Kraken, Cryptopia, Bittrex, or GateCoin.

Subsequently, services such as Paymium, BitStamp, Bitfinex, Coinbase, or Kraken allow you to transfer your cryptocurrencies to a bank account (for which you will have to provide the identifiers). There is no shortage of this type of “office” on the Web.

Note that the platforms may impose a delay of several days between the exchange request and the actual transfer to verify the identity of the wallet holder and account details.

What about taxes, Mo Money Mo Problems?

In principle, if your payments from the bitcoin wallet are important about your regular resources, this will arouse the curiosity of your bank. In this case, she will seek to know the origin of these funds. It is therefore mandatory to be able to justify each profit recorded. Still, you need to make your operations transparent.

As for taxes, the question is a bit more complex. As a matter of principle, the tax authorities should be notified when a person realizes a capital gain from one year to the next. Each taxpayer is therefore

cryptocurrency

required to declare the money earned from the time a purchase was made with or transferred in conventional currencies (no declaration is necessary if you are keeping your wallet).

Bitcoin as a coin

If you are not a cryptocurrency professional and the income generated is unusual, these gains will be considered non-trading profits (BNC). In this case, it is a question of a tax of around 34% for a threshold below 33,200 euros of annual turnover.

On the other hand, if you regularly reinvest in bitcoin, you change the regime. The gains are then subject to the industrial and commercial profits (BIC) regime. It may then be interesting to go through the micro-enterprise regime to take advantage of a ceiling of 82,800 euros per year for an average tax rate of around 15%.

Practice “Money Management”

Money Management is the art of managing your capital while controlling risks. It concerns both professionals and individuals. The primary objective of the trader is thus to maximize and protect his gains while limiting his losses. Protecting gains and limiting losses involves changing your strategy over time to optimize the risk-return ratio, that is, the ratio between the expected return and the risk represented should not be too out of balance. It’s a bit overwhelming, but having to keep an excellent logbook, paper, or chart, where you record all your trades is a good way to keep an overview of the evolution of your portfolio and your positions. Thanks to this data, you will be able to understand several things: Which trading profile suits you best? What are your strengths and weaknesses? How to build and improve your trading strategy.

Opt for a trading strategy

Training in bitcoin trading strategies is an essential prerequisite. Your strategy will guide you in three areas: entering a trade correctly, monitoring it, and exiting cleanly. Here are three different possibilities for investing in bitcoin. It’s up to you to choose the one that best suits your profile and your character.

Day trading

Day trading is an investment strategy that involves taking positions and closing them on the same day. This method takes time to quickly seize opportunities. Be careful, however, to control the leverage effect. Leverage refers to the use of debt to increase investment capacity.

Swing trading

Swing trading is also a trading technique that is perfectly adaptable to bitcoin trading. Unlike day trading, which takes a very short-term approach, this method has a rather medium-term horizon. It allows traders to spend less time in a day trading and focus on variables. Traders who prefer swing trading often use technical analysis to anticipate future price movements.

Bitcoin scalping

This technique is even shorter than day trading. We also often speak of “micro-trading”. It is about doing a lot of back and forth between buying and selling on the same day. The large variations in the price of cryptocurrencies and bitcoin make it possible to resort to scalping quite easily. But, be careful, it is important to master the technique.

Analyze the markets

Once your method is set up and your account is opened, verified, and credited, the analysis begins. To make your investment choices, you can then favor the method of technical analysis or that of fundamental analysis. Or combine the two.

The basis of technical analysis is the study of charts to determine the ideal time to buy or sell. Users of technical analysis seek to establish trends by drawing support or resistance lines. The analysis of the past behavior of the curve also allows conclusions to be drawn in the technical analysis.

Fundamental analysis takes the external environment much more into account and will consider the asset concerned in its global environment. When you decide to invest in the dollar after intervention by the European Central Bank, you are doing fundamental analysis. The moment external variables enter into your investment choice, you are in fundamental analysis. This also applies very much to bitcoin.

