fbpx
Connect with us

CryptoSpace

Where to invest during a recession? (or where to invest in general)

Published

on

Where to Invest

Where to invest during a recession?

40% of Americans do not have $400 in their savings to meet an emergency.

Let that sink in for a second.

Average rent expense in the US is around $1050, that means, 40% of Americans cannot afford to pay rent for two weeks if they lose their job.

The emergency fund was not even talking about cases of a job loss or these pandemic times that we are facing.

It was referring to unplanned expenses like car repair, illness, etc.,

Nevertheless, the stat is quite staggering.

Good news is that the pandemic has forced people to increase their savings by 33%. 

Whether this savings is voluntary change in habit or forced by lack of spending is something we have to wait and see.

We have to do whatever we can to get by this wave of the pandemic.  

However, once we are on the other side of this we all have to think about being prepared, financially speaking, for uncertainties that life throws at us

Investing in recession

Here are the assets we think will bode well whether the economy bounces with full vigor or we face another crisis like this in the future.

  • Cash, specifically the US dollar
  • Gold & Silver
  • Farm land
  • Bitcoin
  • Upgrading skills

Sure Weight Loss

Why these assets?

Everyone has a reason to be invested or avoid investing in a certain asset.  We have our own reasons.  We enumerate them below.

Why Cash?

moneyIn the current market, you cannot go into a grocery store and buy stuff with gold or silver coins. 

While many places have started accepting Bitcoin and other cryptos, they are not easy to integrate into daily usage, yet.

For these reasons, it is easy to see why having a reserve of fiat cash is common sense.

However, we think that as the global fiat system starts falling apart, the US dollar will outlive most fiats.  

This is why when we say cash we are particularly referring to the US dollar.

If you live in a country where USD is not something you can get hands on easily, you could look into reliable stablecoins to get exposure to the US Dollar.

Eventually, the US Dollar may head for the same ill fate as the other global fiat currencies and that is why it is important to have exposure to other assets.

How much cash should I hold?

Personally, we think a 6 months safety fund is a good aspiration to have.  If you can manage a year worth of expenses in savings, that is quite astounding.

A minimum we would start with is 3 months expenses.

Whatever those mean to you from a dollar perspective should be your ‘goal’.

Why Gold & Silver?

invest in gold and silver

Gold is considered god’s money. Whether Gold is god’s money or not, it withstood the test of time and has been a successful store of value for ages.   

Silver has been used in variety of fascinations (including references to the use of silver in weapons against witchcraft, vampires and other fictions).

More importantly, Gold has been a metal of royalty while Silver has been long used as the metal for commoners.

Together, these two metals have been used as store of value and medium of exchange since we moved away from the barter system. 

How much Gold & Silver should I hold?

Answering this for the Gold is tricky since it’s more expensive.  Silver may be easier to answer.  For instance, you could start buying 1 ounce silver each month.

Depending on what your ‘end goal’ from an investment outlook is, a 3-5% allocation to Gold & Silver might be an appropriate mix.

Why Farm Land?

invest in real estate

There are only few things that could exceed the confidence you acquire by growing your own food.

By farmland we do not mean acres and acres.  There is a guy who sought to use the empty backyard space of his neighbors to grow vegetables on a ‘sharing’ basis.

You could grow greens like Spinach that don’t need a lot of space.

As you keep digging into this area, you can come up with creative ideas on how to become self-sustained.

You do not have to turn into a farmer to invest in farmland either.  There are many solutions that help you own a piece of a big farmland through crowd sourcing.

Companies like AmericanFarmInvestors helps you invest in farmland through 401(k).  

There are other companies like FarmTogether, FarmFundr, etc. that make investing in Farmland easy and affordable.

If there is a power outage or if China stops producing or if there is a famine in the countries that supply the food, cash or gold or bitcoin will mean not much.

Food is obviously a basic necessity and as such – having it as part of a sustenance plan is a good one.

We are not talking about it from an apocalyptic preppers point of view.

We are talking about it from an ‘I am ready for all possibilities’, the good ones and not so good ones, point of view. 

How much land could help?

How much land could help you produce your own food and basic supplies? That depends on your family size, appetite, your fancies, where you live, how expensive the land is, and more.

You do not have to become a farmer or buy entire acreage. There are many solutions that help you invest in a Farmland through crowd sourcing.  

So you could be investing a few hundred bucks each month or have an annual ‘goal’ for Farmland investment.

how to lose weight

Why Bitcoin?

bitcoin-gift cards

We are a crypto site, that’s why.

We are just kidding.

Bitcoin has the potential to lay the foundation for the future internet.  

Unlike the internet itself where one could only invest in the companies behind the technology, with Bitcoin you can invest in the technology itself.

If all else fails, your Bitcoin holding will be a great souvenir of ‘history in the making’.

