Ledger, a cryptocurrency provider specializing in hardware wallets, has been hacked. The company reports a data breach occurring between June and July 2020 after being altered to a vulnerability. The company was apparently hacked using an API key and the breach included marketing databases containing the email addresses of those targeted for promotional emails.
How many email addresses? Sources report approximately one million. To add insult to injury, a small group of that number also had full names, postal addresses, and phone numbers leaked to hackers.
What often happens to this data is that it is sold, the contact information is often used by hackers to initiate scams or identity theft schemes, and it’s also used to harvest passwords and passphrases from unsuspecting victims.
Where can you spend your cryptocurrency? Investing and earning a profit in crypto is one thing but once you have reached a goal or two, where can you actually spend your hard-earned digital currency?
One real issue is that Bitcoin, Ethereum, and others are not technically viewed under the law as currency. So the rules of how to “spend” them will vary depending on the platform, the rules of the seller, etc.
Where To Spend Cryptocurrency, or How To Spend?
Where is an issue, to be sure…but HOW to spend your Bitcoin can also be a question you’ll need answering. For example, there are debit cards you can tie your cryptocurrency to that allow you to spend anywhere that type of debit card is accepted. Crypto accounts may require you to use a mobile wallet, or you may have to use some type of pre-paid card to pay for some goods or services with your digital currency.
What is the relationship between cryptocurrencies like Bitcoin and the IRS? I remember starting out as a freelance writer and not understanding how certain tax requirements applied to me–I missed out on thousands of dollars in business-related tax write-offs because I was ignorant of the rules.
The same kinds of problems are possible with cryptocurrency–if you don’t know how the IRS classifies assets like Bitcoin, Ethereum, or others, you could wind up with a tax liability or a set of assumptions about your investment that aren’t in line with reality. It’s best to know the rules before you need them.
What should you know about Bitcoin and the IRS? What follows is NOT to be construed as tax advice–this is information I have learned through my own personal research and I am passing along what I have found works for me personally–your mileage may vary.
Want to learn how to make your own cryptocurrency? It’s not unheard of, and there are resources online showing how others have approached home-grown cryptocurrency. But there is a big difference between starting your own currency and creating your own token. That difference?
Creating a token uses someone else’s blockchain, whereas building your own cryptocurrency requires its’ own blockchain.
For the purposes of this article, we focus on creating a new currency rather than a token. That is a procedure we’ll examine in a future article. There are two basic issues standing in the way of some who are interested in learning how to make your own cryptocurrency; one legal, one is technical.
Is cryptocurrency an investment? Some think that is a dumb question, but there is a big difference between a traditional type of investment and a different type of investing known as speculation. What you don’t know can definitely hurt you in both worlds–do you know the difference?
I have a family member who was badly burned by a lack of understanding about the rules of investing. This person lost roughly $20 thousand because they did not fully comprehend the rules of online trading, especially where investment behavior that looks like day trading is concerned.
A year or two after this incident, I got interested in investing myself–the same kind of investing my family member was involved in. I purchased six different books trying to learn about the ins and outs of online trading–especially day trading and related issues. But I could not find any rules that addressed the issues that led to my family member’s financial loss.