If you’re new to the crypto world, I’m going to provide you with a list of cryptocurrencies to watch.
Cryptocurrency has earned early investors millions and even billions of dollars in ROI.
You might be thinking, is it too late to buy crypto? The short answer is absolutely not.
And if you’re not invested in crypto yet, I’m going to leave a link at the end of this article of my step by step guide on how to buy cryptocurrencies.
Welcome to Franknez.com – if you’re part of the Patreon you’ve seen when I add a cryptocurrency to my crypto portfolio. Today I want to talk cryptocurrencies and why these powerful assets will keep on surging.
Let’s get started!
Now, a lot of you might be familiar with Dogecoin, Bitcoin, and Ethereum.
These are some of the most popular cryptocurrencies out there.
Just recently Shiba Inu Coin began trending as well.
These so called ‘speculative’ plays have earned investors gains unlike anything else in the markets.
These are only some powerful crypto plays that are nowhere near done growing primarily because of their communities!
#1. Ethereum (ETH)
Shark Tank star and Dallas Mavericks owner Mark Cuban just said, “as an investment, I think Ethereum has the most upside.”
And he’s not the only one who speculates ETH is in it’s infant stage either.
But before I continue, this article won’t be about the technical side of the cryptocurrencies themselves but rather a worldview of the crypto’s upside as an investment.
“In a recent Forbes article, a panel of crypto experts including Sagi Bakshi and Lex Sokolin predict that ETH could rise as high as $19,842 by 2025 and that by the end of 2022 it could be the most widely transacted cryptocurrency due to its expanding utility in the marketplace”, via Crunchbase.
At the publication date of this article, ETH cryptocurrency is trading close to $3.1k.
Joe McCann, an angel investor and crypto margin trader believes the Ethereum could even reach as high as $50,000.
Cryptocurrency transactions are taxed by the Canada Revenue Agency (CRA). So, the declaration of cryptocurrency transactions is required by the law.
Cryptocurrency is a relatively new concept that needs tax rules to ensure Canadians correctly understand how to comply with their tax duties. In 2014, the Senate examined cryptocurrency taxation and proposed steps to assist Canadians in understanding how to file their taxes correctly.
In this article, we will know if you need to declare your cryptocurrency and its income to the CRA.
But first, let us talk about what the Canada Revenue Agency or CRA is!
What Is the Canada Revenue Agency (CRA)?
The Canada Revenue Agency (CRA) is a federal agency charged with collecting taxes and enforcing tax regulations on behalf of the Canadian government and several of Canada’s provinces and territories.
Additionally, the CRA administers many social and economic benefit and incentive programs via the tax system and international trade regulations.
The Canada Revenue Agency (CRA) is Canada’s counterpart of the Internal Revenue Service (IRS) of the United States.
The CRA was initially known as the Canada Customs and Revenue Agency (CCRA) until 2003 when the agency’s customs and revenue operations were divided into two distinct entities.
This body is the authoritative source of information on current Canadian tax laws and their interpretation and application. It’s responsible for collecting taxes from Canadians and supervising the social services financed by tax funds.
The CRA is responsible for administering several taxes, including personal income tax, trust income tax, company income tax, excise tax, and partnership income taxes.
Crypto mining is earning digital money by resolving complex computer problems. However, to solve this sort of problem, a lot of processing power is needed, which might lead to high electricity bills.
Mining for personal or non-commercial reasons can be considered a non-taxable pastime by the CRA. However, commercial or business-related mining should be recorded as income.
Also, you will need an e-wallet to store and trade your cryptocurrencies. Several cryptocurrency platforms like Coinsmart, Binance, and Bitbuy are available in Canada.
Some of them are regulated like these Canadian platforms. These platforms will also help keep track of your crypto expenses for taxation purposes.
CRA Taxes on Cryptocurrency Transaction
Bitcoin prices increased significantly in 2021, prompting many Canadians to invest in Bitcoin and other cryptocurrencies. And experts predict it can increase more by the end of 2022.
While cryptocurrencies such as Bitcoin are not considered legal tender in Canada, they do not relieve users from Canadian tax duties.
In Canada, cryptocurrency is seen as a commodity. This implies that any profits or losses derived from the purchase and sale of Bitcoin or other cryptocurrencies are taxed.
Moreover, you are taxed when you use cryptocurrency in the real world. So, for example, when you sell it or use it to make a purchase, it will be considered a taxable transaction.
Therefore, if you acquired cryptocurrency and did not use it, you will not be required to pay taxes. But you should still keep track of your transactions if you use cryptocurrency as it then becomes taxable.