Bitcoin is Gold 2.0.  Or in Robert Kiyosaki’s words “Gold is god’s money and bitcoin is people money.”

We will take that explanation.

What makes bitcoin better than gold is that you can take it anywhere with you. You can transfer, use it to buy things and divide it into fractions.

If those who proclaims that Bitcoin will one day reach a Million dollars turn out to be right, your $100 investment today could be worth $10,869.  That’s 100x return.

If you do lose it all, you would have lost $100.

Except for the startup investment (which is accessible by the wealthy) no other investment we know of comes closer to Bitcoin in its upside potential.

We buy bitcoin for the upside potential and stay in to become part of the history itself.

How much Bitcoin should I hold?

Answer to that question for this particular asset class is quite simple: How much are you willing to lose and not care?

We are not kidding.

Bitcoin as a relatively new asset class has almost unlimited upside potential.

But potential is not always guaranteed to become a reality.

If you invest a small amount $100 here and $50 there and adopt the dollar cost average method, it could help hedge your portfolio well.

We personally like to be diversified irrespective of our portfolio size. You do what fits your risk appetite. 

Why Upgrading skills?

invest in upgrading skills

This investment is the one that will keep paying you.

Let’s say you are eyeing a promotion and the only way you can get it is by earning a certification.  

You could invest your money in acquiring that certificate to land the job that can increase your income.

We are not big fans of Ivy League degrees that cost hundreds of thousands of dollars.  However, we do not discount the value you can gain from upgrading your skills.

Thanks to the internet, acquiring skills is not as hard as it once used to be.

You could save on the ‘preparation material’ by learning from YouTube or buying used books from BetterWorldBooks or Thrift Store, where you can.

You can even post questions or seek tips on the forums.

You can weaponize the internet to acquire the skill that increases your earning potential.

How much should I invest in upgrading my skills?

This is an asset that is non-tangible and yet reaps the rewards faster and more tangibly than others on this list.

How much should you invest directly depends on your next natural progression trajectory.

For instance, if I don’t have a basic under-graduate degree, I cannot think about having a Master’s degree.  

The cost obviously varies for an under-graduate degree to a Master’s degree.

Whether I am taking an online class or an evening class or a full time will also change the expense considerably.

If you already have the basic skillset to do your job, then investing in something that gets you ready for your next level (or promotion) is what we would personally focus on.

We do not believe in college degrees that are obsolete when taught and are useless in the real world.

We like technical (polytechnic) diplomas that provide hands on ‘experience’ more than theoretical-namesake degrees.

Sure Weight Loss

How do I get invested in these assets when I cannot get by?

We started this article talking about people who do not even have an emergency fund of $400, how then can we expect people to be exposed to the assets we listed here.

That is quite a challenge to overcome.

Few ways we think this could be done (we have lived through life where we did not even have $50 in reserve, so this is not pure hypothetical):

  • Reconcile expenses and cut the unnecessary.  An example could be if you have a habit of eating out once a week, maybe make it once a month.
  • Switch to alternatives.  An example could be to move away from a bundled TV package to an internet only package.  For instance, let’s say a bundled TV package costs $150 and Internet only costs $75, then you can add Netflix or Disney to this at an additional $10.  This saving of $65 ($150-$75-$10) could go into buying either a couple of silver coins or million sats of Bitcoin or just go into your savings as fiat reserve.
  • Downsizing your lifestyle.  Do you have an opportunity to move into a smaller home or use public transport (obviously after the pandemic) to go to work or make your own lunch instead of eating out. Five dollars here and five dollars there will quickly add up.
  • Upgrade your skill to increase your earning potential (we discussed this above)
  • Start a side hustle.  You could drive Uber in your spare time.  You could learn trading and make some small gains.  You could offer your skills on platforms like Fiverr.  You could start your own YouTube channel.  You could start blogging. 

The strategies we have outlined in this article are not just for investment during a recession but they are sound strategies of investment in general, in our opinion.

These are the assets we are looking to accumulate because we think this is the right mix for us.  You do what’s right for you.

Note: We personally do not invest in stocks and have not included them in this article.  This does not mean that they are a bad investment. Also, we get involuntarily exposed to stocks through 401(k) (thanks to Bitcoin IRAs the situation is changing fast).  Diversity is key to a well-rounded portfolio.

Thank you for reading and sharing this article. Stay safe and healthy!

Get ‘Week in Crypto’ news updates in ONE email.
We never
spam your inbox and we only send one email per week
with updates, news, eBooks, tax updates, and more!
Get
knowledge, not spam!  Subscribe here.

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

best Crypto Tax Software

Sure Weight Loss

CryptoSpace

Crypto Roundup: All Your YouTube Influencers in One Place

Published

on

Crypto Roundup

Visit our Crypto Roundup section daily for a dose of all your favorite Crypto YouTube influencers in one place.    

