Simple Ways to Buy and Invest in Bitcoin

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What is Bitcoin?

Bitcoin is a decentralized, peer to peer, digital currency system, designed to give online users the ability to process transactions via digital unit of exchange known as Bitcoins. In other words, it is a virtual currency.

The Bitcoin system was created in the year 2009 by an undisclosed programmer(s). Since then, Bitcoin has garnered huge attention as well as controversy as an alternative to US dollar, Euros and commodity currencies such as gold and silver.

Rise to Popularity

Bitcoin had not attained much attention in the world of business and finance before the year 2009. It rose to prominence in the 2011-2012 period when it gained over 300%. Bitcoin has had a 400% growth in its value since the August of last year. As a result, venture capital firms and investors around the world continue to pay importance to the cryptocurrency.

In the first half of 2014, venture capital firms invested $57 million in Bitcoin in the first quarter, followed by another $73 million in the second quarter amounting to a total of $130 million, which is 50% greater than last year’s total of $88 million. This is a complete contrast to the scenario in 2012 where Bitcoin firms amassed a relatively meagre sum of $2.2 million.

These statistics prove beyond doubt that Bitcoin is worth your investment, which begs the question, how can you buy and invest in Bitcoin?

A guideline for novice investors in Bitcoin

The easiest and least complicated method to invest in Bitcoin is by purchasing bitcoins. There are a lot of established firms, mainly in the US as well as abroad, who are involved in the business of buying and selling bitcoins, abbreviated as BTC.

Coinbase

If you are living in the U.S. then Coinbase is the place you’re looking for. Coinbase provides it’s clients with BTC at an estimated mark up of 1% over the existing market price. Residents of the United States have the option to sync their Coinbase wallets with their bank accounts. As a result, future payment transfers are made hassle free. This company also gives you the option of automatic bitcoin buying from time to time. For instance, if you’re interested to purchase $50 in bitcoins at the beginning of each month, Coinbase allows you to set up an auto buy for that amount.

Be mindful of the terms and conditions before you begin to use this service. If you have subscribed to an automatic bit coin service, then you will not be able to control the price at which the BTC is bought every month. Note that Coinbase is does not function as a Bitcoin exchange i.e. you buy and sell the coins directly from the firm. Since the firm has to source the coins from other buyers, you may face delays or disruptions when laying orders during fast market moves.

BitStamp

BitStamp suits the requirements of a conventional bitcoin exchange. Bitcoin acts as an intermediary which allows you to trade with other users and not the company itself. Here the liquidity is higher and you always have a good chance to find someone who is willing to trade with you. There is an initial fee of 0.5% which can be reduced to 0.2% if you trade $150,000 in a period of 30 days.

Alternative ways to purchase Bitcoins

Local Bitcoins

Exchanging isn’t the only method of investment in bitcoins. Local Bitcoins is often used to buy BTC offline. The website is designed to link potential buyers and sellers. The bitcoins are locker from the seller in an escrow and can only be released to buyers.

Buying bitcoins offline isn’t always very reliable or safe. Hence it’s preferable to meet the sellers during daytime and let a friend tag along with you just in case things go south.

Bitcoin is not just a modern trend. Venture capital firms consider Bitcoin to be a decent substitute to conventional currency in the long run. There are cointless ways for you to enter the sphere of bitcoin investment. As mentioned before, Coinbase, BitStamp and Local Bitcoins are the most popular channels for investing in bitcoin in the United States. Do your homework and find out which avenue ticks all your boxes.

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Investment Lessons Learned From Warren Buffet

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Most people try to invest and make money but they often end up suffering losses as they make the same mistakes over and over again. Wannabe investors should try to learn and emulate the mind sets of rich people such as Bill Gates, Mark Zuckerberg, Michael Dell and Warren Buffet. Let us focus on Warren Buffet, who has been described as the best investor on the planet. These are some of the investment tips he sticks to:

1. Developer your investment mindset

Not all people are business oriented but we can improve our business minds by reading business related books. Warren Buffet invests a lot of his time studying business-related books.