A tip: keep track

Despite these details, it is important to keep in mind that you may need to be able to justify your winnings. So be sure to keep the traces, evidence as you move forward to demonstrate the origin of the gains. By being transparent, the tax services will be better able to advise and support you.

Crypto Risk management / when and how to take profit?

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The market for digital assets is still young, so volatility is a natural part of this market. Before wanting to enter the game for the first time, it is necessary to take into account that this market is prone to irrational phenomena.

The market for digital assets is still young, so volatility is a natural part of this market. Before wanting to enter the game for the first time, it is necessary to take into account that this market is prone to irrational phenomena.

Diversification is a key part of risk management, but is it really important to be exposed to a variety of assets and Cryptocurrencies?

The answer is yes, it is worth diversifying investments to mitigate risk.

Crypto Risk


Trading cryptocurrencies using a spread betting or CFD trading account can be much safer than investing directly in crypto through a digital wallet for several reasons.

When you own cryptocurrencies, you are at the mercy of price swings, which can be sudden and significantly change the value of your investment. You will also have to open a digital wallet, which can be difficult to set up and manage and weigh the risks of possible cyberattacks on the cryptocurrency exchange.

However, when you trade cryptocurrencies through CFDs or spread betting you will have access to the same risk management tools as when you trade any of our other major assets. This can help you enjoy the same market opportunities, with less exposure to risk.

The rules of the risks associated with trading cryptocurrencies are not impossible to follow. In this article, we will talk about risk trading and how to manage your cryptocurrencies safely.

Risk refers to the probability that a negative event will occur in your activities, an event that is contrary to the results you had anticipated. Risk is an integral part of cryptocurrency trading It is the possibility of an unwanted result during trading, which translates into losses. For example, a 50% risk on a short position simply means that there is a 50% chance that the price of bitcoin will go up, causing you to lose.

In this article, we will teach you the simple rules that you must follow when managing risk in cryptocurrency trading.

Risk Types

The world of cryptocurrency trading is vulnerable to four main types of financial risks:

Credit risk

This risk affects cryptocurrency projects. It is the probability that the parties behind the cryptocurrency project will not meet their due obligations. Credit risk is mainly attributed to theft and fraud in the cryptocurrency market. 

Legal risk

Legal risk refers to the probability that a negative event-related to regulatory standards will occur. For example, the prohibition of cryptocurrency trading in a certain country. A practical example of legal risk is when the states of Texas and North Carolina issued a cease and desist order for the Bitconnect cryptocurrency exchange due to suspected fraud.

Liquidity risk

In cryptocurrency trading, liquidity risk refers to the possibility that a trader cannot convert his entire position to a fiat currency (USD, YEN, GBP) that can be used for daily expenses.

Market risk

Market risk refers to the possibility of currency prices going up or down against a position you have opened.

Operational risk

Operational risk is the possibility that a trader cannot trade, deposit or even withdraw money from their cryptocurrency portfolio.

Main Risk Management Strategies

The general rule of thumb in cryptocurrency trading is: “don’t risk more than you can afford to lose.” Given the severity of risk in cryptocurrency trading, we normally recommend traders not use more than 10% of their monthly budget or income. Also, it is not advisable to use borrowed money for trading, as this puts traders in a position of credit risk.

Risk management strategies can be classified into three categories: risk/reward ratio, position size, and stop loss and take profits.

1. Position size

The size of the position dictates the number of coins or cryptocurrency tokens that a trader is willing to buy. The possibility of making big profits from cryptocurrency trading tempts traders to invest 30%, 50%, or even 100% of their trading capital. However, this is a disruptive move that results in serious financial risks. The rule of thumb is: never put all your eggs in the same basket. Here are three ways to determine position size.

Entry price vs. the amount to risk

This approach considers two different quantities. The first is the money you are willing to invest in each operation. Traders should consider this amount as the size of each new position they open, regardless of its type. The second represents the risk money, that is, the money that you can lose if the operation fails.

