Bitcoin was the first digital currency in the world. It is also the most traded cryptocurrency. Cryptocurrency trading offers great yield because the crypto market is highly volatile. This is the reason why traders globally enjoy trading Bitcoin.
If you look forward to investing in Bitcoin, then first, you should find an exchange that is most suitable for your trading needs. Once your account is verified, you can start to make your trading strategy.
Buying Bitcoins without understanding why you purchased them in the first place is the most common mistake beginners do. The crypto market is so volatile that you will probably end up in a considerable loss.
The critical thing to remember is that if you have your verified account in any centralized exchange, then you cannot hide your gains from the local government. The profit earned from trading Bitcoin is viewed as capital gains that are taxable in most of the countries.
Bitcoin is the first digital currency that is decentralized and unregulated. Everyone can use Bitcoin for peer to peer transactions which make it one of the most inclusive digital money. The legality of the Bitcoin depends on the place where you live. You should check with your local regulators or legal advisors if Bitcoin is legal or not.
While some government has banned cryptocurrencies, there are others which urge their citizens to not to invest in them. Most of the countries are crypto-friendly and strive to adopt modern blockchain technology.
The major problem with banning digital cryptocurrency is that it is difficult to enforce such a ban as nobody can prevent people from accessing the internet and managing digital currency transactions.
Bitcoin is not a legal tender of any country. No country has claimed it to be a national currency. Well, even if it's not a legal tender, it cannot be used for payments.
Bitcoin is a digital currency that uses cryptographic encryption to offer security for storage & transfers. Bitcoin is decentralized, and it is generated by mining, which is a process where high-performance devices like computers which use an open mathematical formula to produce Bitcoins. Worldwide, local governments have tried to regulate Bitcoins. US Internal Revenue Service (IRS) and its counterparts in different countries behave in the same manner when it comes to Bitcoins. It is considered as an asset and not as a currency issued by a bank.
Any income gained by investing in cryptocurrencies is taxable, and traders are bound to report their transactions accurately. It is mandatory to report crypto transactions of all kinds, no matter how small is the value.