There are several types of crypto. One of the earliest and most popular cryptos is Bitcoin. Launched in the late 2000s by an anonymous individual who used the name Satoshi Nakamoto, Bitcoin was the first widely adopted cryptocurrency. It’s part of a blockchain that can’t be manipulated. There are only 21 million bitcoins and no more will ever be produced. Since its inception, the value of bitcoin has had its ups and downs, but it is currently valued in the tens of thousands.
Although Bitcoin is the most popular crypto, Ethereum, Cardano and others have seen rises in value. Increased value is encouraging for investors, but it’s important to note that the crypto market can be volatile and prices can vary. However, with proper strategy, crypto can be a force for investors. Whether you’re a seasoned investor or just getting your feet wet, you can access the market with an investment as low as $5 and without purchasing a full coin.
Because using crypto is the wave, the IRS has jumped on it. As a heads up to those using the currency, the government expects filers to report any digital currencies acquired in the applicable tax year. Based on a 2014 tax guidance, cryptocurrency is categorized as property and will be taxed accordingly.