Many people may be interested in the fact that entertainers use virtual currencies (cryptographic assets) to manage their assets, and that virtual currencies are often talked about in the news these days.
However, there are many negative information such as crashes and hacking, “Isn’t virtual currency somehow dangerous? Some people may be worried.
In fact, unlike legal tenders that can be used by hand (yen, dollars, etc.), virtual currencies are traded on the Internet, so they may not be visible, and it is impossible to question their danger and security. There is none.
So, this time, is virtual currency really dangerous for those who are thinking “I want to try virtual currency for the first time!” Additionally, I would like to introduce the points for safe trading.
DANGERS TO CONSIDER WHEN TRADING CRYPTOCURRENCIES
Cryptocurrencies are often heard, but for those who have never traded, it is an unknown world. First of all, I will explain using Bitcoin (BTC), which is the most famous virtual currency, as an example.
Bitcoin (BTC) has the characteristic that price fluctuations are drastic, but on the contrary, it is a virtual currency that can make a big profit by using this characteristic.
Therefore, beginners may feel the risk (danger) of such price fluctuations, but it may be beneficial for some people, so it is generally said that Bitcoin (BTC) is dangerous. I can’t cut it.
In addition, cryptocurrency exchanges take various security measures to eliminate the risk of hacking and other transactions.
CRYPTOCURRENCIES ARE MORE VOLATILE THAN STOCK PRICES
First of all, virtual currencies are characterized by more volatile prices than stocks. However, large price fluctuations (fluctuations) do the same in the stock market.
For example, in the event of a scandal at the top of a company or a problem such as a violation of the law, the stock price will fall sharply. On the other hand, when a groundbreaking service is released or when the business performance is revised upward, the stock price may rise significantly every day.
However, in the case of stocks, the range is fixed, such as the rise and fall of stocks in one day, so the price will stop when the stock price falls to the upper limit.
TAXES ARE ALSO APPLIED TO VIRTUAL CURRENCIES
Then, “Isn’t there a tax on virtual currency? I think many people think that, but in reality, taxes are firmly levied.
Cryptocurrencies are treated as “miscellaneous income”, and tax is levied on the total amount of income when filing a tax return. The maximum tax rate on income is 45%, which varies from region to region, but generally 10% is levied on residence tax, resulting in a maximum tax of 55%.
For example, more than half of those who earn in billions called “billionaires” in virtual currency will be taken away by tax. Those who think that “I can’t make so much money with virtual currency” should also be careful. As I explained earlier, cryptocurrencies are characterized by volatile fluctuations.
When I suddenly noticed, there was a bigger price movement than I imagined, and I may be a “billionaire”. If that happens, you will be taxed if you convert the virtual currency to Japanese yen, so it is important to be aware of such a tax system in advance.
POSSIBILITY OF VIRTUAL CURRENCY REMITTANCE MISTAKE
One of the features of cryptocurrencies is that they can be quickly transferred to exchanges and wallets around the world at low cost. However, one thing to be aware of here is a remittance mistake.
In the case of a bank, you can check the branch name and account name of the transfer destination at the time of transfer, so the possibility of remittance mistakes is not very high, and you can reassemble the transfer later.
On the other hand, in the case of virtual currency, there is no central administrator like a bank, so even if you send it to the wrong address, you cannot cancel it.
BEWARE OF CRYPTOCURRENCY FRAUD AND THEFT
Cryptocurrencies have a financing method called ICO, which can be used for fraud.
Furthermore, when using an exchange, if you do not take security measures such as two-step authentication yourself, you cannot deny the possibility that your virtual currency will be stolen.
Therefore, it is important to know in advance how to trade cryptocurrencies safely as a means of self-defense.
ENTER CRYPTOCURRENCY INVESTMENT AFTER COLLECTING INFORMATION FIRMLY
First of all, on SNS etc., “I made so much money with virtual currency! It is risky to enter into cryptocurrency investment by taking the opinion that “If you don’t buy cryptocurrency now, you will lose if you know it”.
While some information is reliable, there have been several fraud cases in the past targeting people with no investment knowledge.
In particular, it is safer not to touch the virtual currency recommended by those who are advertising such as “This is a new virtual currency whose value is guaranteed, the absolute price will rise, you have to buy it now!” is.
It is a good idea to collect some cryptocurrency information using SNS, the Internet, books, magazines, etc. before you start investing in cryptocurrencies.