Declaration of Cryptocurrency to CRA
Cryptocurrencies are taxed similarly to traditional income. As a result, you must declare your cryptocurrency with the CRA.
Profits and losses from the purchase and sale of cryptocurrencies must be recorded on a tax return as part of income. Because governments do not issue cryptocurrencies, they are classified as commodities by the Canada Revenue Agency (CRA).
Utilizing cryptocurrencies to pay for products or services is considered a barter transaction. Therefore, it is subject to the Income Tax Act’s barter restrictions.
Bitcoin and other cryptocurrencies are included in a transaction’s taxable income. Therefore, the transaction must be reported for federal tax reasons.
Taxes on Buying and Selling Cryptocurrency
Cryptocurrencies, like any other investment, are subject to taxation. 50% of the profits are added to your taxable income for the year.
For instance, if you purchased cryptocurrencies worth $1,000 and sold them for $1,500, you have earned $500. Thus, 50 percent of that sum ($250) would be added to and taxed as part of your yearly income.
If you use bitcoin to acquire another cryptocurrency, such as Ethereum or Dogecoin, the transaction will be similar to selling Bitcoin. You will have to report the amount of the transaction on your income tax return.
Tax on Gifting Cryptocurrency
Property disposal occurs when an object or commodity is given or sold at a lower price than its purchase price. For example, a contribution or gift of cryptocurrency falls under this category.
The cryptocurrency will be evaluated according to its current market value at contribution. Therefore, disclosing any gain or loss on the asset’s sale is necessary.
So let us say the gift is given to an authorized recipient, such as a registered charity. If this is the case, the recipient will provide you with a tax receipt.
The cryptocurrency’s fair market value at the time of the transfer will determine the value of the gift for tax purposes.
CRA and Tax Avoidance
It is illegal to fail to register and report any cryptocurrency-related transaction. As a result, the Canadian Revenue Agency (CRA) aggressively pursues non-compliance with reporting cryptocurrency trading profits to guarantee a fair tax system.
Creating an account on a cryptocurrency platform necessitates providing personal information. The Canada Revenue Agency (CRA) detects tax avoidance schemes because they have access to it and verify data with other sources.
Consequences of Not Reporting Crypto Earnings
Assume you fail to submit crypto earnings to the CRA. In that case, the agency will treat this as if you did not record any other income. This will violate the law, which the CRA would treat as tax avoidance. When the CRA discovers this, you will be liable for a fine.
In Canada, the penalty for tax evasion can be up to twice the tax intended to be avoided and imprisonment. However, it is essential to remember that the CRA is more concerned with collecting owed money than putting someone in prison.
Your unpaid tax will be combined with interest and penalties on top of any evasion penalty you will be forced to pay.
The most important thing to remember is that Canadians are subject to tax on their cryptocurrency income. This is a relatively new form of taxes, and it may change.
Consult a tax professional who specializes in cryptocurrency taxation. The simplest method to guarantee your taxes are done correctly is to hire a professional. Before investing in cryptocurrencies, knowing how your transactions will be taxed is a good idea.
There’s no denying that cryptocurrencies have had unmatched popularity over the past few years. As of February 2022, there are about 10,000 different cryptocurrencies in circulation, and this number is growing at an unprecedented pace.
Such pace has further fueled the growth and development of blockchain technology, with projections suggesting the international blockchain market will reach a value of $23.3 billion by the end of 2023.
Despite this growing prevalence and popularity of cryptocurrencies, widespread confusion still remains associated with them.
Are you someone with a similar confusion too? Let’s take this opportunity to better understand cryptocurrencies and what they are all about.
Cryptocurrencies are decentralized digital money based on blockchain technology and secured by cryptography. Three primary terminologies make cryptocurrencies what they are. These terminologies include decentralization, blockchain, and cryptography.
Decentralized money is very different from fiat currencies backed by governing authorities such as banks and governments. With cryptocurrencies, there is no authority to take responsibility for the ups and downs in the prices of cryptocurrencies. This enables people to carry out their transactions based on cryptographic evidence instead of trust.
Blockchain is a digital ledger with distributed access among authorized users. This technology is used to record transactions associated with assets, which is cryptocurrency. Blockchain offers unrivaled transparency about all the information regarding crypto transactions. This recorded information cannot be tampered with or modified even by the administrators, making it one of the most secure ledgers.
Cryptography is a process of using encryption technologies to protect data from unauthorized access. The defining characteristics of cryptocurrencies, such as immutability and privacy, are the result of cryptography.
