The Changing Landscape of Top Cryptocurrencies
Over the past year, bitcoin has experienced a remarkable surge of 153%, outperforming numerous other digital currencies. However, when assessing the top cryptocurrencies in relation to bitcoin, the annual shifts present a diverse perspective.
Ethereum and Binance Coin Face Losses
While ethereum has seen a significant 95% increase in value this year, its performance relative to bitcoin has diminished. ETH has experienced a loss of over 24% against BTC, dropping from 0.07237 BTC to 0.05432 BTC. Similarly, Binance coin (BNB) has faced a substantial reduction, losing 50.55% of its value against bitcoin, falling from 0.0146 BTC to 0.007219 BTC.
Solana's Impressive Surge against BTC
Solana (SOL) stands out from the crowd, boasting an 877% surge against the dollar and an impressive 257% ascent against BTC. Within a year, SOL has risen from 0.0006985 BTC to the current 0.002496 BTC.
XRP and Cardano Experience Declines
XRP has witnessed a decline of approximately 30% against BTC, descending from 0.00002096 to 0.00001462. Cardano (ADA) has also seen a modest decrease of around 6.54%, dropping from 0.00001544 to 0.00001443 per unit against bitcoin.
Avalanche Emerges as a Notable Contender
Avalanche (AVAX) has made a mark with a 43.55% increase against bitcoin, rising from 0.0007008 BTC to 0.001006 BTC over the year.
DOGE and Polkadot Face Setbacks
DOGE has experienced a notable setback, losing 52.79% against BTC, falling from 0.000004591 BTC to 0.000002167 BTC per unit over the past year. Similarly, Polkadot (DOT) has seen a decline of 22%, moving from 0.0002659 BTC to 0.0002074 BTC.
Bitcoin Dominance and Altcoin Season
As of December 2023, BTC's dominance has risen to around 50%, while ETH's influence has slightly decreased to 16.7%. Interestingly, the infamous "Altcoin Season" may be approaching, as blockchaincenter.net's Altcoin Season Index shows a score of 67. According to their rule, if 75% of the top 50 coins perform better than bitcoin over the last 90 days, it is officially Altcoin Season.
What are your thoughts on the performances of the top coins against bitcoin over the last year? Share your opinions in the comments section below.
Frequently Asked Questions
How much is gold taxed under a Roth IRA
Investment accounts are subject to tax based only on their current value and not the amount you originally paid. All gains, even if you have invested $1,000 in a mutual funds stock, are subject to tax.
However, if the money is deposited into a traditional IRA/401(k), the tax on the withdrawal of the money is not applicable. Capital gains and dividends earn you no tax. This applies only to investments made for longer than one-year.
The rules governing these accounts vary by state. In Maryland, for example, withdrawals must be made within 60 days of reaching the age of 59 1/2 in order to qualify. You can delay until April 1st in Massachusetts. New York allows you to wait until age 70 1/2. To avoid any penalties, plan your retirement savings and take your distributions as early as possible.
What precious metal should I invest in?
Answering this question will depend on your willingness to take some risk and the return you seek. Although gold has traditionally been considered a safe investment choice, it may not be the most profitable. Gold may not be right for you if you want quick profits. If you have the patience to wait, then you might consider investing in silver.
If you don’t desire to become rich quickly, gold may be your best option. Silver may be a better option for investors who want long-term steady returns.
How much of your portfolio should be in precious metals?
This question can only be answered if we first know what precious metals are. Precious metals refer to elements with a very high value relative other commodities. They are therefore very attractive for investment and trading. Gold is today the most popular precious metal.
But, there are other types of precious metals available, including platinum and silver. The price of gold fluctuates, but it generally remains stable during times of economic turmoil. It is also relatively unaffected both by inflation and deflation.
In general, prices for precious metals tend increase with the overall marketplace. But they don't always move in tandem with one another. For instance, gold's price will rise when the economy is weak, while precious metals prices will fall. Investors are more likely to expect lower interest rates making bonds less attractive investments.
In contrast, when the economy is strong, the opposite effect occurs. Investors are more inclined to invest in safe assets, such as Treasury Bonds, and they will not demand precious metals. Because they are rare, they become more pricey and lose value.
Diversifying across precious metals is a great way to maximize your investment returns. Additionally, since the prices of precious metals tend to rise and fall together, it's best to invest in several different types of precious metals rather than just focusing on one type.
What is a Precious Metal IRA (IRA)?
