Due to economic uncertainty during the corona crisis and the rising prices, it can be very interesting to get into crypto investing now through crypto exchange platforms (visit https://thebtcsociety.com/ to learn more about crypto exchanges). Planning to invest in crypto for business? Then first check out the tips and tricks in this article to get off to a good start.
Always read carefully about various crypto prices
Successful business investing in crypto is only possible if you have sufficient knowledge about cryptocurrency and the different coins in which you can invest. Of course, you can blindly put your money in a digital currency that you know nothing about, but various research shows that it is better not to do this when you want to make money. Take, for example, the world-renowned investor Warren Buffett.
He only invests in crypto and stocks that he understands. Otherwise, he will not put any money into it, because in such a case he has no idea what the coin might do and how he can respond to it. In short: always read carefully about the ins and outs of the cryptocurrency you want to invest your money in. Only then is the chance of success and return present, because you know (a little) what you are doing.
Do you choose private or business investing as an entrepreneur?
In addition, you should know that you can invest both privately and professionally as an entrepreneur. In general, self-employed entrepreneurs without staff are advised to invest privately in crypto. If you make a lot of profit with your investment in, for example, Bitcoin, you do not have to count the profit as a profit of your company in this way. In that case, you do not have to pay tax on the increase in value.
Do you decide to invest in crypto for business? Then you have to take into account that the increase in value of your investment can be taxed. If there is a loss of value, you must also include this in your business accounting. If you are unsure whether you should invest in cryptocurrency for business or private purposes, it is advisable to contact your accountant for the necessary advice. He or she can tell you more about this.
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Always invest in crypto for the long term
What is also not unimportant to know is that you should always invest in cryptocurrency for the long term. Many people, including entrepreneurs, get into crypto with a good feeling only to find out the next day that their deposit has become less valuable. That is possible because crypto is extremely volatile, so its value is different at any time of the day. This is immediately the biggest risk of investing in crypto coins because you can earn money, but also lose it.
Because prices generally do not experience any noticeable drops or increases in the short term, it is advisable to leave your investment for a long time. In this way, the chance of return is the greatest. Just look at the beginning of Bitcoin: in 2010 the cryptocurrency was barely worth anything and now the value fluctuates around 20,000 dollars for one Bitcoin. So leaving it alone always pays off; Even when it takes a while.
Only invest with money you can afford to lose
When you’re just starting to invest, the temptation can be great to put all your money in. Who knows, you might score a lot more money in return with the right investment. Nevertheless, it is not advisable to do this; precisely because crypto prices are so volatile. That means you should only invest money that you could possibly miss. You never know what the rates are going to do, so it’s nice to have money on hand.
Money that you can miss is, for example, savings, holiday pay, or a piece of profit that you want to invest with. Money that you need for your mortgage, rent, and/or daily life should be left in your account so that you do not have problems paying your bills. If you can ever get that much money out of a crypto price, you can always invest even more money to earn even more from your investment in cryptocurrency.