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As we all know, Bitcoin is somewhat of a hot trend among cryptocurrency investors these days – and there’s been so much activity on it that most business owners are interested in possibly purchasing them for short or long investments, which can be both a blessing and a curse.

Before you put your hand into cryptocurrency and mining, take to consideration some factors that may affect your finance plans. We know there are hundreds of “coins” out there, and acquiring them from legal sources may be difficult for a first time investor. Always remember to weigh in your sources and do your best to research the legitimacy of your source, as there are also quite a lot of shady places to buy them. And it’s not only for Bitcoin too – there’s a lot more various types of cryptocurrency coins, and it can be overwhelming to truly understand what you’re buying and track it’s actual value.

On the other hand, cryptocurrency’s growth and returns are also worth learning about, despite the volatility of their values as each day passes. It’s also noteworthy that Bitcoin – or many others, are unlikely to lose their value over the years, so if you’re interested in starting out, here’s our short “primer” to help you get started.

  • Step 1: Choose an Exchange – Think of an exchange as a brokerage platform that allows you to convert legal tender (U. S. dollars, for example) to cryptocurrency. Some exchanges act more like banks while others simply offer an opportunity to buy and sell crypto. In the United States, the most common exchanges are Coinbase, Kraken, and Gemini, and while these offer a great means to exchange coins, they are not the truly anonymous cryptocurrency exchanges many people think of when they envision Bitcoin. Obviously, you need to choose your exchange based on your plans.
  • Step 2: Create a Wallet – With your exchange sorted out, the next step is to create a wallet and set up your payment options. Just like your real wallet, this acts as the digital meeting point of your funds – the account(s) you’ll purchase from and the digital/crypto holdings you own. Your wallet is linked to the exchange, and, in the case of a brokerage style exchange, this is where purchases and sales of coins will be able to be deposited.
  • Step 3: Buy! – With your exchange sorted, your wallet in place, and your accounts linked up, it’s time to buy … but what? THAT’S the real challenge, isn’t it? There are so many choices, and the best plan is really the simplest – do your research. As of this writing, it seems like there are cryptocurrencies available based on a variety of things – from computer network payment tracking to marijuana-based coins. What is “right” for you? You’ll have to sort that out for yourself.

Now, obviously, there’s more to investing in Bitcoin and cryptocurrencies than this, but there are hundreds of “how-to’s” online that can really get you far more detail. Cryptocurrency is going to be an important part of many people’s investments in the coming years, so adopting now is not only a great idea, it’s also a useful one for the long haul. If you have some interest, let’s sit down and look at your budget to see how you can use this newer tool to round out your wealth strategy. Contact us today to get started.

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