Introduction
As Hong Kong strengthens its regulatory framework for cryptocurrencies and embraces ETFs, the Hong Kong Virtual Asset Consortium (HKVAC) has made updates to its crypto indexes. The consortium has shown a preference for tokens with strong market performance and growing industry partnerships, leading to the exclusion of Ripple's XRP from its indexes.
Revisions to Crypto Indexes
The HKVAC, a non-profit organization that rates digital asset trading platforms and compiles crypto market indexes, recently announced revisions to its top five, top 10, and overall crypto indexes. Notably, XRP has been replaced by Solana (SOL) in the top five global crypto index.
Solana's Market Capitalization Surpasses XRP
In December 2023, the crypto market experienced a significant shift as Solana surpassed XRP in terms of market capitalization, becoming the fourth-largest cryptocurrency. This milestone played a crucial role in HKVAC's decision to include SOL in its top five global crypto index, replacing XRP.
Avalanche Token Enters the Top 10 Index
The Avalanche (AVAX) token has made its way into the top 10 index, following a surge in its value during the general downturn in the crypto market at the end of 2023. This addition to the index coincides with partnerships between traditional finance businesses like JPMorgan and Deloitte with the Avalanche Foundation for asset tokenization initiatives.
Introduction of New Cryptocurrencies in Global Large Crypto Index
HKVAC's January statement also highlighted the inclusion of new cryptocurrencies in its global large crypto index. Internet Computer's ICP, Optimism (OP), Injective (INJ), and Immutable (IMX) are among the newly added tokens. These updates reflect Hong Kong's ongoing efforts to strengthen its position in the crypto industry.
Hong Kong's Readiness for Spot Crypto ETFs
In December 2023, Hong Kong's financial regulator announced its readiness to welcome spot crypto exchange-traded funds (ETFs). This development follows the approval of 11 spot Bitcoin ETF applications by the United States Securities and Exchange Commission. The Hong Kong Securities and Futures Commission (SFC) acknowledged the increasing demand for these products and introduced regimes to offer certain virtual asset products to the Hong Kong public with appropriate investor protection safeguards.
Share Your Thoughts
What are your thoughts on XRP being replaced by SOL in HKVAC's crypto indexes? We'd love to hear your opinions and comments on this subject.
Frequently Asked Questions
How much gold should you have in your portfolio?
The amount that you want to invest will dictate how much money it takes. A small investment of $5k-10k would be a great option if you are looking to start small. You could then rent out desks and office space as your business grows. You don’t need to worry about paying rent every month. You just pay per month.
It’s also important to determine what type business you’ll run. In my case, we charge clients between $1000-2000/month, depending on what they order. So if you do this kind of thing, you need to consider how much income you expect from each client.
If you are doing freelance work, you probably won’t have a monthly salary like I do because the project pays freelancers. This means that you may only be paid once every six months.
Decide what kind of income do you want before you calculate how much gold is needed.
I recommend starting with $1k to $2k of gold, and then growing from there.
What is the tax on gold in Roth IRAs?
Investment accounts are subject to tax based only on their current value and not the amount you originally paid. Any gains made by you after investing $1,000 in a stock or mutual fund are subject to tax.
But if you put the money into a traditional IRA or 401(k), there’s no tax when you withdraw the money. You pay taxes only on earnings from dividends and capital gains — which apply only to investments held longer than one year.
These rules vary from one state to another. Maryland requires that you withdraw funds within 60 business days after reaching the age of 59 1/2. Massachusetts allows you to delay withdrawals until April 1. New York has a maximum age limit of 70 1/2. To avoid penalty fees, it is important to plan and take distributions in time to pay all your retirement savings.
What Precious Metals Can You Invest in for Retirement?
These precious metals are among the most attractive investments. They’re both easy to buy and sell and have been around forever. You should add them to your portfolio if you are looking to diversify.
Gold: One of the oldest forms of currency, gold, is one of mankind’s most valuable. It is also extremely safe and stable. It is a good way for wealth preservation during uncertain times.
Silver: Silver is a popular investment choice. It is an excellent choice for investors who wish to avoid volatility. Silver tends instead to go up than down, which is unlike gold.
Platinium: Another form of precious metal is platinum, which is becoming more popular. Like gold and silver, it’s very durable and resistant to corrosion. It is, however, more expensive than its competitors.
Rhodium: The catalytic converters use Rhodium. It is also used as a jewelry material. And, it’s relatively cheap compared to other types of precious metals.
Palladium – Palladium is an alternative to platinum that’s more common but less scarce. It’s also less expensive. For these reasons, it’s become a favorite among investors looking to add precious metals to their portfolios.
Should You Open a Precious Metal IRA?
Precious metals are not insured. This is the most important fact to know before you open an IRA account. It is impossible to get back money if you lose your investment. This includes any loss of investments from theft, fire, flood or other circumstances.
You can protect yourself against such losses by purchasing physical gold and silver coins. These coins have been around for thousands and represent a real asset that can never be lost. You would probably get more if you sold them today than you paid when they were first created.
Consider a reputable business that offers low rates and good products when opening an IRA. Consider using a third-party custody company to keep your assets safe and allow you to access them at any time.
If you decide to open an account, remember that you won’t see any returns until after you retire. Don’t forget the future!
