7 Ways To Make Money With Crypto

hi my name is andre jake hope you're doing well come for the finance stay for the tips just the tip if you know you know [Laughter] imposter and now ladies and gentlemen that's how they created mini me hi my name is andre dick hope you're doing well come for the finance and stay for the one second oh girlfriend got me a new shirt fifty dollars corey i'm so sorry for all the ads you're about to watch in this video too bad i've got adblocker on today i want to talk about the top seven pro crypto tips for boys and girls of all ages regardless if you're already invested in crypto or you're looking to get into it and if you watch this video all the way through chances are you'll learn at least one new thing and this is just a video i wish i showed myself way back in 2014 when i bought six bitcoins for six hundred dollars which i then sold at a 50 loss to buy myself a drone which technically cost me 360 000 hi i'll be your teacher hey at least it's not as bad as the guy that spent 10 000 bitcoins on two papa john's pizzas papa bless let's just get into it starting with the first pro tip which is something i got from my friend graham steffen who reminded us to lower our taxable income by selling off our losing cryptos and doing what's sort of called the tax loss harvesting strategy and then buying them back again without breaking the wash rule but if you didn't understand what the heck that meant let me break it down let's just say you bought some crypto and on paper it looks like you're losing money now you could actually use this investment and you can sell it off and it doesn't matter what you're doing it with whether it's bitcoin ethereum or owe me the homie and one of several things could happen let's say you sold off that losing investment you can actually use that to offset the sale of an investment where you made money and if you have an excess of losses you can actually carry that over and subtract it from your yearly taxable income to get a tax refund at the end of the year and this is because whenever we invest we pay for what's called a capital gains rate and that's a different tax rate than what your ordinary income is every year because this is where your capital your money makes money you pay a different rate so in this example let's just say you sell off ten thousand dollars worth of gains because you made some money with bitcoin cool now you have to pay some taxes but let's say you're like no miss me with that i don't want to pay some taxes so you sell off ten thousand dollars worth of losses let's say you're down on your ethereum so that ten thousand dollars of winnings and losses cancel each other out now if you have an excess you can actually use up to three thousand dollars of losses to wipe it off of your ordinary income and i know it sounds complicated but here's a simple example of how that might work let's say you're making sixty thousand dollars a year and you bought some bitcoin that you happen to be down three thousand dollars on you know that saying you don't lose money until you go to sell well in this case we're going to sell our investments and we're going to do what's called realize our losses because right now our losses are what's called unrealized meaning they're just on paper but once you go to sell you're like i realize i just lost some money now we're gonna use that three thousand dollars worth of losses to write off of our earned income so instead of paying taxes on 60k of earned income we'll be paying taxes on 57k of earned income and any losses that you have after three thousand dollars because remember you're only allowed three thousand dollars for the year that will be spillage that can be carried over to the next year and the next year and so on and so forth now obviously the more money you get to make the more money you get to save with this technique because you're in the higher tax brackets so if you're in the highest tax bracket of 37 percent you'd be saving the most money but then again you'd also be making like 518 400 a year so you're probably not too worried about saving one thousand one hundred ten dollars so that's just a tip now once you sell this investment at a loss you can actually buy it right back again which is pretty cool because you can immediately enter the market again and what's interesting about this trick is that you can't technically do this with stocks and that's because with securities you'd break something called the wash cell the wash sale rule a petition we change it to the rip and dip you know like in an elevator you rip and you dip wash sale rule is supposed to prevent investors from buying a stock losing money on it selling claiming that tax credit and then buying it back again and doing it over and over again and that's because with stocks you actually have to wait 30 days before buying back that same stock otherwise if you don't wait that 30 day period you'd be slapped with a penalty but the penalty kind of works like this imagine you bought a thousand dollars worth of apple stock at 100 a share but then apple drops to 50 a share and you lose 500. well you realize your losses by selling and normally you'd be able to use that 500 to write off of your taxable income but in this case apple drops even more to 25 a share and you were like that's just too juicy to pass up so you buy in and you didn't wait that 30 day period how could you in this case the irs will not let you use that 500 to deduct off of your income and instead that new cost basis of 25 a share is going to be added to your original cost basis which means it means it's a good thing because you have to pay less taxes the easiest way to explain that is kind of like if i give you 100 right now through your telephone screen