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

Material value calculation – simply explained with the most important tips

Buildings and outdoor facilities are valued for the asset value. The asset value method is primarily used for properties not traded on the rental market. Tangible values are determined for owner-occupied single-family houses, whereby the property is also valued using the comparative value method.

The calculation first uses the standard land value to determine the market value of the land, then the real value of the building is added.

The real value of the building is calculated on the basis of the building’s production costs less any reductions for age. The real value of the land (market value of the land) and the real value of the building are added together and multiplied by a real value factor.

The calculation of the asset value factor is based on the building type, the preliminary asset value and the standard land value. The total tangible asset value determined in this way indicates the financial resources that would be required to rebuild the property.

Calculation example: tangible value

For the calculation of the tangible value of a property, we assume the following data as an example:

• Land value: 100.000 Euro
• Real value of the building: 150,000 euros
• Material value factor: 0.5

This results in the following calculation:

Value in kind = (100,000 Euro + 150,000 Euro) * 0.5 = 125,000 Euro

When does the asset value method find the most application?

The asset value method is the most frequently used valuation method for owner-occupied real estate. The asset value method is used to determine the value of owner-occupied condominiums, single-family houses and two-family houses separately from the value of the associated share of the land. It is one of the most complicated procedures, because special circumstances, such as damage or the need for renovation, are also included in the determination of the asset value and reduce the value accordingly. The land value is determined using the standard land value table for the respective region.

Valuation for the sale of real estate

All important information about the valuation of real estate sales summarized for you: Valuing a property.

Income approach: Breakdown of market value & building income value

The capitalised earnings value method divides the property into the market value of the land and the building income value.

Land value interest = 7 percent * 100,000 euros = 7,000 euros

Building income value = 5,600 Euro * 12.50 (multiplier) = 70,000 Euro

This includes rental income, maintenance costs and costs for managing the land and building. Accordingly, the rental income less the management costs and the land value including its interest are compared.

• Capitalised earnings method

Comparative value method: Comparison of similar properties

The comparative value method compares your property with similar properties. It is used in particular for the sale of owner-occupied apartments and houses. The comparative value can also be determined for undeveloped land.

Price per square metre of the comparable property = 300,000 Euro / 100 sqm = 3,000 Euro per sqm

Purchase price of the property to be valued = 3,000 Euro * 200 sqm = 600,000 Euro

Only properties in similar locations and with a comparable layout are considered in the comparison. The properties included in the valuation should come from the immediate vicinity of the residential property. The comparative value method is considered to be particularly realistic. It is frequently used to determine the value of properties because the locations are relatively comparable from a regional point of view.

• Comparative value procedure

Value appraisal (costs)

Who prepares appraisals for real estate? What does a house appraiser cost? What does an appraiser for old buildings cost? Unless legal regulations require the appointment of an expert, a real estate appraisal will provide you with a realistic valuation of your property in the regional and national market. We provide timely and accurate valuations of land, residential and commercial properties.

However, if the valuation is to be presented in court, for example in the case of a divorce, experts must be consulted for a fee. The residential or rental property is inspected on site. As a rule, both a written and a digital copy of the appraisal are issued.

• Valuation report

Interior Design in Frankfurt: Good adresses

#Immobile verkaufen in #Frankfurt am Main – Das Thema diese Woche auf IHV https://t.co/Qw8GOA4dbC

— IhrHausverkauf.de (@ihrhausverkauf) May 24, 2019

Bolia – minimalist Scandinavian design

Bolia combines several designers in one brand and creates not only beautiful home accessories, but also unique and minimalist furniture pieces. Bolia invites you to browse in the store as well as online and discover great treasures.

Börsenstr. 13-15, 60313 Frankfurt am Main, Germany

https://www.instagram.com/p/BwyjtG7JdYU/

Raumstation Interior Design – high quality, personal advice

Raumstation Interior Design attaches great importance to quality and good advice. The showroom in Frankfurt am Main presents a large selection of elegant and modern styles. From home accessories to furniture, everything can be found here.

