ETF explained: Bundled values

So-called ETFs (Exchange Traded Funds) bundle several individual stocks into one financial product. Instead of 1 product with 100% risk, you have 1 product that contains many individual stocks that minimize the risk of your investment. Instead of “Tesla”, in the example of stock trading, you buy an ETF that deals with electric automobility and contains, for example, in addition to Tesla, stocks such as Nio (electric cars from China) and Niu (scooters). The risk is distributed.

“Ready-made” portfolio or design your own crypto portfolio?

Basically, you have two options. Option number 1: You invest in a ready-made crypto portfolio that is created and managed by an online broker. That is, you invest equity and then wait and see what happens. Option number 2: You create your own crypto portfolio and decide for yourself how much you want to invest in different digital currencies.

Let’s look at the first, simple option first.

Buy “ready-made” Crypto Portfolio

I myself trade with eToro. I have already described the advantages of the trading app many times. Fast registration, no custody fees, no order fees.

In trading apps like eToro, for example, you can get or invest in different “crypto portfolios”.

The advantage is that trading – buying, holding, and selling individual positions – is handled by another person, just as it is with typical ETFs, which consist of stocks and are managed by a company or your broker. Here, it’s similar. In my example, eToro provides several “Crypto Portfolios”. I can then invest with 2 clicks.

Another advantage, with such managed portfolios you have little work.

These crypto portfolios then include a certain number of cryptocurrencies. For example, you can invest in the two most successful cryptocurrencies, Bitcoin and Ethereum, or in a mix of 15 cryptocurrencies.

Comparison: Bitcoin (single) and Crypto Portfolio

Here I have made two screenshots for you. In screenshot 1 you see Bitcoin individually. In screenshot 2 you see a finished product of the broker called “Crypto Portfolio”.

Bitcoin single (investment dependent on BTC)

Here you can see my purchases from 17.02. to 19.02. – The advantage: I have this one cryptocurrency exactly in view. With tools like Google Alert, I can be informed about news at any time. The trading app itself also offers a “price alert” so I can react quickly to changes. The downside – “all my money” is in one investment.

Importantly, always think risk! This is only a snapshot and not an automatism

Crypto Portfolio (Distribution on 10+ Cryptos)

Here you can see my crypto portfolio at the exact same time. The advantage – My investments are spread across different digital currencies. If one loses value, it hopefully only affects that single asset and the rest of the investment remains unaffected. The disadvantage – Keeping track of all the rates is time consuming. Therefore, it is worth considering such a “cryptocurrency ETF”. Here, as mentioned, purchases and sales are made by the broker.

The risk of these crypto portfolios is high, but so is the potential profit. The values you see above were generated in less than 48 hours. A big driver in this trend is of course always Bitcoin, but also other values like Ethereum, Neo, Dash, many others are rising in value. Just in the last year, cryptocurrency values have shot through the roof again. Check out a review with forecast here, or the review of the last, exciting 12 months in crypto trading:

• Cryptocurrency future

A small reminder of the risk: such a crypto ETF does not offer the same security as a regular ETF from stocks. This is because the individual stocks themselves are subject to such large fluctuations.

Crypto ETF: Create your own investment portfolio

Once you’ve gained a bit of experience in crypto trading, you can also build your own cryptocurrency portfolio.

Caution: Course correlations at Crypto

But then it’s important that you stick with it. Unlike stocks, cryptocurrencies are still very close to each other in their price. If, for example, the Bitcoin sinks, many other cryptocurrencies usually go down with it. This is not always the case, but it is often the case. It’s quite different with stocks, imagine Mercedes sinking in value, that would have no effect whatsoever on McDonald’s stock. However, if a central currency drops again Bitcoin or Ethereum, many of the smaller stocks will drop with it. If a value is sold frequently (by active traders), this can also have a negative effect on the overall psychology in the market (private individuals).

As already described in the article on buying cryptocurrency, cryptocurrency is subject to the pure market principle of demand and supply. There is no overriding, regulating body that defines the price or can readjust it, e.g. by printing money, interest rates and other instruments.

Create your own crypto portfolio

Off of that, creating your own “crypto ETF,” if that’s what you want to call it, is relatively simple. You need to look at the different stocks, then consider which stocks do you want to include in your portfolio? Additionally, ask yourself which stocks are the most relevant and should make up what percentage of the portfolio?

1. What stocks do you want to take in your portfolio?
2. What are the relevant stocks and should they make up what proportion of the portfolio?

Step 1: Important cryptocurrencies

The first step, as I said, is to make yourself a market overview. What are the important cryptocurrencies? So that you don’t spend days on the internet, I have summarized the most important cryptocurrencies in an overview for you.

• Cryptocurrencies: List

Here you can find various important digital currencies. The popular cryptocurrencies currently include e.g.:

• Binance Coin (BNB)
• Bitcoin Cash (BCH)
• Bitcoin (BTC)
• Cardano (ADA)
• Dash
• EOS
• Ethereum
• Ethereum Classic (ETC)
• IOTA (MIOTA)
• Litecoin (LTC)
• NEO
• Ripple (XRP)
• Stellar (XLM)
• Tezos (XTZ)
• TRON (TRX)
• ZCASH (ZEC)

Do your research, talk to friends and acquaintances who trade cryptocurrencies themselves and about having virtual accounts with online brokers. Find out which mix currently delivers the best performance.

