The BitConnect Experiment: How Much Did I Make Lending on BitConnect

lending on bitconnect

This is part two of my BitConnect experiment. Start by reading part 1 here.

So when we left off I had $1120 invested, maybe I should have stopped there, but everything had been going well so I decided to put up another loan out of pocket. I wanted to see what it would be like if I hit tier 3 interest payments so I decided to go ahead and put up $5,300. I had already invested $1120 so this would give me a total of $6,420 in loans.

You might wonder what made me choose the amount of $5300…well honestly its because I was playing with the BitConnect profitability calculator and I saw that  $5300 loan would generate me a little over $1700 in monthly income.

bitconnect review

The numbers were so good I would be doing my self a disservice if I didn’t give it a shot. Don’t get me wrong the thought of losing this money was heart-wrenching but the risk vs reward on this for me highly favored the reward side. On one hand, the loss of $5300 would be something that I would have to work hard to bounce back from but if these returns were real…well let’s just say this is life changing stuff then.

Depositing The Money

So I had my mind made up I was going to do it. I opened up my Coinbase app(by the way if you sign up for Coinbase here, they will give you an additional $10 in bitcoin when you buy over $100 worth) I noticed something that would put a wrench in my plans. Coinbase has a maximum weekly limit, I had seen this before but somehow forgotten about it. I had a max buying limit of $1250. I would still need to buy $4050 worth of bitcoin but from where? I hopped online to tap into many of the popular online marketplaces such as Craigslist and OfferUp, maybe I could buy bitcoin from someone willing to sell. Listings were scarce and the people I called did not answer the phone. I knew there had to be another way so I did what I always do when in doubt…I Googled. After some research I found out that there were a few BitCoin ATM’s in my area. BitCoin ATM’s look similar to regular ATMs except that convert your USD into BitCoin and send it over to your wallet. I decided to go check one out, my GPS led me to a gas station. I walked inside and asked the guy at the counter if he had a bitcoin ATM. The guy points over to the far corner and low and behold, there it was, my ticket to easy bitcoin. There was only one problem, the fees were astronomical. This BitCoin ATM was charging 20%….Shit! I did the math I needed $4050 that would $810 in fees alone…Yikes.

I left immediately there was just no way I was going to pay $810 in fees, I knew there would be some fee but we were talking about close to $1000 here. I drove home and did some more research. I was able to find a coinatmradar.com.  This site listed the various locations around my city with BitCoin ATM’s and also shared what the interest rate was. After a few seconds of scrolling I located an0ther BitCoin ATM that charged 10%…still expensive but I was willing to pay after all this was all in the spirit of finding new revenue streams and it takes money to make money. That and the fact I was tired of trying to figure it out caused me to go ahead and pay the 10%. There may have been other places cheaper but I found that most of the people who have these BitCoin ATM’s at their business have no idea about anything about them. None of the owner of the stores I had been to could tell me the percentage rate over the phone.

Using The BitCoin ATM

Using the BitCoin ATM was pretty straight forward. It looked like a regular ATM with a touch screen. I was asked to input my phone number so I did. I was then sent a verification text in which I had to type the code that was text to me into the machine. Next, I had to verify my identity the machine asked me to take a picture of my ID front and back. After this was completed I was asked to input or scan my desired destination wallet address.  Now I was ready to insert my money I did so making sure to calculate the extra needed to cover fees. Once this was done they asked was I done and I said yes. I wasn’t given a receipt the screen went back to the start screen and I became a little concerned. I checked my wallet app that I pointed the BitCoin ATM too and saw the pending transaction in the amount I just deposited. I was relieved and left to drive home excited to make the loan. By the time I arrived home the transaction had cleared.

The $5300 BitConnect Loan

I got home transferred the remaining bitcoin to my BitConnect Wallet, the converted them to BitConnect tokens and well then this happened

What kind of returns can you expect lending on BitConnect?

I’m sure that’s what you want to know. What was I going to earn from lending $5300. Well because this loan was over $5010 I hit the third tier which gives me the base interest rate + an additional 0.20%. With daily rates averaging 1%, this translates into a monthly income of $1700 from this loan. This combined with my other loans was giving me approximately $65 per day in passive income. This allowed me to do $100 reinvestments every 2 days as seen below.

A day later I got some referrals and had enough to invest another $200 without adding any money, this thing was compounding fast.

 

After this investment, I had a total of $6820 in loans generating me passive income.