Eschersheimer Landstraße 13, 60322 Frankfurt am Main, Germany

https://www.instagram.com/p/BPxvVMzjJMB/

Massdrei Interior – individual planning and tailor-made design

Massdrei Interior focuses on individual planning. The showroom in Frankfurt am Main displays selected designs and custom-made furnishings. Here you will find unique furniture as well as great decorations.

Landstraße 5, 60322 Frankfurt am Main, Germany

https://www.instagram.com/p/BYgMF69Dy06/

Schmidt’s Papeterie – Tradition in the heart of Frankfurt

Schmidt’s Papeterie is a real traditional store and has been in the business for 20 years with pleasure. In the store in Frankfurt am Main you will find everything from stationery to home accessories and gifts.

Schweizer Straße 67, 60594 Frankfurt/Main, Germany

https://www.instagram.com/p/Bty_fV-ns36/

Design House Stockholm – Scandinavian design in Germany

The Design House Stockholm works with many different designers and brings the minimalist styles from the north to Germany. From home accessories to furniture and kitchen utensils you can find a great selection here.

Stephanstrasse 1-3, 60313 Frankfurt

https://www.instagram.com/p/Bv3UuOKlrCs/

Contrast – six floors of inspiration

Kontrast offers its customers living culture with sophistication and variety on six large floors. From furniture to lighting to great accessories, no wish remains unfulfilled here and the space for inspiration is large.

Hanauer Landstraße 297, 60314 Frankfurt am Main, Germany

https://www.instagram.com/p/BwWkDb_gQs2/

Cairo – Top brands in one shop

Cairo is an online shop with selected design stores, for example in Frankfurt am Main. They carry top brands like Vitra or Kartell and show the perfect flair for design.

Große Eschenheimer Str. 9, 60313 Frankfurt am Main

https://www.instagram.com/p/BvJOf0Nhrbb/

Butlers – Home accessories in all directions

Butlers offers a wide range of decoration, garden furniture and lots of inspiration. Both in the online shop and in the store in Frankfurt am Main, customers can shop, gather inspiration and find new favourite pieces.

Liebfrauenstrasse 4, 60313 Frankfurt

https://www.instagram.com/p/BwwM-BLFqui/

EW Interior Design – large selection with high quality

At EW Interior Design you will not only find selected furniture & lamps, fine textiles and wallpapers, but also carpets and unusual accessories from the best international designers and all this in an extraordinary store.

Schweizer Straße 83, 60594 Frankfurt am Main, Germany

https://www.instagram.com/p/BtwDou0h-Ao/

Liebesdienste Home – Interior and furniture with culinary delights

Liebesdienste Home is a kind of oasis for anyone looking for a culinary experience by Nicolas Vahé or an exclusive piece of furniture by Serax, House doctor or Mater design. There is also room for great gift ideas and the store offers enough space for great Scandinavian design.

Oeder Weg 44, 60314 Frankfurt

https://www.instagram.com/p/BvmKrMhhA1Z/

Morgen Interiors – own planning with great designs

At Morgen Interiors, everything revolves around interior design and high-quality products. From furniture to decor, everything here is planned in-house and manufactured with the utmost care. The designs are minimalist and modern. The store in Frankfurt am Main is more like a showroom and offers plenty of space for great ideas and lots of inspiration.

Lindleystrasse 5, 60314 Frankfurt am Main, Germany

https://www.instagram.com/p/Bwr2vjMhglS/

Noord – a lot of choice in one store

In its modern store in Frankfurt am Main,Noord offers not only lamps, small pieces of furniture and home accessories of hand-picked design, but also natural cosmetics, delicatessen, stationery and fashion accessories.

Friedberger Landstr. 119, 60318 Frankfurt, Germany

6 tips for your follow-up loan & your debt restructuring

Statistically, especially in the first few years after taking the loan, the chances are higher that the borrower will not be able to pay the debt. This is particularly due to poor planning of the financing. For banks, this means that the risk of default is enormously high during this period. To help you find the right financing for you and make sure the follow-up loan goes well, here are 6 tips to keep in mind. For more information, check out our 9 tips on construction loans!

