5 Steps to Financial Recovery
In October 2020, consumer debt in the United States rose 2.1% to $4.2 trillion. High debt remains one of the biggest causes of financial trouble in the country. It’s easy to find yourself in a precarious situation financially, especially when you are living from paycheck to paycheck. All it takes is one unexpected expense, and you’re in trouble. It could be a serious illness, an unexpected home repair, or a sudden job loss.
Getting out of debt is the hard part. It can be confusing and frustrating, but its not impossible.With a structured savings and investing plan, you can get out of debt and take control of your finances. However, it’s imperative to select the right assets to help generate the necessary income and profit to put you on the right path. This is where Bitcoin can offer significant value to your investment portfolio, given its surge in price in 2020 and forecasted growth in 2021 led by increasing interest and demand from institutional investors.
In this article, we’ll discuss the idea of paying off debt by staking Bitcoin in five simple steps.
Interest in Bitcoin is at an all-time high, as frequent news reports have followed Bitcoin’s impressive gains in 2020, with the cryptocurrency hitting all-time highs. Despite that, most
people don’t know how to invest in Bitcoin, or even what it is, creating massive missed opportunities for retirement income and investment diversification.
A simple Google search for “Crypto Investing 101” returns a wide range of education options, from articles in major media outlets and guides on cryptocurrency websites, in addition to many
so-called “experts” waxing prophetic on YouTube channels. Merely wading through these choices is not only time-consuming, but also reveals major flaws in content that are often incomplete, written at a complex level, and delivered from questionable sources.
Perhaps these are the reasons why 62% of US adults own stock, but a 2020 survey revealed that only 15% own cryptocurrency, despite financial advisors insisting that crypto should be part
of every properly diversified investment portfolio. And therein lies not only a huge opportunity for the cryptocurrency sector itself, but also for an organization that could make crypto investing understandable and actionable for the public.
Enter Dchained, the first online platform designed to make crypto simple by providing education, investing tools, and everything an individual needs to learn, grow and earn in crypto. Whether a total newbie or an experienced investor, Dchained guides individuals through every step of the journey, from learning the basics to active trading. Founded and run by experienced technologists and investors, Dchained is an active and interactive community focused on helping investors from Gen X to retirees easily and securely diversify their portfolios with digital assets.
The next step is finding the right trusted crypto exchanges that host your cryptocurrency. With over a thousand worldwide, deciding where to begin can be confusing. You will be trading your assets on these platforms, so you need to be cautious when choosing a crypto exchange. Look at the selection of coins available, verification requirements, payment methods, etc., before you settle for a particular crypto exchange.
Does the exchange operate in your country? Some exchanges won’t accept users from certain countries. There are a lot of crypto exchanges out there that perhaps don’t have the crypto assets you want, aren’t secure and are hacked all the time, or have a bad reputation. You need to find an exchange that you trust and feel comfortable with.
Other factors to consider when choosing a crypto exchange to host your cryptocurrency include trading fees, welcome bonuses, volume/liquidity, and whether you are a beginner or an
experienced trader. Some of the best cryptocurrency exchanges include Uni Swap, Kraken, Square Cash App, Binance, and Coinbase.
For US residents, Coinbase is a good option for beginners, but it also has some of the highest fees charging up to 4% per purchase for Bitcoin, Litecoin, Ethereum, etc. For non-US residents, Binance is a good option. Binance supports over 200 coins and is an excellent place for beginners and experienced traders alike.
Analyzing risk and reward will help you make sure that you don’t risk more than you are willing to lose. Mining, staking, or flipping cryptocurrencies are investments. Regardless of the type of
investment you choose, there will always be some risk involved when dealing with cryptocurrencies. Without risk, there’s no reward.
You need to understand the relationship between risk and reward as it’ll help you build your investment philosophy. Investors use the risk/reward ratio to compare the expected returns of an investment with the amount of risk one ought to take to earn these returns. What is the risk/reward ratio? The risk/reward ratio measures the prospective reward you stand to earn as an investor for every dollar you are willing to risk on an investment.
For instance, if you stake one dollar for the prospect of earning three on your investment, you have a risk/reward ratio of 1:3. The risk/reward ratio indicates how well you have allocated your
funds. Use this approach when deciding which trades to take. The risk/reward ratio helps you manage how much you are willing to lose and only use that money when getting into crypto to avoid a situation where you may end up digging yourself deeper into debt.
There are two major ways to go around earning via Bitcoin. You can be an investor, or you can be a trader. As an investor, you typically purchase Bitcoin and hold on to it for some time — it could be weeks, months, or years — hoping that the value will appreciate. As a trader, you will purchase Bitcoin and utilize the volatility of the market to sell in and out of trades and make quick profits.
If your goal is to make money fast and pay off your debt, you should focus on trading Bitcoin for short-term profits. Typically, you buy low and sell high. In other words, you buy Bitcoin when
it’s undervalued and sell when it’s overvalued, taking advantage of the frequent fluctuations in
the price of Bitcoin to earn a profit.
Trading cryptocurrencies is all about evaluating your goals and the amount of risk you are willing to take. You stand to make some quick money when trading cryptocurrencies if you play
your cards right. When you reach your financial goal of trading Bitcoin, you can now use the profits to pay off your debts.
We have a unique “perfect storm” that’s occurring at the moment in cryptocurrency. It’s important to note that an increase in price has been expected by many after Bitcoin’s “halving” this past May. This is an event, which occurs every 4 years, where new supply is reduced while demand often remains strong.
The difference in this latest “bull run” is that there is considerably more institutional and corporate investor interest in Bitcoin as a potential store of value, as concerns increase around potential inflationary measures taken to support local economies in response to increasing cases of COVID. With “conservative” financial institutions becoming more involved in Bitcoin, such as MassMutual investing $100MM into Bitcoin and Fidelity introducing Bitcoin-collateralized cash loans, its evident that this “bull run” is very different from 2016-2017.
In order to maximize your profitability for Bitcoin, it is important to learn as much as possible. You can check out our full step-by-step overview of “Getting Started in Bitcoin & Crypto” video course, as well as the live coaching options that we have available through our memberships.