The entry price is calculated in this way:

A = ((Stack size x Risk per trade) / (Entry price – Stop Loss)) x Entry price

Crypto Risk

Let’s say we want to buy BTC with USD with a target of $ 13,000. Our parameters would be:

Stack size: $ 5,000

Risk per operation: 2%

Entry price: $ 11,500

Stop Loss: $ 10,500

Our entry price would be:

A = ((5,000 x 0.02) / (11,500 – 10,500)) * 11,500 = 1,150

The ideal amount to invest in this operation would be $ 1,150 or 23%. However, due to our Stop Loss, we only risk 2% as the trade will stop once it reaches the set level.

Risk trading in cryptocurrency

Elder’s “sharks” and “piranhas”

This concept of position size is related to the diversification of your investments. This concept is attributed to Dr. Alexander Elder, who suggests two rules:

  • Limit each position to 2% risk. Elder compares the risk to a shark bite. Sometimes you want to risk a very large amount, but the risk would be great and catastrophic, like a shark bite.
  • Limit trading sessions to 6% per session. If you are going through a losing streak, you may gradually end up spending everything you have. Elder compares this risk to attacks by piranhas, which take small bites from their victim until they are all consumed.

Following Elder’s Sharks and Piranhas approach, the result is no more than three open positions at 2% each or six at 1%. By limiting the results with a reverse compounding, the losses get smaller and smaller with each subsequent loss you suffer.

Kelly’s criterion

Developed in 1956, the Kelly Criterion is an accurate formula given by John Larry Kelly. It is a position sizing approach that defines the percentage of capital to bet. It is suitable for long-term trading.

A = (% Success / Loss Rate in Stop Loss) – ((1 -% Success) / Profit Rate in Take Profit)

Using the previous example, the characteristics would be:

Stack size: $ 5,000

Amount invested: $ 1,150

% success: 60%

Entry price: $ 11,500

Stop Loss: $ 10,500

Loss rate: 1.10

Take profits: $ 13,000

Our result would be:

A = (0.6 / 1.10) – ((1 – 0.06) / 1.13) = 0.19

This means that you should not risk more than 19% of the total capital of $ 5,000 to obtain the best possible result in a series of operations.

2. Reward/risk ratio

The risk/reward ratio compares the actual level of risk with the potential returns. In trading, the riskier a position is, the more profitable it can be. Understanding the risk/reward ratio allows you to know when to open a position and when it is not profitable. The reward/risk ratio is calculated as follows:

R = (Target Price – Entry Price) / (Entry Price – Stop Loss)

Taking into account the above:

Entry price: $ 11,500

Stop Loss: $ 10,500

Target price: $ 13,000

Our relationship would be:

R = (13,000 – 11,500) / (11,500 – 10,500) = 1.5 or 1: 1.5

A 1: 1.5 ratio is good. We advise traders not to trade less than 1: 1.

3. Stop Loss + Take Profit

Stop Loss refers to an executable order that closes an open position when the price falls below a certain limit. On the other hand, Take Profit is an executable order that liquidates open positions when prices rise to a certain level. Both tools are very good at managing risk. Stop Losses prevent you from making unprofitable trades, while Take Profits allow you to exit a position before the market turns against you.

You can use Trailing Stop Loss and Take Profits that follow rate changes automatically. However, this feature is not available on most cryptocurrency exchanges. Luckily, using terminals like Superorder, you can configure your Trailing Stop Losses and Take Profits directly from the terminal.

Winning Strategies:

Accept failures

Risk is part of trading. Also, we cannot delete it, we can only manage it. Therefore, you must accept your losses and make decisions based on a plan to profit from future operations.

Take into account the commissions

New traders are often unaware of the commissions involved in trading. These include withdrawal fees, leverage fees, etc. You must take all of this into account when managing risk.

Focus on profits

The risk will always be present to discourage you when it comes to trading. However, focusing on the number of times you win will help you develop a positive attitude in trading.

Measure losses

This refers to the total decrease in your initial funds after a series of losses. For example, if you have lost $ 1,000 out of $ 5,000, the loss will be 10%. The higher the amount, the more you will need to inject in an operation for it to recover. As Dr. Elder advises, the risk limit should be kept at 6%.

What does blockchain technology bring to cryptocurrencies and how should we invest in it?

