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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 November 20, 2018

    The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

    The Best Ways to Save Money Even Impulsive Spenders Can Get Behind

    The truth is, there are many “money saving guides” online, but most don’t cover the root issue for not saving.

    Once I’d discovered a few key factors that allowed me to save 10k in one year, I realized why most articles couldn’t help me. The problem is that even with the right strategies you can still fail to save money. You need to have the right systems in place and the right mindset.

    In this guide, I’ll cover the best ways to save money — practical yet powerful steps you can take to start saving more. It won’t be easy but with hard work, I’m confident you’ll be able to save more money–even if you’re an impulsive spender.

    Why Your Past Prevents You from Saving Money

    Are you constantly thinking about your financial mistakes?

    If so, these thoughts are holding you back from saving.

    I get it, you wish you could go back in time to avoid your financial downfalls. But dwelling over your past will only rob you from your future. Instead, reflect on your mistakes and ask yourself what lessons you can learn from them.

    It wasn’t easy for me to accept that I had accumulated thousands of dollars in credit card debt. Once I did, I started heading in the right direction. Embrace your past failures and use them as an opportunity to set new financial goals.

    For example, after accepting that you’re thousands of dollars in debt create a plan to be debt free in a year or two. This way when you’ll be at peace even when you get negative thoughts about your finances. Now you can focus more time on saving and less on your past financial mistakes.

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    How to Effortlessly Track Your Spending

    Stop manually tracking your spending.

    Leverage powerful analytic tools such as Personal Capital and these money management apps to do the work for you. This tool has worked for me and has kept me motivated to why I’m saving in the first place. Once you login to your Personal Capital dashboard, you’re able to view your net worth.

    When I’d first signed up with Personal Capital, I had a negative net worth, but this motivated me to save more. With this tool, you can also view your spending patterns, expenses, and how much money you’re saving.

    Use your net worth as your north star to saving more. Whenever you experience financial setbacks, view how far you’ve come along. Saving money is only half the battle, being consistent is the other half.

    The Truth on Why You Keep Failing

    Saving money isn’t sexy. If it was, wouldn’t everyone be doing it?

    Some people are natural savers, but most are impulsive spenders. Instead of denying that you’re an impulsive spender, embrace it.

    Don’t try to save 60 to 70% of your income if this means you’ll live a miserable life. Saving money isn’t a race but a marathon. You’re saving for retirement and for large purchases.

    If you’re currently having a hard time saving, start spending more money on nice things. This may sound counterintuitive but hear me out. Wouldn’t it be better to save $200 each month for 12 months instead of $500 for 3 months?

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    Most people run into trouble because they create budgets that set them up for failure. This system won’t work for those who are frugal, but chances are they don’t need help saving. This system is for those who can’t save money and need to be rewarded for their hard work.

    Only because you’re buying nice things doesn’t mean that you’ll save less. Here are some rules you should have in place:

    1. Save more than 50% of your available money (after expenses)
    2. Only buy nice things after saving
    3. Automate your savings with automatic bank transfers

    These are the same rules that helped me save thousands each year while buying the latest iPhone. Focus only on items that are important to you. Remember, you can afford anything but not everything.

    How to Foolproof Yourself out of Debt

    Personal finance is a game. On one end, you’re earning money; and on the to other, you’re saving. But what ends up counting in the end isn’t how much you earn but how much you save. Research shows that about 60% of Americans spend more than they save.[1]

    So how can you separate yourself from the 60%?

    By not accumulating more debt. This way you’ll have more money to save and avoid having more financial obligations. A great way to stop accumulating debt is using cash to pay for all your transactions.

    This will be challenging, depending on how reliant you are with your credit card, but it’s worth the effort. Not only will you stop accruing debt, but you’ll also be more conscious with what you buy.

    For example, you’ll think twice about purchasing a new $200 headphone despite having the cash to buy them. According to a poll conducted by The CreditCards.com, 5 out of 6 Americans are impulsive spenders.[2]

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    Telling yourself that you’ll have the discipline to not buy things won’t cut it. This is equal to having junk food in your fridge while trying to eat healthy–it’s only a matter of time before you slip. By using cash to make your purchases, you’ll spend less and save more.

    A Proven Formula to Skyrocket Your Savings

    Having proven systems in place to help you save more is important, but they’re not the best way to save money.

    You can search for dozens of ways to save money, but there’ll always be a limit. Instead of spending the majority of your effort saving, look for ways to increase your income. The truth is that once you have the right systems in place, saving is easy.

    What’s challenging is earning more money. There are many routes you can take to achieve this. For example, you can work long and hard at your current job to earn a raise. But there’s one problem–you’re depending on someone else to give you a raise.

    Your company will have to have the budget, and you’ll have to know how to toot your own horn to get this raise. This isn’t to say that earning a raise is impossible, but things are better when you’re in control right? That’s why building a side-hustle is the best way to increase your income.

    Think of your side-hustle as a part-time job doing something you enjoy. You can sell items on eBay for a profit, or design websites for small businesses. Building a side-hustle will be on the hardest things you’ll do, be too stubborn to quit.

    During the early stages, you won’t be making money and that’s okay. Since you already have a source of income, you won’t be dependent on your side-hustle to pay for your expenses. Depending on how much time you invest in your side-hustle, it can one day replace your current income.

    Whatever route you take, focus more on earning and save as much as possible. You have more control than you give yourself credit for.

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    Transform Yourself into a Saving Money Machine

    Saving money isn’t complicated but it’s one of the hardest things you’ll do.

    By learning from your mistakes and rewarding yourself after saving you’ll save more. What would you do with an extra $200 or $500 each month? To some, this is life-changing money that can improve the quality of their lives.

    The truth is saving money is an art. Save too much and you’ll quit, but save too little and you’ll pay for the consequences in the future. Saving money takes effort and having the right systems in place.

    Imagine if you’d started saving an extra $100 this next month? Or, saved $20K in one year? Although it’s hard to imagine, this can be your reality if you follow the principles covered in this guide.

    Take a moment to brainstorm which goals you’d be able to reach if you had extra money each month. Use these goals as motivation to help you stay on track on your journey to saving more. If I was able to save thousands of dollars with little guidance, imagine what you’ll be able to do.

    What are you waiting for? Go and start saving money, the sky is your limit.

    Featured photo credit: rawpixel via unsplash.com

    Reference

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