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Three Ways You Can Invest in Bitcoin

Three Ways You Can Invest in Bitcoin

Bitcoin is gradually becoming a must-have currency today. As a digital currency, bitcoin serves three unique purposes for investors: Bitcoin doesn’t involve third parties. Secondly, bitcoin is a value-creating unit, where the number of units gained or lost is equivalent to a gain or deduction in a person’s net worth. Thirdly, bitcoin is a value unit that facilitates the exchange of goods and services for an agreed currency value.

That said, you can strategically invest in bitcoin. This article seeks to highlight 3 distinctive strategies that can help with your bitcoin investment. (Please know that your investment outcomes, however, will depend on many other factors than just the 3 strategies listed below.)

Here are 3 avenues that can help you with your bitcoin investment, possibly increasing your capital.

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Purpose-Driven Strategies For Bitcoin Investment

1. Predict the bitcoin value

It is possible to generate profit without exchanging any goods or services. To do this requires knowing the supply-demand trend in the market. By observing the market and correctly predicting the likely trend of the bitcoin, you can make an investment potentially influence the market and increase your profit. .

2. Bitcoin mining 

(While it may be a form of currency, it tends to be treated as assets.)

Nonetheless, bitcoin mining is another way to increase your bitcoin investment. Bitcoin mining is where you add new blocks (bitcoin transactions) to the public ledger (database of all bitcoin transactions). You solve algorithms from your computer (competing with others to be the first to crack it). When your hardware generates the first correct answer you create a block, getting block rewards (amount you can claim for creating that block).

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This stuff can get a little confusing so let’s look at it another way. Think of bitcoin mining as technological mining. Instead of using a pick axe or drill, you’re using your computer. You’re drilling through the algorithms possibilities, trying to crack the algorithm.

The thing with bitcoin miners is that every four years, the blocks will depreciate in half, meaning that if creating a block was worth 50 bitcoin, the block would then be worth 25. That way bitcoin increases value.

There are several things you should note about bitcoin mining in terms of an investment avenue:

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  • It is relatively expensive to set up the mining hardware and specialized software for bitcoin mining.
  • Do your research and choosing the right company for you to design, launch and maintain your hardware (which is a part of the investment costs).

    On the long term, the Bitcoin currency will reach 21 million Bitcoin, and then it will forever be terminated. This limit means it will increase in value and thus pose greater rewards for those who invest in mining now.

    3. Taxes and location

    There are two things you should know about bitcoin as unit of trade when exchanging it for goods and services. To understand this, imagine the meaning of responsible investment, where your strategy is what makes returns, and not fate. These are:

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    (i) Keep record of your bitcoin transactions

    • Like with any investment you need to keep account of it for tax purposes. You will have to include bitcoin transactions in your tax records when filing your taxes. Bitcoin is usually regarded as an asset/assets.

    (ii) Do your research

    • Please note that some governments are anti-bitcoin (Russia happens to be very anti-bitcoin). This means that activities such as bitcoin mining is probably going to be illegal. Make sure you understand your government’s bitcoin policies when considering to invest in bitcoin. For the most part, North America and Western Europe consider bitcoin mining legal.

    Image Credits:

    Bitcoin coins gold money currency , bitcoin btc cryptography , bitcoin btc cryptocurrency Via Pixabay.com

    Featured photo credit: typographyimages via pixabay.com

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    Published on January 8, 2021

    How To Pay Off Credit Card Debt Fast: 7 Powerful Tips

    How To Pay Off Credit Card Debt Fast: 7 Powerful Tips

    Ever wondered whether your credit card debt is the reason you’re in a bad financial situation? You can’t enjoy any fun activities because a good chunk of your money goes toward debt payment. Heck, you’re even behind on some of your monthly bills.

    The effects of clumsy debt management are too many to list here. This guide is going to help you discover how to pay off credit card debt fast and start chasing your financial goals.

    Debt problems are the last thing anyone wants to encounter. But things can get out of hand when all the “little debts” you take accumulate in interests.

    What if you knew some simple and proven ways to be debt-free quickly? Implementing them would mean better financial health for you. It becomes possible to free up cash for your “wants.” These include taking a trip or buying something you’ve always desired. All that while paying your bills on time!

    Let’s not wait any longer. Here are 7 powerful tips for paying off credit card debt fast:

    1. Pay More Than the Minimum Credit Card Payments

    Many people only pay the monthly minimum on their credit cards. Truly, that’s the right amount for staying on good terms with your credit card company. But you need a different approach if you’re looking to achieve financial independence within a short time.[1]

    Most of your payments go toward interest costs when you only pay the minimum amount. A substantial sum of your balance remains standing. As a result, it becomes more expensive to eliminate your debts.

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    You don’t want to wait more than 10 years to get rid of debt while it’s possible to do it sooner. All you have to do is double that $100 minimum payment to $200 or go higher.

    The good thing is that minimum credit card payments are affordable in most cases. By paying a higher amount, you reduce your interest costs, lessen your borrowing period, and boost your credit score.

