Crypto Investing

News of hacks to exchanges and digital wallets is frequent. The main thing is to choose a secure exchange that stores the coins on servers outside the network so that they cannot be hacked.

There are many cryptocurrency scams that you can be a victim of. It is not enough to not deposit in trusted sites, they could impersonate you or hack your accounts.

But even in these secure exchanges, you can be a victim of impersonation, if they get your passwords through your email for example.

That is why they develop multiple security measures such as two-factor authorization (2FA), account verifications, and even the paralysis of transfers during days.

Find out how to configure your exchanges correctly and which mail and browsers are more secure.

The information security company outlines the top attacks on virtual wallets over the past year and tips for protecting them.

Electronic money is a type of alternative currency that does not depend on a central bank or regulatory entities of the national states. They are being used more and more frequently to pay for various products and services, appealing to both personal users and cybercriminals. ESET, a provider of threat security solutions, shared an analysis of the most important attacks that these cryptocurrencies suffered in 2017 and provides tips to protect them for the future.

“During 2017, cyberattacks against infrastructure providers were identified, including high-profile theft of users’ virtual assets. In addition to targeting online coin providers, trade and mining exchanges, and other related services, attackers are also targeting investors and industry employees, ”said Denise Giusto Bilic, IT Security Specialist at ESET Latin America.

The ESET Latin America Research Laboratory analyzed some of the most notable cybersecurity incidents that occurred in the cryptocurrency market, given that the enthusiasm for its success, yielded a revenue of $ 4 billion at the beginning of last year, created a scenario perfect for cybercrime:

• Targeted attacks: In February, the home computer of an employee of the South Korean exchange of bitcoin and ether, Bithumb, one of the most important in the world, was attacked. The data of more than 30,000 customers were compromised, being used for bitcoin diversion hoaxes above a million dollars.
• Hoaxes: Some $ 7.4 million ether, a currency similar to bitcoin, was stolen from investors, tricking them into sending their electronic money to a false address. The same happened with potential investors in Enigma, an Ethereum platform, where they were tricked into sending $ 500,000 in ‘cryptocurrency’ with ‘early sale’ tokens to the attackers’ account.
• Security Cracks: Another well-known attack involved a coding flaw in Parity, an Ethereum wallet, which facilitated the theft of around 150,000 cryptocurrency tokens. The value at that time was more than $ 30 million.
• Social Engineering: At the end of the year, the payment system of a Slovenian-based cryptocurrency mining market was looted, an equivalent of $ 64 million was stolen. The company described the breach as a “professional attack with sophisticated social engineering.”

“Virtual currencies seek to obtain money from increasingly broad sectors of society. The deceptions are made to catch the reckless, especially those users who do not have the most adequate security measures. It remains to be seen how, in the long run, the number of risks inherent in these new currencies, the fundamental security challenges they face, and increasingly stringent regulations turn out for virtual ‘money and its fan base. Unless the countless security concerns are addressed, more and more people will be involved with this currency who will have to face the various risks along the way, ”added Giusto Bilic.

Recommendations to avoid losing assets in cryptocurrencies

In this context, ESET developed the following tips to protect virtual wallets:

• Use a Bitcoin client. Regarding privacy, in addition to hiding the IP address, you can use a Bitcoin client that allows you to change to a new address with each operation. Also, transactions can be categorically separated into different wallets, according to their importance: a recommended practice is to keep a wallet for everyday transactions with small amounts, to recharge it when necessary.

• Protect identity. Be careful when sharing transaction data in public spaces to avoid revealing the identity together with the Bitcoin address.

• Use a “custody service.” When it is necessary to make a purchase/sale and you are not sure who is on the other side, you can use an “escrow service”. In these cases, the person who must make the payment sends their bitcoins to the custody service, while they wait to receive the item they requested. The seller knows that his money is safe in the custodian and sends the agreed item. When the buyer receives the merchandise, he notifies the situation to the custodian so that he can complete the purchase.

• Make a backup of the virtual wallet and encrypt it. When it comes to physical stores, like any critical backup policy, it is recommended to perform frequent updates, use different media and locations, and keep them encrypted.

• Avoid using wallets on mobile devices. Especially when it comes to large sums of money, using mobile devices should be avoided as these can be lost and/or compromised. Furthermore, in these cases, it is preferable to keep the wallet on computers without any type of Internet connection.

