It is good to invest in stocks and cryptos such as Dogecoin, Gamestop, or even Robinhood. However, your decision must not rely on the hype about them. If you must invest in any of these assets, make sure to conduct proper research and investigations into them. This is the stance of Mark Cuban, a popular crypto investor, TV personality, and NBA team owner.
Cuban recently had an interview with a reputable news source where he shared that it is easy to lose everything in the hype around digital stocks or cryptocurrency. The investor believes that these assets can provide amazing dividends, but investors should get the reasons rights.
New Investors to Stay Cautious While Buying Dogecoin
According to Cuban, newbie investors should be more careful when navigating the market. They should do good homework on these companies to find the ones that match their beliefs. They shouldn’t base their decision on social media or by word of mouth of anybody.
Cuban further stressed the importance of using leftover cash for digital assets investment. However, he advised newbies to first pay off their credit card bills and other important obligations before using their cash to invest. Cuban’s reason is that paying off their debts will save them more money in the future.
He also advised that emergency funds are also good to keep in cases where a global pandemic like what happened last year. So Newbies with limited resources should take care of all those needs first before navigating the investment waters.
Transparency Between Net worth and Income
ProPublica posted a report concerning the richest in America and how they didn’t pay tax. According to the report, their income skyrocketed over $1 trillion during the coronavirus pandemic, but many didn’t pay tax. Those who paid didn’t pay the right amount.
Responding to this query, Cuban stated that a clear line must exist to differentiate income & net worth. According to him, what ProPublica reported was their net worth and not their income. Speaking about it Cuban said net worth can change at any given time.
Therefore, the question everyone should answer is if it is right to tax someone’s net worth or tax his or her income. He went further to mention that his tax-paying habits have been very okay. But any attempt to tax crypto assets and stocks will push him to sell them all because he can’t pay for them when they deflate.
But when it comes to paying more taxes, Cuban stated that he is okay with that. He revealed that he paid 29% in 2020 and 19% in 2021. Even if the taxes are fair or unfair, he can pay more. But if the tax targets his net worth, he’ll sell them.
Before this recent interview, Cuban had warned last month that crypto investment is stressful. According to him, crypto needs software that users will depend solely on to ensure longevity. The users he mentioned include the miners, token holders, and validators who earn rewards from the networks.