Who Is Andrei Jikh & Why Is He So Famous?
Andrei Jikh is quite an influential personal finance Youtuber with close to 1.62 million subscribers and a net worth of $3.5 million as of 2021. He made over $100k in one year after starting Youtube through sponsorships, affiliate marketing, and the youtube partner program. Later on, he started investing money into various stocks, cryptocurrencies, real estate, and other opportunities which grew over time and he started sharing his experiences and tips along the way on Youtube.
I personally like his videos about crypto where he explains any particular topic in a simple manner and provides his opinion as a usual long-term investor and not as a trading junkie. Let's face it, not all of us can read charts to find patterns and get our heads around various indicators. Also, he does card tricks and magic sometimes which is quite cool. If you want to know more about Andrei Jikh's crypto portfolio, you can check out the linked blog for a much deeper look.
7 Ways To Make Money With Crypto
Crypto is a wild space and there are ample amount of opportunities for everyone out there. Andrei Jikh is a person who has been into this game and he created a video telling his secret ways to make money with crypto. They are rather basic tips and tricks to save money or make more gains while investing in digital assets like Bitcoin, Ethereum, etc. It's a must-watch for anyone who is just getting into crypto or thinking to get into it.
In this blog, I will list down the 7 tips to make money with crypto that Andrei talked about in the video and provide my own views & opinions around each of them. Let's get started!
Tip #1: Save Tax Via Losses
By showing more losses in a particular financial year, you can decrease the total income earned. Hence, paid tax in that year is lesser. In the video Andrei explains with an example: Let's assume you bought bitcoin for $1000 and now it's down to $500. You sell the bitcoin and buy it again. On paper, you are at a loss. Once your bitcoin hits a significant spike, you can sell it later at a much higher profit. You can do repeat this trick every year and avoid paying hefty taxes on your current income. This point is focused on the USA audience and hence their tax slabs are discussed but you can do the same in your country depending on the tax laws on crypto capital gains. It's a cool way to save some money! Pointed to be noted that this trick doesn't work with stocks.
Tip #2: Invest In Winners
Andrei argues about avoiding the risk by investing in coins with the strongest fundamentals - Bitcoin & Ethereum. He calls them blue chips. No argument is required when it comes to these two. Bitcoin is the gateway to crypto & freedom. Ethereum is the gateway to Web 3.0 & thus, also freedom. One cannot go wrong with their investments in these two. This way you can reduce your risk and don't have to worry about market volatility. In long term, both of them are going up.
Tip #3: Where To Buy Your Crypto?
BlockFi is a platform where you can buy crypto and even earn interest for staking or holding. You can so set up scheduled purchases for dollar cost averaging into Bitcoin and several other Digital Assets. Apart from this Gemini trading platform and Coinbase Pro are the best options for US audiences. Another platform is called Bitdroplet where you can open Bitcoin or Ethereum SIP similar to mutual funds SIP.
Tip #4: Dollar Cost Averaging
Dollar Cost Averaging (DCA) is the smartest way to invest in bitcoin to get amazing returns over the long term. Instead of investing a large sum of money all at once, an investor can buy bitcoin or any other crypto, or stocks in small chunks over time. The idea is to take advantage of market dips without putting too much money at risk at any given time. Crypto trading is a full-time job, so unless you can spend so much time and effort reading charts and finding patterns, don't even try and reduce risk through DCA.
Tip #5: Not Your Keys, Not Your Crypto
You want to make money, that's fine but you need to understand that centralized exchanges hold the keys for you. This means it can vanish or get hacked anytime and there will be nothing you can do. Buying a cold hardware wallet is a safe bet if you want to avoid the risk of losing your precious coins. Ledger (recommended by Andrei) and Trezor are two great companies that make such wallets. They support different kinds of cryptocurrencies and you can connect them directly to a few applications to access the funds.
Tip #6: Indirect Investment
2021 is the year of institutional adoption of cryptocurrencies especially Bitcoin and Ethereum. Several crypto startups became unicorns within a span of few years. Coinbase, one of the most popular crypto exchanges got a public listing as well. If you don't want to invest directly into Bitcoin then you can buy stocks of companies that are invested in it or somehow related to crypto. This reduces the risk of losing your investment if bitcoin goes to zero and you still have those stocks with real value.
Tip #7: Passive Bitcoin Earnings
Apart from getting interest on your Bitcoin holdings, you can earn Bitcoin via Credit cards reward program. Blockfi provides a Visa Credit Card through which you can earn 1.5% back in Bitcoin on every purchase. That way your bitcoin holdings keep accumulating over time and provide you an extra source of revenue. Another tech startup Upgrade has a similar kind of credit card issued by Visa and in fact, there are so many others there depending upon your location.
These tips are quite useful for anyone who is new and looking forward to participating in this new economy in a low risk and convenient manner. Honestly, most of them are about saving money. One penny saved is one penny earned. I hope you learned something new today. Please share your thoughts in the comment section below and let me know if you have any tips of your own.