your cost basis in that case would be zero dollars right because i gave it to you for free zero that means you are taxed on the full 100 but let's say you gave me 90 and i gave you a hundred dollars your capital gains in that case would be on ten dollars not the full 100 because your cost basis was 90. so your stepped up in cost basis now allowed you to pay less taxes that's how it works nobody cares the only thing you have to keep in mind doing this with crypto is keeping track of what you bought each cryptocurrency at and what you sold it at because if you don't that is the fastest way to get audited pro tip number two the best cryptocurrency your money can invest and buy today out of the hundreds if not thousands of cryptos out there are what you call the blue chips now i'm not saying that you can't make money without blue chips you can make a ton of money without the blue ones because there's red ones and green ones but it's the bluesies you really want to focus on still got it and the two blue chips are of course bitcoin and ethereum now when i say best i don't mean the ones that will get you the richest of the quickest i just mean the best as in that have been around for longer than a few years that are battle-hardened and that have withstood the test of time ones that have withstood technological and narrative attacks that have stayed around and still made people money now we might disagree on that but that's the problem with the crypto space people disagreeing with me no it's people that treat this stuff as if it was a football team or if it was a sports industry because people think it's an us versus them mentality it's like xrp versus safe moon or dogecoin versus baby doge or bitcoin versus ethereum and that is completely silly that doesn't make sense because investing money should be purely objective and you don't have to think about it in terms of us versus them it's like imagine talking to somebody who's investing in the stock market and you're like hey what you got coca-cola it's all about enron and ron went to zero by the way so it doesn't make any sense but a lot of people in the crypto space treat investing like that but just pay attention to the comment section in this youtube video he's a bitcoin maximalist i don't even know what that means but ultimately just ignore it don't pay attention to it it creates a toxic environment that can sometimes pressure you to sell off what works to try to gamble your money on becoming an early adopter and becoming an early millionaire and i understand the appeal of that but it's just not worth it no one knows which cryptos are going to become the top cryptos in the next 10 years but i can almost bet with certainty that bitcoin and ethereum are going to be in the top two and if we know that with almost certainty then why get greedy tip number three my lord is the cheapest place to buy your crypto there's a very famous saying in this industry that goes like this not your keys not your crypto and that just means whoever has access and whoever controls your private key has total access to your entire wallet and so the place that you think might be the cheapest and therefore the best to use might not necessarily be what you actually want and robinhood is a perfect example of this they've got that beautiful slick interface that makes it so easy to use and it feels safe and it's very cheap which is also why they made something like 30 million dollars off of dogecoin traders in the first quarter which represented something like 34 of their revenue for crypto trading in q1 of this year it's crazy but robin hood might not necessarily be what you want to use and that's one of the biggest reasons why crypto was invented in the first place to give you control over your money that way you can move that money from your client's pocket and into your pocket it's a good movie as a future crypto investor you might have not known about chain splits now chain splits are sort of like special dividends or special distributions that crypto investors get whenever a crypto coin splits into two separate chains this actually happened to bitcoin in 2017 when it's split between bitcoin and bitcoin cash now if you had 10 bitcoin let's say on chain you also got an equivalent amount of bitcoin cash and it was pretty cool except that was very political a lot of businesses took sides and they said i don't want to deal with this bitcoin cash token it's going to take way too many of our resources to distribute this stuff so it took forever several months before some people received their bitcoin cash that could be completely avoided if you held that on a cold storage wallet so that's just something to keep in mind that's really important because that few month delay could mean the difference between you selling that token for something valuable or have that token go to zero another benefit of control and being able to move your coins is that you can actually stake your money into a liquidity pool and earn some interest on it which right now robin hood does not offer that way your money's not just sitting there collecting dust waiting for other corporations to take risks with it for their benefit that's a right you should be able to exercise and just to prove to you that inflation is a pretty big deal if you had saved ten thousand dollars in one year let's say because of this year's inflation report which was five point four percent that ten thousand dollars right there would actually be worth nine thousand four hundred sixty dollars in terms of a buying power so instead i would use block five because they don't have any transaction fees which is awesome but there's a catch if you decide to buy your bitcoin on blockfy you're gonna be paying roughly a one percent premium