After the sudden rise of Dogecoin earlier this year, numerous questions started to fly around about taxing crypto. When we file taxes early next year, we will have to add information regarding crypto trades! If you reside in the United States, be careful if you are shorting cryptocurrency for fun.
It’s exciting when your favorite crypto spikes and angering when the opposite takes place. However, be careful listening to people urging you to short other coins. While it might help some people’s portfolios, it could come back to hurt your finances in the future. If I remember correctly, exchanges have been told to report anything over $10,000.
If you are new to crypto, you might not be aware that cryptocurrency is viewed as property. I will link something below to give you an idea of the whole tax ins and outs. Just be careful out in the crypto wilderness. This is why it is important to talk to financial advisors about how and when to trade crypto. Never let Twitter act as your financial advisor because it isn’t! Other than that, have fun and invest in your favorite coins.
In other news, SHIBA has been down since last night! Dogecoin has been up to 24.66%. I am still worried about Dogecoin, to be honest. With the amount of money that was poured into Doge by their investors, I would think it would have gained more than nearly 25%. As for Shib, most of us are still holding. Corrections happen, and so do other things!
I can’t wait to see what the weekend brings for our crypto community. As always, be safe and make good decisions. Talk to financial advisors when in question!