Cryptocurrencies were initially introduced in 2009 in the form of Bitcoins. The currency was created by a group of individuals who go by the pseudonym of Satoshi Nakamoto. However, even after its successful launch, it would take years before Bitcoin gained formal recognition and the prominence it boasts today.
How Does Cryptocurrency Work?
As mentioned earlier, cryptocurrencies are not regulated or backed by any authority. Therefore, this works outside the conventional banking system. So, let’s get a better understanding of the working principles of cryptocurrencies.
Mining is a digital process where one can generate cryptocurrencies by solving complex mathematical puzzles. One will require potent and specially equipped commuting systems to solve these puzzles and get Bitcoins in exchange. This process is very complex, and it can even take thirty days for one to complete the process ideally.
Buying, Selling, And Storing Cryptocurrencies
Fortunately, one does not have to deal with the complexities of mining to get their hands on cryptocurrencies. The more straightforward way to get cryptocurrencies is to purchase them from crypto exchanges or other platforms.
Once bought, cryptocurrencies can be stored in digital wallets, which can be either hot or cold wallets. The hot ones are connected to the internet, while the cold wallets are safer as they are not connected to the internet.
Investing Or Transacting
Transferring your cryptocurrencies from one digital wallet to the other is very simple. All you will need is a smartphone and access to the internet to transfer your cryptocurrencies. There are also many platforms where you can exchange your cryptocurrencies with fiat currencies. Other than that, you can also get crypto debit cards to withdraw cash, just as you do in an ATM. Aside from that, an increasing number of businesses are accepting cryptocurrency payments.
Crypto payment getaways, such as Coingate, provide secure crypto storage and transactions, making your financial life with cryptocurrencies safe, fast, and more convenient.
How Did Cryptocurrencies Become So Popular?
Everybody is aware of the growing popularity of cryptocurrencies, and there are many factors fueling that factor. These factors include the low transaction fees, as crypto transactions are much cheaper than conventional transactions.
Other than that, the enhanced control and security offered by cryptocurrencies as a single private is the only way to access the cryptocurrencies. This is much appreciated by crypto users who have been battered by the uncontrollable ups and downs of the conventional financial market.
However, the most crucial factor behind the growing popularity of cryptocurrencies is the profit potential. Many people have made great fortunes through crypto investments making it an appealing investment.
Conclusion: Should I Invest in Cryptocurrency?
Cryptocurrencies come with numerous advantages making them a safe investment for many. However, they also have their fair share of disadvantages. A couple of qualities shared cryptocurrencies, such as their decentralized nature, unmatched privacy, and security. In addition, the limited and regulated supply of cryptocurrencies makes them a profitable investment.
However, one must not get carried away with these qualities because investment in cryptocurrencies also comes with risks. The highly volatile nature of these currencies makes it very challenging to predict their future value accurately.
Given these factors, it is always best if investors weigh the pros and cons and take calculated risks to invest in cryptocurrencies. Calculated risks can increase the chances of making a profit on your investment.
Dogecoin has taken the internet by a storm. This cryptocurrency keeps increasing in value and it’s leaving old economic ways behind.
Doge is currently known to be ‘The Internet Currency’ since the takeover of memes and online trading.
Although Dogecoin started as a joke, it has now succeeded as a peer-to-peer cryptocurrency.
Doge has hit another milestone thanks to no other than Elon Musk who seems to love this cryptocurrency and its community.
Dogecoin soared 800% in just on day in late January. We saw a spike in AMC during this time as well.
Now, the fact that Elon Musk can tweet out a meme and allow a community of investors to make money from it is hilarious and amazing at the same time.
The influence man. We’ll go over that a little later. Let’s go over why Dogecoin is causing a disruption and frenzy everywhere online.
Welcome to Franknez.com – the blog where you can digest content on stocks, crypto, and market news. Today we’re getting into Dogecoin.
Lets get started!
What is Dogecoin?
Dogecoin is a digital currency that can easily be sent online from person to person with total security.
You can send Dogecoin to people internationally within seconds. Dogecoin is also now being accepted by online retailers! This means you can use it actually purchase both digital and hard goods from businesses accepting this form of payment.
Dogecoin Cryptocurrency launched at the end of 2013. It rose in popularity at a time when the creators were just beginning to explore the possibilities in regards to Bitcoin’s invention.
It is currently a hype coin due to the Reddit community teaming up to take it to the moon. Which by the way they’ve done an excellent job in, attracting multiple celebrities to the cryptocurrency and meme community via Twitter.