How do you withdraw from an IRA that holds precious metals?
First decide if your IRA account allows you to withdraw funds. Make sure you have enough cash in your account to cover any fees, penalties, or charges that may be associated with withdrawing money from an IRA.
You should open a taxable brokerage account if you’re willing to pay a penalty if you withdraw early. This option is also available if you are willing to pay taxes on the amount you withdraw.
Next, calculate how much money your IRA will allow you to withdraw. This calculation depends on several factors, including the age when you withdraw the money, how long you’ve owned the account, and whether you intend to continue contributing to your retirement plan.
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 let you withdraw money tax-free after you turn 59 1/2, while Roth IRAs require you to pay income taxes upfront but allow you access the earnings later without paying any additional taxes.
Finally, you’ll need to open a brokerage account once these calculations are completed. Many brokers offer signup bonuses or other promotions to encourage people to open accounts. However, a debit card is better than a card. This will save you unnecessary fees.
When you do finally decide to withdraw from your precious metallic IRA, you will need a safe space where you can safely store your coins. Some storage facilities will take bullion bars while others require you only to purchase individual coins. You’ll have to weigh the pros of each option before you make a decision.
Because you don’t have to store individual coins, bullion bars take up less space than other items. However, each coin will need to be counted individually. However, individual coins can be stored to make it easy to track their value.
Some people prefer to keep their coins in a vault. Others prefer to place them in safe deposit boxes. Whichever method you choose, make sure you store your bullion safely so you can enjoy its benefits for years to come.
Is it a good retirement strategy to buy gold?
While buying gold as an investment may seem unattractive at first glance it becomes worth the effort when you consider how much gold is consumed worldwide each year.
Physical bullion bars are the most popular way to invest in gold. There are other ways to invest gold. Research all options carefully and make an informed decision about what you desire from your investments.
For example, purchasing shares of companies that extract gold or mining equipment might be a better option if you aren’t looking for a safe place to store your wealth. If you are looking for cash flow from your investment, buying gold stocks will work well.
ETFs are an exchange-traded investment that allows you to gain exposure to the market for gold. You hold gold-related securities and not actual gold. These ETFs often include stocks of gold miners, precious metals refiners, and commodity trading companies.
What is the cost of gold IRA fees
$6 per month is the Individual Retirement Account Fee (IRA). This fee includes account maintenance fees as well as any investment costs related to your selected investments.
If you wish to diversify your portfolio, you may need to pay additional fees. The type of IRA you choose will determine the fees. Some companies offer free check accounts, but charge monthly fee for IRA accounts.
Most providers also charge annual management costs. These fees vary from 0% to 11%. The average rate for a year is.25%. These rates can be waived if the broker is TD Ameritrade.
Statistics
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- (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)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- 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)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
External Links
irs.gov
finance.yahoo.com
law.cornell.edu
- 7 U.S. Code SS 7 – Designation of boards of trade as contract markets
- 26 U.S. Code SS 408 – Individual retirement plans
cftc.gov
How To
The best way online to buy gold or silver
Before you can buy gold, it is important to understand its workings. Precious metals like gold are similar to platinum. It’s very rare, and it is often used as money for its durability and resistance. It’s hard to use, so most people prefer buying jewelry made out of it to actual bars of gold.
There are two types of gold coins available today – one type is legal tender, while the other is called bullion. Legal tender coins are those that are intended for circulation in a country. They typically have denominations of $1, $5 or $10.
Bullion coins are minted for investment purposes only, and their values increase over time due to inflation.
They are not exchangeable in any currency exchange system. For example, if a person buys $100 worth of gold, he/she gets 100 grams of gold with a value of $100. The buyer receives 1 gram of gold for every dollar spent.
The next thing you should know when looking to buy gold is where to do it from. There are many options for buying gold directly from dealers. You can start by visiting your local coin shop. You can also go to a reputable website such as eBay. You can also look into buying gold online from private sellers.
Individuals who sell gold at wholesale and retail prices are called private sellers. Private sellers will charge you a 10% to 15% commission for every transaction. That means you would get back less money from a private seller than from a coin shop or eBay. This option can be a good choice for investing in gold because it allows you to control the price.
An alternative option to buying gold is to buy physical gold. Although physical gold is easier to store than paper certificates you will still need to ensure it is safe. It is important to keep your physical gold safe in an impenetrable box such as a vault, safety deposit box or other secure container.
If you are looking to purchase gold on your own, you have two options: a bank or an pawnshop. A bank will provide you with a loan that allows you to purchase the amount of gold you desire. The pawnshop is a small business that allows customers to borrow money to buy items. Banks charge higher interest rates than those offered by pawn shops.
Finally, another way to buy gold is to simply ask someone else to do it! Selling gold can also be done easily. It is easy to sell gold by contacting a company like GoldMoney.com. You can create a simple account immediately and begin receiving payments.
—————————————————————————————————————————————————————————————-
By: David Sencil
Title: Hong Kong Virtual Asset Consortium Updates Crypto Indexes, Excludes XRP
Sourced From: news.bitcoin.com/ripples-xrp-ousted-from-hong-kong-virtual-asset-consortiums-top-crypto-index/
Published Date: Tue, 16 Jan 2024 05:30:29 +0000