A precious metal IRA allows for you to diversify your retirement savings in gold, silver, palladium and iridium. These are called “precious” metals because they're very hard to find and very valuable. These are excellent investments that will protect your wealth from inflation and economic instability.
Bullion is often used for precious metals. Bullion refers actually to the metal.
Bullion can be purchased via a variety of channels including online sellers, large coin dealers, and grocery stores.
A precious metal IRA allows you to invest directly in bullion, rather than buying stock shares. This means you'll receive dividends every year.
Precious metal IRAs do not require paperwork nor annual fees, unlike regular IRAs. Instead, you pay a small percentage tax on the gains. Plus, you get free access to your funds whenever you want.
How to open a Precious Metal IRA
First, decide if an Individual Retirement Account is right for you. You must complete Form 8606 to open an account. You will then need to complete Form 5204 in order to determine which type IRA you are eligible. This form must be submitted within 60 days of the account opening. Once this has been completed, you can begin investing. You can also contribute directly to your paycheck via payroll deduction.
You must complete Form 8903 if you choose a Roth IRA. Otherwise, the process will look identical to an existing IRA.
To qualify for a precious Metals IRA, there are specific requirements. The IRS stipulates that you must have earned income and be at least 18-years old. Your annual earnings cannot exceed $110,000 ($220,000 if you are married and file jointly) for any tax year. And, you have to make contributions regularly. These rules will apply regardless of whether your contributions are made through an employer or directly out of your paychecks.
An IRA for precious metals allows you to invest in gold and silver as well as platinum, rhodium, and even platinum. However, physical bullion will not be available for purchase. This means you can't trade shares of stock and bonds.
You can also use your precious metals IRA to invest directly in companies that deal in precious metals. This option can be provided by some IRA companies.
An IRA is a great way to invest in precious metals. However, there are two important drawbacks. First, they don't have the same liquidity as stocks or bonds. It is therefore harder to sell them when required. Second, they don’t produce dividends like stocks or bonds. You'll lose your money over time, rather than making it.
What is the value of a gold IRA
There are many benefits to a gold IRA. You can diversify your portfolio with this investment vehicle. You have control over how much money goes into each account.
You can also rollover funds from other retirement accounts to a gold IRA. This will allow you to transition easily if it is your decision to retire early.
The best part about gold IRAs? You don't have to be an expert. They're available at most banks and brokerage firms. Withdrawals can happen automatically, without any fees or penalties.
That said, there are drawbacks too. Gold is historically volatile. It is important to understand why you are investing in gold. Do you want safety or growth? Are you trying to find safety or growth? Only when you are clear about the facts will you be able take an informed decision.
If you are planning to keep your Gold IRA indefinitely you will want to purchase more than one ounce. One ounce won't be enough to meet all your needs. Depending on your plans for using your gold, you may need multiple ounces.
If you're planning to sell off your gold, you don't necessarily need a large amount. You can even manage with one ounce. These funds won't allow you to purchase anything else.
Statistics
- Contribution limits$6,000 (49 and under) $7,000 (50 and up)$6,000 (49 and under) $7,000 (50 and up)$58,000 or 25% of your annual compensation (whichever is smaller) (lendedu.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
External Links
wsj.com
- Saddam Hussein's InvasionHelped Uncage a Bear In 90 – WSJ
- Do you want to keep your IRA gold at home? It's Not Exactly Legal – WSJ
cftc.gov
irs.gov
investopedia.com
How To
How to keep physical gold in an IRA
An easy way to invest gold is to buy shares from gold-producing companies. This method is not without risks. There's no guarantee these companies will survive. Even if they survive, there's always the risk that they will lose money due fluctuations in gold prices.
The alternative is to buy physical gold. This requires you to either open up your account at a bank or an online bullion dealer or simply purchase gold from a reputable seller. This option is convenient because you can access your gold when it's low and doesn't require you to deal with stock brokers. It's also easier to see how much gold you've got stored. The receipt will show exactly what you paid. You'll also know if taxes were not paid. You have less risk of theft when investing in stocks.
There are however some disadvantages. You won't get the bank's interest rates or investment money. You won't have the ability to diversify your holdings; you will be stuck with what you purchased. Finally, tax man may want to ask where you put your gold.
If you'd like to learn more about buying gold in an IRA, visit the website of BullionVault.com today!
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By: Jamie Redman
Title: Bitcoin Dominates as Altcoins Struggle to Keep Up
Sourced From: news.bitcoin.com/altcoin-fortunes-declined-when-paired-against-btc-in-2023-despite-crypto-market-surge/
Published Date: Wed, 27 Dec 2023 20:30:22 +0000
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