Trading Bitcoin’s Like Trading Stamps, Says Swedish Central Bank Governor

The governor of Sweden’s central bank, the Sveriges Riksbank, has dismissed Bitcoin (BTC) as an altogether far-fetched alternative to government-backed currencies. 

Speaking at a banking conference in Stockholm, Sveriges Riksbank governor Stefan Ingves argued, “Private money usually collapses sooner or later.” In a further disparaging remark, he claimed, “Sure, you can get rich by trio ading in bitcoin, but it’s comparable to trading in stamps.”

Notwithstanding Ingves’ view of Bitcoin’s weaknesses as a currency, he has taken its popularity among investors seriously. Highlighting consumer interests and money laundering as being of particular concern, the central banker conceded this June that the cryptocurrency had gotten “big enough” to merit close attention from regulators, central bankers and lawmakers across the globe.

Nor has Ingves’ low estimation of Bitcoin prevented the Riksbank from co-opting its underlying technology for the benefit of its own central bank digital currency development project. Sweden’s e-krona uses a proof-of-concept based on Corda, a distributed ledger technology solution from R3. The latest update on the e-krona pilot is that experiments are progressing, involving simulated participants to cooperating with real-world actors, specifically Sweden’s retail bank chain, Handelsbanken. 

Related: Bitcoin’s rising popularity will lead to more regulation, says Riksbank

While the Riksbank’s approach is in line with most central banks and governments, this week has witnessed El Salvador’s unprecedented government-mandated adoption of Bitcoin as legal tender. Despite Salvadorans’ anxieties about their government’s move, Cardano founder Charles Hoskinson and whistleblower Edward Snowden have this week claimed that other nation-states could also eventually incorporate the coin into their own monetary policy.

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Robinhood Investing For Beginners 2021 (Step By Step Tutorial)

Video transcription

What is going on, you guys Welcome back to the channel, So in this video today, I’m gonna give you a step-by-step tutorial of how Robinhood works for a complete beginner. I’m gonna show you a lot of different things in this video and I also am going to include timestamps down below that way. If you wanna skip ahead to a certain section of this tutorial, you are more than welcome to do that, but just to give you guys a general idea of what I’m gonna cover to make sure you’re in the right place. I’m gonna talk about the free stock offering from Robinhood and how you can get a free share of stock just for signing up

We’re gonna cover what stocks and ETFs are available for trading in the Robinhood app, and how to find different stocks that you may want to invest in. We’re also going to cover crypto trading and options trading, I’m gonna actually purchase some crypto and purchase some options, just to show you guys how you go about doing that.

We’re gonna go over an overview of the cash management product that Robinhood has if you’re looking for high yield savings. We’re gonna talk about how you find different investments within the app, how to create watch lists, how to take advantage of fractional shares, dividend reinvestment, different account types, as well as setting up recurring investments through Robinhood, and whether or not you may decide to pay for a Robinhood Gold subscription. The good news is Robinhood is completely commission free, with no monthly fees or anything like that associated with your brokerage account.

The only thing that you may decide is whether or not you want to pay that $5 per month for that gold subscription, but the good thing is you don’t need it to have all the functionality, and free stock trading, and options trading, and all that good stuff that they have to offer.

That being said, guys, let’s start with our first section here, which is what is the free stock offering on Robinhood and what is that all about? So how does the free stock offering with Robinhood work? Well, basically if you open up a brokerage account with them and fund it with any amount of money, you’re going to get one completely free stock, worth anywhere from $2.50 up to $200, it is a lottery type system.

So odds are, you’re going to get a lesser valued stock, but if you’re lucky, you might get one worth up to $200. In order to get that free stock, you have to open the account, and then you have to fund it with any amount of money, and then you’re going to get that completely free stock issued.

If you guys want to support me in putting this video together, you’re more than welcome to use my affiliate link down below, which means that I may earn a small commission in the process, but of course, guys, that is never expected, but always appreciated. So that’s the first step here, before trading stocks with Robinhood, is you have to actually open up an account with them, and that’s going to involve you supplying them with some information, like your social security number, where you work, and things like that, because you’re opening up an investment account, which is going to have to be reported to the IRS. So number one, they do have to verify your identity and make sure you are who you say you are.