2. Practicing patience in your investments

Whenever Buffett buys a stock, he buys into the company. This means he doesn’t sell the stock at every market boom or bust. He believes in the companies that he invests in for the long term and holds on to stocks until he longer believes or sees value in these companies. One of Buffett’s celebrated quotes, which illustrates his inclination for long-haul investments is, “Regardless of how awesome the ability or endeavors, a few things simply require significant investment. You can’t create a child in one month by getting nine ladies pregnant.”

3. Prioritize value

Sometimes, the amount we spend on something and the value we get from our purchase don’t relate. Buffett believes that investors need to understand that markets are driven by supply and demand and that buying into a company with solid growth during market down-turns are great opportunities to gain value. Buy a good stock at a great price.

4. Check your emotions when investing

Human emotions influence the market considerably more than any monetary model. Emotions can make people hopeful for something that has never happened or rarely occur. Buffett has recommended that controlling your emotions is considerably more imperative than your IQ. According to him, “Accomplishment in investing doesn’t associate with IQ. What you require is the demeanor to control the urges that cause other individuals harm in investing”.

5. Invest in what you are knowledgeable and passionate about

Buffett exhorts that you “never put resources into a business you don’t get.” Don’t put money into companies whose business you don’t understand.

If you don’t have adequate information about a company, it is much more difficult to understand how a company will perform in the long run and foresee what the company will become a couple of years down the line.

6. Live below your means

Despite a net worth of $87 billion dollars, Buffett lives in a shockingly unassuming home. He purchased his current home in Omaha, Nebraska for $31,500 in 1958 and, today, he calls it the 3rd best investment he’s ever made. Rather than wasting money to live lavishly, Buffett lives frugally and has reaped the benefits.

7. Save first then spend the rest

People tend to pay bills first, spend the rest, and save for last. According to Buffett, this is the wrong approach. Buffet prescribes that you should put aside a set amount of money each month as savings first, then pay your bills, then spend whatever is left over after paying bills.

8. Remember your roots

When he was in middle school, Buffett found a job as a paperboy delivering The Washington Post. He expanded that early activity into a deep-rooted association with the daily paper. Years later, his company, Berkshire Hathaway, became The Washington Posts’ biggest investor. Remember where you came from, your values, and you may discover unique opportunities for great investments.

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Options Education: Financing the Calendar!

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As a trader, one of the key things that I try to consciously do is to cultivate my instincts by talking with other traders and investors as often as possible. It still amazes me how large the divergence of opinion that exists regarding what people believe will unfold as we enter the new millennium. Many very respected names are literally predicting an economic earthquake that will measure a 10 on the Richter scale while others having looked at the exact same research claim that the consequences will be very mild. As a trader I have to evaluate the data and develop a strategy that I feel not only gives me an edge but allows for a great deal of error while still being low risk!

In his book, “Business Without Economists” author William J. Hudson submits a theory worthy of every traders consideration. (Particularly now with Y2K just around the corner) He states:

1) The demand for answers will always be greater than the supply.

2) Therefore, the price for answers will be high.

3) Therefore, a very large supply of answers will emerge.

4) Therefore, most answers will be false, especially when tested against reality.

I have this STATEMENT posted on my computer as a reminder to myself that markets are very humbling mechanisms. The key question that we as traders must continuously ask ourselves with regards to whatever trading strategy we enter into is, “What if I am right? And What if I am Wrong?”

As I assess the economic landscape and scan the marketplace for trading opportunities there is one fact that I must pay attention to: The NAME of the GAME is Managing RISK!

With this in mind, let’s evaluate some of the important facts:

Many of the Commodity Markets have bounced sharply from their twenty to thirty year lows.

When I cross reference this FACT with the REALITY that INFLATION is back in the economy, it creates some very interesting trading opportunities for the OPTION savvy trader. The key to any trading strategy in my opinion is that it HAS to be low risk because there are so many possible outcomes that may occur.

The purpose of this strategy is to eliminate the need for timing the market by developing a method minimizing my exposure to loss. Before I provide you with the mechanics of this tactic let me illustrate an outlandish possibility so that we can get clear on a traders definition of RISK. Let’s say that you are convinced that on March 1, 2005 that you think that Gold is going to be trading at $3,000 dollars an ounce. (I did say outlandish!) Based upon this scenario even if you wholeheartedly disagree, how could you trade this viewpoint and still take very little risk? Most people think that RISK is defined as BEING RIGHT or WRONG on the outcome of a trade. However, a risk sensitive trader is only concerned with their exposure to chance of LOSS.

