How much did you manage to earn on cryptocurrency?

The cryptocurrency market has become very popular in recent years, with new cryptocurrencies being introduced on the market every day. But how do you get your hands on these cryptocurrencies? The answer is simple – buy them!

However, if you’re not familiar with this market, it can be difficult to choose where to invest and how much money to invest at once.

Before you spend your hard-earned money on cryptocurrencies, it’s important to have some information about the crypto market so that you can make informed decisions that will benefit you over time.

 

If you made any money at all

Did your money come from holding (that is, buying and holding), or was it a result of some trading/investing strategy you employed?

If so, what was that strategy and how did it work out for you? If not, why not, and are you still interested in investing in cryptos now that they've seen their value soar over 100% since January of 2017?

Have cryptocurrencies like Bitcoin and Ethereum become too mainstream to be effective investment opportunities at present, or is there still a good opportunity for those willing to do their homework on where to put their money into cryptocurrencies with potentially promising futures ahead them?

What's your take on cryptocurrencies as an asset class? How likely are you to invest in them again? Why or why not? What would have to happen before you'd consider putting more money into crypto assets?

Do you think governments will eventually crack down on these things, or will they continue to grow and become accepted by society as a whole? Are there any other coins besides Bitcoin and Ethereum that you're looking at right now?

And if so, which ones? Is there anything else we should know about your experience with cryptocurrencies thus far?

 

If you made a few thousand dollars

Congrats! Don’t blow your wad, though. (See what we did there?) Realize that cryptocurrencies are risky and subject to high levels of volatility. So if you want to maximize your gains, spend wisely – don’t buy a Tesla with all of your earnings.

You also need to do something with those coins once you have them: It may be better off holding onto Bitcoin, but if you think Ethereum is poised for upward momentum in 2018, consider using some of those gains to buy ETH tokens.

The same goes for any other digital currency out there; get a feel for which ones fit your risk profile and invest accordingly. If you don’t know where to start, try an exchange like Coinbase or Gemini. They make it easy to convert fiat currency into crypto and vice versa.

And remember: Crypto isn't just about buying -- it's about selling too. If you're serious about trading altcoins, try getting familiar with GDAX or Kraken -- two popular exchanges for buying and selling digital currencies.

 

If you managed to make some good money

Money is already a central focus in your life, so it’s likely that making more of it was a key motivator for why you started your own business. When many people start out in business, they rely heavily on income from cryptocurrencies to support themselves.

And if things are going well with cryptocurrencies, it may mean that some of your other ventures aren’t doing as well as they could be. Finding ways to make money using traditional methods and incorporating crypto as an extra stream of revenue can help smooth over some potential cash flow issues and give you a little more peace of mind.

Take some time today and figure out how much money, exactly, you made by mining cryptocurrencies. Are there any areas where you could use these profits to generate additional income through traditional means? If so, think about what those opportunities might look like and get ready to implement them!

 

If your earnings were close to $100,000

That’s a lot of money. Way to go! Keep up your hard work, though—the next time we ask about your income, it might be in a courtroom as part of a trial for fraud.

Don’t worry: We know we wouldn’t get paid for that story, so don’t worry about us trying to blackmail you with it.

In any case, assuming your earnings are real and not fraudulent, congratulations on earning such high profits from something most people have heard of but few really understand (especially considering Bitcoin has only been around since 2009).

If you feel like sharing how you managed to come by such wealth, perhaps over some mojitos or a fine whisky at our office? It might help other readers struggling in their own ventures.

Or maybe not. Maybe you can use your fortune to retire early and live off of investments alone instead? In any case, congrats again!

 

If you were able to make millions!

Thanks to an astronomical spike in Bitcoin’s value, many people are mining bitcoins and other cryptocurrencies right now.

If you managed to make millions of dollars worth of Bitcoin in just a few years, I’d be impressed! However, I would also assume that you're reading up on investing since it's important not only from a return-on-investment perspective but also for tax purposes.

For example, if your earnings come from being paid for providing computing power toward maintaining and verifying bitcoin transactions (i.e., mining), then it's considered ordinary income and can be treated differently for tax purposes than if you were paid in bitcoin directly for goods or services rendered.

The same goes for businesses that accept payments in bitcoin: they need to keep track of every transaction, determine whether it was made in U.S. dollars or bitcoin, and report accordingly.

The difference between these two scenarios is significant: businesses pay taxes at rates as high as 39 percent; individuals face lower rates depending on their filing status but no more than 37 percent.

 

Conclusion

There is still a lot of hype around crypto and many people are wondering how they can make money with it. In my opinion, if done correctly and with caution, it is possible. We must remember that Bitcoin started as a project to build something new for everyone and it is designed in such a way that anyone could get involved.

There are still many risks and caveats surrounding crypto, but I think it will be very interesting over time to see where things go from here.

Many people have already made millions in bitcoin but there’s a whole world of other cryptocurrencies out there waiting for us...like Etherium or Stratis...just to name two more recent ones.