Top Crypto Investing Services
If you’re reading this, chances are you’re new to the space and looking for top crypto investing services. Before we get to services, there are a few things newcomers need to know before investing in cryptocurrencies. Many learn the items on this list the hard way, but that is not a requirement and something that can be avoided!
- Bitcoin and cryptocurrency is an immature market
- Impact on society or the economy is not yet known
- Prices move at warp speed compared to other assets
- Bitcoin will be proclaimed dead relentlessly
- Losses occur only if you sell your BTC
- If you hold your private keys, you own your Bitcoin
- Make security a very real concern at all times
- Government regulations are evolving
- Scammers lie to take your crypto
- Do your own research so you make wise decisions
That said, it should not be hard to understand why there are not many top crypto investing services worth pursuing. Most that claim to be “services” are nothing more than a Ponzi scheme or outright scam. While the long arm of the SEC (U.S. Securities and Exchange Commission) has made the operation of such less lucrative in the United States, many remain in business throughout other parts of the world.
Be wary of top crypto investing services that claim to be “authorized cryptocurrency trading” companies. Chance are there is no such “authorization” at all. Understand that unrealistic gains or ROI are exactly that – unrealistic. Even the best traders or automated bots on the planet cannot guarantee x% gains or return on investment. Beware of companies that claim to be mining cryptocurrency – as most have zero mining capabilities at all.
Companies that claim to “manage your bitcoin through a decentralized system” are almost 100% pyramid schemes. In order to be decentralized, there can be no single point of control, and these claims are easily debunked by researching the principal owners. Harder to recognize, these schemes often appear to deliver unbelievable returns for a period of time until the original scammer takes off with the bitcoins and the pyramid collapses. Any platform that relies upon multi-level marketing and high yield programs is anything but a top crypto investing service.
Top Crypto Investing Services: Reality
The reality is that you must be okay with taking calculated risks when engaging true top crypto investing services. The volaltility that frightens most happens to be one of the main reasons investing can be so profitable. Bitcoin seems to contradict the traditional view of money and many feel it is too volatile to be a store of value, medium of exchange, or unit of account.
Bitcoin as a long-term savings plan for which stability will come only after mass adoption occurs. Still very much in the early adoption phase, volatility plays a role in price discovery and does not necessarily mean Bitcoin will be ineffective as a store of value. An example is the dollar – no volatility, but a bad store of value. Top crypto investing services will point out that bitcoin has been both highly volatile and an exceptional store of value.
Which top crypto investing services are reputable?
There are reputable exchanges that allow individuals to buy, sell, trade, and withdraw cryptocurrencies. However, all are DIY-type services for which one must take 100% responsibility for all actions. Should you, for example, send your bitcoin to the wrong address upon making a withdrawal – there is no recourse to recover it. This is true for all top crypto investing services and should be fully understood by those who buy cryptocurrency.
There are two types of exchanges: those who permit fiat to crypto trades, and those who only permit crypto to crypto trades. All are centralized, which means they are vulnerable to being hacked, but the services offered are not very complicated and easy for newcomers to manage. The larger exchanges have greatly improved security, but the exchange holds the private keys for crypto stored in accounts. The key is to make your buy and move your coins to a secure wallet for which you hold the private keys. The only truly secure way to store your coins is to take matters into your own hands and educate yourself about crypto wallets to learn which ones are trustworthy and safe.
What top crypto investing services are essential?
The most essential top crypto investing services are those that assist with tax obligations. Few tax consultants yet know how to deal with cryptocurrencies and, while the number is growing, as a bitcoin (or altcoin) user it is your responsibility to understand the tax implications. While there are some jurisdictions in which no taxes are required, most countries consider Bitcoin to be a property and there are taxes incurred when trading it for profit.
There are services online that allow the import of all crypto transactions to calculate profit and loss to determine capital gains realized for tax purposes. Some of these platforms actually generate the IRS Form 8949, as well as detailed spreadsheets needed for your own recordkeeping.
What top crypto investing services are needed?
Since the crypto market is in its infancy, there are many top crypto investing services needed and some are under development. This is a fact that makes it difficult for average investors to understand cryptocurrency, Bitcoin in particular. Because it is so valuable currently, it seems odd that more user-friendly services are not available.
Bitcoin represents a new asset class with only about 25 million users globally, representing a small % of total equity investors. Entry of institutional investors in the crypto market will facilitate the mainstream adoption of digital currencies. New custody storage services specifically designed for institutional investors have launched, but this level of trusted storage for average investors is yet to come.
Put simply, cryptocurrency custody solutions are third party providers of storage and security services for cryptocurrencies. Perhaps this is an area of service traditional banks will explore and offer customers in the future.