How starting from scratch right now to build a crypto portfolio in 2021

mymegaportfolio.com Cryptocurrencies
crypto

Bitcoin is considered one of the highest-yielding assets of the decade, outperforming even traditional financial instruments like gold, stocks, and bonds. Bitcoin has produced huge returns to investors in just over a decade. Many institutional investors have started to include a percentage of their investment portfolios; consisting of bonds, indices, stocks; to the main digital assets Bitcoin and Ethereum.

It is an accepted reality that prominent cryptocurrencies like Bitcoin and Ethereum have yielded massive returns to investors in the past. However, the cryptocurrency markets have expanded far beyond the top ten digital assets list. Cryptocurrency markets now incorporate a multitude of utility tokens, security tokens, Defi tokens, privacy tokens, gambling tokens, and more.

Also, building a cryptocurrency portfolio with only Bitcoin and Ethereum is not enough. To take full advantage of the gains from this rising industry while reducing the risk factor, it is necessary to diversify a portfolio containing multiple cryptos from scratch. In this guide, we explore the need to diversify a portfolio beyond Bitcoin and also one of the diversification strategies for a brighter outlook.

What is cryptocurrency portfolio diversification?

Crypto portfolio diversification is the process of disbursing investment funds into different crypto projects to reduce the risk factor if one or more projects fail. The objective is to create diversification with investments in different areas/niches to reduce the overall risks of investments. For example, investors investing in Bitcoin in 2017 had the first-hand experience when the price of Bitcoin fell sharply in 2018.

The basic idea is to reduce the factor of the negative event. This can be done by investing in multiple tokens and coins so as not to lose the overall value of your investments. To this end, a smart investor recognizes that it is safe not to put all your eggs in one basket, that is, in Bitcoin.

It is important to manage your business operations on a reliable and trusted cryptocurrency exchange platform. This makes it easier for an investor to increase their overall portfolio diversification experience.

How to get started with portfolio diversification

There are different strategies to diversify a cryptocurrency portfolio. This can include creating a portfolio taking into account different factors depending on the investor. We have discussed one of the strategies that a trader can employ to build a portfolio that caters to the different properties of tokens, including market capitalization, liquidity, stability, and functionality.

Bitcoin

While a portfolio shouldn’t be made up entirely of Bitcoin, the leading cryptocurrency should contain a considerable percentage of your investments. One of the factors is the growing trend of investment in Bitcoin by hedge funds, corporations, institutions, and investors. Major financial companies have also started offering different services related to Bitcoin.

The Bitcoin asset is also gaining the attention of retail investors, thus driving its mainstream adoption. It continues to exceed conventional investment alternate like gold in 2020. Allocating a percentage of your crypto portfolio to Bitcoin mitigates risks by acting as a safe asset.

Ethereum and ERC-20 Tokens

Ethereum continues to rank second in the cryptocurrency markets. Furthermore, the real value of Ethereum lies in its ability to facilitate the creation of smart contracts and decentralized applications.

crypto

Its inherent usefulness subsequently provides a solid foundation for the valuation of your native ETH token. Although there are many other blockchain networks, Ethereum continues to dominate the industry.

The ERC-20 protocols are the utility symbols released on the Ethereum Blockchain network. These tokens act as a utility function for a landscape spanning a real industrial use case. Many of these altcoins have found success in their crypto projects. For example, OmiseGo (OMG) is an ERC-20 token that yielded five times more in 2020. In other words, a $ 1 investment in January 2020 is worth nearly $ 5 in November 2020.

Investing in altcoins makes it easy for the trader to leverage exponential growth in a relatively short period. At the same time, it poses threats of scams, project failures, and fraud. But this kind of risk is offset by safe assets like Bitcoin. For more information on the price of Bitcoin and how to buy Bitcoin, click here.

Passive income tokens

Like dividends, some cryptocurrencies give interest to token holders. Staking is a phenomenon that facilitates the rewards of cryptocurrencies in exchange for keeping crypto in a portfolio. In addition to diversification, staking also serves to allow a passive income from having cryptocurrencies.

