In today’s time, buying cryptocurrency is a very easy thing to do, but if you are new to it then it is important to know when buying digital tokens where it would be best to buy them. The first thing to do when shopping for cryptocurrency is to finalize the exchange, and choosing the right one is of paramount importance so that your money is safe from any kind of risk. Bitcode Prime is the most popular automated trading platform, with millions of happy customers.
The process begins with choosing an exchange, which first includes your marketplace to buy cryptocurrencies. Anyone can suggest you in the initial phase but you just choose the one which suits you, here we have discussed some of the key points that can help you in choosing a better exchange:
Checking the number of coins that can be traded.
As the popularity of crypto increases day by day, the number of coins in it is more than 20,000 which is different. You can select any one of them. You need to make sure that it offers you what you want as no one each digital asset is provided by an exchange. There are several large exchanges including Coinbase and Kraken that have well-known starting positions as well. A wide range of coins and tokens are offered by these exchanges which are able to accommodate most investors, up to beginners and active traders.
With Coinbase you can trade over 500 coins and Kraken offers over 200 coins, including so-called meme coins such as Shiba Inu and Dogecoin. Whatever coins you are considering trading stocks like Dogecoin, Bitcoin Cash, and Ether, you may want to look into The famous stock-trading app Robinhood, as it permits you to trade a handful of coins commission-free.
Ensuring adequate liquidity
It is very important to find an exchange with liquidity – the ability to convert cash into coins with ease without paying a large markup. However, this is true if seen because in the world of digital assets, prices are increasing rapidly. The moment you buy the coin and its price skyrockets, you want to make sure that your buy order is filled quickly and is close to the price quoted on the screen in front of you. And the best way to get quick control over it is to go to the trading volume of the exchange: the higher, the better. Furthermore, both Coinbase and Kraken have offered one of the highest trading volumes in recent years.
Gaining Control over Tax Reporting
The IRS wants to know why you made money trading crypto. In fact, cryptocurrency trading takes a similar approach to tax profits as you earn from trading stocks and bonds. However reporting this information is, unfortunately, much more complicated for the IRS. You should check IRS Form 8949 Schedule D Statement or K-1, 1099-MISC from digital-asset providers whenever tax time comes. They are able to give your profit and loss statement for the year and the forms which are sent through the stockbroker are similar to 1099s.
Apart from this, there are some crypto exchanges that do not send these forms as a problem. And usually, the forms are only submitted after the April tax deadline. If you would like to do tax reporting when shopping for a new exchange, you can contact customer service on its website to be sure when and if your tax forms will be sent.
For example, if you earned more than $650 in crypto earnings during the year, a Form 1099-MISC will be issued to you through Gemini. Your Form 1099-MISC can be downloaded in the “History and Details” section on the “Account” page on the mobile app or on the Gemini website. However, you also need to know when and how tax information can be sent to you. You cannot track this through a CPA.