Things You Might Not Know About Investing in Crypto

Originally Published: April 30, 2026

Crypto has gone from being something that people are a bit curious about, to a mainstream investment in just over a decade. While it started as something only those in the financial or business realm dabbled in, it’s now something that many people have shares and own. While a lot of people understand the basic principles such as to buy low, sell high and expect it to be volatile, there is also a deeper side to crypto that many people might not be so aware of. Whether you are a beginner or have dabbled in crypto for a while and are looking to expand your knowledge, we’ve put together some things that might help improve your strategy and return on investment. Keep reading to find out more and hopefully help you along the way.

Crypto is more than just traditional stocks

Many investors assume crypto works like traditional stocks where you buy it, hold it, and wait for appreciation. While this can work, the ecosystem is far more complex. Activities like staking, yield farming, liquidity provision, and NFTs all introduce new ways to earn (and lose) money. What is often overlooked, is the fact that all of these actions can create separate financial and tax implications. For example, earning staking rewards isn’t “free money” it’s actually treated as income that you will need to pay tax on. It’s these things that might not seem obvious at first, but you need to know it when it comes to filing your records.

Every transaction can be a tax event

Another of the bigger surprises that come to new investors is that crypto taxation goes beyond just selling it for profit. In many jurisdictions, actions like swapping one coin for another, spending crypto, or even receiving rewards can trigger taxes. In the U.S., for example, crypto is treated as property, meaning transactions are subject to capital gains or income tax depending on the activity. Tax rates can range from 0% to 37% depending on income and holding period. This means that even small, frequent trades can create a complex web of reporting obligations, something that many investors underestimate until tax season arrives. This is where a specialist crypto accountant comes in. 

Crypto accountants specifically on digital assets, offering expertise that traditional accountants often lack. They work across crypto-native activities like DeFi, NFTs, and multi-chain transactions, helping investors correct errors and stay compliant with evolving regulations. Because crypto tax rules are nuanced and constantly changing, having a specialist can make a significant difference, not just in ensuring accuracy, but potentially in identifying legitimate ways to reduce your tax burden.

Record keeping is super important

Unlike a traditional brokerage, many crypto platforms don’t provide clean, consolidated tax statements meaning a lot of the work is down to you to do. If you are using multiple wallets and exchanges, you need to track everything yourself or face inaccurate filings and penalties. Not reporting crypto currently can result in significant fines or legal consequences so it’s important you do it correctly! There are a plethora of tutorials online or experts you can speak to who can help advise you on the best way to keep your records for accuracy and legitimacy.

Tech moves faster than regulations 

Crypto innovation often outpaces regulation. New financial products and protocols emerge constantly, but tax authorities and legal frameworks take time to catch up. This can create grey areas which make it hard to know what you need to do and what not to do in certain scenarios. Some of the grey areas could be how DeFi loans are taxed, how NFT royalties work and whether or not airdrops count as income or capital gains. Rules change really fast so you need to stay informed, reading up on the latest information and having alerts on your phone so you know if there is anything big that you’re required to be aware of. This will stop any incidents further down the line.

Decentralised doesn’t mean it’s anonymous

A common misconception is that crypto transactions are anonymous. In reality, most blockchains are transparent and traceable. Governments and regulatory bodies are increasingly using blockchain analytics tools to track activity. With new reporting rules being introduced, including expanded broker reporting requirements, compliance is becoming harder to avoid and it’s more likely your transactions will be tracked or able to be tracked. Again, keep an eye on what is happening within the crypto realm to know exactly where you stand. 

Fees and slippage can eat your profits

When it comes to crypto, it’s easy to focus on price gains, but transaction fees, gas fees, and slippage can significantly reduce your returns, especially if you trade frequently or interact with DeFi platforms. A strategy that might look profitable on paper, can actually be more detrimental than you might think after you have accounted for these hidden costs! It’s something you should be aware of when it comes to figuring out your profits.

Security is your responsibility

Unlike traditional finance, there’s often no safety net in crypto. If you lose access to your wallet or fall victim to a scam, recovering your funds can be impossible. Simple mistakes—like sending funds to the wrong address—can be irreversible. This makes security practices (hardware wallets, backups, and avoiding phishing scams) essential.

Crypto without a doubt offers exciting opportunities and the future is only going to get more interesting. From paying your everyday bills, to your holidays, household items and more, crypto is only going to be more commonplace, but you do need to know what you’re doing. While it might seem simple, you must do things like pay your taxes and understand the tech and financial regulations behind it. Investors who succeed both in the short but also the long term are those that understand more than just surface level, so stay informed and keep accurate records. If you approach crypto with this mindset, you’re in a much better position to explore the opportunities that come with it and also understand the risks that it holds too!

Want More Info? How about a Free 30-minute Consult with Ascend?

Schedule Your Free Consultation Now!

Special thanks to the following source(s) for the image(s) used in this article:

• Source(s): Photo by Jonathan Borba from Pexels: https://www.pexels.com/photo/cryptocurrency-coins-14911432/ 

DISCLAIMER: This article was submitted to Ascend 2 Glory, LLC by a third-party. We post third-party articles with sole intent of bringing you valuable information to help you, your team, and or organization grow. They are not researched, written, or necessarily even endorsed by our team. It is simply content submitted to us by what appears to be respectable and professional third-party organizations or affiliate sources which upon our initial review, seem solid and helpful to our community, so we post them. It is up to you to personally verify the facts, links, organizations mentioned, the validity of the information presented, and any/all claims made in the article(s). To report an issue with any of the information, links, or organizations mentioned in this, or any content posted on our website, or if you simply have a question or need something we can help you with, please contact us at Ascend now.