If you thought that Gold was going to be trading $3,000 an ounce you could enter into the marketplace and

very inexpensively purchase a couple of Call Options that would give you the right to purchase Gold at $500 an ounce. In this instance, the most that you could lose is the money that you put up to purchase the options and you would have the RIGHT but not the obligation to purchase Gold at $500 between now and March. However, just because you have LIMITED RISK you STILL have a great deal of EXPOSURE to LOSS. Reason being, that if GOLD does not get up to $500 you would lose all of the money that you put up to purchase the options.

The way that a professional would trade this scenario is that he would finance the trade through OPTION SELLING. When you SELL an OPTION you are in effect creating an OBLIGATION that you are forced to abide by contractually. For example if you SELL a $500 December Gold Call and receive money you have in effect agreed to deliver Gold to the option purchaser at a price of $500 between now and December 2004.

As a seller of this option, the most that you can make is the premium that you collected and your upside RISK is theoretically unlimited. If Gold is trading at $800 an ounce come December 2004 and you have not offset this option you are obligated to make delivery of Gold to the Option purchaser at the originally agreed upon price of $500 an ounce. Should this occur you would in effect have a loss of $300 per ounce on each contract that you sold. Not very attractive, especially since each Gold contract is 100 ounces in size. The loss becomes $30,000 per contract. That is a lot of risk!

The way to minimize RISK is to SPREAD it off against other OPPOSITE Options positions.

In the above example, let’s say that a trader purchased 1 March $500 Gold call Option for a premium payment of $6.00 an ounce ($600). Each Gold contract is 100 ounces so this trader would be paying $600 per option . The RISK here is very clearly defined as $600. However, if this same trader now SOLD (1) GOLD December $500 Gold Call Option (NOTE THAT THE DECEMBER OPTION WILL EXPIRE BEFORE the March Option) and collected a premium payment of $300 they have in effect reduced their initial risk to the difference between the $600 that they paid out and the $300 that they collected, or $300.

Let me outline what this trader has done. They have obligated themselves to make delivery of 100 ounces of Gold at a price of $500 an ounce between now and December and simultaneously they have the right but not the obligation to own 100 ounces of Gold at $500 an ounce between now and March. They have established a BULLISH CALENDAR position by SELLING a Call option in a nearby month and using the money that they collected in the sale of that option to finance their purchases of the Call Option in the deferred option expiration month.

What this strategy is in effect saying is that it is the traders opinion that Gold will make its move after December but before March. Although it does not appear very exciting now, should this anticipated disruption occur in that time frame a trader that positioned themselves in this style would be sitting in the drivers seat. Essentially they would be looking at a maximum risk exposure of $300 with the possibility of unlimited upside potential. (YES, I realize that with Gold at $430 at present time that possibility appears extremely remote.) However, it is this kind of trading tactic that makes a great deal of sense in markets that are trading at historical lows.

The key to successful trading is to minimize your risk as you acquire more information. The closer you get to option expiration the more information you will have regarding the feasibility of this tactic. The key however is that you played the game without exposing yourself to a great deal of DOWNSIDE. That my friends is the path to long term success in any highly leveraged transaction. As William J. Hudson stated,

“Most answers will be false, especially when tested against reality!” Worth thinking about.

Just one more way to swing for the fences without taking a great deal of risk.

STUDY AWAY and let’s be careful out there!

Dowjonesfully-

-Harald Anderson

http://www.eOptionsTrader.com.

THE RISK OF TRADING IS SUBSTANTIAL, THEREFORE ONLY “RISK” FUNDS SHOULD BE USED. The valuation of such may fluctuate, and as a result, clients may lose their original investment. In no event should the content of this website be construed as an express or an implied promise, guarantee or implication by anyone that you will profit.

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The Value of Purchasing Copper Collectors Items

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Why acquire Copper Collectors items?

