1. Choosing an exchange
There are a multitude of cryptocurrency exchanges in the world. Choosing one that is appropriately regulated in your jurisdiction and has a good reputation can make a lot of difference.
Nobody likes to think about tax time. But we kind of have to. Some jurisdictions treat cryptocurrencies as commodities, some as securities, some are flat-out trying to ban them. Where you are in the world will determine when and how your crypto earnings will be taxed.
Make sure your exchange of choice has a good reputation. Things to look out for include:
- Years of activity (how long have they been around for?);
- Whether the exchange will allow cryptocurrency withdrawal into personal wallets (you will not be able to stake otherwise);
- Awards and certifications from competent organs;
- Bad press or allegations of criminal behaviour;
- Quality of customer-support;
- Transparency of dealings with the community.
In the next sections we'll look at practical examples to show how to setup an account on an exchange, secure it, fund it and purchase some ADA!