Cosmos (ATOM) is a token that yields an interest of 8-10% in exchange for staking operations. Dash (DASH) is another token that produces an annual reward of between 5-6%.

Stable cryptocurrencies

Cryptocurrencies are well known for their volatile nature. While volatility can add advantages if trades are executed correctly, it also poses a risk factor. The established ones are cryptocurrencies that are used to mitigate the risks that arise from other tokens. These currencies are tied to the value of an asset such as fiat currency such as USD.

The Tether (USDT) is one of the most popular stable coins that is pegged to the value of the USD. It is advisable to secure a percentage of the portfolio to stable coins or stable cryptocurrencies. This eliminates the risk factor to some extent.

Final comments

Diversification is a strategy used by smart investors to mitigate their risks in traditional markets. The advantages of diversification are equally relevant to the cryptocurrency industry as well. Also, diversification can play a strategic role in cryptocurrency investments when the industry is in a nascent stage. Although it will not eliminate threats or double the value of your portfolio, it is an important tool when markets suddenly turn down.

What are cryptocurrencies? Why are they considered a trend in payments?

mymegaportfolio.com Cryptocurrencies

What are cryptocurrencies? Our finances and our money have always changed. At first, people simply exchanged, then paid with gold and silver, later paid borrower’s notes and today we use cash or credit cards. What’s in the future? Will we then only pay virtually? The word cryptocurrency has haunted the media and the Internet for some time and leaves many a little perplexed.

Cryptocurrencies, crypto assets, virtual currencies … Call it what you want, because these words are different ways of referring to “a digital medium of exchange based on cryptography to secure digital financial transactions, verify the transfer of assets and control the creation of additional units”. Of course, blockchain technology, the one in charge of sustaining the system, could not go unnoticed here.

They are exchanged like any other traditional currency, but with a bonus: they are issued by private bodies and serve to transfer value just like those issued by governments and financial institutions.

Currently, there are more than 1,300 cryptocurrencies, they rise like foam, which makes this world a growing and powerful market.

There are already more than a thousand different cryptocurrencies. The best known and most important is Bitcoin. Using your example, we want to introduce you to the topic, show you how digital currencies work and what differentiates them from traditional payment transactions. Also, we will then introduce you to the blockchain as the basic technology of Bitcoin and discuss other cryptocurrencies.

Bitcoin – currency and payment system in one

cryptocurrencies

With classic currencies such as euros or US dollars, everything is neatly separated. On the one hand, there is the actual currency, whose coins and notes we use every day. Gold used to be behind these currencies to secure their value, today central banks and states guarantee their intrinsic value. On the other hand, there is the payment system through which transactions are made in these currencies. These are the banks and credit card companies that act as intermediaries between the parties involved and with whom the accounts are kept.

Both of these coincide with Bitcoin. On the one hand, it is a currency that is only secured by the trust that users have in the control function of a shared network. And at the same time, it is the network as a framework for action. Bitcoin is a purely digital monetary unit in an independent, self-sufficient, global, digital payment system that works “peer to peer”, i.e. from person to person, without the intermediary of financial intermediaries.

For this reason, bitcoins are not managed in a bank account like traditional currencies in traditional payment transactions but are stored in so-called wallets. These are digital wallets on the Bitcoin user’s smartphone or desktop computer, which means that no bank can block these digital wallets. Also, Bitcoin has other advantages: there are no transfer limits or maximum amounts for transactions and there are also no geographical restrictions. While it is difficult and expensive to transfer money to a country on another continent the traditional way, with Bitcoin this is not a problem. All you need is an internet connection and access to your wallet. For this reason, Bitcoin can also be an alternative for people who live in countries or under conditions that exclude them from traditional payment transactions via banks.

The separation of ASIC technology in mining allows for a much more secure blockchain. In this way, we opted for mining through graphics cards, which makes it possible to democratize mining within the reach of anyone.

Cryptocurrencies allow helping society in its access to financial resources, due to its economic independence with respect to banks, due to its speed, its high and secure computer technology, and because it creates the possibility for anyone to be a bank itself.

These virtual assets are born from the dream of a fairer world, creating a computer network that will put an end to speculation and the over-creation of values.