• Consider using multiple signature addresses. In the case of corporate transactions or those that require a high degree of security, it is possible to use multiple signature addresses, which involve the use of more than one key, usually stored on remote computers in the possession of authorized personnel. In this way, an attacker will need to compromise all the computers on which the keys are located, to later steal the bitcoins, which will make his task difficult.

• Delete a virtual wallet when it is no longer used. Deleting a virtual wallet when it is no longer useful requires a careful process to verify that it has indeed been destroyed. It is necessary to take the trouble to locate any possible copy that may have been created, by user or system action, and carry out this same process.

Smart Exit Strategy for cryptocurrency trading

Once you buy Bitcoin or any other altcoins, you will need a secure place to store them. Remember with cryptocurrencies, you are your bank and therefore have responsibility for your safety.

A Bitcoin Wallet is a kind of online bank that will allow you to manage your assets and make cryptocurrency transactions.

The best bitcoin wallets

What you need to understand here is that a cryptocurrency wallet works using 2 encryption keys, a public key, and a private key. The concept of the key comes from asymmetric key cryptography implemented thanks to the ECDSA (Elliptic Curve Digital Signature Algorithm) algorithm for those who wish to deepen the subject (if like me Maths is not your strong point, go your way advice…).

The private key is used as a signature to confirm a transaction order on the network and the public key is used when it checks whether the signature is correct. The combination of these two keys is what allows transactions to be carried out on the network.

Your public key represents your address on the Blockchain and it is this one that you will share to receive coins during your transactions.

The private key is the most important thing in securing your wallet! You must be in control of your private keys at all times and keep them out of prying eyes, which is why some wallet solutions are more secure than others. The majority of hackers use malware such as Malwares and Keyloggers, which directly attack your wallets or record what you type on your keyboard allowing them to know your passwords among other things.

In this sense, Bitcoin wallets are different from the wallets you know and use every day. Follow the guide to explore your options and learn how to create a bitcoin wallet.

Types of Wallets

• Paper wallets
• Hardware wallets (encrypted USB key type)

• Wallets on Computer or Smartphone (Hot Wallets)
• Online wallets

Here are the main types of wallets available on the market

These portfolios are ranked from the most secure to the least secure solutions:

• Physical solution (paper or material (hardware or cold wallet))
• Wallet on Computer and Smartphone (Hot Wallets)
• Online wallet

There are also two types of Computer wallets:

• The so-called light wallets. These connect to servers and verify data integrity.
• and so-called “Full-Node” wallets that store the entire Bitcoin Blockchain (book of transactions) locally on your installation (be careful, this can take up a lot of space, in hundreds of GB most often …). For those who wish to participate here in the decentralization effort.

Now let’s go into detail for each type of portfolio:

Paper wallets

It’s a really simple paper document on which you print your public and private keys and then store them in a secure place like a safe or whatever. Using QR codes saves the hassle of typing those rather long keys each time with a simple scan.

The main advantage of the paper wallet is that your keys are stored “offline” and it is therefore impossible to be the victim of a cyber attack on them.

The main drawback of this approach lies of course in the fragility of the paper medium and its lack of longevity. It is also impractical and risky to travel with your piece of paper to make payments.

This is an ideal solution for “large” carriers who wish to secure their “offline” assets. Crypto-currency exchanges generally use this kind of solution to protect themselves from hackers and keep part of the funds in “cold storage”.

Hardware wallets (encrypted USB key type)

This solution is one of the most secure because these devices that look like USB keys are made to allow you to secure your corners while allowing you to transport them securely.

Here you will need to connect your wallet to a computer or tablet to be able to access your corners.

The most well-known and reputable models today are:

• Ledger Nano S
• Ledger Nano X
• Trezor
• Keepkey

These hardware-type wallets provide a great secure and reliable storage solution for anyone serious about protecting their cryptocurrency investment.

They allow you to transport your coins while keeping your private keys in an offline environment thus limiting the risk of attack.

The only way to steal your coins here is to physically get hold of your wallet which is encrypted and protected with a password.

They are even equipped with a system allowing you to restore your digital currencies via a backup code, which even protects you from the theft or loss of your wallet.

