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About Cryptocurrency
Cryptocurrency is like digital money. There is no physical coin or bill — it’s all online. You can transfer cryptocurrency to someone online without a go-between, like your bank or another person. Bitcoin and Litecoin are well-known cryptocurrencies, but new cryptocurrencies are constantly being developed. The US Dollar can even be an asset in your portfolio.
Now, KEEP IN MIND THAT CRYPTOCURRENCY CAN BE VERY VOLATILE! You can lose money just as you can in the stock market so do your research and know what you are doing. This blog post is not meant to be any type of professional guide. It is just here to show you what we are doing to save for our next vacation. Gen-X Luxe Travel cannot be held responsible for your investment choices.
OK, now that is out of the way, let’s get started!
We set up an account with Coinbase to start managing our assets. This link is an affiliate link where we will get a tiny percentage if you sign up. Don’t worry, you will not pay any more than the original price. This is used to keep our site running so we can find fantastic new destinations and information for you. After walking through the set-up, you can attach a banking account to your profile. This will transfer actual money to your portfolio so you can buy and sell cryptocurrency. Here, you will be able to track different forms of crypto, buy, sell and see your portfolio of currencies in your stash.
What we love about Coinbase is that there are different currencies that you can earn rewards with. For instance, if you buy USD Coin, you can get a return of 0.15% (as of this post). This seems to be one of the most stable ways to earn “interest” on my portfolio. There are other options as well that can give back sometimes up to a 5% return. With savings accounts at a traditional bank generally having 0% interest, this seems like a pretty good bet to us.
They also have other ways to earn a little bit of free crypto. Some currencies have videos where you can learn about the way they work and how a user can benefit from them. In return, they give you some of their coins for completing their education. Remember, you can get partial coins so if for example Bitcoin is $63,000, you can still buy $25 worth of it and get a fraction of a coin. It is all a numbers game.
OK, now on to the fun part. I don’t recommend looking at your portfolio every single day. It can be disheartening watching the up and down movements in this type of portfolio. We like to play a long game and wait to see what the different assets do. It is nice to log on and see the gains though. My personal portfolio is already up 50% from my initial investment. With this type of growth, it is easy to start saving for that vacation of a lifetime.
As you can see from the graph above, this portfolio was started on April 17 which is the initial spike. It has slowly climbed from there. The smaller spike on April 22nd was from watching the educational videos and having the additional currency types added to the account. It is a fun way to watch your savings grow and see that number hit your goal for your vacation budget.
Once you are ready to make that vacation deposit, it is simple to transfer. There is a ‘Buy/Sell’ button at the top has a few different ways for you to “cash out”. You can select the ‘Sell’ tab and choose which part of your portfolio to sell. This will let you trade it to USD Cash which is still hosted in Coinbase. By doing this, it will keep the funds in the account so it is easier to buy other forms of cryptocurrency if you want to do that.
At this point, you can then transfer it to your banking institution as well. You can also ‘Convert’ one type of crypto to another form. For instance, if you like the returns on Bitcoin and Ethereum is not doing as well, it is simple to ‘Convert’ your Ethereum coins you have to Bitcoin.
It will be interesting to see where this goes and how this will affect the ways people traditionally invest their hard earned money. If you want to check it out for yourself, Click Here.