And then number two, they’re also going to have to report any trading activities to the IRS, because you are going to owe some taxes on dividends, and capital gains, and different things like that. So right off the bat, a lot of people are often cautious when an app is asking them for their social security number or things like that. But this is going to be a full blown financial account here, so you are going to have to supply that information, but Robinhood collects this in a secure manner, and doesn’t store this information about you. So that’s the first step is opening up that account and grabbing that free stock. Now let’s talk about what stocks and ETFs are available through Robinhood.

So through the Robinhood app, you’re able to trade stocks and ETFs, as well as options and cryptocurrencies, 100% commission free. However, what you’re going to find is that not every stock, or ETF, or investment that trades on a major is available for trading on Robinhood.

But the good thing is, the majority of stocks and ETFs that people are looking for are available through Robinhood. So that being said, let me go ahead and cover what assets you’re going to find on Robinhood. First of all, US -Listed Stocks and ETFs.

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Those are major companies like Apple, Google, Tesla, companies like that, and also popular fund investments, like VOO, or the Vanguard S&P 500 Index Fund. You’re also going to find Options Contracts for US -Listed Stocks and ETFs.

If you’re looking to buy some basic call and put options, and even some more sophisticated ones, those are available here on Robinhood, and we’ll discuss those a little bit later. You’re also going to see ADRs available, or American Depository Receipts, which is going to support trading for over 650 globally listed companies. So if you wanna invest in some of these big companies that are trading outside of the United States, you may be able to do that through Robinhood, if those companies are supported.

That being said, you’re not going to find the following assets on Robinhood. First of all, foreign-domiciled stocks, select over the counter stocks. So basically these are companies that trade on less desirable exchanges, oftentimes trading for a few pennies per share. So if you’re looking for over the counter penny stocks trading for, you know, next to nothing per share, you’re not going to find those on Robinhood. However, I would caution you to stay away from those regardless, because penny stocks don’t typically make for the best long-term investments.

You’re also not going to find preferred stocks or mutual funds on Robinhood. You’re not going to find bonds or fixed-income investments, however, you will find some bond investments through ETFs. So if you’re looking for like a Vanguard bond ETF, for example, you’re able to purchase that on Robinhood, you just can’t purchase bonds directly. They also do not offer stocks that trade on foreign exchanges, but that’s pretty common for most commission-free brokerages out there. And then some less common things here, you’re not gonna find close-ended funds, limited partnerships, royalty trusts, tracking stocks, New York registries shares, or units on the Robinhood app.

The good news is, most of what people are looking for is available, but if you’re looking for something specific, and it’s listed on this, then you may have to find a more sophisticated brokerage, that may charge commissions, but they also will likely have a wider variety of assets available for trading.

Alright, so next up here, let’s talk about Robinhood crypto, and more about where this is available to investors, and who is and is not able to use Robinhood crypto, as well as what actual cryptocurrencies are supported on the app? So Robin hood is unique because they offer commission-free cryptocurrency trading, and there’s not a lot of other apps and financial companies offering this. So that being said, if you are able to purchase Robinhood cryptocurrency, which we’re gonna cover in a second, these are the available cryptocurrencies. You can purchase Bitcoin, , Bitcoin SV, Dogecoin, Ethereum, Ethereum Classic, and Litecoin, and that list does change from time to time, so you’re gonna wanna keep track of that.

If there’s a specific cryptocurrency that you are looking for. Now, if you’re looking for data on cryptocurrencies, they do support real time data on the following cryptos, but you are not able to trade them. This list includes Bitcoin Gold, Dask, Lisk, Monero, NEO, as well as, OmiseGo, Qtum, Ripple, Stellar, and Zcash. So you can get quotes on those cryptocurrencies, but you’re not able to actually purchase them through Robinhood.

That being said, guys, there’s a long list of states that support Robinhood cryptocurrency.

It’s too many for me to cover in this video, but I can include a link down below with a website here that shows you what states support Robinhood cryptocurrency. But I’m not gonna waste your time by reading off a list of like 30 different states here. So most states are supported, but if you wanna check and make sure, go ahead and check out down in the description below. So now let’s talk briefly about the options supported on Robinhood, before I actually jump into my phone and purchase one as a live demo here. So Robinhood offers options tradings with no commission fee to buy or sell options.

