A Week of Highs and Lows for Cryptocurrencies
As of this writing, the crypto market is valued at $1.42 trillion, with bitcoin (BTC) holding 49.9% of the overall market cap. However, this past week saw both bitcoin and ethereum experiencing stagnant weeks in terms of their percentage changes. Nonetheless, a number of other digital currencies outperformed the top two, with BONK and TAO standing out, soaring by 136% and 97.3% respectively.
Cryptocurrencies Making Significant Gains
The spotlight in the crypto market this week was on BONK, TAO, and KAS, as they recorded impressive gains ranging from 70% to 136% over a seven-day period. Following closely behind were skale (SKL) and axelar (AXL), climbing 59% and 58% respectively.
Interestingly, nearly 50 crypto assets experienced upward movements exceeding 4% this past week. However, only 27% of cryptocurrencies exhibited positive trends during Monday's trading sessions.
Notable Declines in the Crypto Market
While some cryptocurrencies flourished, others faced significant declines. For instance, ZRX plummeted by 29%, while RBL dropped 18.9% over the week. LUNA and FIL also suffered losses, with weekly declines of 17.15% and 12.64% respectively.
A total of seven cryptocurrencies experienced double-digit declines this past week. SUI, DFI, TWT, IOTX, SNT, and ATOM were among the coins that saw notable downturns. On Monday, 50 digital currencies reported losses of 4% or more compared to the previous week's trading sessions.
Trading Volumes and Market Receptiveness
Aside from USDT, BTC, and ETH, high trading volumes were observed in coins like SOL, XRP, AVAX, and LINK. BNB, DOGE, NEAR, and MATIC also recorded significant volumes. While certain tokens flourished in the market, other markets exhibited a less receptive stance.
What are your thoughts on this week's market gainers and losers? Feel free to share your opinions in the comments section below.
Frequently Asked Questions
What are the pros & cons of a Gold IRA?
An Individual Retirement Plan (IRA) has a major advantage over regular savings accounts. It doesn't tax any interest earned. This makes an IRA a great choice for people who are looking to save money but don’t want to pay any tax on the interest earned. This type of investment has its downsides.
If you withdraw too many funds from your IRA at once, you may lose all your accumulated assets. The IRS may prohibit you from withdrawing funds from your IRA before you are 59 1/2 years of age. If you do decide to withdraw funds from your IRA, you'll likely need to pay a penalty fee.
You will also need to pay fees for managing your IRA. Most banks charge 0.5% to 2.0% per annum. Others charge management fees that range from $10 to $50 per month.
You can purchase insurance if you want to keep your money out of a bank. A majority of insurance companies require that you possess a minimum amount gold to be eligible for a claim. You may be required by some insurers to purchase insurance that covers losses as high as $500,000.
You will need to decide how much gold you wish to use if you opt for a gold IRA. Some providers restrict the amount you can own in gold. Others allow you the freedom to choose your own weight.
It's also important to decide whether or not to buy gold futures contracts. Physical gold is more expensive than gold futures contracts. Futures contracts offer flexibility for buying gold. You can set up futures contracts with a fixed expiration date.
You will also have to decide which type of insurance coverage is best for you. The standard policy does not include theft protection or loss caused by fire, flood, earthquake. The policy does not cover natural disasters. You may consider adding additional coverage if you live in an area at high risk.
In addition to insurance, you'll need to consider the cost of storing your gold. Insurance won't cover storage costs. Additionally, safekeeping is usually charged by banks at around $25-$40 per monthly.
You must first contact a qualified custodian before you open a gold IRA. A custodian is responsible for keeping track of your investments. They also ensure that you adhere to federal regulations. Custodians aren't allowed to sell your assets. Instead, they must keep your assets for as long you request.
Once you've decided which type of IRA best suits your needs, you'll need to fill out paperwork specifying your goals. Information about your investments such as stocks and bonds, mutual fund, or real property should be included in your plan. Also, you should specify how much each month you plan to invest.
After completing the forms, send them along with a check or a small deposit to your chosen provider. Once the company has received your application, they will review it and send you a confirmation email.
