profit - Page 2

Bitcoin Trading vs. Investing

Bitcoins are very popular in the past ten years, and they have increased in their value as the years passed by. Now they show steady growth and are very interesting for the population, most people would like to get involved, but they would like to avoid investing a lot of money into the machine and mining. This is why they turn to alternative ways of obtaining bitcoins. Trading and investing is a good alternative, and we will dive into the differences between the two in order to get these terms familiar to the reader.

Source:medium.com

Main differences

When it comes to these two, there are a few main differences that make them apart from one another.

Trading can be seen as a process that is short, and it is more dynamic when compared to investing. How it works is very simple, and the profit is obtained through the small transactions that are sometimes happening in a span of a few minutes or hours.

When it comes to trading, there are four types of different ways you can do the trading:

1. First are so-called scalpers, and this may be one of the most popular and dynamic ways of making bitcoin trades. Since the purchases and transactions occur many times a day, sometimes the one doing the transactions may be in a position of the coin no longer than a few seconds. The whole idea is to gain a lot of small amounts through every transaction.

2. Day traders got their name from the way that they make the trades since all transactions are established and wrapped up during one working day. Like the previous ones, they do this very fast, making sure that the funds have no delay and not spend too much time in their possession.

3. Momentum ones are as the name states doing all transactions at the moment, meaning that they are using the heat of the moment in order to create a wave and use the upraise to create profit. This means that the bitcoins are purchased as they are going down in price, and sold as soon as this shifts and increases the value. This way of trading is interesting, and it requires good knowledge of the prices and the cryptocurrency market itself.

Source:industrywired.com

4. Last but not least are the swingers that are using the changes in the values to create the profit. They are using daily and weekly fluctuations in values in order to make transactions and profit.

Investing can be defined as a way of handling bitcoins in such a manner that the profit is established through long term expenditure of funds. This means that the money is gathered and stored in bitcoins, and it will stay there until there is a substantial growth that is worth intervention and selling.

Investing is for the patient since it requires more years, and it is based on the prediction. Here it is crucial to follow the market and to know when to make a transaction. It is best to use the so-called wave and take the bitcoins when they are on their low, so when the prices and values increase, there can be a very high profit. This can last for years.

Time limit

Trading can be very time consuming since it requires a constant oversight of the market and the close tracking of even the smallest changes in the values since the transactions do occur in a matter of minutes and hours. Even though sometimes the transactions may occur in the span of a few days or hours, compared to the investment, it is very time-consuming as way faster. Especially due to the fact that trading uses micro-changes in the values in short intervals to make a profit.

Source:admiralmarkets.com

When it comes to investments, they may stay out for years and lay low till the market changes are favorable for the one that is owning the coin and wants to sell them.

We can say that trading is short term and investing the long term when speaking of the time needed for the profit to be established. When compared to the values of income, it may come to the same amount since the trading is making small profits often and investing bigger profits once in a while.

When it comes to the frequency of the transaction, as stated before, there is a very big difference in those, since the trading is based on an exceptional number of transactions during the day, let alone one month. On the other hand, investing may have a few months or years without transactions due to the patience and the market state of bitcoin.

Risks and safety

When it comes to potential risks, every transaction and investment may carry its own. Trading may seem like something that carries less risk since the transactions are fast and happen so often that even a slight decrease can and will be compensated. Investing can carry more risks since it can be hard to determine how the bitcoin will grow and how fast this will occur. There are indications that there will be a steady growth of the coin, but the one who invested may have to follow and see what to do if the values start to drop. This may lead to selling, or they can decide to wait and see if the values will increase as it happened.

When it comes to safety, most shareholders did state that this way of trading and investing is seen as the safest and profitable when compared to conventional ways.

If you would like to find out more about safety and security of the bitcoin trading go check out coinpedia.org.

Source:gnier.net

Conclusion

There are differences between trading and investing in bitcoin. Trading is a short term thing where the small changes in the values and fast and frequent transactions are making a profit. The profit is small per transaction, but it adds up. Investing is a long term thing, and this is important since it requires few transactions that are based on the big changes in values and bigger profit. Even though there are potential risks, both are labeled as pretty safe, even the safest of all the possible trading and investing that can be found on the market.

Why do you Need an Accountant to Start your own Business?

Accounting and a small business need to go hand in hand to ensure its success. Besides financial control, overcoming the competition and creating a differential to attract customers, having a partner accounting is much more than having help to overcome the bureaucracy of the country. In this article, we’ll show you how experts from companies such as lokalerevisorer.dk accountant can do more for your venture – as long as you make room for it. Understand how important the accountant is in a small business. A management system that connects your entrepreneurship areas: from financial to business.

What the accountant does for your company?

Source:smallbiztrends.com

With an increasingly challenging entrepreneurship environment, opening your new entrepreneurship could be a challenge. Check  qatarcompanyformation.com  for more useful information. As the owner of your own business, you are likely to have experienced these difficulties in your skin. However, an accountant can help you with these activities and even go beyond that. Here are some of the skills and duties you can expect from this professional.