    2. Start With High-Interest Credit Card Debt

    If you have more than one credit card debt, prioritize putting the extra money toward the ones with the highest interests. This debt pay-off strategy, known as the debt avalanche method, is essential for being debt-free quickly.[2]

    First, you need to list down all the credit card debts you have in the order of their interest rates. Next, you choose the one with the highest interest and pay a significant amount toward it each month. It can be an amount twice or even thrice larger than the minimum payment.

    At the same time, you make monthly minimum payments on the other debts. Their interest charges won’t be as costly as that of the first debt on your list. You only move on to the next high-interest debt after the first one is gone. Remember that your focus is on the interest rates and not the balances.

    3. Revisit Your Budget

    Budgeting is useful for tracking your financial moves. Once you create a budget, some tweaks along the way can make it work for you better. One situation that requires you to revisit your budget is when you’re struggling with debts. It might hurt a bit to slash some expenses. But you also don’t want to miss out on achieving financial freedom in the long run.

    You can reduce some variable expenses to free up more cash for credit card debt payments. They’re the ones that change from time to time. Some examples are groceries, fuel, and clothing.

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    Other opportunities for cutting down your spending lie in non-essential expenses. Instead of dining out all the time, you can cook at home more to save money. You can also share some subscriptions with friends and pay a fraction of the cost.

    If you’re determined enough, you can eliminate all your unnecessary expenses and focus on paying off your credit card debt first.

    4. Avoid Using Your Credit Cards

    Do you want to know how to pay off credit card debt with a low income? One simple way is to stop using them. Having your credit cards everywhere you go means that you’ll be more tempted to buy unnecessary stuff. In this case, you spend money that you don’t really own and get deeper into debt.

    The quickest fix to stop the debt build-up is spending with cash. You’ll be more aware of everything you can afford at any particular time. If you decide to keep one or two cards to ease the transition, always make wise choices. For instance, only use them when experiencing financial difficulties.

    It’s best to categorize your fun activities under “discretionary spending” in your budget. This way, you won’t need more debt to kill your boredom. By halting your credit debt from accumulating, it’s easy to pay down what you already owe and be happy with the progress.

    5. Start a Side Hustle to Boost Your Income

    You’re probably turning away a lot of money by not monetizing your skills. Everyone has something that they’re good at doing. And you can use that to generate extra income for attacking your credit card debt.

    If you look around your neighborhood, you can find several side hustle opportunities. It can be pet sitting, tutoring, or lawn mowing. You can start an online business by offering services such as digital marketing, content creation, and web development. Such skills go in high demand on freelance sites and job boards.

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    Finding clients on social media is also a good strategy to utilize your skills and make more money. Facebook groups, Quora Spaces, and subreddits are some places to look for side jobs. You only have to join a niche-specific platform, share your services, and respond to any opportunities.

    It’s possible to learn a skill, practice it, and earn from it. Use the free resources online or purchase some e-courses to get started.

    6. Sell Your Used Items for Extra Cash

    Starting a side hustle isn’t the only way to generate extra money. You can turn unwanted items into cash for paying off credit card debt. Whether it’s an old TV, book, or furniture, there is always someone itching to buy your used stuff.

    A garage sale, as much as it’s old-fashioned, is perfect for getting your neighbors and passers-by to buy from you. You keep all the money because there are no business permits or taxes involved. While you may not make much cash, it’s better than leaving your stuff to go defunct in your storage.

    Other than that, you can sell your used stuff on online marketplaces. Facebook groups are great places to start if you want quick approvals and hence sales. You only have to ensure that your listing follows Facebook’s commerce policies.

    When selling any pre-owned items online, ensure they’re in good shape to avoid problems with your buyers.

    7. Know When to Seek Help With Your Debt

    Asking for help with your credit card debt can be challenging to do. But letting it drown you is a road you don’t want to take. While you may feel embarrassed at first, it’s the best way to get back on track when you run out of options.

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    There are tons of non-profit credit counseling organizations that can offer you free guidance on how to escape the debt trap. An example is The National Foundation for Credit Counseling. They simply review your finances and help you determine the source of your financial problems. After that, they match you with an actionable debt management solution.[3]

    In extreme cases, the debt solution can be:

    • Debt relief – where your debt is partially or wholly forgiven
    • Debt consolidation – taking out one loan to repay others
    • Debt settlement – the creditor forgives a significant portion of your debt
    • Bankruptcy – legal process for seeking relief from some or all your debts

    It’s necessary to carefully weigh your options before deciding on the way to go. Find out how it might affect your credit score and any other risks.

    Wrapping It Up

    Debt is a major setback when you’re trying to prosper in life. Paying off credit card debt is essential if you want to reach your financial goals. That means having more free income, a good credit card score, and even a chance to retire early. You become more productive each day because of the peace in your mind.

    So, you now have some tips on how to pay off credit fast. Go ahead and get rid of that good life progress killer!

    More Tips on How to Pay Off Debt

    Featured photo credit: rupixen.com via unsplash.com

    Reference

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