Throughout history mining harvests have been hoarded to be the hedge to protect against inflation. Despite the fact that the US dollar is continuing to falter in an uncertain global economy, metals retain their worth. Now copper, regularly considered a base or industrial metal, created interest from precious metals buyers. Many expect higher demand as India and china modernize and new technologies making use of copper are actually designed. Although some people opt to invest in commodities markets, many prefer to take physical possession of the metal, honoring the option that, “If you don’t hold it, you do not own it.”

Accumulating copper products can be regarded as a critical investment, or merely as a fun hobby considering the added and unique benefit of amassing unique value. In times of economic issues many collectibles lose value due to the fact that demand falls, but copper products always hold a commodity value.

In a very very worst-case scenario, should hyperinflation strike the us government dollar as it has with numerous fiat currencies before, many believe precious metals and copper products provides a way of bartering for other services and goods.

Precisely why are Copper Bars so Expensive?

There are many factors that trigger what appear to be high premiums on copper bullion as compared to the spot price shown for paper markets.

The first factor would be the fact copper is no easy task to process. Unlike gold and silver, which melt efficiently and do not oxidize easily when melted, copper oxidizes readily especially if heated. It entails the usage of special methods or chemicals to provide pure copper without bubbles or contaminants being created.

Due to this extra handling, uncontaminated copper is not easy to accumulate anywhere close to the raw market trading price unless you have a contract to opt for a typical shipping and delivery of multiple tons each month. Factor in the expense of processing, sizing, finishing, stamping or engraving, and shipping, and the price has reached the level you see on my web page.

Though there is a premium as opposed to the spot price for copper bullion, the same is true for silver and gold. In this particular market it seriously isn’t unusual for the premiums on silver coins to exceed $4 – $5 per ounce, and gold is regularly selling for $50 – $60 an ounce over spot. Looking at our popular 1 ounce copper rounds in terms of the premium over spot on copper, is significantly less than the premiums on both silver and gold.

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3 Tips for Short Term Investments

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Today’s marketplace is competitive, especially as the traditional system takes a backseat to the global economy. Practices such as international money exchange, offshore investments, and outsourcing opportunities are constantly changing the financial landscape- some for the better, and others for the worse. But there are still opportunities, right?

In the recent past, most of us have turned to financial institutions, such as banks and credit unions, to manage our money. However, conventional investment opportunities are becoming outdated as distrust for lending institutions has grown alongside interest rates and bankruptcy filings. So, how do you know who to trust and where to invest your hard-earned money?

While most financial advisors are still pushing long-term investments, short-term are undoubtedly the most sought after- and with good reason. Investing a small amount of money in a short-term investment can produce a high-yield in just a short time, but it can also be a quick “game over” for the unprepared investor. That’s why we’ve prepared a few tips for the short-term investor; a bit of due diligence to help you avoid common mistakes and save you from losing your shirt.

  1. Do Your Homework

An effective investment requires thorough research, including the collection of data concerning the market, the company and/or project you’re investing with, and the feasibility of that company and/or project being successful. Before you dive into an investment opportunity that looks “too good to be true”, remember that sometimes those opportunities are too good to be true.

One way that you can protect your investment is to research the company or project that you’re supporting. Make sure it is a reputable and legal operation, check reviews, and look for fraud alerts on the internet. Once you are sure everything is legit, make sure the opportunity is one that has a high chance of success and you’re on the right track.

  1. Don’t Be a Hero

The global marketplace is crawling with innovative ideas, especially when it comes to technology. Crowdfunding has changed the way people view, find, and support projects however not every innovative project is a success. History repeats itself for a reason and sometimes, trending investments are short-lived.

Be wary of investment opportunities that claim to have a high-return in a short-period of time. They may have the possibility of yielding a high-return, but they also have the possibility of instant bankruptcy for the entrepreneur who has nothing to lose. And, you don’t want your investment listed on the bankruptcy roster.

  1. Follow the Money

Where there is already a steady cash-flow, there is bound to be more. Of course, this is not always true and businesses do occasionally take a turn for the worst, but for the most part, a business with revolving capital and assets is less likely to take a dive. So, if you see a good investment opportunity with a stable company, chances are they are running a short-term campaign for a special project using your investment. This is a win-win situation because they want to fund something that they know will make money while you benefit from their success.

