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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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    Last Updated on April 3, 2019

    How to Nix Your Credit Card Debt in Less Than 3 Years

    How to Nix Your Credit Card Debt in Less Than 3 Years

    Debt is never a fun thing to be in. But, there are many actions that you can take that will help you rid yourself of the burden of debt once and for all.

    By coming up with a set plan, eliminating your debt can feel much easier than constantly thinking about it.

    This post will provide some tips on how you can do this to help you nix your credit card debt in less than 3 years.

    Hint: there are ways that are easier than you think.

    1. Consider Consolidating Multiple Credit Cards If Possible

    This may not be applicable to you, but if you have multiple cards – it is something to consider. Keeping up with multiple bills is time consuming.

    It will depend on the balance you have on each. Consolidate ones you can but do not do it to the point that you get too close to the maximum limit. Also, it is ideal to pick the card with the lower interest rate.

    Consider if there are any fees or alternatively, rewards, with transferring a balance to another card. Watch out for fees. Note that some cards offer rewards for transferring a balance to them. This is extra cash that can help go towards paying off your debt.

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    Having one or two cards can make nixing your debt much simpler than keeping up with the balance of a bunch of cards. Keeping track of paying the minimum towards a bunch of cards is time consuming. Spend the time to consolidate instead to make the overall process simpler going forward.

    My tip: Have one main credit card. Have a second one that you use for necessities – such as groceries or gas – that offers rewards for those purchases (a lot of cards do) and set the second one on auto-pay. You should be able to pay off a smaller amount on auto-pay if it is a necessity. If you think you cannot, then you may need to cut down a lot on expenses.

    Why do I suggest doing this? Having one thing set to auto-pay is one less thing to think about. One less thing to waste time on. Same idea with consolidating to one main card. Tracking down too many is a hassle.

    2. Try to Pay the Full Balance You Spent Each Month at the Very Least

    You need to pay off the amount you are spending each month when that bill comes in. This is the amount you spent THAT month.

    Do not let the debt keep accruing while you work on paying any unpaid debt that has accrued. It will become a never-ending battle. Try as best as you can to be current on paying for each month’s expenses when that month’s bill comes out.

    If this is a strain, consider why. You may need to cut expenses. Or you may need to consider other cards. Or look at where this money is going.

    3. Pay Extra When You Can – Every Small Amount Counts

    This cannot be emphasized enough. If you are looking at a lot of credit card debt, it can look daunting, but each extra amount that you can put towards the debt will really add up – no matter how small it is.

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    It does not just reduce the principal amount that you have left to pay off, but it reduces the amount that is collecting interest. You will always save money with that reduced interest.

    4. Create a Plan on How to Pay Extra

    Back to the main point, having this plan is giving you one less thing to think about.

    This plan should be a plan that works for you. If it does not work for you, your spending habits, and your views on debt, then it will not be an effective plan.

    For instance, if a set plan of an extra $50 (or another amount that you know you can afford) works for you, then do that. Set that aside every month and pay that extra amount. Treat it like a bill. Choose an amount that works for you and pay it like clockwork as though it was a bill you had to pay each month.

    Little amounts will not nix it entirely, but they will help tackle it and having a set plan can make it less of a chore. Creating a new plan of how much to put towards it each month is an unnecessary added stress.

    5. Cut out Costs for Services You Do Not Use

    If you are signed up for subscriptions that you do not use because of some free trial or for some other reason, cut it out. Your overall financial position will look better.

    In turn, that will make cutting your credit card debt easier. Look at your statements to find these expenses. If you do not use them, you may forget you are paying some unnecessary amount each month. Cutting it out can really add up in savings that you can put towards other needed expenses.

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    6. Get Aggressive About It

    Consider these points:

    Depending on the interest and the level of debt, you may need to give up a few indulgences. For example, instead of ordering delivery or going out to eat, cook at home. Everything adds up.

    Other things may be more of a sacrifice. It may be a trip you wanted to go on, or a daily latte habit you’ve picked up. In these instances, consider how important it is to you and if it’s worth the sacrifice. And if it is a costly expense, think whether you can wait to indulge.

    Cutting an extravagant expense can really help make a dent in your overall debt. Try not to add to debt when you are trying to pay it off. It will be a never-ending battle. Make it less of a battle with these tips and it will feel easier.

    Bottom line: Do what you can to make this process easier for you. Implement steps that do this. It takes time now, but will help overall. Also, keep track of your spending and paying down of your debts. Which is the next point.

    7. Reevaluate Your Progress at Set Intervals

    Doing a regular check-in can help you see your efforts pay off or maybe indicate that you need to give this a bit more effort. If you check every 3-6 months, it will not feel so much like a chore or feel so daunting.

    By doing this, you will be able to better understand your progress and perhaps readjust your plan. Bonus: if you see it pay off, it will feel great to do this check-in. You will get there.

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    Finally (and most importantly)…

    8. Keep Trying

    Do not get discouraged. Pushing it off will make it worse. Just keep trying.

    Once your debt becomes lower, each monthly payment will reduce the balance more. Why? You are paying less towards interest. It will be a snowball effect eventually and it will become much easier to manage. Just get to that point. And know once you do, it will feel easier and motivating.

    Start Knocking out Your Debt Today

    The best way to eliminate debt is to get started right away. Begin by implementing the above steps and watch your debt just melt away. Try out some of the above strategies and see what works best for you. Soon you’ll be on your way to a debt free life.

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