A recent report suggests that South Korean cryptocurrency traders are more attracted to high-risk, high-reward altcoins than their American counterparts. The study reveals that the trading volumes of major cryptocurrencies such as bitcoin and ethereum on the largest Korean exchange are significantly smaller compared to those on the leading U.S. exchange.
South Korean Investors Prefer Altcoins with High Profit Potential
A new study conducted by Web3 market strategy consulting firm Despread indicates that a majority of South Korean investors have a tendency to adopt a high-risk approach when it comes to crypto investments. These investors are attracted to altcoins that offer the potential for substantial profits, despite the associated high risks. This preference for altcoin trading is considered to be one of the key factors contributing to the high proportion of altcoin trading in the Korean market, as highlighted in a blog post by the authors of the study.
Difference in Trading Volumes: South Korea vs. the U.S.
The largest crypto trading platform in South Korea, Upbit, has accounted for approximately 70 to 80% of the domestic exchange market this year. In February, the platform recorded its highest trading volume of $36 billion. On the other hand, trading on Coinbase, the leading cryptocurrency exchange in the U.S., follows a different pattern. Unlike Upbit, which is predominantly driven by individual investors, Coinbase's trading volume is significantly influenced by institutional players.
According to Coinbase's Q2 shareholder letter, institutional investors account for approximately 85% of the exchange's total trading volume. These investors prioritize portfolio stability, resulting in a larger share of trading activity in bitcoin (BTC) and ethereum (ETH), the cryptocurrencies with the highest market capitalization.
Active Altcoin Trading in South Korea
Among the altcoins that are actively traded in South Korea, loom network (LOOM) claimed the top spot last week with the highest trading volume ratio of 62%, as revealed by Despread. This was followed by ecash (XEC) with 55% and flow (FLOW) with 43%. Stacks (STX) and bitcoin SV (BSV) also made it to the rankings with ratios of 37% and 34% respectively, according to the report published on Thursday.
The researchers also noted that certain cryptocurrencies, such as loom network and flow, receive temporary attention in the market. However, cases like stacks and ecash consistently attract attention on Korean exchanges, regardless of temporary market events. This consistency in trading activity is noteworthy, as these cryptocurrencies continue to be actively traded in the Korean market, irrespective of global trends.
The research findings highlight the greater inclination of South Korean investors towards altcoin investments compared to their American counterparts. South Korean traders are more willing to take risks in pursuit of potentially high profits. This preference for altcoins has contributed to the significant proportion of altcoin trading in the Korean market. The study's authors encourage readers to share their thoughts on why South Koreans are more attracted to altcoin investments in the comments section below.
Frequently Asked Questions
Can I hold a gold ETF in a Roth IRA?
Although a 401k plan might not provide this option, you should still consider other options like an Individual Retirement Account (IRA).
Traditional IRAs allow for contributions from both employees and employers. An Employee Stock Ownership Plan (ESOP) is another way to invest in publicly traded companies.
An ESOP can provide tax advantages, as employees are allowed to share in company stock and the profits generated by the business. The money in the ESOP can then be subject to lower tax rates than if the money were in the individual's hands.
Also available is an Individual Retirement Annuity. An IRA lets you make regular, income-generating payments to yourself over your life. Contributions to IRAs do not have to be taxable
How can you withdraw from an IRA of Precious Metals?
First, determine if you would like to withdraw money directly from an IRA. You should also ensure that you have enough money to cover any fees and penalties associated with withdrawing funds.
You should open a taxable brokerage account if you're willing to pay a penalty if you withdraw early. This option will require you to pay taxes on the amount that you withdraw.
Next, you'll need to figure out how much money you will take out of your IRA. This calculation is dependent on several factors like your age when you take the money out, how long you have had the account, and whether or not your plan to continue contributing.
Once you know how much of your total savings to convert to cash, it's time to choose the type of IRA that you want. Traditional IRAs allow for you to withdraw funds without tax when you turn 59 1/2. Roth IRAs, on the other hand, charge income taxes upfront but you can access your earnings later and pay no additional taxes.
After these calculations have been completed, you will need to open a brokerage bank account. Brokers often offer promotional offers and signup bonuses to encourage people into opening accounts. It is better to open an account with a debit than a creditcard in order to avoid any unnecessary fees.