There’s no monthly fees and you also do not need to have any form of paid subscription in order to trade options or cryptocurrency, for that matter. Anybody with a basic and free account is able to trade these things. However, you do have to request access to options trading, where you’re gonna have to fill out a questionnaire about your individual trading experience. Based on your experience level, Robinhood will decide what types of options they want to allow you to trade, because options are very high risk and speculative investment, where the majority of people who trade them, lose 100% of their money or more.

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So I’m not here to tell you to go buy them or not to buy them, that’s up to you to make that decision.

But I just wanna give you information about the options on Robinhood. Typically speaking, when you’re trading options on other brokerages out there, you’re going to pay a couple of different fees, such as Base Fees, Exercise Fees and Assignment Fees, and Per-Contract Commissions. With Robinhood, none of those such things exist.

So if you’re looking to trade options and do it in the cheapest way possible, Robinhood is a very solid pick for this, but you may find that some of the more sophisticated option types may not be available through Robinhood, but they do have a very good selection of order types and types of call and put options that you may be interested in, and I’ll show you guys what those are in a little bit. So now what we’re gonna do is actually open up the Robinhood trading app on my phone, and I’m gonna show you how to fund the account and then how to buy and sell some different assets.

Alrighty guys, so here we are inside of my Robinhood app, and as you can see, I have $146.47 of cash, and I don’t actually have any shares of stocks, or ETFs, or anything in this right now, just because I’m using this for a demonstration purpose. But that being said guys, the first thing I wanna cover here is how to get money into your Robinhood account, and this is going to require you to link a bank account.

Now I already have my Robinhood account linked, but what I wanna go ahead and do is move some more money into this account, that way you guys can see what that process looks like, and that also is going to show us something interesting called Robinhood instant deposits. So in order to do that what we’re gonna do is go over to the person icon.

After you click on the person icon, you’re gonna go over to transfers, and this is where you have a couple of different options. Number one, you can transfer to Robinhood, this is where you would transfer money from your bank to your Robinhood account. Alright, this is what we’re gonna do first, because this is how we get money into the Robinhood account for trading. So we’re gonna go ahead and click on that, and then we’re going to choose the amount of money that we want to move from my bank account to my Robinhood account. Now you can link multiple banks too, if you have a lot of different bank account, I just have one main account that I use for funding my brokerage accounts, that I already have linked.

So let’s say for example, I want to move $100 from my bank account to my Robinhood account. I would type in 100, I would click review, and submit. Now the big difference between Robinhood and other apps out there is that a lot of trading apps would not let you trade with that money, until the deposit has settled, which as you can see I did this on January 8th and that would not be settled until January 11th. However, with Robinhood, you have instant deposits up to $1,000 for everybody for free, which is a really cool feature. So you can actually invest that money right now and not have to worry about fund settlement.

So now our balance for investing has gone up to 246.47, even though that money hasn’t necessarily settled yet. So that’s something really cool that Robinhood does. Now, I wanna show you how to move money out of your Robinhood account. So let’s say for example, you’ve placed some successful trades, you made some money, and now you wanna move some of your cash out of your Robinhood account.

What you would do is you would go back to that person icon. You’re gonna click on the same menu there, which is transfers, but this time you’re going to transfer to your bank, which means you’re taking money out of that Robinhood account and putting it back into the linked bank account. So let me go ahead and do that quick here. And I actually don’t have any money available to do this because none of my deposits have actually settled. So if my deposits had actually settled already, I would just type in the amount.

You can see the box that says $0 available, any settled funds would be available for moving out, and you would pretty much just type in the amount of money you’re looking to transfer out, click review and click submit, and that’s going to happen over the next three to five business days.

So, unfortunately, I can’t show you guys that whole aspect of getting money out of Robinhood, but that is the exact step-by-step process that you would follow. Lastly, while we’re here in this menu, I wanna talk about scheduling automatic deposits. That would be if you want to put like 10, or 20, or 50 bucks per week into Robinhood. You can sit schedule automatic deposits, that way you have money coming in one time, weekly, twice a month, monthly or quarterly, but then you would have to actually direct that money yourself and choose where you’re putting that money, in terms of purchasing investments.

So anyway guys, that covers the banking side and how to get money in and out of your Robinhood account. What we’re going to do now is show you how to purchase your first stock on Robinhood. So in order to purchase a stock on Robinhood, the first thing you have to understand is what stock you actually want to buy. So let’s say, for example, you’ve done some research and you decided that you wanna buy one share of Ford stock, for example. Well now let me show you how to purchase one share of Ford.

