How To Buy A Cryptocurrency?

How do you actually buy cryptocurrencies? If you want to buy one or more cryptocurrencies, the entire process is in your hands. You are responsible for ensuring that your money is not lost. You have to protect yourself against theft and hackers, but also make sure not to lose your passwords and not to make incorrect transfers. With our practical guide on the subject of buying cryptocurrencies, we would like to show you a few possibilities of how the steps for acquiring these currently coveted currencies could look like. Because even if it sounds easy to buy something online, buying coins requires a little more than just deciding on a specific Binance cryptocurrency exchange.

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Which Cryptocurrency Do You Want To Buy?

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There are many different cryptocurrencies and new digital currencies are added every month. Which ones are worth investing in? And what Binance cryptocurrency exchange are there anyway? We can answer at least the second question. The currently best-known currencies are Bitcoin and Ethereum. Therefore, these can be traded on almost all exchanges. There are also a lot of other variants about other currencies, for example, Litecoin, Monero, or Stellar.

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Securing The Purchased Coins In A Separate Wallet

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A wallet is a type of digital purse. It is required to store purchased cryptocurrencies in it. With many Binance cryptocurrency exchanges, you do not initially need your own wallet to buy a cryptocurrency. Because the exchanges provide you with their online wallets. This is very convenient for buying and selling coins. With such an online wallet you can receive currencies, store currencies, and send currencies. Each cryptocurrency has its own wallet and each wallet has a different receiving address.

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Record Transactions For The Tax 

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When trading cryptocurrencies, you should write down every single purchase and sale. Unfortunately, there is currently no reason to assume that profits from trading Bitcoins and other cryptocurrencies are generally tax-free. In our estimation, profits from realized exchange rate gains of virtual currencies are treated as profits from private sales transactions. This means that currencies that are sold again after less than a year must be taxed at the personal income tax rate. Profits from cryptocurrencies that are held for less than a year are only tax-free if the total of all your profits from private sales transactions in the calendar year is below the exemption limit.