Dogecoin currency was originally copied from an earlier cryptocurrency known as Luckycoin, which no longer exists. In 2014 Dogecoin’s mining process was integrated with Litecoin’s.
What is cryptocurrency mining?
Mining is a term used when cryptocurrency data such as transactions and data blocks are being recorded in a blockchain.
So, who created Dogecoin? The developer known to invent Doge are Billy Markus and Jackson Palmer. Their idea came about when deciding to create a form of payment that could be instant, fun, and free from traditional banking fees.
What can I purchase with Dogecoin?
You can buy gifts, groceries, services, and pretty much just about anything else the dollar can buy online.
You’ll be surprised that the Dallas Mavericks are have accepted Doge as a form of payment for both tickets and merch.
In fact, they are currently the largest Dogecoin merchant in the world. More on that below.
Companies accepting Dogecoin as payment
A few companies such as The Kessler Collection announced that it would be accepting Dogecoin for payment at its hotels through their partnership with BitPay.
The Kessler Collection owns some of the biggest hotels and resorts including the Beaver Creek Lodge, Casa Monica Resort & Spa, Elliot Park Hotel, and Grand Bohemian Hotel Asheville to name a few.
Even the adult entertainment industry has begun accepting Dogecoin payment along with Bitcoin and Ethereum.
Dogecoin is primarily used in the gaming and streaming world as a means to tip content creators. We’ve seen this on Reddit and Twitter.
However, more and more mainstream companies are accepting cryptocurrency as a form of payment. The question is how did all of this blow up?
Dogecoin is revolutionizing the way we transact and buy things. There is no middleman or bank to process your transactions or take a cut.
Every transactions is also completely anonymous.
Dogecoin has a block time of 1 minute while other cryptocurrency has a block time of approximately 10 minutes. This means transactions are a lot quicker if you’re using Doge. This is something people really love about Doge.
Because of this, Dogecoin is a better use-case as a currency than other cryptocurrency because of how convenient it is.
The power of social media
Elon Musk took to twitter his personal support for Dogecoin. SpaceX’s CEO influenced Doge to soar more than 100% from one tweet alone.
But that’s not all, Elon has now published several tweets regarding cryptocurrency in general, we’ve seen this with Bitcoin too. Elon has figured out that his influence can legitimately increase the price of an asset.
We wonder if this is all a test. Can he do this with other assets?
Well, people figure he can. Retail investors and meme investors alike tweet Elon every day pitching him ticker symbols to call out. This of course is in hopes that said stock will see a surge in price action.
Oh come on Elon, do us all a favor!
Elon Musk Tweets Doge
While some people might have thought Elon to be a little crazy for supporting cryptocurrency, the Reddit community surrounding these meme stocks and coins have praised Musk.
When you have someone as big as Elon Musk supporting your community it no longer becomes a joke. He’s even announced that you can now buy a Tesla with Bitcoin.
For those of you who thought cryptocurrency was just a trend, think again. Cryptocurrency is changing the way we transact and view the digital world.
Other celebrities that have endorsed Dogecoin include Snoop Dogg, Gene Simmons, and Kevin Jonas. Mark Cuban just recently announced he would be accepting Doge as a form of payment for tickets and merchandise.
We’ve seen Mark support what retail investors are doing in the meme world of stock investing as well. He’s mentioned on r/wallstreetbets that his 11 year-old son took a position in both AMC and Blackberry stock via. Markets Insider.
The Dogecoin community and foundation raised about $50,000 worth of Doge in 2014 for the Jamaican Bobsled Team, which had qualified for but could not otherwise afford to attend the Sochi Winter Olympics.
This act inspired a second donation by the Dogecoin community led by Eric Nakagawa. Donations were collected to build a well in the Tana river basin in Kenya with Charity: Water. They raised approximately 40 million doge valuing $30,000 at the time.
In this same year, the community also raised 67.8 million Dogecoin, approximately $55,000 at the time, in an effort to sponsor NASCAR Sprint Cup Series driver Josh Wise. Also nicknamed ‘Moonrocket’. The car featured a Dogecoin/Reddit paint scheme.
What’s the difference between Bitcoin and Dogecoin?
Dogecoin stands out as being the easiest and quickest to transact. Another advantage this cryptocurrency has over Bitcoin is that it’s cheaper to use.
This is mainly because until recent times it’s been less popular than Bitcoin.
Bitcoin has a max supply of 21 million gill which means it’s a deflationary type of currency. Because there’s only an exact quantity of currency, the price action will continue to surge as the demand for Bitcoin increases. This is Bitcoins advantage.