Advantage of hardware wallets?

• One of the most secure ways to protect your electronic currencies!
• Save your private keys “offline” safe from hackers.
• Resistant to malware and viruses
• Different security levels with Pin and Recover Phrase
• Allows you to carry a bunch of cryptocurrencies with you

Disadvantages of hardware wallets?

• They are not cheap! But hey, even if it means investing as much to protect yourself in my opinion.
• They are not necessarily the most practical way to pay on the go and for daily use (the Trezor is better in this sense than the Nano S with its smartphone adapter). They are more suited to storing cryptocurrencies.
• Best to install on a “clean” computer at first.

Wallets on Computer or Smartphone (Hot Wallets)

These are electronic wallet software where the private keys are secret codes. As these keys are present on a device that is connected to the internet (most of the time), these private keys are potentially at risk and are not one hundred percent secure!

Advantage of hot wallets?

• Perfect for storing small to medium amounts of coins.
• Easy to use (often thanks to their integrated QR code reader).
• Super simple and fast sending and receiving payments. Convenient when you are on the move / on the go.
• Some hot wallet models allow access to your cryptocurrencies from multiple devices and even have integrated exchanges (Like Exodus for example).
• Possibility to save your private keys.
• Exodus office wallet

Disadvantages of hot wallets?

• Not secure enough (especially Smartphone versions) for storing large amounts of crypto.
• If you lose the device, you will lose your currencies (unless you have saved the seeds).
• Potentially hackable from a distance.
• Simply put, a hot wallet is an office or pocket wallet that is used to hold small to medium amounts of currency, but not all of your money either. They are really handy if you trade regularly, but are not the best option for storing large amounts of coins.

Online wallets

Online wallets are also called web or cloud wallets. They are easy to use as they can be viewed from any device connected to the Internet.

However, this type of wallet has many security holes and is the least secure on my list. I do not recommend them to store your coins because I would not trust a third party to protect my private keys …

I differentiate between online wallet services (which I have never used and which I don’t trust at all) and in-exchange wallets that we buy currencies on (and yes those marketplaces, like Bittrex for example, very often do not transfer your currencies directly to the wallet of your choice but to a wallet integrated into your account. You then have to transfer your funds to the wallet of your choice for a few fees in the process).

Advantage of online wallets?

• Ease of use

• Accessible from any internet connection
• Online wallets are generally linked to exchanges
• Convenient if you trade
• protect your private keys

Disadvantages of Online Wallets?

• You do not have control over your private keys which are recorded and stored on someone else’s server.
• More prone to hacking.
• Technical failures can occur and the sites are sometimes inaccessible (DDOS attacks).
• The site may limit or suspend your account at any time for any reason.
• The site has full control over your currency.

A word of advice instead sees online marketplace wallets as quick transit wallets once you’ve purchased cryptocurrency!

What type of portfolio is best for you?

Now that you better understand the security issues and the different types of wallets available as well as their respective advantages and disadvantages, you will have to make a choice!

We can now list which type of wallet is best suited for a given type of use:

• Small and frequent transactions: online wallets or hot wallets.
• Medium amount transactions: hot wallet type wallets (rather computer, be careful with smartphones)
• Online exchange when buying currencies: Online wallet (but only the amount you invest with).
• Large transactions: a hardware wallet
• Storage only: hardware or paper wallet

I even recommend that you don’t keep all of your coins in one wallet. Don’t put all your eggs in one basket! Wallets other than hardware are often free, you would be wrong to deprive yourself of them.

If you make “public” exchanges with your public key (especially on the internet), use “disposable” wallets so that your transactions cannot be traced! Contrary to many misconceptions circulating on the web, the Bitcoin Blockchain does not offer you that much anonymity and your transactions are technically visible in a public ledger …

Also, keep your currencies in online or software wallets only when you need to frequently send or receive payments. Keep only the amount you usually need and keep the rest of your inventory in a more secure wallet.

You already have a secure wallet. Which wallet are you using? What are the advantages and disadvantages?

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

Once you have passed the threshold of knowing the fundamentals of Bitcoin and how blockchain works, it may have convinced you enough to invest or participate in this new revolution. Congratulations and welcome!

