Thursday, June 8, 2023
No Result
View All Result
  • Home
  • Recent
  • Business
  • Economy
  • Investing
  • Markets
  • Personal Finance
  • Retirement
  • Tech
  • Startups
  • Insurance
  • Market Research
  • Crypto
  • Home
  • Recent
  • Business
  • Economy
  • Investing
  • Markets
  • Personal Finance
  • Retirement
  • Tech
  • Startups
  • Insurance
  • Market Research
  • Crypto
No Result
View All Result
Home Investing

I’ve Only Invested $50 in Crypto: Here’s Why

Updates Finance by Updates Finance
July 21, 2022
in Investing
0
74
SHARES
1.2k
VIEWS
Share on FacebookShare on Twitter


Advertising Disclosure
This article/post contains references to products or services from one or more of our advertisers or partners. We may receive compensation when you click on links to those products or services

Six years ago, I wrote my first article about Bitcoin. The price of a single Bitcoin at that point was a couple of hundred dollars.

Do I wish I had invested in at least one Bitcoin back then? Sure.

Would I spend hundreds on Bitcoin today? Not a chance.

A part of me has always been a little (okay, a lot) skeptical about Bitcoin and other cryptos in general. With the current crypto market crash, it’s easy to say that my skeptical approach was right. Still, I did buy about $50 worth of crypto investments. Let’s dive into why.

The Short Version

  • It’s very easy to invest in crypto, but there are some good reasons to keep your investment small, such as a volatile market, hacking, and more complicated taxes.
  • If trading crypto isn’t for you there are other ways to invest in blockchain technology, such as a crypto ETF

Why I Invested in Crypto

Even though I’ve written articles on why I think it’s smart for most investors to avoid crypto, I still think crypto has some merits.

However, I didn’t invest in crypto because I wanted to support a decentralized currency or any big ideas about the future of money — I invested in crypto because it was super easy.

https://www.highcpmrevenuenetwork.com/yjx9n4xz?key=2ae113e708965368d7206a42df6559d1

Read more >>> How to Invest in Cryptocurrency

Coinbase Makes it Easy to Invest

I put my first few dollars into crypto because my husband wanted to get the $10 referral bonus from Coinbase. This is not an exciting reason, I know. But I figured I had the account, so why not at least check it out?

I gotta hand it to Coinbase: browsing and learning about crypto is similar to a social media experience. The well-designed UI meant I played around with the app more frequently.

Then I started earning crypto for free through Coinbase Learn. All I had to do was read a couple of quick slides and correctly answer some multiple-choice questions. Afterward, I was rewarded with a few dollars worth of some lesser-known cryptos like Amp, Jasmy, and Quant. From there, I spent time researching other types of crypto, which led me to throw a few dollars at more prominent names like Cardano and Ethereum.

Read more >>> Ethereum 101: Everything You Need to Know About Investing in ETH

The Future of Crypto Does Have Some Potential

Most cryptocurrencies are built using blockchain technology — something I think has major potential. Blockchain technology can make information storage safer and more equitable. This technology can eventually be used for other applications in the financial industry, quicker transactions, and industries such as healthcare.

This technology alone could be worth investing in. There are other ways to invest in the blockchain besides holding volatile crypto. For example, you could choose a blockchain ETF that invests in companies developing blockchain technology.

Read more >>> How to Explain Blockchain in Under 30 Seconds

Why I Won’t Invest More Than $50

Even though I have invested a few bucks, I still stand by only devoting a small portion of your investment portfolio to crypto. Here are the three main reasons why.

The Crypto Market is Way Too Volatile

The thing about crypto is it derives its value solely from the hype around it. That means during tough economic times when investors are worried about losing their money, the value of crypto can plummet.

In 2021, my $50 investment was worth $170 at its peak. Today (June 2022), my holdings amount to about $11, and I haven’t moved funds in or out of my Coinbase account in the last year.

There’s a History of Wallet Hacks

Even the most seemingly secure wallet companies have been hacked. In 2019, hackers stole $41 million worth of crypto from Binance, and $1.6 million was stolen in the IOTA Foundation hack. It’s become apparent that holding crypto isn’t exactly 100% safe.

Additionally, with unregulated investments like cryptocurrencies there’s no financial protection from the SEC such as what you would get with your money in a bank or a registered investment firm you.

Read more >>> What Is the SEC? How Does It Affect My Investments?

You Have to Pay Taxes on Your Holdings

As a freelancer, I have enough to worry about when it comes to tax season, so adding crypto to the mix can be an even bigger nightmare. The IRS has started cracking down on crypto investors. Any crypto transactions you make must be reported on your tax return.