My BitConnect Investing Strategy

Now I’m sure you have heard many people call BitConnect a scam or a Ponzi scheme, and others that will defend it with their lives. Both sides have some pretty solid arguments but I’ll be the first to admit I don’t know. All I know is it works…for now. That being said I spent some time coming up with the safest BitConnect strategy I could think of. I decided that once I hit $7000 total in active loans that I will start withdrawing my original investment of $6420 out of the account. With the total active loans I have, I should be generating near $2100 per month. That said over the next 4 months I will likely be pulling at least $1700 from the profits out monthly until my original investment is paid back. I hope this platform will be around for a long time but all in all I would feel much more comfortable if I knew I was playing with house money. Any remaining money I have monthly will be reinvested but the focus, for now, is to secure the original investment as I think this is the safest BitConnect strategy.

I will continue to keep you updated on my progress with the BitConnect Experiment. If you are interested in joining my team you can earn with me on BitConnect here. I offer strategy and tips for anyone who joins using one of my links. Also, follow these videos or click here to see me on youtube. Like and subscribe and leave any questions or comments in the comments section.

 

 

robo-advisor

The Top 4 Mistakes Beginning Investors Make and How to Avoid Them

 

The following is a guest post by Hank Coleman, who is the owner and publisher of Money Q&A, a popular personal finance blog dedicated to helping its readers invest and save more for retirement.

 

Your first venture into the world of investing may be overwhelming. Investment experts seem to hawk different stocks, investment advice from books and blogs may seem contradictory depending on what you read, and the amount of data and charts out there is often just too much for a beginning investor to manage alone.

 

It’s okay to feel overwhelmed by the investment choices. Everyone started from square one at some point. However, getting started in investing isn’t as hard as you might think.

robo-advisor

The Biggest Mistakes New Investors Can Make

 

To help you get the ball rolling, here are some novice mistakes to avoid while building your first investment portfolio:

Assuming You Need a Financial Adviser

 

All too often, people put off getting involved in investing beyond their employer-provided 401(k). They believe they need to have more money to afford a financial adviser to help them succeed in the stock market.

 

Maybe that was true a few decades ago. But, with the internet at your fingertips and the availability of robo advisors to help you invest your money, there’s no excuse for waiting to invest your money if it’s just sitting in a low-interest savings account.

 

Robo-advisors were designed to lower the barrier to getting involved in investing for everyday folks who want to see better returns on their money than what a traditional bank account can offer. With a robo-advisor, you don’t have to read a pile of investment guides before diving into the markets.

 

Investment companies build robo-advisors using extensive algorithms that determine the best possible allocations for customers’ money based on historical market trends and up-to-date market research. It also costs very little to use a robo-advising service compared to a traditional stockbroker. The fees usually range between 0.15-0.35% per month depending on your deposit amounts. And, some robo-advisors do not require a minimum balance to get started.



Getting Caught Up in the Hype

 

When you first start out as an investor, it’s all too easy to get caught up in the latest and greatest stocks that so-called investment experts proclaim are guaranteed good buys. Rather than funneling your money into the hottest tech stock or industry that people are raving about, stick to solid, time-tested strategies. Look for investments that diversify your portfolio and protect against large losses if something doesn’t live up to the hype.

 

Pulling Out of the Stock Market When It Goes South

 

There are many strategies for getting better returns on your investments. And, even if the market goes south for a bit, it’s important to remember that it will bounce back eventually.

 

Beginning investors are sometimes so risk-averse that they’d rather take the short-term losses by withdrawing from the market when it looks like things aren’t going well. They’d rather pull out their money than ride out the rocky waves and see their investments not only return to their original value but grow well beyond that amount.

 

If the Federal Reserve raises interest rates and the stock market dips or some global catastrophe strikes and the markets panic in the aftermath, don’t bail on your investments and squander your potential returns by fleeing to cash.

 

Look at your time horizon instead. When do you expect to need the money? Many will realize that they have decades before they need to use their investments. Staying in the stock market is usually the best strategy for investors. But, it takes a long-term mindset to see past the present panic.



Playing It Too Safe

 

If you’re relatively young (under 50 years old), then dumping all of your money into bonds may be overdoing it a bit. Bonds tend to be safer investment options than stocks and other volatile investment options, but they also offer significantly lower returns. Far too many young investors are risk adverse. They forget that they have decades to make up for any significant losses early in their careers.

 

Diversifying your portfolio is the most common and best advice for newer investors, and robo-advisors can help you decide the best allocation of your funds, based on your age and investment goals (i.e., retirement, saving for a down payment on a mortgage, your child’s college fund, etc.).

