When it does, the scammers sell out, often pushing the price down for everyone else. One often-used scheme is a pump and dump, in which scammers encourage people to buy a certain token, causing its value to rise. You should be on the lookout for crypto scams. It's easy to get caught up in tweets, TikToks and YouTube videos touting the latest coin - but the adrenaline rush of a market spike can easily be washed away with a dramatic crash. And since this virtual currency is extremely volatile and driven by hype, that's a problem. What are the risks of investing in crypto?īefore investing in crypto, you should know there's almost no protection for crypto investors. If you're thinking about adding crypto to your portfolio, here are five key questions to consider before you begin. Professionals caution that investors shouldn't put more than they can afford to lose into crypto, which offers few safeguards, plenty of pitfalls and a spotty track record. It's an area that's in flux, as far as regulations go." "They're outside the realm of securities trading. "Cryptocurrency is one of those categories of investing that doesn't have those traditional investor protections," said Gerri Walsh, senior vice president of investor education at the Financial Industry Regulatory Authority. especially in light of the current downturn and the ever-present potential for a major crash (in crypto and the US economy, generally). Developments like President Joe Biden's desire to explore a digital US dollar to multimillion-dollar Super Bowl ads underscore a growing desire from powerful government and corporate institutions to quickly legitimize crypto in much the same way as stocks and bonds.īut it's worth considering whether cryptocurrency is a smart investment for you. Amid the seesawing prices and teetering sentiments, one thing hasn't changed: Cryptocurrency remains controversial, risky and wildly volatile.ĭespite gyrating prices and a relative lack of regulation, cryptocurrency is seen by many as the next financial frontier. But investors see the world of digital coinage as a step forward, a kind of "Money 2.0" that will democratize finance and power the metaverse. Critics have called bitcoin, stablecoins and NFTs simply a new digital version of an old con primed to swindle and scam. While crypto is starting to trend upward, volatile highs and lows are nothing new in the crypto markets - and skeptics have long characterized crypto as an empty bubble destined to burst. In an economy with high inflation and recession risks looming, is crypto still a worthy investment?Īfter bullish highs in 2021, cryptocurrency dropped to pessimistic lows this year, tumbling into bear market territory which investors are dubbing another "crypto winter." The $2 trillion crypto market crash wiped out investor gains, cost thousands of people their jobs and obliterated once staple digital currencies, including the crypto token luna, which lost all of its value following stablecoin terraUSD's collapse in May. But while the market looks healthier than just a couple of weeks ago, it's still far from last November's peak, which reached $3 trillion. In July, the cryptocurrency market bounced back to a $1 trillion market capitalization (the total dollar market value of crypto today) for the first time in recent months. If you would like to know more about how we can help you invest in BitCoins or Crypto Currency please get in touch.This story is part of Power Money Moves, CNET's coverage of smart money decisions for today's changing world.
BITCOIN EXPERT ADVICE PROFESSIONAL
We have plenty of experience in this now and there are a few special issues you need to be aware of so we do highly recommend you talk to a professional before starting down this path. This is possible and relatively straight forwards, to get access to Crypto with your super you will need to set up a Self Managed Super fund and then purchase currency from there.
You can read more about the ATOs view of Crypto here if you would like to discuss your tax position please get in touch.Īn emerging area we are seeing here at the practice is more and more people wanting to use their Super Fund to buy Bitcoin (or other Crypto Currencies). What is the future of Bitcoin and Crypto? Well right now they are going a bit nuts but really who knows what the future holds, certainly they have now moved from some fringe concept to a fairly mainstream Investment.įrom a Tax point of view the Australian Tax Office does view BitCoin and Crypto Currency like any other asset so yes if you were as lucky as my friend you now have a rather large tax issue. Honestly my attitude was “what the hell are you talking about” I guess back then BitCoins were worth around $50 or $100 each, today they are around $40,000 each. Back a while ago, perhaps 7 or 8 years ago a freind of mine explained what Bitcoin was and how he and his freinds were mining them using old PCs that they had cobbled together.
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