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People who should never buy Bitcoin

Written by R. A. Stewart

Bitcoin is the currency of the twenty-first century according to those who are passionate about this type of investing. People who get involved in crypto currency such as Bitcoin or one of the others must understand the risks involved. It is a volatile form of investing. Because of the risks involved there are some people who should never invest in crypto currency. 

Here they are:

1.People who are in debt

If you have a debt to pay then your responsibility is paying off that debt, and the sooner, the better. It makes no sense to be investing in something in order to grow your money yet be paying interest on your debts. People who have debts to pay have no discretionary spending money until their debts are paid.

  1. People who are saving up for a house deposit

The best investment for your house deposit money is something which is more conservative such as balanced managed funds or conservative managed funds. Bitcoin is not the place for your house deposit money because if you did go ahead, invest all of your house deposit money in Bitcoin, most of it could disappear at the drop of a hat, such is the volatility of Bitcoin.

  1. People with Children

I believe that people who have children should not invest in Bitcoin, unless they are wealthy, and that any losses are not going to affect their lifestyle. People with children have the young one’s future to consider when making plans for the future.

  1. People who are Timid

People who cannot stomach the thought of losing money whether it be betting on the horses, investing in cryptocurrency, or playing the share market should definitely leave Bitcoin alone. Investing in crypto-currency is certainly not for the faint-hearted.

  1. People who have a mortgage

For the same reason as those with consumer debt. Paying off any debt means you will have less interest to pay.

  1. People with a student loan

If you have a student loan, then you are responsible for paying that back and should never invest in Bitcoin until that debt is paid. 

Never begrudge having a student loan to pay because investing in future education is an investment in the future. The key is to choose a course which will lead to a career you really want to do.

Investing in Bitcoin should only be done with discretionary spending money and not with money which is needed for a purpose such as a car or overseas travel. 

Here is a question for you, “Should retired people invest in Bitcoin?”

My answer to that question is, “If they can afford to lose it!”

If a retired person spent a grand or so on an overseas holiday, that is considered cool by some, yet, if they lost a grand on Crypto currency, these same folk would think that’s foolish.

Whether Bitcoin has risen or fallen, it is on paper only. It is only a profit or loss when it is sold. Always remember, something is only worth what others are prepared to pay for.

About this article: You may use this article as content for your blog or website. The information contained here is of the writer’s opinion and may not be applicable to your personal circumstances therefore discretion is advised.

Checkout my other articles on www.robertastewart.com

 

Have some spare cash to invest in Bitcoin?

Then check out the Coinbase, a well-established crypto exchange. Coinbase makes it easy to buy and sell bitcoin. Check it out here:

https://coinbase.com/join/gochwv

 

Disclaimer: I may earn a small commission if you sign up with Coinbase.

www.robertastewart.com

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“Is Bitcoin right for me?”

Answer to the question  “Is Bitcoin right for me?”
It all depends on what the money is going to be used for. Bitcoin is not
the place to invest savings which are for a house deposit or vehicle.
Bitcoin is not a substitute for your country’s retirement scheme.
Because of its volatility only discretionary spending money should be
used for buying bitcoin. What is discretionary spending money? It is
money that you can fully afford to lose. Some examples of
discretionary spending are money which is used for betting on horse
races or lotto, money used for dining out, and holidays. If you have
debts then any discretionary spending money you have should be
used to reduce that debt. Less debt also means less interest you
have to pay to service that debt.
The other factor to consider when deciding whether bitcoin is right for
you is your risk profile. If you have little tolerance for risk then bitcoin
is not for you. Life is too short for you to be constantly losing sleep
over how your bitcoin investment is doing.
In a nutshell, the only money which should be used for purchasing
cryptocurrency is money which you can fully afford to lose. And then
maybe, you will get a good night’s sleep.
Thinking about giving cryptocurrency a go? Here is something which
may interest you

https://coinbase.com/join/gochwv

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KEEPING YOUR EYE ON THE BALL IN A DIGITAL WORLD

This article is not intended as financial advice so if you require financial advice see your bank manager, financial advisor, or budget advisor

How to be money smart in a digital world

Written by R. A. Stewart

It is important to be smart in this digital world we live in and that applies particularly in the banking world. With digital currency and in particular Bitcoin gaining in popularity one needs to keep their eye on the ball in order to avoid being scammed.

Investing in Bitcoin, litecoin, or whatever digital currency you use is speculative therefore it is imperative that you invest only discretionary money in these things. That is money left over after paying your important household expenses.

Visa debit cards issued by the banks are recommended for use over the internet rather than credit cards; the difference between the two is that with debit cards you are using money on the card. If there is just $200 on the card then that is all you can spend. You simply top up the card regularly by making transfers from your everyday account.

When you use a credit card you are spending borrowed money and there is a cost to this. If a scammer gets hold of the card details then you are in trouble.

I will tell you a couple of stories;

A lady who is as financially dumb as it is possible to be had her benefit paid into her visa debit card and when her benefit money disappeared from the card she went to the police and accused her nephew of stealing the money. Do you see the first mistake she made?

Having your pay go into your visa debit card which is also used for buying off the internet is downright stupidity. The police could not find any information linking her nephew to the disappearing money. They said, “It looks like the money went to an overseas website.”

A person with sense would have gone to the bank first and asked them to investigate. Another thing she could have done is check her emails because when a website withdraws money from someone’s account they send the customer an email.

An uncomfortable truth

There is a lot of internet fraud which goes unreported because victims are too embarrassed or proud to admit how stupid they have been to have been scammed. People of all intelligence from university graduates to high school dropouts have been scammed. This issue is no respecter of people, but in the case above, the lady concerned has a very low IQ but that is another story.

In a separate case a young man deposited $3,000 into his everyday account on a Friday then on the Saturday he discovered the money missing from his account. He told the bank on Monday and they did their investigation. As it turned out, it went to an overseas website which he had been purchasing stuff from. The site was hacked and the hacker had access to the banking information. His three grand went into his everyday account but that account was linked to his visa card and that was the mistake he made.

You should never link your main account to your visa debit card. If you do you are leaving the door wide open for scammers. It is also advisable to have an account which is not accessed by the internet for larger sums of money.

In the case above, the bank did the right thing and deposited $3,000 into his account.

These situations are more common than you think so it is up to ordinary people to use their common sense.

www.robertastewart.com

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