Cryptocurrency is officially mainstream. Approximately 16 percent of all Americans have invested, traded, or used a decentralized, blockchain-based token, which is a number that seems to increase everyday. The Super Bowl—the singular marquee event for advertisers—was absolutely canvassed with crypto platform ads, picking up ultra high-profile celebrity endorsers in million dollar commercial productions. At last, a financial apparatus once condemned to the arctic regions of the economy has firmly pried its way into common society.
For those of us who haven’t made the jump yet, crypto appears to be both enticing and terrifying—caught in an uncomfortable place between a pernicious scam and a potential miracle. There are so many questions worth considering. What happens if you invest money into a coin that crashes? How easy is it to pull money out? Have you already missed the boat? And, a big one lots of people likely don’t even think about: what about tax season? The idea of navigating any Ethereum holdings in April is terrifying. Which is why I consulted H&R Block’s cryptocurrency tax experts, as well as other financial experts, to help navigate these treacherous waters.
The more you talk to people about crypto, the more you understand that currently, this is a realm filled with hedges, guesswork, and theories. That opens up a lot of room for potential, as well as plenty of exposures. With so much volatility, many that have remained on the sidelines might wonder why…