This Expert Review covers the week from 30.05.2022 to 05.06.2022.
In this release, we will analyze the potential future of cryptocurrency and its characteristics as a retirement fund. We will also assess if now is a good time to invest in crypto currencies.
- Is Cryptocurrency a bad investment?
- How to file cryptocurrency related tax in India?
- The reasons why stablecoins may no longer exist.
- Are there opportunities to invest in cryptocurrencies?
Interact with the underlined words and green dots to get additional details and explanations.
Explanations and definitions of terms.
Is Cryptocurrency a Bad Investment?
Cryptocurrencies are extremely volatile. They have little practical use beyond speculation and crime, often get lost or stolen, and lack the real-world cash flows that underpin the values of stocks and bonds. It should thus go without saying that they have no place in a retirement savings plan.
Unfortunately, it appears to require saying. Earlier this year, Fidelity Investments, among the country’s largest 401(k) provider, said it would soon let participants invest as much as 20% in Bitcoin, if employers choose the option. They say Americans deserve more choice while citing surveys showing that millennials, in particular, tend to see crypto as a desirable investment.
Also, they say, digital assets can diversify a given portfolio because their price fluctuations aren’t synced with other markets. Proper financial education, they insist, can help people understand the risks. Crypto has a limited track record, and Bitcoin has lately plunged even more than other markets, down more than 50% from its November 2021 peak. Not to mention technical difficulties, such as obtaining reliable pricing and ensuring safe custody in a largely unregulated realm.
Of course, people should be free to invest their money as they please, outside their tax-advantaged retirement accounts. Some day, crypto may prove to be something more than a purely speculative instrument. However, it’s nowhere near that now.
How to File Cryptocurrency-related Tax in India?
In India there is a 30% Tax on Profit from CryptoCurrency. India’s crypto market grew 641% from 2020 to 2021, turning India into one of the fastest growing cryptocurrency markets. San Francisco based CoinTracker, a crypto tax compliance and portfolio tracking startup, has entered the Indian market with an official product launch in the country.
The crypto tax compliance and portfolio tracking products offered by CoinTracker are now available for crypto users in India. The crypto exchange platform has built tools for cryptocurrency users to build wealth, file taxes, and optimize their portfolio year round. Essentially, it helps crypto investors sync all of their activities across exchanges and wallets into one place and calculate capital gains and losses.
“It can be challenging for folks to navigate the complexity of buying, holding, and transacting with cryptocurrency and nearly impossible to comply with taxes without the right tool. We built CoinTracker to solve this problem seamlessly and are excited to deliver our offering in India,” Jon Lerner, CEO of CoinTracker said.
The crypto startup plans to rapidly expand its integrations and partnerships with all the popular exchanges and tax products used in India.
Reasons Why Stablecoins May No Longer Exist
Investors are losing faith in stablecoins. The cryptocurrency market was in turmoil, by the collapse of Luna and the UST stablecoin, both tied to the Terra blockchain a week ago. Over $17 billion in crypto value was wiped out, and the collapse has raised questions about stablecoins in general.
The crash has caught the eye of politicians and regulators. Because of this severe fall and turmoil caused by the stable coin. Investors are losing faith in the stablecoin. According to Elon Musk, stable coins can be replaced by ETH/BTC pairs in the future. This idea will completely replace the concept of stable coins and it may make cryptocurrencies more stable.
Are There Cryptocurrency Investment Opportunities?
Analyzing Bitcoin and Ethereum, it appears to be possible to get rich by investing in cryptocurrency in 2022, but you could also lose all your money. Investing in crypto assets is risky but also potentially extremely profitable.
Let's take the world's top two cryptocurrencies Bitcoin and Ethereum and analyze them.
Let’s study the important levels of Bitcoin and Ethereum. The most important support level of Bitcoin is at 20,000, and for Etherium at 10,000. It is expected that crypto currencies may remain under pressure for some time. From these levels investors can start accumulating Bitcoin and Ethereum. But as of now we recommend waiting for the right opportunity.
Risk warning: The content of the article does not constitute investment advice and you are solely responsible for your trading activity and/or trading results.
A 401(k) plan is a company-sponsored retirement account that employees can contribute income, while employers may match contributions.
CoinTracker automatically optimizes cost basis accounting methods and enables you to tax-loss harvest your portfolio to save thousands per year.
TerraUSD (UST) is a stablecoin built on the Terra blockchain
LUNA is the native token of Terra, a blockchain developed by the Korean firm Terraform Labs.
Bitcoin is a decentralized digital currency that can be transferred on the peer-to-peer bitcoin network. Bitcoin transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.
Ethereum is a decentralized, open-source blockchain with smart contract functionality. Ether is the native cryptocurrency of the platform. Among cryptocurrencies, Ether is second only to Bitcoin in market capitalization.