 

No Better Time to Get Started Than Today

 

Even if you have no background in investing or finance beyond creating a monthly budget, the plethora of valuable resources and no minimum, low-fee robo-advisors and index funds are making it easier than ever to invest like a pro.

 

It’s important to educate yourself and avoid novice pitfalls along the way as a beginner investor. You shouldn’t have to spend hours and hours reading investment advice and studying stock charts to be successful. You simply have to get started and stay in the market. Like the old saying…time in the market is more important than timing the market.

 

Did I miss any mistakes? What are some mistakes you’ve made as a young investor? I’d love to hear your thoughts in the comment section.

 

Why your First Investment Property Should Be A Duplex

Why your First Investment Property Should Be A Duplex

When I accidentally started investing in rental properties, I was 26 years old. I’ve owned my own business since I was 23, and as a business owner, as you progress it’s natural to start considering Investment ideas. When you work for yourself you don’t get the luxury of a pension or retirement plan, at the end of the day you will only have what you were able to save up.

Even though I eventually stumbled onto long term real estate investing, had I know what I know today, I would have done things differently. Right after high school, if I had invested in a duplex, I could have easily been retired by now.

What is a duplex?what is a duplex

A duplex is a home comprised of two separate living quarters. In general, they have separate kitchens, bathrooms, and no common living areas with the other unit. Think of them as tiny apartment complexes with only two units. In most cases, each unit has separate utility meters so that each side only pays for what the amount of utilities they use.  This type of property is ideal for investors because you can earn twice the rent with one property.




Duplexes are great investments for young, first-time investors for a lot of reasons. Some of the pros are being that you can pay off your first property by renting out one of the units, and the other benefit is that you can potentially live rent free, to save money by owning a multi-family home. As long as you make sure that you purchase at a price in which one unit’s rent will cover the mortgage, and you know how to find a good tenant, your biggest living expense, shelter, is covered.

Duplexes are better for young investors from a living standpoint because. The units are usually smaller and can make a good home before you start a family. Once you start getting married and having kids, you will likely want to get a bigger house, with more privacy.

It’s important for young investors, to remember that even though your tenant is your neighbor, you shouldn’t build a friendship with them. If you find this difficult or awkward, i suggest at the very least, acting as if you are just a tenant as well. One of the top landlord commandments is not renting to or making friends with tenants. If tenants are your friends, in times when they may encounter financial issues, they will play the friend card” and things can get awkward quickly.

You guys know I’m an advocate of paying off houses as soon as possible. And because your mortgage will be covered, your ability to save should be drastically increAsed. I recommend setting aside what you would normally pay for rent, until you have enough to pay off the property. Once your pay off your mortgage, your other units rent goes straight to your pocket.

Sometimes, I find that duplexes can be over priced. Everyone has their own methods but for me to be even consider purchasing a duplex, it would have to be cheaper than I could find, two single family homes in the same area. For example, if I know 2 bedroom rentals average around $60k a piece, I wouldn’t want to spend over $110K for a duplex In that same area. This way it’s like getting a discount on 2 rental properties at the same time, while generating a higher ROI.

Eventually, you will want to move. The good thing about having a duplex, is that you can move out, rent your old unit out and start earning two rent payments at once. Now when you buy your next home, you have the luxury of being 2 rentals In the game.

Even though your expenses will be covered, I recommend to continue working  full time, to cover unforeseen repairs, and speed up paying off your investment.

In addition to duplexes, which are two unit structures, you can also find other multi-unit properties as well. Triplexes are 3 unit buildings, and quadplexes are buildings with 4 units. Anything over 5 units is officially considered an apartment complex, and different tax laws apply.

While most duplexes are side by side units, some will have an upstairs/downstairs layout. One thing that is important to me when finding a potential duplex, is making sure that the homes have separate meters for utilities. There have been times when I’ve come across duplexes with combined utilities, and it sounds like a hassle to try to decide which tenants used, how much energy every month. In cases where only the water is combined, the landlord usually covers the water bill. For me personally, I prefer my tenants to take care of all of their own expenses.

A single duplex is probably not going to provide the income, you need to retire just yet, however by investing young, and continuing to grow your rental portfolio, once you obtain and pay off enough rental properties, you will be generating enough passive income to live comfortably.

What was your first rental property? Was your first rental property a duplex?

Let me know in the comments section below.



start building passive income

How I Accidentally Started Building Passive Income.