You might also like

Warren Buffett’s Secret on the Oil Market

Wildfires Interrupt Mining Operations in Quebec

Tesla Ticks All the Boxes — And Its Stock Is a Buy, Says Morgan Stanley – TipRanks Financial Blog

And if you think the IRS won’t notice if you don’t claim your gains — it will. It has already sent thousands of letters to crypto holders warning they need to report crypto activity on their taxes.

Read more >>> Tax Guide to Cryptocurrency Investments

The Bottom Line

People invest in crypto for several reasons: Some love the thrill of it, some are excited about the potential value, and some want to to invest in a decentralized financial system. But those who invest large sums of money into crypto could find themselves entirely broke, as we’ve learned from the sudden drops in the crypto market.

If you do want to gain some crypto exposure, invest small amounts first. It never hurts to throw a few bucks at an investment that could take off. But I still firmly believe that crypto shouldn’t be the majority of your portfolio.

Further reading: 



Source link

Tags: CryptoHeresInvestedIve
Share30Tweet19
Updates Finance

Updates Finance

Recommended For You

Warren Buffett’s Secret on the Oil Market

by Updates Finance
June 7, 2023
0

This weekend the Saudis surprised the oil markets … again. Saudi Arabia is cutting oil production by 1 million barrels per day which comes out to 10% of...

Read more

Wildfires Interrupt Mining Operations in Quebec

by Updates Finance
June 7, 2023
0

A wildfire crisis in Quebec has halted the operations of some mining corporations in the eastern province.Nearly 15 mining companies have stopped all operations in the province due...

Read more

Tesla Ticks All the Boxes — And Its Stock Is a Buy, Says Morgan Stanley – TipRanks Financial Blog

by Updates Finance
June 7, 2023
0

On April 18, 2023, the U.S. Internal Revenue Service, and the U.S. Department of Energy, changed the law on electric vehicle purchases. In accordance with the new Inflation...

Read more

Rental Income and Child Support

by Updates Finance
June 7, 2023
0

In this article So, the day has come to finally figure out how much your rental property income will affect your child support payment. You won’t be surprised...

Read more

Animal Spirits: Is the Bear Market Over?

by Updates Finance
June 7, 2023
0

Posted June 7, 2023 by sean Today’s Animal Spirits is brought to you by birddogs: Go to birddogs.com/spirits and enter promo code SPIRITS for a free Yeti-style tumbler...

Read more
Next Post

Psychology of a Crypto Bear Market | Living Opera

Related News

An Interview with Michel Feaster of Qualtrics

May 4, 2023

Better Buy: Shopify Stock vs. Aritzia

February 6, 2023

Govt extends last date to link voter ID, Aadhaar card to March 31, 2024

March 22, 2023

Browse by Category

  • 1Win Casino
  • blog
  • Business
  • Cryptocurrency
  • Economy
  • Insurance
  • Investing
  • Latest updates
  • Market Research
  • Markets
  • Mostbet Casino
  • Mostbet kazinosu
  • Mostbet kumarhanesi
  • Online Dating
  • Personal Finance
  • Retirement
  • Startups
  • Technology
  • Uncategorized

Get the latest Financial news on updatesfinance.com. Business news, Economy news, Investing news, Personal Finance and more.

CATEGORIES

  • 1Win Casino
  • blog
  • Business
  • Cryptocurrency
  • Economy
  • Insurance
  • Investing
  • Latest updates
  • Market Research
  • Markets
  • Mostbet Casino
  • Mostbet kazinosu
  • Mostbet kumarhanesi
  • Online Dating
  • Personal Finance
  • Retirement
  • Startups
  • Technology
  • Uncategorized

Recent News

  • Bitcoin Price Could Restart Increase If It Clears This Resistance
  • 3M’s talks on ‘forever chemicals’ are promising amid legal threats: Morgan Stanley

Copyright © 2022 - Updates Finance..

No Result
View All Result
  • Home
  • DMCA
  • Disclaimer
  • Cookie Privacy Policy
  • Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2022 - Updates Finance..

https://www.highcpmrevenuenetwork.com/yjx9n4xz?key=2ae113e708965368d7206a42df6559d1 https://www.videosprofitnetwork.com/watch.xml?key=23dd8a3bb9168e7b5f33ef2b66f1a432
https://www.videosprofitnetwork.com/watch.xml?key=23dd8a3bb9168e7b5f33ef2b66f1a432 https://www.highcpmrevenuenetwork.com/yjx9n4xz?key=2ae113e708965368d7206a42df6559d1
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?