Cryptocurrency has become one of the most popular asset classes of the 21st century and this means, naturally, that many of us are enthusiastic about embracing it. If you live in Illinois, you’ve likely seen some of the buzz around cryptocurrency and other blockchain-related assets. But how do you go about using it?
Because it is such a novel technology, you’re best off doing your research and having certain facts that your fingertips before you start. In this article, we’ll touch on some of the things you should know before dabbling in crypto.
The Status Of Crypto
The first thing you want to know is the legal status of cryptocurrency in Illinois. The asset occupies an interesting space in that while it is not considered legal tender in Illinois (or in any state in the US) it is also not illegal as it is in some places like China. For all intents and purposes, cryptocurrency is legal to use, though its acceptable use cases may vary, as we’ll explain in this article.
Buying Crypto
The good news for anyone in Illinois looking to get involved in cryptocurrency is that acquiring said tokens is a relatively straightforward affair. Crypto can be bought on exchanges, both centralized and decentralized. In the case of the latter, cryptocurrency can be a way to preserve your privacy as you complete transactions online. Some crypto wallets allow you to buy tokens without confirming sensitive details like your address or your government identification. If you want to buy crypto without KYC, there are a myriad of options in the market you can take advantage of.
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You should also consider using crypto ATMs as, according to current data, there’s a myriad of them in Illinois. Once you buy this crypto, make sure you store it properly in a secure wallet that is protected with a password and recovery phrase. These details should be kept private, as should your physical wallet if you own one. There have been cases of people losing millions of dollars through poor wallet management and you don’t want that to be you.
Tax
If you plan to use cryptocurrency for any commercial purposes, you have to consider the tax implications. Cryptocurrency, as we’ve said, is not considered legal tender but is subject to a number of tax laws. If you were to sell your cryptocurrency assets for fiat currency, it would be subject to capital gains tax as the law sees it as an investment, similar to stocks. If you’re paid cryptocurrency as a salary or wages, it would also be subject to income tax. If you were to pass on cryptocurrency to a loved one following your death, it would be subject to inheritance tax. Essentially, cryptocurrency can be taxed and various agencies around the world are taking it more seriously. As such, you should consult a tax expert as you progress in your crypto journey.
Spending Cryptocurrency
Obviously, Not everyone wants to use cryptocurrency for money-making purposes. Some would rather use cryptocurrency to pay for goods and services as they would with fiat currency. In that case, you’re in luck as Illinois has a growing number of establishments that accept cryptocurrency. Take restaurants, for example. Establishments like Bordels and Penny’s Oak Park are known to accept cryptocurrency for their food, and this means that foodies who are also interested in crypto can get their fix. Besides local favorites, multinational chains like Starbucks and Burger King are known to accept cryptocurrency, though this might require the use of third-party apps.
You can also pay for things like travel and accommodation using cryptocurrency thanks to sites like Alternative Airlines and Travala. In this case, all you need to do is choose the flight or accommodation you want and select cryptocurrency as your payment method at checkout. After doing this, you can pay for them as easily as you would with fiat currency and those who do a lot of travelling will find this useful. On top of this, sites like Bitrefill let you buy gift cards for major brands like Nike, Adidas, Target, and so on using cryptocurrency, so you’ll always have access to your favorite consumer brands.
Sending Funds
For one reason or the other, many of us need to send funds to loved ones, for business, and so on. The good news is that cryptocurrencies are convenient and easy to send. This is especially true if you use tokens like XRP and Litecoin, which are known to send massive amounts of money while charging very little in fees. Whether you’re sending to someone in Illinois or outside, cryptocurrency can offer you the sort of speed and convenience you’d struggle to find with traditional financial systems.