Consider consulting a financial advisor when opening a golden IRA. A financial planner is an expert in investing and can help you choose the right type of IRA for you. They can help reduce your expenses by helping you find cheaper alternatives to buying insurance.
What tax is gold subject in an IRA
The fair market value at the time of sale is what determines how much tax you pay on gold sales. Gold is not subject to tax when it's purchased. It's not considered income. If you sell it later you will have a taxable profit if the price goes down.
You can use gold as collateral to secure loans. Lenders try to maximize the return on loans that you take against your assets. This usually involves selling your gold. It's not guaranteed that the lender will do it. They may just keep it. Or they might decide to resell it themselves. Either way, you lose potential profit.
So to avoid losing money, you should only lend against your gold if you plan to use it as collateral. It is better to leave it alone.
What is a gold IRA account?
Gold Ira accounts are tax-free investment vehicles for people who want to invest in precious metals.
You can purchase physical bullion gold coins at any point in time. To invest in gold, you don't need to wait for retirement.
You can keep gold in an IRA forever. When you die, your gold assets won't be subjected to taxes.
Your gold is passed to your heirs without capital gains tax. Because your gold doesn't belong to the estate, it's not necessary to include it on your final estate plan.
To open a IRA for gold, you must first create an individual retirement plan (IRA). After you do this, you will be granted an IRA custodian. This company acts as a middleman between you and the IRS.
Your gold IRA custody will take care of the paperwork and send the forms to IRS. This includes filing annual reports.
Once you've established your gold IRA, you'll be able to purchase gold bullion coins. The minimum deposit is $1,000. A higher interest rate will be offered if you invest more.
When you withdraw your gold from your IRA, you'll pay taxes on it. If you're withdrawing the entire balance, you'll owe income taxes plus a 10 percent penalty.
Even if your contribution is small, you might not have to pay any taxes. There are some exceptions, though. There are some exceptions. For instance, if you take out 30% or more from your total IRA assets, federal income taxes will apply plus a 20 percent penalty.
You shouldn't take out more then 50% of your total IRA assets annually. You'll be facing severe financial consequences if you do.
How is gold taxed by Roth IRA?
The tax on an investment account is based on its current value, not what you originally paid. So if you invest $1,000 in a mutual fund or stock and then sell it later, any gains are subject to taxes.
If you place the money in a traditional IRA, 401(k), or other retirement plan, there is no tax when you take it out. Capital gains and dividends earn you no tax. This applies only to investments made for longer than one-year.
These accounts are subject to different rules depending on where you live. Maryland requires that you withdraw funds within 60 business days after reaching the age of 59 1/2. Massachusetts allows you to delay withdrawals until April 1. New York offers a waiting period of up to 70 1/2 years. To avoid penalties, you should plan ahead and take distributions as soon as possible.
Statistics
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- (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)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- 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)
External Links
law.cornell.edu
- 7 U.S. Code SS7 – Designation boards of trade as contract market authorities
- 26 U.S. Code SS 408 – Individual retirement account
cftc.gov
finance.yahoo.com
bbb.org
How To
How to Hold Physical Gold in an IRA
The most obvious way to invest in gold is by buying shares from companies producing gold. However, this method comes with many risks because there's no guarantee that these companies will continue to survive. There is always the chance of them losing their money due to fluctuations of the gold price.
Another option is to purchase physical gold. You will need to either open an online or bank account or simply buy gold from a reliable 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. There's also less chance of theft than investing in stocks.
However, there are disadvantages. For example, you won't benefit from banks' interest rates or investment funds. It won't allow you to diversify any of your holdings. Instead, you'll be stuck with what's been bought. The taxman might also ask you questions about where your gold is located.
BullionVault.com offers more information on buying gold for an IRA.
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By: Jamie Redman
Title: Crypto Market’s Mixed Fortunes — BONK, TAO, and KAS Rise as Several Other Cryptos Stagnate
Sourced From: news.bitcoin.com/crypto-markets-mixed-fortunes-bonk-tao-and-kas-rise-as-several-other-cryptos-stagnate/
Published Date: Mon, 20 Nov 2023 16:00:27 +0000
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