More and more stores accept payments with cryptocurrencies, especially large capitalization, which ensures prosperity to the crypto world.

cryptocurrencies

The value of these currencies is not exclusively related to the behavior of a certain economy but also depends on the commitment that users have to maintain their price, and on the usability that it has to transfer value, being able to serve the growth of the currency any type of international user.

Are you clear about what it means to mine cryptocurrencies? It is, nothing more and nothing less, than the process in which cryptocurrency transactions are verified and in which compensation is received for the effort.

Among the advantages of cryptocurrencies is their global vision (there is no place in the world where they cannot be accessed to carry out operations), they offer great opportunities to study the financial market to make a profit, they are decentralized and they achieve greater transparency in their operations thanks to the blockchain.

Although some people focus on pointing out the illicit nature of cryptocurrencies, from the point of view of money laundering, it is not a social threat, quite the opposite. The elimination of cash and registration in inviolable blocks makes cryptocurrencies the vehicle to end capital that moves outside the law.

It is an opportunity to reduce financial poverty, in a world in which the possibility of acquiring a bank account in many countries is remote or impossible, digital money would favor the accumulation of capital in a safe place and the transaction with the most disadvantaged.

Conclusion on the details of current cryptocurrencies

These are the most significant details of cryptocurrencies. We tell you about them, but only you decide what is the point of view from which you want to see them. Volatility, for example, is both a positive and a negative factor, like everything else, but only you decide where to put the focus.

Cryptocurrencies have brought a thread of fresh air to the traditional financial world, stagnant in traditional dynamics without innovation, going from physical currencies to assets of a digital and practical nature, from the mere link to a country, or groups of countries, to the global, from the issuance of governments to the offer through mining, from the injection into the economic system through securities and bonds to their direct introduction into the market.

In these times, technology can help control everything.

What does blockchain technology bring to cryptocurrencies and how should we invest in it?

mymegaportfolio.com Cryptocurrencies

Blockchain technology also called the “chain of blocks” brings multiple benefits and not only to cryptocurrencies and the financial sector but also to other sectors. It is the foundation that supports the structure of virtual currencies. It has great potential, which has provided its great evolution. The future that experts predict for blockchain technology is far from a failure, as the expectations placed on it are enormous. It only needs to successfully survive the obstacles that lie ahead and those who use it to instill fear in society by speaking ill of this technology.

It is one of the most revolutionary technologies of the century, but do we know what blockchain is?

The technology sector is advancing by leaps and bounds. Until recently, it was difficult to think of autonomous cars, smart homes, virtual reality simulators, or social media. All of them have meant, to a greater or lesser extent, a revolution in each of their areas. However, none of them have had the repercussion and impact that the blockchain, also known as the blockchain, currently has. It is, without a doubt, the most disruptive technology of this century. A concept that has revolutionized many industries and areas of our day to day and in which you can also invest. But do you know what it is and how to invest in this technology?

BLOCKCHAIN

WHAT IS BLOCKCHAIN TECHNOLOGY

Let’s start at the beginning: What is this blockchain? The blockchain is nothing more than a decentralized information system that grows continuously, a kind of distributed and secure database that guarantees the privacy of transactions. In the blockchain, the blocks are all linked to each other and encrypted to protect the security of the users. Your most important requirement is that multiple users are validating these transactions so that they can be inserted into this huge ledger.

THE APPLICATIONS OF THE BLOCKCHAIN

Although the largest field of application of the blockchain is economic transactions, the truth is that this technology encompasses many more potential ideas. For example, the Japanese government has started a project to unify all urban and rustic property registration through blockchain. Some companies want to decentralize cloud storage so that it does not depend on a specific centralized provider. Another example is healthcare, in which the medical records of all patients could be stored through the blockchain. In reality, the potential of blockchain is practically limitless.

HOW TO INVEST IN BLOCKCHAIN

When we think about investing in blockchain, we are not talking about doing it directly in this technology, but about buying assets or securities that make use of it. These are some of the most interesting alternatives today.