Tip 1 – reliable borrowers have advantages at the bank

When financing, it is important that you prove to your bank that you are a future borrower. For borrowers who have already proven for several years that they are able to service the loan according to the contract, banks are happy to offer better conditions. At the beginning of a loan, the monthly installment is usually a large part of interest and only in the course of time, the share of repayment is larger. In a debt restructuring is therefore usually a part of the loan already repaid. For the banks this means that the loan-to-value ratio is lower than with an initial loan and also the consultation effort is lower, because the customers already know how a financing runs and what is expected of them. The bank therefore has less work to do with the customer and therefore the preparation of the offer is easier and takes less time.

Tip 2 – Processing fees for personal loans are inadmissible

Since a court ruling by the Federal Court of Justice in 2014, it has been illegal for banks to charge processing fees for personal loans. Previously, these were charged especially for installment and car loans, but also for financing real estate. This fee was charged by the bank so that it could check the creditworthiness of the customer. But since this is a matter that is solely in the interest of the bank, these costs may no longer be charged at the expense of customers. The good thing is that you can still recover the fees today. These were usually 1-4 percent of the loan amount, which can be quite a substantial amount. All the fees that you paid less than ten years ago can be paid back. It is only important that you become active yourself, as the banks do not make any objections so far to pay back the money voluntarily.

Tip 3 – find the right follow-up financing

So the banks have good reasons to woo debt reschedulers, as you can gain advantages from it. But also for the borrowers a debt restructuring is often more favorable. Depending on the financial market situation, interest rates can be so favourable that it is more worthwhile for you to reschedule an old loan than to continue paying it off at the old conditions. Today, the interest rates are often better than at the time you took out the financing. So if it can be assumed that interest rates will rise in the future, it is quite advisable to choose a long fixed interest rate and to secure good interest rates. Thus, you achieve a rapid adjustment of interest rates in the event of early termination of the old loan.

If you want to do everything right, start thinking today about how they will approach rescheduling your loan in a few years to secure good follow-up financing. These are even more worthwhile doubly if providers take over the costs of the debt rescheduling for the borrower.

Tip 4 – Debt restructuring with a forward loan

Forward loans are a good idea for all those who like to plan ahead with security. If current conditions including low interest rates are optimal for the borrower and the current loan still runs for a few years, it is worthwhile to conclude a so-called forward loan. With this you secure today your follow-up financing for the end of your term. Inform yourself about favorable conditions, which may no longer be offered at the end of your term and ensure up to 5 years in advance that you will have the best conditions. So it’s always worth staying informed and keeping an eye on the interest rate market even though your financing is already up and running.

Tip 5 – check the prime rate

When researching your refinance, it’s probably most important to always keep an eye on the prime rate. Different interest rate situations can have a huge impact on your financing. When interest rates are low, it is of course worth looking for a follow-up financing, but do not forget to consider the development in the next few years. When interest rates for construction financing are well situated, it is a good idea to tackle the real estate financing. So the prime rate gives you a good indication of how interest rates are and will be. If this is low, it is a good sign that low-cost financing is also within the realm of possibility for you in the coming years. As long as there is no inflationary pressure and the prime rate remains at its level, you have nothing to worry about for the time being and can start planning your follow-up financing undisturbed.

Tip 6 – Follow-up financing for builders

Especially for builders, buyers and customers it is important to conclude a good financing. Such a decision is for many a life-determining investment, which is why you should not rush the decision. Once your dream property has been found or you have decided to build your own four walls, the most important thing is to plan the financing first before you go any further. The financing will determine the next years or decades of your life, so you should be absolutely sure. Of course, the interest rates again play an important role and you should not hesitate to get several quotes to find the right financing for you. If interest rates are low, you should opt for a long term and adjust the monthly repayment rate to your individual needs. Pay attention to the option of changing the repayment rate, which you should do during the term. The best way to answer any questions is to talk to your bank advisor, who will be able to give you lots of helpful tips.