Worried about missing updates from your favorite YouTube crypto influencers?  

Welcome to the Crypto Roundup.  

On this page, we will post a quick summary of the videos from some of the most popular YouTube crypto influencers.

Ivan on Tech  Altcoin Daily

Crypto Zombie Box Mining

Ellio Trades Lark Davis

Data Dash Bitboy Crypto

MMCrypto Chico Crypto

Altcoin Daily

Video title: Bitcoin Will Be OVER $20,000 By Christmas 2020! BIGGEST WEALTH SHIFT OF OUR LIFETIME! Cryptocurrency

Date: 19-Nov-20

  • World’s biggest wealth shift of our lifetime is happening right now and no mainstream media is talking about it, except CNBC.

  • Preston Pysh predicted on August 26th that: “Bitcoin should be reaching its all time high by Christmas.”

  • If you are looking to buy a dip, there may not be one.
  • Ricardo Salinas Pliego, a mexican billionaire, has just revealed that 10% of his liquid assets are into bitcoin.

Lark Davis

Video Title: STOCKS HIT NEW HIGHS! WILL COVID VACCINES LEAD TO MEGA PUMP IN 2021? [Are You Ready?]

Date: 19-Nov-2020

  • Stock markets and bitcoin pumps higher on the news of the second successful covid vaccine.
  • There could be more chances for the new stimulus. Means more inflation, more debt and simultaneously pumps stocks, gold and bitcoin.

Crypto Zombie

Video Title: BITCOIN $18.5k TOP!!?! DON’T BE FOOLED!! HODL FOMO BEGINS!!! $TRILLIONS FLOOD!!

Date: 18-Nov-2020

  • Overall sentiment of Bitcoin has changed drastically from ICO craze in 2017 to a time where people are FOMOing to own more bitcoin.

Ivan on tech 

Video Title: BIG WARNING TO ALL HODLERS!!!!!!!!! DO NOT GET REKT!!! BITCOIN $18,500 REJECTED – NOW WHAT?

Date: 18-Nov-2020

  • Ivan expects bitcoin to shoot past $20K resistance before end of this year, giving it 85% probability

Chico Crypto

Video Title: World’s Most Powerful Turn BULLISH on BITCOIN

Date: 19-Nov-2020

  • All those who hold big bags of Bitcoin will come out of the shadows to talk up the Bitcoin rally, a $20K bitcoin could be on the cards before the end of this year
  • Ethereum mining could act as a big catalyst for Ethereum’s price
  • Big companies like google could play a bigger role in mass adoption of crypto

Let the FOMO begin…

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

Continue Reading

CryptoSpace

Lessons from the Veteran HODLERS to the Newbies!

Published

on

Lessons in Crypto

For all those who entered the crypto market after the 2017 bull run – here are few lessons from the HODLERS from the last bull run(s).

This is our attempt at making all you newbies aware of the mistakes veteran cryptoers did.

Let’s get started…

Don’t FOMO in to all the hype

FomoIt’s hard not to FOMO in crypto.  The trick is to make sure you don’t lose your shirt in crazy bets.  Always limit your bets to what you are comfortable losing.

The common ways you can become victim of FOMO are:

  • Following your favorite YouTuber without actually doing your own research on the project.
  • Investing into projects at the top.
  • Believing in promises of 100x or 1000x without any substance behind those claims.

HODLing far too long

Remember why you are into crypto – to make the money.

Never fall in love with your crypto, and HODL the tokens even when they are 10x and more.

Have a strategy to take your capital out before you become a HODLer.  

If you believe the project really has what it takes to go beyond 100x and more, just sell in instalments so as to not miss the ride.

One of the best ways to HODL is to take your capital in full and profit in tranches.

This rekt story will give you a right perspective of what it looks like, it’s one of many:

Don’t put all your eggs in one basket

Never go all in on one project. No matter how strong the project may look, even the projects with strong fundamentals don’t do well sometimes. 

And, you will be kicking yourself watching other projects go up and your portfolio just doesn’t seem to make a move.

And don’t over do it and have a portfolio with over 100 projects either. It is very difficult not to have invested in more than 15 projects but anything less than 20 is a good way to go, in our opinion. 

Put aside the share of Profits for Taxes.

One way you can get a good night’s sleep is by paying taxes. 

Always keep a habit of putting aside a % of your profits in USDT or other stable coins, as a reserve to take advantage of market volatility and also to meet your tax obligations. 

Exchanges are more evil during bull run

Foreign ExchangesDon’t trust exchanges. Yes we already know that, but they play more games during bullrun, some intentional and some technical. 

Many exchanges tend to go under maintenance when the prices shoot up too high too soon (Coinbase?), and you can’t sell. 

