NASDAQ adds XRP to Index – Australian Taxation Office Taxes Crypto AssetsApril 30, 2019
Nasdaq is adding a new cryptocurrency index for XRP. They are partnering with New Zealand based research firm called Brave New Coin. The firm will be providing real-time index for XRP from May 01, 2019.
Brave New Coin recently stated, “Current constituent exchanges for the XRPLX include Bitfinex, Bitstamp, Poloniex and Kraken with Coinbase to be added in the next review.”
In the past month, Nasdaq offered two benchmark indices which covered up for the top 200 cryptocurrencies by market capitalization.
Cryptocurrency price dynamics follow the “what goes up must come down pattern for most of the time.”
To understand how the market flows, it is important to understand what drives the price and how the token responds to them.
Policy makers and traders alike are working to understand the dynamics behind extreme price movements.
The cryptocurrency market is vulnerable to economic frictions and market manipulations. This in turn distorts the relativity of price trends. The maturity value of crypto with time is simply not predictable.
In order to get a picture of how distorted prices can be, it is important to understand the normal price trends in a competitive market.
Speculation strategies simply do not work in cryptocurrency trading. However, investors buy when the prices are low and they flip the tokens when the price is higher. This is of course the key to turning some decent profits.
There are investors who buy a token for a lesser rate in one cryptocurrency exchange and sell it at a better rate in some other exchange for a profitable margin. Thereby, benefitting by arbitrage.
There are a few worthy ways investors employ to keep themselves profited from the cryptocurrency trade. The bad days are very common than the good days in this industry.
The market is not all merciful and therefore, it is up to the investors to play it wise. It is about making strategic decisions for each time.
The Australian Taxation Office (ATO) are now closely watching investors to ensure that investors who are in possession of cryptocurrencies are paying their tax dues on cryptocurrency income.
The ATO states, “Cryptocurrency and blockchain technology is seen as an enabler of existing risks for the ATO.”
The Designated Service Providers (DSPs) serving the Australian market will be providing bulk records concerning cryptocurrencies to the ATO in order to help them in their investigations.
The ATO has estimated that there are between 500,000 through one million Australians who have invested in crypto-assets.