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Cryptocurrency investing mistakes and how to avoid them
Illustration: Baris-Ozer (Getty Images)
It is important for new cryptocurrency investors to understand the various fees associated with purchasing cryptocurrencies, such as blockchain fees, exchange fees, and other charges. It is crucial to choose the right credit/debit card or bank account to minimize these fees. Before making a purchase, it’s best to research potential fees and find the most convenient times and trades. This could result in significant long-term savings.
Additionally, it is essential to be aware of cryptocurrency taxation. Simply purchasing and holding cryptocurrencies is not taxable. However, tax implications arise when you sell it, and the amount of tax depends on how long you hold the cryptocurrency in your wallet.