What you’re gonna do is you’re gonna go to the search bar and you’re gonna type in either Ford or the symbol, which is just F. So let me type in F, and then I’m gonna go ahead and click search. And as you can see, Ford Motor shows up immediately. So if we click on that we can see that Ford is currently trading at $9 and one penny per share. And so now if I wanna buy one share of Ford, all I’m gonna do is click on the trade button and I’m gonna click buy.

So I’m just gonna buy one share of Ford for demonstration purposes. So this is where you decide how many shares you actually wanna purchase. And by default, it’s going to be a market order, which means it’s going to close at the current market price at this instant point in time. So at any point in time when you’re looking to buy a stock, you have buy orders and sell orders, and that’s going to determine the quoted price that you’re most likely going to pay, but what you actually pay might be a little bit different, based on what the order is actually executed at.

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But if we go over here to this dropdown, you can see where you have also the option to buy in dollar amounts or buy in shares.

I’m gonna purchase in shares, but if you want, you can also do fractional shares on Robinhood, and just buy it in dollar increments. There’s also different order types you can utilize if you’re looking to have some advanced order types, however, I never ever used these. And I simply just, you know, put my money in through a market order, and I always sell through a market order as well. But maybe in another video, I can go over some of these advanced order types for those of you who are interested, but I never use them.

So I don’t wanna confuse you here.

The other option you can set up here is recurring investments into this stock. So if you wanted to put money into Ford stock every single week on a recurring basis, you are able to do that. But the market’s about to close, so let me go ahead and execute this order. So I’m looking to buy one share at a market price of 8.99, click review, and then swipe up to submit, and then you’re going to see them close that order.

So one share of Ford was just purchased at $9 per share. So now it sounds kind of silly, but I’m gonna turn around and sell that share of Ford stock, just so you guys understand how that works. So now let me go ahead and cover how to sell a stock on Robinhood. I have that one share of Ford that I just purchased for $9 per share, and so it hasn’t really moved at all, because I just bought it, but I’m gonna go ahead and sell it now for demonstration purposes.

So if we go to my homepage, you can see what stocks I own, I have my one share of Ford, and let’s say I just decide, hey, I change my mind, I wanna sell this stock.

You would click on that stock, and then you would click on the trade button, and then you have the option to sell at this point because you own shares of Ford. So you click on that sell button and you type in how many shares you’re looking to sell. I only have one, so we’re just gonna sell that one share. And again, if you click on this dropdown here, you can also sell in dollar amounts, or sell in whole shares, depending on whether or not you use the fractional shares. And you also have different order types for the sell, if you wanna use more sophisticated order types, like the limit order, trailing stop, etcetera.

Again, I never use these, so that’s gonna be a topic for another video. I’m just gonna click review, and then I’m going to swipe up to sell my share. And just like that, I sold my share of Ford stock for $8.98, so I actually lost two pennies, holding onto that stock. Your goal is to make money when you sell, so you’d wanna buy Ford for like $9 a share and sell it for maybe $10.

That would mean that you made $1 of capital gains while holding onto that stock. So that is how you sell a share of stock on Robinhood. Now, I wanna go ahead and show you how to purchase an option on a stock. So now what I wanna show you guys is how to purchase an options contract through Robinhood. And again, as I mentioned earlier, options are a high risk type of investment where the majority of people who buy them, lose all of their money.

So I want to encourage you to do your own research before trading options or trading any different assets out there, because the potential to lose money here with options is very high, and you should be familiar with that before purchasing.

But that being said if you’ve already decided that you wanna buy options, and you’re just looking for the step-by-step instructions, let me show you how to do that here. Now we are in after hours already here, because it just turned to be four o’clock. I’m not sure if I’ll be able to purchase an option on Ford stock right now, but I’m going to show you how I would do that anyway, just so you guys are aware of the process. Again, as I mentioned earlier, options are something you have to get enabled on your Robinhood account, and you would request permission or request access to options, and then you’d fill out a questionnaire which basically explains to Robinhood what your trading experience is, and if they deem you educated and informed enough for options trading, they will activate this on your account.

