Review of Our Top 10 Safest Bitcoin and Crypto Exchanges Coinbase. 4.50 / 5. Binance US. 4.33 / 5. Gemini. 4.50 / 5. Kraken. 4.50 / 5. Crypto. 4.00 / 5. Bitstamp. 4.50 / 5. Phemex. 4.67 / 5. Deepcoin. 3.67 / 5.
As a financial asset, Bitcoin has vastly outperformed the stock market, with one-year and five-year growth rates at 107% and 423%, respectively. Bitcoin is widely expected to continue to produce high returns. Investing just $100 in BTC today is forecast to be worth around $3,400 in ten years' time.
7 Steps of Crypto Investment Step 1: Understand and allocate the investment. Step 2: Choose the Cryptocurrency. Step 3: Understand the Cryptocurrency. Step 4: Choose the Platform to Buy. Step 5: Store your Cryptocurrency. Step 6: Secure your Crypto wallet. Step 7: Hold and Sell to book profit.
If you use an exchange that provides you with a form 1099-K or form 1099-B, there is no doubt that the IRS knows that you have reportable cryptocurrency transactions.
The IRS treats cryptocurrency as property, meaning that when you buy, sell or exchange it, this counts as a taxable event and typically results in either a capital gain or loss.
Crypto taxes are a percentage of your gains. The rate depends on your income and whether or not you held the crypto for more than a year. Short-term capital gains rates range from 10% to 37%. Long-term rates run from 0% to 20%.