Exchanges and How to Buy Crypto
How to Buy and Sell Cryptocurrency
Even if no transactions or dividends are received, investors are still required to report their stock taxes. Reporting is done through the SPT 1770-III form, providing information about stock sales, dividends received, and the market value of stocks at the end of the year.
Buying
To buy cryptocurrency, you need to create an account on an exchange, deposit regular money (fiat currency), and then use that money to purchase the cryptocurrency you want. It’s like going to a currency exchange booth at the airport. You give your local currency (like dollars), and they give you the foreign currency (crypto) you need.
Selling
To sell cryptocurrency, the process is the opposite. You offer your cryptocurrency on the exchange, someone buys it, and you receive fiat money or another type of cryptocurrency in return. Selling is like taking the foreign currency (crypto) back to the exchange booth and swapping it for your local currency.