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Parable of the Talents

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The parable of the talents

A man travelled to a far country but before he left he left his goods to three servants.

“To one he gave five talents, to another two, and another one, according to each one’s ability; and he immediately went on a journey.”

“Then the one who had received five talents went and traded with them, and made another five talents.

“And likewise he who had received two gained two more also.”

“But the one who had received one went and buried his Lord’s money in the ground.”

“After a long time the master came and settled accounts with each of the three servants.”

“So the one who had received five talents came and brought five other talents, saying, Lord, you delivered to me five talents; look, I have gained five more talents besides them.”

His Lord said to him, “Well done, good and faithful servant, you were faithful over a few things, I will make you ruler over many things.”

He who received two talents, also doubled his talents and the master was pleased with him too.”

Then the one who had received one talent buried his talent and returned the talent to his master.

The Master was not pleased, in fact he was angry and told the servant, “Why did you not at least deposit my money with a bank where I would have received interest on my money?”

The Master took the talent from him and gave it to the one who has ten talents.

THE LESSON

“Use it or lose it,” which in a nutshell if we must make use of what has been given to us or we lose it.

The servant who buried his one talent did not use what was given to him and so it was given to someone else.

It also teaches us it is not how much you make from your pay packet that determines your financial future but how much you save.

Playing it safe by not taking any risks may make you feel secure but the day will come when you will lose everything you have so you may as well make use of what you have.

International sport is full of talented human beings who have reached the elite level of their chosen sport but what we do not see is the hard work and sacrifices made by these individuals to get where they are. Talent takes you so far but hard work took them further.

Ask any sports person how long it takes to reach peak fitness after they have been out of action for a while and they will say, “It takes a while to get fit but quicker to lose their fitness when they stop training.”

As far as the parable of the talents is concerned, if you cannot be faithful with what has been given to you then you cannot be put in charge with larger things.

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What Is a Cryptocurrency?

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A cryptocurrency or cryptocurrency (cryptocurrency of the Saxon) is a virtual currency that serves to exchange goods and services through a system of electronic transactions without having to go through any intermediary. The first cryptocurrency that started trading was Bitcoin in 2009, and since then many others have emerged, with other features such as Litecoin, Ripple, Dogecoin, and others.

What is the advantage?

When comparing a cryptocurrency with the money in the ticket, the difference is that:

They are decentralized: they are not controlled by the bank, the government and any financial institution

Are Anonymous: your privacy is preserved when making transactions

They’re International: everyone’s opera with them

They are safe: your coins are yours and from nobody else, it is kept in a personal wallet with non-transferable codes that only you know

It has no intermediaries: transactions are carried out from person to person

Quick transactions: to send money to another country they charge interest and often it takes days to confirm; with cryptocurrencies only a few minutes.

Irreversible transactions.

Bitcoins and any other virtual currency can be exchanged for any world currency

It can not be faked because they are encrypted with a sophisticated cryptographic system

Unlike currencies, the value of electronic currencies is subject to the oldest rule of the market: supply and demand. “Currently it has a value of more than 1000 dollars and like stocks, this value can go up or down the supply and demand.

What is the origin of Bitcoin?

Bitcoin, is the first cryptocurrency created by Satoshi Nakamoto in 2009. He decided to launch a new currency

Its peculiarity is that you can only perform operations within the network of networks.

Bitcoin refers to both the currency and the protocol and the red P2P on which it relies.

So, what is Bitcoin?

Bitcoin is a virtual and intangible currency. That is, you can not touch any of its forms as with coins or bills, but you can use it as a means of payment in the same way as these.

In some countries you can monetize with an electronic debit card page that make money exchanges with cryptocurrencies like XAPO. In Argentina, for example, we have more than 200 bitcoin terminals.

Undoubtedly, what makes Bitcoin different from traditional currencies and other virtual means of payment like Amazon Coins, Action Coins, is decentralization. Bitcoin is not controlled by any government, institution or financial entity, either state or private, such as the euro, controlled by the Central Bank or the Dollar by the Federal Reserve of the United States.

