The crypto market is huge and it spells a great investment opportunity. The numbers say all- the market size was $1.49 billion in 2020 and is expected to reach $4.94 billion by 2030. That’s a giant leap, right? And also a valid reason to try your luck as an investor.
But before jumping into the game, you’ve got to understand the legal implications of the domain. And you also need to know how to protect yourself legally. While crypto investments may sound dicey, you can make legit money with them, provided you follow the regulations.
We’ll share some valuable legal tips to help you start on the right foot, another good start is to read some of the best cryptocurrency books. Here’s a list you can depend on!
Related Read: What are Investment Mandates and Why Do You Need them?
Well, you must know what you’re getting into, even as crypto investments are trending. Different countries have different regulations for markets and investors. Dig deep into the laws in your area before diving in.
You should also know the tax implications of crypto investment to avoid trouble with the IRS. Doing your bit to stay on the right side of the law can make the journey smooth.
Of course, you will need an exchange to buy and sell cryptocurrencies. Remember that they are not equal, so you cannot trust them all. Legal experts recommend asking around and reading reviews to look for a reputable one. You can even file a legal claim for crypto fraud and recovery if you fall for an unscrupulous one.
For example, Coinbase recently faced the flak for non-compliance that harmed investors. As an investor, you can file a claim against the exchange, but remember to hire a specialist lawyer for the job.
Besides checking the exchange you use, be watchful with ICOs. Initial Coin Offerings refer to companies raising funds by selling their own cryptocurrency. Some ICOs may be scams, so you must weigh the investment option thoroughly.
Understand the project and ensure you can trust the team behind it. Also, double-check its legitimacy in the first place.
Your private keys are the keys to your crypto treasure, so you must go the extra mile to protect them. Imagine someone getting a hold of them- you may lose all your crypto assets!
You can safeguard your private keys by using a hardware wallet that stores them online. A paper wallet is another option. Whichever you choose, keep your key in a safe place.
Like any other investment, the risk of scams is an integral part of the crypto industry. You may encounter crypto scams in many ways, from fake exchanges to phishing emails and Ponzi schemes.
Beware of scammers looking for ways to steal your crypto and follow the best security practices. Also, be vigilant of promises of guaranteed returns or get-rich-quick schemes.
Crypto investment is lucrative, but it has a fair share of legal risks and challenges. The good thing is that you can jump the hoops with a little awareness and caution. Follow these tips to protect yourself and your investments. You’ve got this, boss!