for those prices which is actually kind of big but the upside is that you don't have to transfer it anywhere which means you can just stake it right away and start to earn interest and you can actually set up your dollar cost average so it'll buy your crypto every single day you can set it and forget it and it's awesome if you don't want that option the other two that are better than robinhood that i also use is gemini's active trader and coinbase pro both of those are great because their bitcoin prices are much more accurate but their transaction fees are also higher so it kind of balances out now all of those platforms are free to use there's no subscription fees you can get started right away and i'll leave all the links to that down below tip number four now that you know exactly which of the cryptos are the best you know where to buy them you know how to make money on them even when you're losing money let's talk about the hardest question which is how do you know when to buy them when do you buy the dip and the answer is you don't buy the dip the dip buys you so as far as timing and knowing when to buy it just don't try it unless you have eight hours a day seven days a week to devote to staring at chart patterns which personally i wouldn't find enjoyable unless it's just to edit youtube videos i could do that for eight hours a day because that is what i do for 99 of people the best way to time buying bitcoin is just a b c always b that just means dollar cost average so if you're making 60k a year set aside no more than 10 of your yearly income in this case 6k which you can then spread out monthly into 500 limits or daily into whatever it is you'd like and that is dollar cost averaging or you can invest the whole thing six thousand dollars which is called lump sum investing and research shows that lump sum investing is going to give you the bigger return while dollar cost averaging is going to give you a smoother ride by the way lump sum investing doesn't always give you the bigger return just most of the time it does works half the time every time and tip number five is the best way to store your crypto that is the safest now the answer is it depends on your risk tolerance if you're somebody who doesn't like to take risks then the best is cold storage and there's a ton of those devices out there my favorite is the ledger nano it works i've made a video about it but if you're somebody who does like to take risks then the best thing to do is just keep it on a reputable exchange you could stake that money online and have that money earned interest for you otherwise it's not going to earn interest in cold storage tip number six is for everyone who always wanted to get into crypto but you're just like i don't know about this stuff i'm not tech savvy you're sort of stuck in the middle you're not sure what to do because the price is just way too crazy for you but you're like ah i want some bitcoin the best strategy in that case is just to buy stocks of companies that are exposed to bitcoin and that's stocks like riot sos limited micro strategy paypal square overstock tesla facebook jpmorgan visa and of course the best performing stock of all time coinbase and with the exception of coinbase all of those stocks will be perfectly fine even if bitcoin disappeared tomorrow except also maybe micro strategy because michael kick a chat sailor owns all the coins and tip number seven is to get yourself a bitcoin credit card and i don't mean like a credit card that allows you to spend your bitcoin there's a ton of those out there but you don't want to be spending your bitcoin because it goes up in value over time instead get yourself a credit card that rewards you bitcoin and the best one that i found is block buy's newest credit card he's a paid chill i'm not a paid shill i'm only paid if you apply using my link down below in which case if you get approved then i'll get paid but regardless if you use my link or not just get yourself one of these it's absolutely free it does not affect you even if you don't get approved because the only time they run your credit score is once you get approved and once you actually apply for it so it doesn't affect you in any way but it works exactly like a credit card where for every dollar you spend you will get rewarded in bitcoin so again not a cash back card i'm supposed to tell you that or else their legal team comes after me but use it for everything and start to earn some passive bitcoin and stack those sats as always don't forget to smash that like button subscribe if you haven't already and go grab up to two free stocks from weeble when you deposit a hundred dollars you can get two free stocks valued up to twenty three hundred dollars go get up to two hundred fifty dollars worth of free bitcoin using this block my link right here go get that credit card i believe the signups are now open and then go track those free stocks from weibull with the spreadsheet link down below in my patreon love you thank you so much for watching this video i'll see you back here on monday friday sometimes a wednesday i'll see you soon take care

Channel: Andrei Jikh

Views: 206,405

Rating: 4.9366059 out of 5

Keywords: ethereum, bitcoin, how to invest, stock market crash, bitcoin crash, real estate crash, market bubble, how to buy bitcoin, cryptocurrency, stock market, robinhood app, best trading app, stocks, passive income, dividends, dividend stocks, investing, investing for beginners, stock options, best stock trading app, credit score explained, andrei jikh, webull, charles schwab, how to buy dogecoin, dogecoin vs bitcoin, coinbase, dog coin, doge coin, crypto crash, millionaire, Fed coin

Id: 9wrhYKQz314

Length: 15min 12sec (912 seconds)

Published: Mon Aug 02 2021