When you finally get around to making withdrawals from your precious metal IRA, you'll need a safe place where you can store your coins. While some storage facilities accept bullion bars and others require that you purchase individual coins, others will allow you to store your coins in their own safe. Either way, you'll need to weigh the pros and cons of each before choosing one.
Bullion bars are easier to store than individual coins. However, each coin will need to be counted individually. You can track their value by keeping individual coins.
Some people prefer to keep their coins in a vault. Others prefer to place them in safe deposit boxes. You can still enjoy the benefits of bullion for many years, regardless of which method you choose.
How much money should I put into my Roth IRA?
Roth IRAs let you save tax on retirement by allowing you to deposit your own money. These accounts are not allowed to be withdrawn before the age of 59 1/2. There are some rules that you need to keep in mind if you want to withdraw funds from these accounts before you reach 59 1/2. First, your principal (the deposit amount originally made) is not transferable. No matter how much money you contribute, you cannot take out more than was originally deposited to the account. If you take out more than the initial contribution, you must pay tax.
You cannot withhold your earnings from income taxes. Withdrawing your earnings will result in you paying taxes. Let's take, for example, $5,000 in annual Roth IRA contributions. In addition, let's assume you earn $10,000 per year after contributing. This would mean that you would have to pay $3,500 in federal income tax. The remaining $6,500 is yours. Because you can only withdraw what you have initially contributed, this is all you can take out.
The $4,000 you take out of your earnings would be subject to taxes. You'd still owe $1,500 in taxes. In addition, 50% of your earnings will be subject to tax again (half of 40%). You only got back $4,000. Even though you were able to withdraw $7,000 from your Roth IRA,
There are two types if Roth IRAs: Roth and Traditional. Traditional IRAs allow for pre-tax deductions from your taxable earnings. Your traditional IRA allows you to withdraw your entire contribution plus any interest. You can withdraw as much as you want from a traditional IRA.
Roth IRAs do not allow you to deduct your contributions. After you have retired, the full amount of your contributions and accrued interest can be withdrawn. There is no minimum withdrawal amount, unlike traditional IRAs. You don't have to wait until you turn 70 1/2 years old before withdrawing your contribution.
Can the government take your gold?
The government cannot take your gold because you own it. It's yours, and you earned it by working hard. It is yours. However, there may be some exceptions to this rule. If you are convicted of fraud against the federal government, your gold can be forfeit. You can also lose precious metals if you owe taxes. However, even though your taxes have not been paid, you can still keep your precious metals, even though they are considered the property of United States Government.
How much is gold taxed under a Roth IRA
An investment account's tax is calculated based on the current value of the account, and not on what you paid originally. Any gains made by you after investing $1,000 in a stock or mutual fund are subject to tax.
You don't pay tax if you have the money in a traditional IRA/401k. Capital gains and dividends earn you no tax. This applies only to investments made for longer than one-year.
The rules that govern these accounts differ from one state to the next. Maryland's rules require that withdrawals be taken within 60 days after you turn 59 1/2. You can delay until April 1st in Massachusetts. New York is open until 70 1/2. You should plan and take distributions early enough to cover all retirement savings expenses to avoid penalties.
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- If you take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- Want to Keep Gold in Your IRA at Home? It's not exactly legal – WSJ
Tips to Invest in Gold
Investing in Gold has become a very popular investment strategy. This is because there are many benefits if you choose to invest in gold. There are many options for investing in gold. Some people purchase physical gold coins. Others prefer to invest their money in gold ETFs.
You should consider some things before you decide to purchase any type of gold.
- First, check to see if your country permits you to possess gold. If your country allows you to own gold, then you are allowed to proceed. You might also consider buying gold in foreign countries.
- Second, it is important to know which type of gold coin you are looking for. You can choose between yellow gold and white gold as well as rose gold.
- Thirdly, it is important to take into account the gold price. It is better to start small, and then work your way up. Diversifying your portfolio is a key thing to remember when purchasing gold. Diversifying assets should include stocks, bonds real estate mutual funds and commodities.
- Lastly, you should never forget that gold prices change frequently. Therefore, you have to be aware of current trends.
By: Lubomir Tassev
Title: South Koreans Show Greater Interest in Altcoins Compared to Americans, Research Finds
Sourced From: news.bitcoin.com/south-koreans-fascinated-with-altcoins-more-than-americans-research-shows/
Published Date: Sat, 28 Oct 2023 10:30:32 +0000