Markets
Cryptocurrency Investing Mistakes and How to Avoid Them
Illustration: Baris-Ozer (Getty Images)
It is important for new crypto investors to understand the different fees associated with purchasing crypto, such as blockchain fees, exchange fees, and other fees. Choosing the right credit/debit card or bank account is crucial to minimizing these fees. Before making a purchase, it’s best to research potential fees and find the most cost-effective time frames and exchanges. This could result in significant savings in the long term.
Additionally, it is essential to be aware of the taxation of cryptocurrencies. Simply purchasing and owning cryptocurrencies is not taxable. However, tax implications arise when you sell it, and the amount of tax depends on how long you hold the crypto in your wallet.