What to watch out for when trading

Both traders and investors should be aware that there are always tax consequences in both acquiring and disposing of cryptocurrency, varying depending on the nature of your circumstances. The ATO provides articles of tax treatment of cryptocurrencies, cryptocurrencies that are investments or personal use assets and the working out, reporting and keeping records of capital gains tax on cryptocurrencies. 

Custodial Sacrifice

Be aware that when you put your coins on an exchange you are making a custodial sacrifice. Although you do have the right to those coins, technically you do not have the keys or seed to the wallet that your coin is being held in. Therefore, if something were to go wrong with the exchange, technically you could lose your coin. Be sure to use reputable exchanges and if you are not sure about an exchange you are using feel free to ask the guys in the Mining Store Community for advice. We have a dedicated channel for our members which specifically covers information on exchanges.