And the shady exchanges scam out before you know.

Regulators seem interested when the market cap of these projects goes through the roof, which then adds FUD around the project crashing the prices.  

Exchange may freeze funds pending investigations when such issues arise.

Take for example OKEx. Users are unable to withdraw their assets from the exchange for almost a month now, not certain if they ever will, and all that started with the legal dispute.

Never fall for Arbitrage gains

Arbitrage is when you buy in one exchange at a lower rate and sell on the other for a higher rate to take some profits. 

Some shady exchanges show a lot higher prices than the other genuine exchanges and when you deposit your assets to sell at those prices there won’t be actual volume to execute the trade. You may be stuck with either a high fee for withdrawal or other funky rules to take your own money out. 

Remember, there is no free Giveaway

Free CryptoScammers rise with the rising market.  

When the crypto market buzzes with all time highs – scammers cash in big time on newbies.

The most lucrative scam in crypto is ‘Free Giveaway’. Whether it be through YouYube ads or discussion groups and wherever they can get your attention.  Read this article on various sophisticated scams that are being deployed.

We hope these lessons help you through your trades and crypto life.  Stay safe and always DYOR.

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

 

Continue Reading

CryptoSpace

Crypto Roundup: All Your YouTube Influencers in One Place

Published

on

crypto news

Visit our Crypto Roundup section daily for a dose of all your favorite Crypto YouTube influencers in one place.    

Worried about missing updates from your favorite YouTube crypto influencers?  

Welcome to the Crypto Roundup.  

On this page, we will post a quick summary of the videos from some of the most popular YouTube crypto influencers.

Ivan on Tech  Altcoin Daily

Crypto Zombie Box Mining

Ellio Trades Lark Davis

Data Dash Bitboy Crypto

MMCrypto Chico Crypto

Altcoin Daily

Video title: The United States Just Brought Bitcoin into the National Conversation!! | Cryptocurrency in 2021

Date: 16-Nov-20

  • Former National Treasurer and the new US Senator Elected, Cynthia Lummis, said Bitcoin fits the bill as a good store of value as it is finite and limited, unlike the inflationary fiat currency.

  • Grayscale adds over 7000 more bitcoin in just the last 24 hours.
  • Just over 16% ETH staked for ETH 2.0 launch on Dec 2 2020.
  • Bitcoin Cash hard fork takes place tomorrow.

Crypto Zombie

Video Title: WARNING!!! BITCOIN 2017 BEAR FRACTAL RETURNS!!! BTC WORST CASE SCENARIO…

Date: 14-Nov-2020

  • Institutional money starts flowing into bitcoin.

  • Paypal goes live with its crypto trading platform for eligible customers. They have also raised the buying limits from the initially set $10,000 to $20,000 per week.
  • DIA, an DeFI Oracle provider, integrates with Polkadot.

Ivan on tech 

Video Title: BITCOIN WILL DO SOMETHING INSANE THIS WEEK!!!! -30% DUMP AHEAD vs $20,000 PARTY – Programmer

Date: 16-Nov-2020

  • Bitcoin could make a big move this week, either hit 20K or we may see a 20% to 30% drop
  • Chainlink partners with Etherisc to deliver agricultural insurance in Kenya.

Ellio Trades

Video Title: UNLOCKING $100 TRILLION? This low cap gem seeks to bridge CeFi and DeFi

Date: 15-Nov-2020

  • DeFI could be similar to the ICO craze in 2017
  • Low cap gem: AllianceBlock
  • AllianceBlock is bridging the gap between DeFi and CeFi
  • AllianceBlock Partnership with Orion Protocol and Chainlink.

Chico Crypto

Video Title: WARNING! An “EVIL” Entity Wants Control of BITCOIN…

Date: 15-Nov-2020

https://www.youtube.com/watch?v=45Ac-5y2ofg

  • 90% of Bitcoin’s mining pools are controlled by China based mining pools
  • As the value of bitcoin goes up – there is a threat of push to ‘control’ the network from China
  • Binance is looking to push through the 50% mining share and Chico believes this could be dangerous

Visit our Crypto Roundup section daily for a dose of all your favorite Crypto YouTube influencers in one place. 

Thank you for reading and sharing this article. We appreciate you.

Stay safe and healthy!

Top 5 Cryptocurrencies 2020

IMPORTANT DISCLAIMER

Everything in this article is an opinion, not an advice of any kind. This material has been prepared for general informational purposes only and it is not intended to be relied upon as accounting, tax, investment, legal or other professional advice. Please consult with a professional for specific advice.

We do not endorse or guarantee the accuracy of the information and claims made.

All product and company names are trademarks™ or registered® trademarks of their respective holders. Use of them does not imply any affiliation with or endorsement by them.

Continue Reading

Trending