The Legalities & Security of cryptocurrency | Video #4

In this video, we will discuss the legalities of cryptocurrency and then take a look at the security measures to consider. Let’s Go! Cryptocurrencies are legal in the
majority of countries and banned in number, like Egypt and Morocco for example,
others have certain restrictions like Canada, who has a banking ban and Vietnam,
who makes it legal to trade and hold cryptocurrency but illegal to be used as
a payment method. The legal status of it varies significantly from country to
country and remains undefined or are changed often and the majority of
governments do not consider cryptocurrencies to be currency, now
while many countries don’t consider using cryptocurrencies to be illegal each
country has differing regulations if any. For example, most merchants are not required
to make cryptocurrency a payment method, now of course we wouldn’t be able to
list all the legalities or pointers for every country on this video but here’s
any idea of what you need to find out with regards to your country. What are
the tax implications of using cryptocurrency? Do taxes apply and how?
For example, is cryptocurrency trading subject to the capital gains tax? Can
cryptocurrency be used in settlements? Do you need a license to trade? If you’re a
merchant and accept cryptocurrency, how will you be taxed? How does the law
operate with regards to different types of trading and investment. For many
countries the regulations around cryptocurrency keeps changing so it’s
best to keep tabs on it country to country. As for security concerns the
safety measures of cryptocurrencies trading, what do you need to know? Well
since there are no regulatory parties or insurance or banks, you, yourself, are
really responsible for two things firstly storing your access keys and
secondly keeping yourself as a person safe which means protecting your email
phone and computer. Here’s the rub, because of the nature of
cryptocurrencies if your details are not secure and your coins are stolen well
that there’s no one to call and if it’s gone it’s gone, now you may be wondering
then, how would you safely do deals when there
are no regulatory bodies. Well I’m going to interject here with good news and here
it is. There’s such a thing as a smart contract which helps keep all parties
accountable. For instance, you and another person agreed to deal to exchange
cryptocurrency for something. If the requirements agreed upon by both parties
of the contract are met on a specific date, the contract automatically
activates delivering what is purchased. However if the requirements are not met
the contract deactivates and returns what it was holding, because the smart
contract is available publicly and cannot be altered it is very easy to
keep each party responsible for what they agreed to and here’s the best news!
If one of the parties violates the agreement the proof of what they should
have done is easily obtained, now that’s a way out, let’s continue with how to
keep your stuff safe. Number one, keep your details private, don’t advertise on
social media that you use or invest in cryptocurrencies because then you’ll
become a target. Number two, create a new email address only for your crypto and
use it for all your crypto accounts. Number three, use strong antivirus
software on your computer. Number Four use different wallets for all your
crypto, I’m going to pause here quickly to go into a little more detail about
wallets. You need to store your crypto in something, and that’s something is called
a wallet but there are so many wallets to choose from and since choosing one
doesn’t merely involve going to the shop and looking for the one that looks nice
here’s what you need to know. A crypto wallet is more like a personal ledger
it doesn’t actually contain money in it. Only records and transactions ,it
provides a safe window from which to see the status of your money, kind of like
online banking but I need to view your account, we’ll get into more detail about
wallets in video number seven. You’re welcome to jump the gun and download
more information about wallets, check out the description below in the video for
the link, back to our list about keeping your stuff safe. Number five use the long
password with your wallet and two-factor authentication and avoid reusing
passwords and login details. Lastly, Number Six, give your access
details to a close and trusted family member, so that if anything should ever
happen to you they will have access to your crypto. So there you have it,
in our next video, discover the types of cryptocurrencies, how to choose them,
and what increases their value?

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