House #1

I moved to Florida back in 2010 on a whim, I had a little money saved up, and I wanted to make sure my family had a gauranteed place to live. We were staying with my finance’s cousin until we could get on our feet. I spent my days looking for deals on property. After a few weeks I came across a private seller with an 3 bedroom home. The owner needed quick money, and only wanted 21K.  He was renting the property to tenants who were about to move. The tenants were very messy, and had about 5 pets.  The home had roaches and part of the floor coming up in the kitchen and all the carpet smelled like urine. I paid cash for the home and suddenly I owned property, this was house #1.  After purchase my fiancé and I ripped up the carpet and put some cheap carpet in it, we replaced the kitchen floor with some peel and stick tiles, and painted the walls. I wasn’t thinking about building passive income, but rather how much it was going to cost me to fix up.

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I think at the time I spent around $2000 on making the home livable. The house did what it needed to, it provided gauranteed housing for my family and I, the exterior was ugly and it was located in what could be described as an industrial area, and not very attractive. I loved the fact that I had a home, that I didn’t have to pay a mortgage on, all I had to worry about was the taxes which were low. We lived here happily for 2 years.

Fortunately the ambition in me always pushes me to want to upgrade things. I knew on the market I could sell the home for around 35K, and the type of house I wanted to upgrade to was around 65K. I began searching for houses again for about a month before I came across a gem in Clearwater, FL, in a super convient location, close to the Tampa bridge and the major highway in the area. It was a nice looking home with a for sale sign that read 69K with contact info. I called while I was sitting in the homes driveway, and spoke to Phil, who flipped homes for a living. Phil explained he bought this home in a lot of 10 houses from the bank, and that he was looking to sell immediately. I arranged to check out the inside, and was viewing the house the next day. It was a little outdated but I loved it. The location was PERFECT. I had about 30K saved up and I knew I could get close to 35K for my current house, so I immediately listed my home for sale and told Phil I wanted to make an offer of 57K. I figgured listing my primary home cheap it would sell fast, the same day that it was listed I got a call from a gentleman, who appeared to be interested in buying my house, what luck. The buyer told me he wanted to come take a look at my house immediately, and he did the following day. After his walk through he made a verbal offer of full price, luck was on my side.

Now before you rag on me for accepting a verbal offer, I want to just say in my defense, at this point I was new to this, no one ever thought me anything about real estate. But back to the story, the guy who was buying my home arranged to meet me the following Monday to sign the contract, I set up an appointment with a title company and was excited that I was a bout to move into my dream home. Unfortunately, my luck doesn’t usually work out as well as it appears, when Monday rolled around I did not hear from my buyer, I gave him a ring and was sent to the voice mail. WTF! He was just talking to me all every day. I called over the next few days probably somewhere near 30 times, this guy was obviously avoiding me. I hate unreliable people. Saddened, I decided to call Phil and tell him that I wasn’t going to able to get my dream house. Phil asked why, I explained to him what I had been through. Phil then suggested getting a loan, “my credit sucks” I said, but Phil had an answer for me, “what about a hard money loan?”. A hard money loan as I learned, is private loan through and doesn’t involve banks. Phil had a hard money lender named James that he introduced me to. Phil told me as long as I had 20% down  he would approve me and didn’t care about the credit. I just had to make interest only payments and I had 3 years to make a balloon payment. I could come up with the rest in 3 years, this sounded like a good plan. Now I wasn’t relying on selling my old house and I was able to move, but what was I going to do with two houses. The answer almost came like clock work, I could rent it out to cover the monthly payments while I saved up for the balloon. I didn’t realize it then but I was laying the pavement to the road to retirement. I listed my home on craigslist for rent for $650 and found a prospective tenant immediately. I made sure to take the right steps to find a good tenant.  I was happy I was now generating $650 per month without doing anything. I was building passive income. The payments rolled in like clock work and I was able to cover my payments which were $475 a month and still saving $175 toward the balloon without any work. This random chain of events was crucial and a staple in the beginning of my career as a real estate investor, this is how I accidentally started building passive income. My home was now an income generating asset, and no longer a liability.

This is around the time I had just finished up reading Rich Dad, Poor Dad, by Robert T. Kiyosaki which is an excellent read, frankly the man is a genius. If you are interested in building passive income, I highly recommend reading it if you are looking to get into real estate investing. The book itself isn’t going to teach you any real estate methods, however it changed the way I thought about home ownership vs owning properties that allowed me to begin building passive income.