Step 2: Cryptocurrencies and their share

If you want your own created ETF to end up with 15 currencies, you need to think about the allocation of your investment. In my portfolio, I have identified 3 cryptocurrencies, of which I have bought a double-digit percentage of each. The remaining 12 currencies are in the single digits.

• A Cryptocurrencies: 3x at 10-20%.
• B Cryptocurrencies:

Under “B Cryptocurrencies” I see mostly new and cheap coins, currently for example Neo. The portfolio then looks like the screenshot above, here again:

Crypto Trading: Learn to trade

Crypto Trading: Make quick money with cryptocurrencies! The world is not that simple! Or is it? With the important trading strategies, can be achieved with cryptocurrencies, as strong returns, as with shares, of course, with higher risk. But how does crypto trading work? Are there differences in trading and risk? Stocks are more speculative than ETFs, cryptocurrency is more speculative than stock trading. So, safe wealth building tends to mean investing in ETFs or stocks. Speculation means higher risk, but at the same time potentially higher profits. As a trader, you have to decide which is more important to you. This is a comprehensive insight for you into crypto trading, with many more links to other crypto topics from me. Good luck with your learning! Buy, invest, hold and sell:

• Crypto trading

Cryptocurrency explained: Blockchain, Investments & Co.

Cryptocurrency is nothing more than digital money. Here, all the important data around the holder and transaction is encrypted and stored. Instead of storing all this on just one server, the transactions are found in a decentralized network – also called: The Blockchain. This technology makes transactions faster, more secure, and less expensive than they would be otherwise. Sounds like the future? Read our analysis here: cryptocurrency development.

No investment advice or purchase recommendation!

All information provided here does not constitute investment advice or a recommendation to buy. All statements are my general published opinion. I have obtained the information from my experience as a private investor. This experience report cannot and is not intended to replace personal investment advice from professionals.

Owning and trading cryptocurrencies brings many advantages. Transactions take place directly between the buyer and seller. It is a decentralized network. So, unlike a bank transfer, exchange and bank fees are eliminated, as are transfer limits and unnecessary waiting times. Bitcoin trading is therefore not only uncomplicated, but also anonymous and secure. Instead of the own name, all crypto assets are managed with an identification code. The blockchain technology also ensures that transactions are constantly checked in advance, making any manipulation and forgery almost impossible. Learn more about the technology, course and trade explained here: BitCoin, cryptocurrency & blockchain.

Reading tip: Which app do I use to buy and sell shares, cryptocurrency & Co. Here is the answer! My recommendation: Trading App.

Trading has never been so easy! Buy from 1 euro with these apps:

Download (Android + iOS): eToro

And a little tip, Made in Germany:

Download (Android + iOS) Trade Republic

Trading with Bitcoin, Ethereum, Litecoin & Co.

The cryptocurrency Bitcoin is now a household name. It is the most popular, but by far not the only one. In the meantime, several new creations have emerged. Some of the others are Bitcoin enhancements. Thus, there are now over 4,500 cryptocurrencies. While that sounds like a large amount, only just under 100 of them achieve a daily trading turnover of $1,000 or more. Other popular cryptocurrencies are Ethereum, Ripple and Litecoin.

Cryptocurrencies – List

Here you can find a selection of interesting digital currencies:

Binance Coin (BNB)

• Binance Coin (BNB)

Bitcoin Cash (BCH)

• Bitcoin Cash (BCH)

Bitcoin (BTC)

• Bitcoin (BTC)

Cardano (ADA)

• Cardano (ADA)

Dash

• Dash

EOS

• EOS

Ethereum

• Ethereum

Ethereum Classic (ETC)

• Ethereum Classic (ETC)

IOTA (MIOTA)

• IOTA (MIOTA)

Litecoin (LTC)

• Litecoin (LTC)

NEO

• NEO

Ripple (XRP)

• Ripple (XRP)

Stellar (XLM)

• Stellar (XLM)

Tezos (XTZ)

• Tezos (XTZ)

TRON (TRX)

• TRON (TRX)

ZCASH (ZEC)

• ZCASH (ZEC)

Questions and answers: cryptocurrency

So now you know what the blockchain technology is, what cryptocurrencies there are and what advantages trading Bitcoin and Co. brings with it. Finally, you will get all the important questions about trading with cryptocurrencies answered:

Which is the best cryptocurrency?

The best cryptocurrencies include the classic Bitcoin, as well as IOTA, Ripple, EOS, Litecoin, Binance Coin and Tether.

Which cryptocurrency has a future?

According to forecasts, Bitcoin, Ethereum, Ripple and NEO have the most potential to increase in value in the future.

Are gains from cryptocurrencies tax-free?

