What Network Engineers Should Know About Cryptocurrency

It seems like Bitcoin, Dogecoin, and other cryptocurrencies posting major crypto gains are giving everyone a bit more knowledge about the world of crypto. At the same time, however, unless you have a bachelor’s degree in computer science, information technology, or a related field, you may not fully understand how the computer networks underpinning cryptocurrency actually work. If you’re a tech-savvy network engineer, then you’ve likely heard about all of the big moves cryptocurrency has been making in the past few years—and understand the technical implications of the technology underpinning users’ wallets on Coinbase and on other top crypto exchange platforms.

So, what should a network engineer do with the information they have about cryptocurrency? Can you pitch blockchain technology to your network administrator? Perhaps most importantly, if you could leverage blockchain technology in your company’s computer network, would that even offer any benefits? Read on for a few things network engineers should recognize about crypto, both as employees and as individual investors.

What should you know about crypto and your occupation?

In order to pursue the occupation of network engineer, you had to meet certain network engineer requirements. From understanding network security and information systems to having at least a year of experience managing protocols around local area networks, wireless networks, and wide area networks, there were specific skills you needed to demonstrate in order to illustrate your expertise as a computer network architect and gain your certificate as a network engineer.

That being said, you may not have dug deeper into how the blockchain technology at the heart of cryptocurrency could play a role in impacting the way you approach your role as a network architect. According to a piece from Cisco, there are actually some impressive security benefits with the potential to improve security for enterprises. As the piece outlines, using a decentralized form of authentication would enable administrators to fully trust the data and reports being provided about their network security, since it would have to be verified countless times before being seen as correct. These are the sorts of advantages blockchain technology can add to your existing analytical skills as a network engineer.

What should you know about cryptocurrency as an individual investor?

Since you work as a computer network architect, the odds are pretty high that you may already be a crypto trader as well. As a trader, it’s important to understand your tax liability, since capital gains taxes can seriously impact your capital gains during tax season. Crypto tax software can help you manage the taxable events associated with your digital assets, whether you’re using Binance or Coinbase to make trades. Just like any other form of income, virtual currency does have a tax liability associated with it, so knowing the cost basis of different exchanges and purchases is critical if you want to make the most of your investments without getting in trouble with the Internal Revenue Service (IRS).

As a crypto trader, you have a responsibility to file your tax return properly, and traditional tax software like TurboTax might be lacking the sorts of tools you need as both a trader and a taxpayer. As such, it’s a good idea to look into crypto tax software platforms, especially if you supplement some of your income as a computer network architect by trading various crypto coins. While virtual currency is a bit different than other forms of investing, in the U.S. there is definitely tax liability associated with digital currency on crypto exchanges. As a result, it’s vital that you have a software platform capable of integrating with the major exchanges and helping you file your cryptocurrency taxes properly.