Dogecoin on the other hand is an inflationary currency which means we continue to make more of them. Just like our USD. It’s initial supply was capped at 100 billion DOGE, but developers scrapped this idea a few months after the launch.
10,000 dogecoin is being created every minute. Unlike Bitcoin, there’s no limit to how much doge can exist. While Dogecoin can spike in the short-term, it’s highly unlikely it holds its value once more people start using it. This is primarily due to the fact that Doge is being created every minute.
What does this mean for the price of Doge?
Because Doge is not rare, all this means is that it’s going to take a lot more work for Doge to increase in price. Once the entire world is using Dogecoin, chances are 1 dogecoin will equal 1 dogecoin.
Can Dogecoin reach $1?
According to the market cap, Doge is worth approx. $0.31. In order for Doge to reach one dollar it would need a price increase of 300%. That’s quite a big jump.
The market cap would have to be approximately 125.4 billion which is an insane number. Doge will have to grow larger than the top 8 cryptocurrencies combined:
The closes cryptocurrency with that market cap is Ethereum. Doge could potentially reach $1 but it’s going to take quite some time.
The question is, will there be enough hype and people getting in on the cryptocurrency to increase the market cap up to 125 billion?
You be the judge.
What’s with Doge 4/20?
Doge 4/20, also referred as Doge Day, is the day the Dogecoin community hopes to celebrate the day Doge reaches $1.
Even Snickers is getting in on the celebration!
Snickers even went as far to put a Dogecoin gif on a Snickers bar candy wrapper. You gotta love the hype!
Even if Dogecoin doesn’t go to $1 on April 20, it’s highly likely the community marks 4/20 as DogeDay.
So what exactly happened on DogeDay 4/20?
They cryptocurrency actually dipped with many investors continuing to add to their positions. DogeDay could have really used a tweet from Elon.
Recent Dogecoin news
Dogecoin crashes Robinhood: Robinhood just recently announced that they would be allowing their users to buy Doge from the platform. The results? A massive crash. Though, everyone was still able to buy Doge.
A petition for Amazon to start accepting Dogecoin has surfaced on change.org. You can view it here. If that happens then the price of Dogecoin will skyrocket.
With Dogecoin getting more popular by the day, it’s no surprise transactions crashed Robinhood.
Investors beware, Robinhood is no longer known as a quality trading platform since the halt of GameStop and AMC purchases. Don’t say you weren’t warned.
If Dogecoin is accepted as a from of payment from Amazon, this will influence more people to by the cryptocurrency, as well as increase it’s value. Whether this happens or not we’ll just have to find out. This post is continuously being updated as recent news and updates emerge.
Where can I buy Dogecoin?
Here’s a list of exchanges where you can buy Dogecoin:
Your English platforms will be Coinbase, Kraken and Binance. I personally use Coinbase. The layout is simple and easy to use.
Making my first deposit in Coinbase was easier than I thought and it didn’t take long at all for my deposit to go through.
Purchasing cryptocurrency seems quicker and easier than purchasing stocks which is something I really liked. Perhaps it’s Coinbase’s quick layout that makes it seem so easy to transact. I highly recommend it though, be sure to check it out for yourself.
How much does Dogecoin cost?
Dogecoin is currently trading around $0.26. and is ranked #8 in popularity on the watchlist via. Coinbase.
Will Dogecoin keep going up?
As long as people keep buying doge the price action will continue to go up. We’ve seen institutions and companies start to buy this cryptocurrency for quite some time now.
This reminds me of what’s going on with AMC Entertainment at the moment. More and more institutions are bulking up on the stock. We’ve seen that this of course drives price movement.
As doge continues to grow in popularity, so will its price.
Should you buy Dogecoin?
Dogecoin has the potential to be a crazy short-term investment. If you’re looking to make a quick trade then Doge could be for you. Especially with heavily influential people driving the value up with a single tweet.
Dogecoin is a token that can be easy to transact in online communities. If you’re active in communities that accept it then it can be a great currency for tipping content creators you appreciate.
Or, if you want to simply be a part of the Dogecoin movement and have some cryptocurrency in your portfolio, buy it.
How can I keep my cryptocurrency safe?
It is best not to keep your cryptocurrency in your exchange accounts. You can send your cryptocurrency to a cold storage wallet. These are basically USBs with passwords. Ledger is a company known for it’s cold storage wallets.
If you happen to hold a large amount of cryptocurrency, I suggest investing in one of these bad boys for a peace of mind.