what really is virtual currency?
In simple words, it refers to an unregulated digital form of value, that can be used as a substitute for real world money and can be easily exchanged for fiat or any other form of value via crypto exchanges
What is considered virtual currency?
Virtual currencies are digital representations of money or value, that exist only in electronic, digital and virtual form, thus cryptocurrencies, tokens
ADVERTISEMENT
What is a CryptoCurrency?
Cryptocurrency is a sort of virtual money that utilizes cryptography to get transactions that are carefully recorded on a distributed ledger, for example, a blockchain. An transaction including cryptocurrency that is recorded on a distributed ledger is alluded to as an “on-chain” transaction; an exchange that isn’t recorded on the dispersed ledger is alluded to as an “off-chain” exchange.
How do it convert my crypto into Fiat money
The crypto assets in your wallet can be easily exchanged for fiat or any other form of value via crypto exchanges.
How to tell is the investment is long or short term?
It depends on how much you held the currency you first bought as an investment, if you sold it after at least one year then it’s ‘considered’ a long term investement, however the naming doesn’t really matter, since you have to have an idea on when you have to sell your assets before even clocking the BUY button.
How do I tell how much I made in my investment?
The gain or loss will be the difference between the first amount of money if invested, and the amount you receive after the transaction when you decide to sell off your assets.
Is it counted as income if I got paid with cryptocurrency?
Well we’d say say since the income means receiving property in exchange for performing a service, that includes in form of money, and so is crypto,
When does my holding period start for currency??
well its as simple as that the period starts the moment you receive your assets,
What do I keep in mind while getting into the crypto space?
Well crypto is just like any other investment, its basically a long term solution, it has taken BTC more than a decade to reach these level you see today, also the market is extremely volatile more than any other market, so please be careful and patient, make your own researches (just like you’re doing now) and do not panic.
How are cryptocurrencies prone to fraud?
Trouble is found wherever theres money, the bigger the amount of money is, you know, the more eyes would get on them, and since this market is already having a market cap with a B, (yes Billions), anyone would create a token, cryptocurrency, or even an exchange for the only reason to take stuff from your wallets, so please be careful what you do with your money in this space.
Can I buy online with crypto?
Yes, there’s companies and ecommerce platforms in some countries that accept payments with crypto assets, if you’re in one of these countries already, congrats! If not, well at least you can exchange your crypto to fiat money and do the same actions.
Why is the crypto market so volatile?
The crypto market is not anything similar to the stock market or any other market, all of these market have their ups and downs, however, the crypto space is very young and thus more volatile, and that’s why it reacts heavily.
