1. Donate or give to charity
Whether you are religious or not, you should donate some of your earnings. Maybe you want to support your church, a favorite charity, food bank, or another charity.
There are charities that could use the money to help others. With the coronavirus, many people are suffering and charities need money to help those in need.
From churches to food banks to many other charities, they can use your money. Plus once you make a donation, you should feel good about helping others. Also, the donation could be tax-deductible helping offset some of your cryptocurrency gains.
You don’t want to be a scrooge and hoard all of your earnings. Giving back to help others will make you feel good about yourself. There are always people who are less fortunate and need help in one way or another.
2. See a tax accountant
You may not like this, but be ready to pay your taxes. The government will take a big portion of what you earned.
Trying to avoid paying taxes could run you into a lot of trouble. You may have seen some people serve time in jail or pay their fines for avoiding to pay their taxes such as Wesley Snipes, Chuck Berry, Ozzy Osbourne, Shakira, and others.
Don’t try to avoid paying the IRS. In the past, they have sent letters to over 10,000 people for them to verify that they have paid their earnings from cryptocurrencies or to make any corrections. The next bull run will not be any different.
To date, the IRS has not created further guidance on buying and selling cryptocurrencies for altcoins. Hopefully, the IRS releases guidance on this soon. This would give some more assurance to many cryptocurrency investors.
3. See a lawyer
Once you have made a lot of money, you need to establish a will and trust. If for some reason, you unexpectedly passed away, the state will likely take your money. You want to delay that and allow others to get their rightful share.
Taking the time to set up your will and trust will allow others to use the money and prevent any delay. You may want to pass your money on to family members, friends or a charitable organization.
Setting up your will and trust will help keep money in the rightful hands. This is the best time to set up these legal documents. Don’t wait to find the right person to help with your legal matters.
4. Pay off your current bills
You may want to go out and buy a new car or something. However, if you have any debt, this is exactly what you should pay off first. Pay off your credit cards, department store cards, and other expenses you owe money to.
You don’t want to keep giving free money to these companies which is what you do with debt. The interest continues to accumulate and you are giving free money to these banks and companies. These companies are making money off of you since you are paying interest on your debt obligations. Pay off these bills and then you’ll have more time to have fun with your money.
5. Invest in a rental property
There is no better way to earn income from your cryptocurrency investment than with rental properties. If you buy the right rental property, you can turn that into an income stream for life. This could be challenging for someone who has never invested in real estate but if you build the right team, do your research, this could be the best investment you could make.
6. Buy dividend stocks
If rental properties are not for you, then dividend stocks could be the next best investment. Dividend stocks pay their investors from their earnings. There are companies such as Apple, Microsoft, Intel, and others that pay you every few months. If you set up your dividend plan correctly, you could receive income every month from your stock investment.
7. Reinvest back in cryptocurrencies
Lastly, you could reinvest for the next bull run. Maybe you want to be around for the next Bitcoin all-time high. There could be an altcoin that want to see achieve a new high. Just make sure you have taken some of your gains off the table for this bull run.