That being said, though, I’m gonna click on the trade button here, and we’re gonna look at buying some options on Ford stock. Now, the only thing I ever trade on Robinhood is call options, which means I think that the stock is going to go up in the future. If I was trying to bet against the stock, I would purchase something called a put option. I only ever do calls, I’ve never done a put option, maybe at some point I would, but I don’t get into covered calls, any of these more sophisticated options types. I’m not an expert at options, so I’m not gonna talk about those, because there are experts out there that will help you understand these more sophisticated options types.

So for now, let me show you what the process would be for purchasing a call option on Ford stock. So the first thing you have to decide is when you want that option contract expiration date to be? Because typically speaking, the further out that date is, the higher the option premium is for purchasing that option.

Robinhood Investing For Beginners 2021 (Step By Step Tutorial) 1

So I always typically look to buy calls that are going to expire in about a three to six month window, because that gives me a good period of time where you know, if I made a bad decision in the short term, there’s more time for hopefully that stock to change in price in a favorable direction, that way I don’t lose money.

But I actually don’t really like Ford stock, and so buying an option on them, is kind of stupid, but I’m just going to show you for demonstration purposes here.

So if I truly did believe that Ford stock was going to climb higher in the next six months, which I honestly have no idea, it’s a total gamble, because I don’t actually like Ford, but I would look to buy a call option six months out in the future, which would put us around June. So I’m going to go into the June 18 call options and see what the different prices are, and then you’re going to look at how much that stock would have to go up for you to be at break even with that option, covering the cost of your premium.

So for example, we see here that the share price is currently $9, and if I were to buy a $10 call on Ford that would mean that I’m paying a 63 cent premium. So my actual cost for that option is going to be 100 times that 63 cents because options are always in orders of 100 contracts. So let’s say, for example, I wanna buy that $10 call, that means that in order for me to break even, Ford stock has to come up to $10 and 63 cents per share, or go up 18.

11%, who knows if that’s gonna happen? Probably not, but anyway, let me go ahead and pick that one, and just make that purchase. But as you’re gonna see here, if we’re looking at call options, you know, the more that the stock has to go up in that period of time, the less likely it is to happen. And as a result, that option premium is lower and lower.

So you can kind of decide whether or not you wanna go for an option that’s near the money, or one that’s a total long shot bet that’s going to be cheaper, but if it does end up going up to that price level, you might make a lot of money.

So I’m gonna just purchase a $10 call on Ford. I don’t even know if I can right now because the market is closed, but we’re going to put in an order for one contract, and it’s going to cost me $63. ‘Cause, it’s, technically speaking, 100 different contracts at 63 cents a piece. So let me click review and then submit, and we’ll see if the order closes, and it did actually, it closed, so I did just purchase or no, I’m sorry, it’s queued. So it’s because the market is closed, I wasn’t able to actually place this order.

So it says right here, your limit order placed at 4:04 PM on January 8th, 2021 will be sent at the start of the next trading session. So there’s no extended trading hours for options, unfortunately, but you can trade stocks during extended hours on Robinhood. So I actually am gonna cancel this ’cause it’s Friday, I don’t know what Ford stock is gonna do over the whole weekend here, and then what it’s gonna open out on Monday. So I’m gonna close this right out and cancel that order, but that is how you would place a call option purchase on Robinhood. Unfortunately, since I wasn’t able to buy it, I can’t show you how to sell it, but I’ll probably do another video just on options trading with Robin hood at a later date.

So now I’m gonna show you how to purchase cryptocurrency with Robinhood. But before I do that, it is important to understand that one of the big differences between Robinhood and other exchanges out there for purchasing crypto is that Robinhood does not allow you to send or receive cryptocurrency in and out of your portfolio.

And the reason behind this is because Robinhood is going to keep track of what your capital gains are on your cryptocurrency. That way they can report this to the IRS and you can pay your applicable taxes, while the problem is if people are able to send and receive crypto in and out of that account, it would be impossible to keep track of that cost basis, and you would have to keep track of it on your own. So in order to simplify that process, Robinhood restricts you from moving crypto in and out of that account.

Something you need to be aware of before you put a bunch of money into cryptocurrency, and it’s up to you to make that decision of whether or not you’re comfortable with being unable to move your cryptocurrency in and out of the account. That being said, guys, I’ll show you how to do it, assuming that you are comfortable with that and you wanna buy some Bitcoin or other supported cryptocurrency, regardless. So, first of all, in order to find cryptocurrencies that are supported you’re gonna have to go to the search tab and then under popular lists, click on crypto.