  • Complete and file legal documents necessary for the operation of the company.
  • Ensure your business complies with tax and tax laws.
  • Make and send statements.
  • Keep the company record up to date and in accordance with the requirements of government agencies.
  • Handle payroll to ensure all employees are properly taxed salaries.

By hiring an accountant and integrating it into an online platform, you can delegate roles, transfer responsibility for paperwork, and gain time to focus on what really matters – the performance of your business.

The importance of the accountant to your company

Source:forrich.net

If you are a self-employed CNPJ, without employees, you can easily do the tax part of your venture alone and without much difficulty. But when there are other people involved with your business and you are no longer an individual micro entrepreneur (MEI), it is a bit more complex to take care of accounting activities. Therefore, having an accountant to assist you is essential to grow your entrepreneurship. Such a professional is not only involved with the technical side of finance, he also acts as an indispensable consultant.

In everyday routines and controls

Ready legal formats, contracts, definitions and financial planning are not all the work of the accountant. The professional still needs to support the changes in legislation, make the monthly and yearly balance, and also notify you regarding the pending amount of the bill. In addition, it can assist you in other activities such as:

Inventory control – guiding if there is excess or surplus to facilitate the capture and retention of working capital. Analyze and compare supplier prices and rates to improve procurement.

Pricing – Set a fair price for you to sell your services and products by estimating every variable and fixed expenses, applying current interest ratio, and draw the best profit margin for the business.

Cash Flow – Determining the outflows and inflows of the capital so that future expenses and profits can be and drawn over a given period of time.

Obtaining credit – Prepare all necessary business documents for credit and evaluate the pros and cons.

When closing the deal

Source:wilsonporter.com

It is precisely by law, settlement of accounts, division of partners, and withdrawal of receivables, inventory and other financial and legal issues that the accountant must be present until the closing of business activities.

Now that you know how an accountant can contribute to your business, it’s time to explore the market and find the professional that best suits your needs. But be aware: Before signing the contract, you need to consider factors such as academic background, professional record, industry, current customer satisfaction, availability, and ultimately fees and charges charged by the professional. After analyzing these criteria you can identify the best partner to boost your business.

Why you should diversify your investment portfolio (and how to do this)

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There is no such thing as a risk-free investment as even cash kept under your mattress has a chance of being stolen. But investment professionals have developed a number of strategies to minimize this risk and keep your hard-earned money safe.

Nick Lioudis, writing for Investopedia, defines diversification as a way to reduce risk by spreading investments.

source: investopedia.com

“It aims to maximize returns by investing in different areas that would each react differently to the same event,” Lioudis added.

He explains that while not providing a guarantee against loss diversification can minimize risk.

Chris Muller writing for the advice blog Money-Under-30 explains that you need to diversify your portfolio in order to protect yourself against a market crash.

“In finance, diversification refers to the process of assigning capital in a manner that decreases exposure to risk,” he writes.

source: bestcashtransfer.com

The thinking behind diversification is simple, according to Muller: An investment portfolio with different kinds of investments will yield higher returns with lower risk compared to any individual investment.

Exceptions to the rule

Of course, there are the exceptions to any rule as this Ask Traders post about legendary hedge fund manager George Soros explains.

source: osloot.tumblr.com

Forbes contributor Karl Kaufmann explains that some of the greatest investors in history did not believe in diversification.  He writes that an investor spreading himself too thing will compromise results and that diversification is not the optimum strategy if you are after more than average returns. He adds that this type of portfolio is a lot more work than one that is diversified because when your eggs are all in one basket “you should watch the basket like a hawk,” he added. “To repeat, this strategy is only useful if you intend to put the work into acquiring as much knowledge as you can about a few select investments,” Kaufmann added.

Another Forbes writer, Zack Friedman, adds that it should also be emphasized that investors like Soros put a lot of work into their decisions by doing research, building models and identifying catalysts that could influence share prices.

Consider different types of risk

Lioudis explains that investors have to deal with two types of risk.

The market risk applies equally to all company and is linked to factors like inflation rates, exchange rates, political conditions and interest rates. He writes that this is not a risk that diversification can protect against and must just be accepted.

source: safetrac.com

Investors can protect against the second type of risk by diversification, he added.  “The most common sources of unsystematic risk are business risk and financial risk. Thus, the aim is to invest in various assets so they will not all be affected the same way by market events.”

Why diversification minimise risk

“By diversifying, you’re making sure you don’t put all your eggs in one basket,” Louidis writes, explaining that this should be done by not only investing in different types of companies but also different types of industries.  He also advises diversifying among asset classes as different types of assets, like bonds and stock, acts differently to adverse events.

source: myventurepad.com

Louidis adds that diversification also means spreading investments to different international markets and on some more complicated investment products to accommodate investors’ risk tolerance levels.

What does a diversified portfolio look like?

Muller writes that to create a diversified portfolio you should buy ETFs, index funds or mutual funds. ETF’s and mutual funds are investment products offering different stocks. He adds that a diversified portfolio should also include cash, bonds and exchange-traded funds.

He warns against trying to diversify by buying single stocks but instead advises to buy stocks across different sectors.