In Bitcoin control the real, indirectly by their transactions, users through exchanges P2 P (Point to Point or Point to Point). This structure and the lack of control makes it impossible for any authority to manipulate its value or cause inflation by producing more quantity. Its production and value is based on the law of supply and demand. Another interesting detail in Bitcoin has a limit of 21 million coins, which will be reached in 2030.

How much is a Bitcoin worth?

As we have pointed out, the value of Bitcoin is based on supply and demand, and is calculated using an algorithm that measures the amount of transactions and transactions with Bitcoin in real time. Currently the price of Bitcoin is 9,300 USD (as of March 11 of 2018), although this value is not much less stable and Bitcoin is classified as the most unstable currency in the foreign exchange market.

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A Good Investment Strategy to Make Money Investing

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Whether the year is 2011, 2012 or 2020 – here’s a good investment strategy to make money investing without a crystal ball. Any good investment plan considers both investment selection and timing. If you can’t make money investing with this simple strategy, rest assured that only the few and the lucky will make money.

Before you stress over putting together a good investment strategy for 2011 and going forward, ask yourself the obvious question. Where do most successful people invest (or where have they in the past) to make money investing over the long term? The answer before the financial crisis was bonds, stocks and real estate. The answer today for the average investor is the same and takes the simple form of bond funds, stock funds and equity real estate funds. In the final analysis, if all three of these investment areas tank – we’re likely in a depression and only a lucky few folks or smart speculators will make money investing.

Good investment strategy does not rely on speculation or trying to time the markets. No matter what you hear, no one has a proven and consistent record in market timing that beats the markets significantly over the long term. If they did they’d make a ton of money investing, and they’d hide their secrets, not share them. So, why not settle for a good investment strategy that makes only one major assumption: that the USA will grow and prosper over the long term?

Investing money in the three areas above is simple with mutual funds. To lower your risk and add flexibility to your investment strategy, add a fourth fund type called a money market fund. At today’s interest rates these might not look like a good investment, but they are safe and earn interest that tracks current rates. Getting more specific, by owning just 4 different funds you can put together a good investment strategy for 2011 and beyond and make money by investing in America’s future. In order from high safety to higher risk and greater profit potential: a money market, intermediate-term bond, large-cap equity-income, and equity real estate fund is all you need to own.

A good investment strategy to get your feet wet is to simply invest equal money in all 4 funds. Timing strategy requires no judgment calls or guessing. One year later and once a year after that, you simply move money around to make all 4 funds equal in value again. This automatically forces you to take some money off the table from your better-performing funds – and to move more money into those that didn’t do as well. The net result over time is that you are buying more shares when prices are down, are selling shares that are relatively expensive.

This is also a good way to make money investing over the long term while keeping a lid on risk. Simply buying and holding funds is not a good investment strategy, and has gotten many average investors in trouble in the past. For example, real estate funds were good investments for multiple years until they were nailed by the financial crisis. Had you owned them and just held on, by 2009 you could have had a significant amount of money accumulated and at risk there… resulting in big losses as a result of the financial crisis.

There’s more than just simplicity involved in what I am calling a good investment strategy for 2011 and well beyond. This strategy employs two of the only time-tested tools in the investment business: BALANCE & REBALANCE and DOLLAR COST AVERAGING. The first tool keeps you on track while keeping a lid on risk, and the second is the tool that works to lower your average cost of investing by having you buy more shares when prices are lower and fewer when they are high.

You can put a good investment strategy together with only moderate risk by owning just 4 different mutual funds. People make money investing over the long term with bonds, stocks and real estate; and the smart ones keep some money in a safe investment as well for flexibility. In years past, some folks simply got lucky and made money investing without a strategy. With a good investment strategy you won’t need to cross your fingers and rely on luck. If America prospers in 2011 and beyond – so should you.

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Investing Basics – Risk vs. Reward

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In 2005, people spent 125% of what they made. They spent money they had not earned yet so they built up debt and paid interest on that debt every month. If you spent less than you made than you actually were paid interest on your money, just the opposite. The return you can expect from that hard earned money greatly depends on the level of risk associated to it. No risk does not equal any reward however; risk is not a big scary animal we all run from.