And if that’s not showing up for you, just type in crypto, and then it’s gonna show you what cryptocurrencies are available. But I’m gonna go ahead and click on that and show you what cryptocurrencies are available.

And they have a couple of different ones here. The only thing that I would ever purchase is Bitcoin personally, and that’s just my viewpoint on crypto myself. So let me click on Bitcoin, and I’ll show you how to purchase it. So this shows you what it’s been doing over the last week, last month, and holy smokes, it’s been quite the rally here for Bitcoin. So let’s say, for example, you wanna join the party and get in on it, you’re gonna click the green buy button at the bottom, and you’re gonna type in what dollar amount in US dollars you wanna put into this cryptocurrency.

So right now you’re gonna be paying the price of about $39,000 per Bitcoin, but most people don’t have that much money to buy a whole coin, so you’re gonna buy a small amount of a coin.

So I’m gonna do $100 worth, just for demonstration purposes, and then shortly after I’m gonna sell it, that way you’re aware of how to actually sell cryptocurrency on Robinhood as well. So that being said, I’m gonna buy $100 worth, it’s going to be about 0.00254 Bitcoin. So we’re gonna click review, and then here we are with the agreement that we have to accept before we purchase crypto.

So what’s important to understand is that when you’re buying stocks and ETFs with Robinhood, you are insured under SIPC insurance, which covers you in the event of theft of cash, theft of assets, anything like that. So if somebody stole that money or Robinhood went insolvent, you are covered under SIPC insurance. The issue with crypto is that there’s no federal insurance policy insuring your crypto assets. So Robinhood does have a private insurance policy and they also store them offline, the majority of the cryptocurrencies in cold wallets. However, in the event that there was a theft of cryptocurrency from this exchange, and that insurance policy was fully exhausted, you are potentially running the risk here of losing the money you have invested in cryptocurrency since there is no federal insurance.

So that’s why we have to review this agreement and accept it before we are able to actually purchase cryptocurrency on the app. Obviously, guys, you’re gonna wanna read that, even though I just skipped it, but I know the risks already ’cause I’ve written about this at length. Anyways, now I’m gonna swipe up and submit my order, and purchase Bitcoin through Robinhood. So I just bought my Bitcoin on Robinhood. Now, if I click done, you will see that listed here.

And if I go back home now, you’ll see that I have a little bit of Bitcoin under the cryptocurrencies section. Now I’m gonna show you how to actually sell your cryptocurrency, that way down the road when you decide to sell it, hopefully for a profit, you’ll know how to go about that. So what you’re going to do to sell the cryptocurrency is pretty simple. You look at your homepage and you click on the cryptocurrency that you own in your portfolio, and then you’re going to click on the green sell button. Now, once you do that, you put in the dollar amount that you’re looking to sell off the total value of your crypto.

So right now my total value is $99.69 to sell, and you have to decide how much you wanna sell. So I’m just gonna do $50 worth, and that is going to sell $50 of my Bitcoin, and put that back into US dollars. At this point, you click the review button, and then you swipe up to submit that order. And just like that in the snap of a fingers guys, we sold a portion of my Bitcoin and got a credit of $50 and 3 cents.

So now if I click done, you will see that I have a lesser amount of Bitcoin in my portfolio and a larger cash balance. So that is how you would actually sell cryptocurrency on Robinhood.

It’s the same process for any cryptos that are supported, and obviously, the goal here is to buy low and sell high. So if you’re looking to make money trading cryptocurrency with Robinhood, the goal is to buy it at a lower price and sell it for a higher price down the road. However, Bitcoin prices and crypto prices have been speculative in the past, so it is a higher risk asset, and that’s something you should understand before actually trading cryptos yourself.

So now that you guys understand how to actually purchase stocks, options, crypto, and different assets on Robinhood and how to sell them, I wanna cover a couple of different features and tools available on Robinhood that you may want to be aware of as a new user.

And the first one is something called, Robinhood Cash Management. So with your Robinhood account, if you open up an account with them, you’re going to open a taxable brokerage account or a margin account, and this depends on whether or not you wanna borrow money to invest with. For the majority of people, the answer is going to be no, but that’s something you have to decide on your own when opening the account. But most people are just going to open a cash account where any money that they’re investing with is their own money, and they’re not using borrowed money.