Muller also advises investors to choose investments with various rates of return.

He also advises investors to have some money in international stocks. “Stocks from other countries tend to perform a little differently and typically balance out a domestic-heavy investment portfolio nicely.”

source: amazon.com

Author of the best-selling book, Everyday Millionaires, Chris Hogan, writes in his blog that he advises investment over four types of mutual funds: Growth and Income, Growth, Aggressive Growth and International. He explains that these are all spread over different companies in different phases and also over different countries and includes investments with different levels of risk.

He explained that by investing in different mutual funds you will mitigate the risk of one underperforming. This way, Hogan argues, will provide you with the best protection against losses.

It is an on-going process

Muller adds that diversification is an on-going job and you should revise your options regularly – at least twice a year.

He adds that there are ways to automate the diversification of your

Costs of diversification

Louidis warns that while diversification is an excellent long-term investment strategy it may have higher transaction fees and brokerage charges.

What You’re Doing Wrong: Why Your Online Business is Lacking Revenue

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Oh, how the times have changed. We started out searching through endless amounts of books to obtain information… now we just do a quick search on the internet to find the information we need.

Billions of people search the internet each day, and that number will only increase as time flies and technology advances. On the internet, you can learn how to do just about anything by way of blogs, podcasts, and videos. Whether you need to learn how to change a tire or learn how to train a dog, the internet has those answers for you.

You would think that with all this access to information and various products and services, it would be a great opportunity for you to monetize on people’s use of the internet with your online business. Makes sense… but despite the avenues of opportunity, online businesses aren’t making the revenue they projected.

Having your online business is not easy by any means. Sometimes you get so caught up in the excitement of fulfilling your passion that the fact that your business isn’t generating enough profit doesn’t hit you until it’s too late… as an entrepreneur, that is the most devastating situations you can put yourself in, but it can also be your source of motivation to get things right.

In order to get your failing business back on the right track, you first need to find out what you did wrong. Depending on the issues you’re having, you may need to completely start fresh with certain things. You might need to obtain a completely new domain name and establish a new brand for yourself to make your business flourish… you never know, and you won’t know until you do a thorough observation of your website.

If you have taken strenuous efforts in creating a successful website, but haven’t seen successful results, take a look at these mistakes that online business owners make… you could be making some of those same mistakes with your website.

You’re Not Pricing for Profit

Img source: AllBusiness.com

Let me ask you this… when you were putting your website together, how did you come up with the prices for your products or services? A lot of online business owners will come up with their pricing by looking at what their competition is charging.

This common, yet flawed approach is bad because, in order for your business to be successful, you have to consider what is necessary to make your business profitable. The necessary profit requirements for one business might not be the same for your business.

To configure a pricing strategy, you need to figure out what your business expenses consist of, what you’re responsible for in taxes, any debts your business has, and what you want to bring home (salary wise).

Your Product or Service Isn’t Viable

This aspect of your product or service can be due to either (or both) of these reasons. Your product is too expensive, or it’s not tangible.

Price and tangibility are big problems that can wreak havoc on your business if you don’t plan properly. For example, if one of your services is self-development, it can hard to sell that if you don’t have anything else to offer with that service. A lot of people with these types of businesses offer books and workbooks, but if all you’re offering customers is to pay to watch a video of you talking about a self-development topic, they more than likely won’t spend the money for that.

Now, if you have a product, that’s overpriced, people won’t buy that either, especially if they can get the same product from another website for much less. This is when you either need to promote the higher quality of your product over your competitors or revisit what materials are used to make your product so that it won’t be so expensive to customers, but will still bring in profit.

Not Establishing a Target Audience

Img source: infinitymkt.com

Pitching to the right audience is crucial to the success of your business. Some signs that you’re pitching to the wrong audience are that you have a great product but not producing any sales, you have prospects but can’t turn them into clients, or the clients that you do have are either difficult or dissatisfied… this is when you need to as yourself three questions

1. Who are you trying to help?
2. What are you trying to help them do?
3. How old are they?
4. What’s their income level?
5. How will your business/products help them or solve a problem they have?

Answering those questions will help you figure out who your ideal customer is. In finding out who your ideal customer is, you can conduct your own little experiment. Take a look at the customers or clients who love your product. Check out their social media pages and see what they’ve said about your products.

You can conduct customer interviews too. This will not only help you learn about the customer, but it will also help learn why people chose your business, exactly what was it about your product that they liked, and what you can do to improve your products and services.

You’re Not Keeping Track of Your Revenue

Img source: alignedinsuranceinc.com

They say what gets measured, gets managed, but if you have no clue what your cash flow is looking like, then there’s no way of keeping track of your business’s true profits. Now, it’s important that you know and realize that there’s a difference between cash flow and profit.

Cash flow is the monies coming in and going out of your business each month. Profit is the revenue you earned. Now, with businesses, there is such a thing as positive income with negative cash flow, and vice versa, but as a business owner, you should recognize this immediately.

Essentially, it’s important to know this information because you need to know if this business will allow you to pay your bills, and in turn, that will let you know if your business is sustainable for you in the grand scheme of things.