There are many benefits of Bitcoin, one of many being the unprecedented freedom it provides to banks through its technology. This is a revolutionary idea, no more banks are needed. The idea that you are the sole owner of your money thanks to technology seems basic, although a tool has never been invented to guarantee it.

This new freedom is refreshing, although a service that was provided by banks is now under their responsibility, the security of their assets.

Here you will find all the basic safety tips that you should know. Once covered, you can check out our advanced cryptocurrency security tips. Many people do not take any security measures and are usually victims of hackers.

You should view this as the sheriff of a town protecting the bank vault from villains. Villains (Hackers) will always attack the easy option, they will ignore any complication or difficulty. Avoid at all costs being the easy option.

The inherent security of Blockchain and its cryptocurrencies

When you have conversations with other people about cryptocurrencies, you will easily find the counter-argument that the blockchain or your cryptocurrency can be hacked. This is a misconception that many people tend to commit.

This technology is very safe, due to its cryptographic algorithm that protects cryptocurrencies, hence the name of crypto. The algorithm is already a security measure against hackers. To break this algorithm, you would need immense almost unattainable computing power. For example, the oldest cryptocurrency, Bitcoin, has not been hacked since its inception in 2008.

If hackers can’t hack the crypto itself, their obvious target will be users. They will look for gaps in security and hack the platform you use to store your digital assets to line your pockets. Therefore, the first and foremost safety tip is to take safety measures and take them seriously.

Use complex passwords

For many readers, this may seem obvious. However, even today the three most common passwords are 123456, 123456789, and the funniest password, password.

Try combining uppercase and lowercase letters, numbers, and symbols. The longer the password, the better. You can use online password meters to see how strong your password is. It is a good idea to use a password generator to get random passwords.

A popular service is password managers. They generate a unique, long, and very complex password for each online account that you own. These services are very convenient, safe and are used by many high-profile companies. Either way, if you have the time and dedication (or a large sum of money in cryptocurrencies) the safest solution will always be to write down the passwords on paper, even if you keep them well and make copies since if you lose them you have lost access to that money.

Avoid public WiFi

Public WiFi can be a convenient service, however, you should avoid interacting with any exchanges or wallets while connected. Hackers can easily collect data transmitted over the network, for example, your login credentials.

We strongly recommend never connecting to any financial services on these networks. In a desperate situation, at least use a VPN.

Beware of phishing scams

You may know of phishing scams as the most common method of stealing your credentials for traditional online banking. Cryptocurrency exchanges and wallets are also subject to this covert technique. It is one of the most basic scam techniques, used by hackers to steal your Bitcoin or altcoins.

Phishing scams create a fake website that resembles the original site. The user is deceived and does not know that he has been directed to a fake website. The user inserts username and password calmly, then hackers have their credentials. Hackers can easily send the funds to your wallets.

If you regularly access exchanges, a fairly easy security measure is to bookmark these websites in your browser. Always access your bookmarks and you will be safe. Phishing sites tend to focus on the most common or most inconspicuous typographical errors. A notable example was with myetherwallet (A respectful Etheruem wallet platform) that fell victim to several of these scams.

My ether wallet original

At first glance, you will not notice anything strange. The layout is a copy of the original site, although the URL is slightly different: myetherwallet.com vs mÿetherwallët.com. The Y and E have an umlaut, a small detail that you won’t be able to easily see. By putting your access codes on a fake page, hackers will get everything they need to own your cryptocurrencies.

Don’t store your cryptocurrencies on exchanges

This may be the most common mistake. The exchange already provides you with a clue of what the purpose is on its behalf. Exchange = Exchange. They are used for exchange, they are not intended for the custody of your cryptocurrencies. Most of the stolen Bitcoin has been due to hacks by exchanges, not the cryptocurrency itself. Hackers usually attack small platforms that lack security, although it should be noted that several large exchanges have been attacked. Here is a list of some of the most notable Bitcoin heists to date:

Mt. Gox: 850,000 BTC (worth $ 450 million at the time in 2011)

Bitfinex: 120,000 BTC

Bitcoinica: 43,554 BTC

Bitfloor: 24,000 BTC

Bitstamp: 19,000 BTC

Binance: 7000 BTC

Poloniex: 97 BTC

We listed Binance and Poloniex, not for quantity, but to let you know that even reputable exchanges can be hacked. Fortunately, exchanges have evolved and so have their security measures. The biggest BTC hacks occurred mainly when cryptocurrency exchanges were still young and their security measures were low. However, Binance was attacked in 2019. As such, no exchange is safe from a hacker attack.