The first thing to decide is how much money you want your investments to make. It could be from 1% to 30% and everything in between. One percent return is incredibly low but very safe. Actually, 100% safe since that is what your savings account is paying. If you think that you are making money in your savings account than you forgot to think about inflation. Let’s assume that inflation is around 3% a year. If your investments are making 3%, you broke even. You did not make a dime because inflation took 3% of the buying power your money had a year ago away. $100 today is only worth $97 in one year. If you investment made 3%, which is $3, you are back at $100. Take 3% off your return and that is your real return.

If you want a high return than do not expect to be risk averse. The higher the reward the higher the risk you need to consider. Bonds currently are sitting around 5%. This is a safe 5% and you will not lose that money. Once you consider inflation, it suddenly turns into gas money. Stocks have beaten every other investment in any 20 year period. Stocks make most cringe but there are many ways to enjoy the rewards of the stock market without worrying that you are losing your children’s college fund. You can buy an index fund that invests in the S&P 500 or the Dow Jones. The S&P 500 is 500 companies if you invested $500, $1 would be in every single company. The S&P makes around 10% a year. There is a very slim chance the S&P would go to zero although there are correction years. That is why you need to invest long term. If you start buying in one of those correct years, you will lose money but think long term and you will realize to buy heavy in those correction years. Buy low and sell high is the game but many of us do it the opposite way.

When investing, not only is risk and reward important, but also your age. This may be new to you but age is very important to investing. Age tells us what level of risk we should expect. If you are in you 20s, you should be investing in the highest risk funds possible. The reason is that a person has longer to replace that money if he loses it all. A senior citizen does not have those years and the advice is just the opposite. Little to no risk and invest in only fixed income which is bonds and CDs and 100% safe alternatives. The older you get the less risk you should be allowing. 10% fixed income for every decade you are old is a general rule. Do the math and determine your risk level.

There are many safe investments out there but as the saying goes, “no pain, no gain”. The reward for “the pain” is the 10% and upwards return you could enjoy.

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Why Should You Trade in Cryptocurrency?

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The modern concept of cryptocurrency is becoming very popular among traders. A revolutionary concept introduced to the world by Satoshi Nakamoto as a side product became a hit. Decoding Cryptocurrency we understand crypto is something hidden and currency is a medium of exchange. It is a form of currency used in the block chain created and stored. This is done through encryption techniques in order to control the creation and verification of the currency transacted. Bit coin was the first cryptocurrency which came into existence.

Cryptocurrency is just a part of the process of a virtual database running in the virtual world. The identity of the real person here cannot be determined. Also, there is no centralized authority which governs the trading of cryptocurrency. This currency is equivalent to hard gold preserved by people and the value of which is supposed to be getting increased by leaps and bounds. The electronic system set by Satoshi is a decentralized one where only the miners have the right to make changes by confirming the transactions initiated. They are the only human touch providers in the system.

Forgery of the cryptocurrency is not possible as the whole system is based on hard core math and cryptographic puzzles. Only those people who are capable of solving these puzzles can make changes to the database which is next to impossible. The transaction once confirmed becomes part of the database or the block chain which cannot be reversed then.

Cryptocurrency is nothing but digital money which is created with the help of coding technique. It is based on peer-to-peer control system. Let us now understand how one can be benefitted by trading in this market.

Cannot be reversed or forged: Though many people can rebut this that the transactions done are irreversible, but the best thing about cryptocurrencies is that once the transaction is confirmed. A new block gets added to the block chain and then the transaction cannot be forged. You become the owner of that block.

Online transactions: This not only makes it suitable for anyone sitting in any part of the world to transact, but it also eases the speed with which transaction gets processed. As compared to real time where you need third parties to come into the picture to buy house or gold or take a loan, You only need a computer and a prospective buyer or seller in case of cryptocurrency. This concept is easy, speedy and filled with the prospects of ROI.

The fee is low per transaction: There is low or no fee taken by the miners during the transactions as this is taken care of by the network.

Accessibility: The concept is so practical that all those people who have access to smartphones and laptops can access the cryptocurrency market and trade in it anytime anywhere. This accessibility makes it even more lucrative. As the ROI is commendable, many countries like Kenya has introduced the M-Pesa system allowing bit coin device which now allows 1 in every three Kenyans to have a bit coin wallet with them.

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