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Everyone and their grandmothers have been talking about Bitcoin so I decided to jump on the bandwagon. Maybe I’ll get more visitors onto my site because I desperately need my page view numbers to go up.
Many people don’t even know how to start buying Bitcoins so I’ll get into that first.
Download the Coinbase app on your phones or go to Coinbase.com and open an account with them. I am not an affiliate so I get squat if you sign up. But they are the trading platform I used when I purchased my digital currencies.
For those of you who don’t know, digital currency also known as crypto currency or crypto trading are these newish financial products like Bitcoin, Litecoin, Ethereum (just to name a few), that some Millennial made up so they could get rich quick. Other than that I don’t know much else about them.
There are many other digital currencies out there that you can trade besides the three I mentioned above. Go to Bittrex.com, sign up with them and start trading them if you are interested. Again, I am not an affiliate so I get nothing if you sign up. These currencies are highly volatile and you can lose your shirt very quickly. Or make a million bucks.
So getting back to Coinbase, after you sign up they give you two options. If you link your bank account with them you get a $15K max limit for your 1st trade. You can also link your credit card but the max trade size limit is much smaller and their fee is much larger.
You will also need to wait about a week before you can start purchasing you digital currencies after you sign up. Maybe the wait will get shorter as time goes on but who knows. I think it’s due to Coinbase not being able to keep up with the hyped up demand for the trillions of people that want to get into crypto trading now.
This past July I bought $5K worth of digital currencies. I put $2500 in Bitcoin and $2500 in Ethereum. Bitcoin at the time of purchase was $2506 per coin (plus a trading fee of $ 36.15) and Ethereum was $239 per coin (plus a trading fee of $37.25).
As of today (Dec 2017), I have made almost a 400% return on my investment (unrealized) in just 5 months. Pretty crazy right? But their value goes up and down like a roller coaster so who knows what they will be tomorrow.
Before I bought into crypto trading, I kept hearing from the money experts that you should only invest money you are willing to lose into digital currencies because they are super volatile. But I don’t have much money that I am willing to lose. Most people don’t unless you’re already a billionaire.
So I sold my losing individual stocks so that I could purchase Bitcoin and Ethereum. It was a win win for me because now I get the tax write off for selling some stocks at a loss. And now that money is up 400% in crypto currencies. Talk about having money work hard for you. That’s exactly what I’m always promoting.
I wish I bought more but who knew it was going to get this crazy. I am glad I was able to get into it a relatively low price. Relative to now anyway. My goal like with every investment that I make is that the price will skyrocket and I can retire a millionaire many times over.
With digital currencies, it looks like that can happen sooner rather than later. I really want to be one of those people who can say, ‘I invested $5K in Crypto currencies and now I am a multi-millionaire’.
Many financial experts have different opinions regarding crypto trading. Some say it’s the greatest thing since sliced bread. Others say it’s too speculative and it’s an insult to current market economies.
I’m going to take the conservative approach and say it’s best to diversify your investment portfolio. I don’t think it’s a bad idea at all to invest in Crypto currencies the way I did. I wouldn’t put all your eggs in one basket, even though I wish I had bought a lot more of Bitcoin.
Taxes are another thing to consider. I still don’t know how the government is going to take their piece of the pie. I do know regulations are definitely underway. I know that in the early days of crypto currency trading, no or very little taxes were being paid on your gains.
But now that the popularity of digital currency trading has gone through the roof, you better bet your bottom dollar the government is going to want to get their piece of the action from it as usual.
I’m going to assume a similar tax structure is going to be implemented for your Crypto gains. 15% capital gains taxes if you held it for over a year and 30% if under. But don’t quote me on that.
Many apps and online stores are now accepting Bitcoins as a source of payment to purchase their goods. I have a feeling it’s just going to snowball and digital currencies could be as common as cash and credit cards in the very near future.
I am going to hold onto my Digital Currency instruments for as long as I can. If all the rumors are true, I should be able to retire in a couple of years. But I’m not holding my breath.
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