Binance mobile

The only reason to have your digital assets on an exchange would be if you are a day trader. If you are a holder or a long-term trader, the best practice would be to store your Bitcoin and/or altcoins in a cryptocurrency wallet. If you want to exchange it for another cryptocurrency or fiat send it to your wallet once you have completed the operation. Remember, whoever owns the private key controls the money.

Keep your device safe

Use your common sense and focus on basic user security practices such as: don’t download any suspicious files, keep your firewall up to date and up, and don’t visit known dangerous websites. If you want to install software, always check the opinions of other users first or if the company behind it is transparent enough that you can trust them.

Buy a cryptocurrency monitor or hardware

This security measure is highly dependent on how much money you have in Bitcoin. As a general rule, we recommend that if you have more than $ 500 in Bitcoin it is advisable to buy a cryptocurrency hardware wallet. There are many hardware wallets on the market.

Ledger and Trezor

Encrypted hardware wallets are the safest method of storing your digital assets. A cryptocurrency hardware wallet is a specialized device, which has been designed exclusively for security.

The device stores their private keys within an impenetrable circuit and allows them to sign transactions with a manual, non-digital click. Like many other wallets, it offers seed to easily transfer your private keys in case your device is stolen or lost.

If you have a small amount of Bitcoin or want a faster and seamless wallet, you can use hot wallets. There are differences between hot wallets and cold wallets (Hardware wallets). If your device is in a secure environment, hot wallets are safer than leaving your cryptocurrencies on an exchange.

Enable two-factor authentication

Two-factor authentication is an extra layer of validation security. Add an extra step in the login process, an extra layer of security. You need to insert an extra password to access it. This password is generated by an application (Google authenticator or Authy are the most used on the market) stored on your smartphone. Every two seconds a new password is generated for greater security. The purpose is to create an additional external security layer to make the hacker’s job more difficult. The hacker would have to steal your phone and gain access to it.

Google authenticator

Most exchanges offer two-factor authentication and are very easy to install. Two-factor authentication can and should be used in the email you use to access your exchange accounts.

Some exchanges also offer additional options like a random PIN sent to your email and SMS. In any case, we strongly recommend avoiding using SMS verification due to its insecurity.

Keep your crypto assets private

You can be proud of an investment or trade you have made with a cryptocurrency. Many investors brag about their holdings and successes, many did so in the big boom of 2017. Today people have learned that this may not be a good idea. The most extreme example is that of the Bitcoin owner who was killed after being forced to send his Bitcoin.

Cryptocurrencies do not have an identity linked to money as traditional banking does. If you have the Bitcoin private keys, you are the owner. Therefore, if you are forced to send your Bitcoin to an address, you will not be able to claim it. For criminals, this can be attractive.

A simple solution is to not show off your possessions to people or at least keep a low profile about it. At conferences, meetings, or out of the curiosity of your friends, you may be asked how many cryptocurrencies you have. Avoid answering this question for your safety, especially if you have a substantial quantity.

• Sending funds to the wrong address
• Cryptocurrency addresses are very long and complex.

If you send your assets to the wrong address by mistake, you will lose your funds. Since the addresses are not attached to an identity, you will not be able to contact the person who has the address. Also, if you find the owner, you will not be able to force him to return the funds. With Bitcoin and altcoins, there is no middle man which can have many advantages, but for these types of issues, you are alone.

Bitcoin address example

As the addresses are very long, it is not recommended to type these addresses manually. Many exchanges and wallets offer a copy to a clipboard button or a QR code. Selecting the address manually can also create errors. Either way, if you copy and paste the address you should always check if they are the same. Unfortunately, there have been cases where the copy and paste functionality has been hacked. To avoid worse evils, a common practice is to check that the first and last 5 digits of the address match before sending.

Cryptocurrency transfers have very low fees. Therefore, it is highly recommended to send a small amount and check if the transfer worked, and then send the full amount. It costs almost no money, so there is no excuse.

The top 10 cryptocurrencies to trade in 2021

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

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?

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%.
• Specter coin, 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.

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