That’s right, even in today’s bear market, retail investors have big opportunity right now.
If you’re a new investor or entered the market during the bull run, chances are your portfolio is down significantly.
But don’t let your first bear market shake you off because there are numerous opportunities out there that have the potential to yield big returns.
If you’ve been reading my blog for a while now, you’ve more than likely capitalized on opportunities such as AMC, HYMC, Shiba Inu Coin, Terra Classic, and Bitcoin during properly and fortunately timed moments.
So, what’s new?
In this article, I’m going to go over the opportunities I see that lie ahead for retail investors.
None of the information on my blog is financial advice but rather speculative content based on current information and trends in the market.
And with that being said, let’s get started.
Not Invested in The Markets Yet?
If you or someone you know are not invested in the markets yet, the two articles below are going to walk you through, step-by-step on how to buy stocks for the very first time and how to buy cryptocurrency for the very first time, too.
Much information on how to invest in the markets is outdated so I wanted to create easy guides for beginners.
Remember, one of the greatest wealth you can share with someone else is that of knowledge.
Opportunities in the Stock Market Today
During a bear market share prices tend to tumble, hence why many long-term investor’s portfolios tend to lose value.
And although we can’t entirely time the bottom, we know that at some point the stock market is at a massive fire sale.
Value investors such as you and I can pick up shares from our favorite companies at these low prices before the market reverses trend.
Economists, analysts, and entrepreneurs alike predict there is still room for another 10%-15% drop in the markets.
But for the record, these are just predictions after all.
The point here is for value investors to capitalize on this falling trend by purchasing low and holding during the next bull market.
Whether you choose to capitalize on opportunities presented in a bull market or not will ultimately be up to you.
However, capitalizing during a bull market will require value investors to buy during a bear market, not during the bull market.
After being involved in the retail community for almost three years now, there are stocks and crypto that just stand out as having big potential during the next bull run and I’m going to discuss them below.
Stocks Worth Buying During a Bear Market
None of the information provided below is financial advice, but rather speculative in nature based on market trends and current information at the time of publication.
AMC Entertainment Stock (AMC)
You’ve probably heard all the ruckus on AMC and ‘meme stocks’.
It’s true, the stock jumped from $5 per share to an all-time high of $72 per share.
AMC Entertainment stock is currently trading below $6 again due to this bear market.
What makes this stock such an interesting value investment is that it has a huge community made up of millions of people who plan to take its current price up again.
Plus, the company has beat earnings every quarter since 2021.
Investing in the largest movie theater chain in the world could prove to pay out big during the next bull market.
SPY Stock (SPY)
I’ve talked about SPY stock numerous times on my blog.
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.