Cryptocurrencies

Cryptocurrencies are undoubtedly the best-known use of blockchain technology. Their popularity has been growing over the last few years thanks to the guarantee of security and anonymity that they incorporate in transactions over the Internet. 

The best known is Bitcoin, but there are others such as Ethereum, Ripple, Litecoin, or Cardan. Currently, more than 1,300 different ones can be found. At the investment level, cryptocurrencies are characterized by their high volatility, in some cases higher than 80%. 

This makes them considered a high-risk asset and not very suitable for retail investors, as stated by the Security Exchange Commission (SEC). There are two options for investing in cryptocurrencies: buy them or mine them. 

The first option is the most common and consists of getting the cryptocurrencies in the market. The second option is to create new coins and register them on the blockchain. However, it is an increasingly residual alternative, because the processing capacity to mine new cryptocurrencies is increasingly expensive. 

In any case, it is the user who can do it directly without resorting to an intermediate figure. In the case of the purchase of cryptocurrencies, you only need a virtual wallet to acquire them that provides access to the blockchain of those cryptocurrencies. In the case of mining, you just need to install software on the computer and let it work autonomously. 

ETFs 

ETFs (Exchange Traded Funds) are investment funds that contain a set of securities that replicate an index. There are already indexes that allow exposure to the blockchain. Some of the most interesting ETFs to invest in blockchain and their returns are as follows.

Stocks of large companies 

Large companies are betting heavily on blockchain technology. Companies such as Microsoft, Visa, and, above all, IBM, are developing solutions based on block technology. In general, almost any company that is listed on the Nasdaq, America’s tech stock index par excellence, has some kind of blockchain-based solution. So, if you want to invest in blockchain without having to assume the volatility that characterizes this sector and in a much more accessible way, it is advisable to bet on consolidated companies in the technology sector that are developing this technology. 

Cryptocurrency ICOs 

The Initial Coin Offering (ICO) or Initial Coin Offerings are a financing mechanism through which a company seeks to raise capital through cryptocurrencies such as Bitcoin or Ethereum. A kind of public offer for sale or business crowdfunding project that has a peculiarity: It uses the blockchain in the entire process of attracting economic resources. Its operation is simple. 

A project issues a certain amount of crypto assets or virtual tokens on a blockchain platform and investors pay through cryptocurrencies. If the project goes ahead and succeeds, the cryptocurrencies on which its financing was based gain value and that ends up offering an interesting return on investment for all these investors. The growth of ICOs has been spectacular. 

According to data from the ICO Bench, projects worth $ 1.2 billion were financed in May 2019 alone, and applications such as Telegram managed to raise $ 1.7 billion in several rounds. The returns are, in some cases, spectacular and far from those that can be obtained by any other traditional investment. The five most successful ICOs in history in terms of return on initial investment have been, according to Cointelegraph:

  • NXT, with profitability of 11,547,519%.
  • Spectercoin, with profitability of 676.227%.
  • IOTA, with profitability of 522,900%.
  • Ethereum, with profitability of 442,869%.
  • Neo, with the profitability of 378,453%.

HOW BLOCKCHAIN’S EARNINGS WILL BE DECLARED

Although there is no specific regulation on the blockchain, as of today, assets such as cryptocurrencies are considered intangible assets for the Treasury. This category is the same as that used for web domains, farm exploitation rights, or the transfer of a bar. But what do you do when you convert your investment in cryptocurrencies or other blockchain-related assets to money? 

Well, the same thing we do with any other investment: Declare them in our income statement, incorporating capital gains into the tax base of savings. The amount that you will have to pay to the Treasury is obtained by subtracting the transmission value from the acquisition value, excluding expenses and commissions. The corresponding savings rates are applied to this value, which in 2019 are as follows:

If the investor is a legal person (for example, a limited company), the profits obtained are included in the tax base of the corporation tax, which has a tax rate of 25% on the profits of the company. In short, the blockchain is here to stay. More and more solutions based on this blockchain technology and its applications will continue to grow in the future. Given this reality, investing in blockchain is an interesting option, although, yes, as long as we assess the risks associated with such an incipient concept.