The speculation period for cryptocurrencies is one year. If a profit of 600 euros or more is made during this period, the total profit must be taxed. So if the coins are left in the wallet for at least 12 months and only paid out after the speculation period, no taxes are due.

Should you invest in cryptocurrency?

Only invest in cryptocurrency if you are familiar with blockchain technology, different currencies and wallets. After all, this is a decentralized network based solely on demand. So always be aware of the risks and only invest if you are really sure and familiar with cryptocurrency trading.

Cryptocurrency: reading tips

1. Trading App: Recommendation
2. Trading strategies

Trading App: Recommendation

eToro App – Trade stocks, ETF, cryptocurrency, in my blog you have already learned a lot about trading. Lots of questions of course: which app do you trade with, what do I recommend? So today I want to share with you my favorite trading app, eToro. 29.88% asset growth in 12 months, with low risk through “Copy People” and “Copy Portfolios” or up to 127.35% through active trading and trading strategies. Learn about the app, fees and more here step by step.

• Trading App

Trading strategies

Whether it’s crytocurrency, currency trading, stocks, commodities or precious metals, these 3 strategies will help you understand the basic stock market game. I developed these 3 strategies to help beginners and novices understand the mechanics in a nutshell. Since I grew up with Bitcoin rather than stocks, here in particular a strong reference to digital currencies. But the mechanisms or strategies are the same for these 5 investment types: crytocurrency, currency trading, stocks, commodities or precious metals. I would exclude ETFs and index funds, as the risks and price fluctuations are significantly lower here.

• Trading strategies

Did you already know? Open transactions in the blockchain

Cryptocurrency itself is, simply put, a coded chain of data. The so-called blockchain.

How does cryptocurrency work?

Everything is set up as a P2P network (peer-to-peer). Data is therefore stored in a decentralized manner. All data blocks are linked to that of the predecessor. Within this distributed database, all transactions are actually known!

The whole thing is therefore a network in which cryptographically signed messages are published – technical term: blockchain. You want to have a look at these transactions? Here you can see live how individual trades sometimes sell up to 100 Bitcoins and how sums in the millions go over the table:

• Bitcoin transactions – live on blockchain.com
• Ethereum transactions – live on blockchain.com

Conclusion of contract online – right of withdrawal

What is the right of withdrawal for online contracts? If you search for a property on the Internet, you will usually find offers from real estate agents. In this respect, many prospective buyers ask themselves at what point they enter into a contract and place an order with the estate agent commissioned by the owner. Before you receive further data far from the information published on the Internet, you will be sent a cancellation policy by the real estate agent.

Only when you confirm it, which is done online with one click, the broker will act for you. You should know that at this moment you are entering into a contract and agree to pay the commission demanded by the agent if you decide to buy the property.

Financial commitments

If you are not convinced by the property after receiving further information or even after a viewing, you will not incur any costs. In this case, the contract is not concluded, so you have no financial obligation to the real estate agent. The situation is different if you decide to buy the property. Should you wish to negotiate the commission and lower it, for example, speak to the estate agent before accepting the cancellation notice. Once you have concluded the contract with one click, subsequent negotiations are usually not crowned with success.

Commission payer has 14-day right of withdrawal

In general, you can revoke the contract within 14 days without giving any reason. The revocation requires that you inform the broker in writing or by e-mail that you do not want any further services. The revocation instruction is basically directed to the contractual partner who is responsible for the payment of the commission.

Ifyou commission a real estate agent to find a solvent tenant, the right of withdrawal applies to you as the owner. If you want to buy a property, you are obliged to pay commission when the sale is concluded, so in this case you are the party entitled to revoke. In general, either party can revoke the contract if there are concise errors in the right of revocation or if the revocation instruction was not sent correctly and in written form.

Broker contract: tips and help

You want to sell a house or an apartment, have no experience in the real estate market and want to avoid mistakes at all costs? Then you are well advised to use the comprehensive services of an estate agent and simplify the time-consuming and complex sale of your residential property. When you hire an agent, you don’t have to factor the sale of your property into your schedule, as all tasks are handled directly by your real estate agent and carried out in your best interest.

Tasks of a broker

Basically, a real estate agent fulfils all tasks that are important before and during the sales and rental phase. He creates an exposé, determines the market value of your property, advertises your property and is then the interface between you and interested parties. While the creation and publication of an advertisement is a time-consuming but unique task, answering customer enquiries is part of the daily business of an estate agent.

• Here you can find more information about the tasks of a broker.

Commission for the broker – The most important regulations

More than 80 percent of all properties for sale or rent are brokered. This means that the owner commissions a real estate agent to advertise the offer and to carry out all tasks up to the conclusion of the contract on his behalf. Professional brokerage is a service that is agreed between the client and the real estate agent. After the service has been rendered, a commission, the so-called brokerage fee, is due. Who pays the commission depends on the type of commission and the reason for the commission. If you sell your property through an estate agent, the buyer usually pays. In the case of lettings, the buyer principle has applied since 2015, so that the invoice recipient and commission payer is identical to the person who has commissioned a brokerage service.

• Here you can find more information about the broker commission.