But that being said, they also offer a different online savings account called Robinhood Cash Management, which is totally separate from the brokerage account. Now with that cash management account, you’re gonna get a couple of different things. First of all, it currently pays 0.3% APY, which is about six times higher than the national average, which is 0.05% APY.

So if you’re looking to maximize the interest from your savings, this may be an option to explore. It’s also FDI insured through their custodial bank up to $1.25 million, and you have full flexibility here for doing direct deposit, paying bills, and they also offer a virtual Robinhood debit card, if you wanna use the checking account as well, and you will have fee free withdrawals from over 75,000 different ATM’s.

I don’t personally use Cash Management myself, I use a different account for my online savings. So it’s not something that I use, but I wanted you guys to be aware of it in case it’s something you’re interested in.

And the other advantage here too is that if you have your money with Robinhood Cash Management, it’s very easy to move money from Cash Management over to your Robinhood investment account to actually buy and sell assets. The next thing I wanna show you is more of the research tools and data available within the app if you’re simply looking to find investments and you don’t necessarily know what you’re looking to buy. So we just typed in cryptocurrency from our last example, but I’m gonna clear that out, ’cause I wanna show you the popular lists at the top. The popular list is a collection of stocks or ETFs within a certain category. So for example, we have one called technology.

If you’re looking to buy tech stocks, for example, you might click on one of these popular lists to get ideas for potential investments.

So if I click on technology, you can see that it offers 819 different stocks here related to tech. So through this list functionality here, you’re able to see a number of different technology stocks currently available on Robinhood. There’s also a lot of different lists here, you have cannabis stocks, daily movers, crypto, 100 most popular, you can look at upcoming earnings if you’re looking to place a bet on a stock that’s gonna be reporting earnings soon, all kinds of different stuff you can do with these lists. If you scroll down further, they have a good newsfeed, which is going to show you relevant news, related to the stock market.

gold round coin on white paper

And then one of my favorite things to look at is the top movers for the day to see what stocks are moving up or moving down the most.

Now that being said, let’s say you’re looking to do some research on a given stock that you want to invest in. There are a couple of good research tools on Robinhood. So let’s say, for example, you were looking at purchasing some Apple stock. Well, what you would do is type in the search bar, Apple, or the symbol, which is AAPL.

Then you’re gonna go ahead and click on that stock, and I wanna show you what information you have available to you here. First of all, you can look at a basic price chart to get an idea of the price movement over set periods of time. And if you’re somebody who relies on technical stock analysis, you simply click this button, and it’s going to show you a candlestick chart instead. After that, you get statistics here about trading volume, 52 week high, 52 week low, dividend yield, and different things like that.

Then we have the newsfeed with relevant information and news surrounding that company that has just come out.

After that, you have analyst ratings, which shows you what wall street analysts think of this stock. So in particular, looking at Apple here, 58% view it as a buy, 33% view it as a hold, and 10% view it as a sell. So for free everyone out there for many stocks is going to see this section here that has a little bullish and bearish thesis on the stock. So for example, the bullish perspective is why people think the stock is gonna go up, and the bearish perspective is why people think the stock may go down. Now, this is a very short, simple explanation.

If you want a longer one, you can unlock research reports from Morningstar by signing up for Robinhood Gold for $5 per month. That’s gonna get you a couple of different perks as well, you get larger instant deposits, you’re also gonna get level two market data, which is going to show you more buy and sell orders, and give you a better idea of what that stock is going to be trading at an instant point in time.

And it’s also going to give you access to margin trading if you want to invest with borrowed money. But to me, the biggest advantage is if you want to get those Morningstar research reports, you’ll get much more in-depth information about that company to conduct your research. After that, if we scroll down more, we get an earnings calendar or an earnings chart that shows us whether or not Apple has been beating, meeting, or falling below earnings expectations, lists, and then we have suggested stocks based on what people own as well when they also buy Apple.

There’s also history here, which shows you guys that I have owned Apple in this portfolio in the past. So if you’ve owned stock in the past that’s gonna show up down here. There’s an about section that tells you more about Apple, and then of course you have the trade button if you want to purchase or sell your shares. But there is a lot of great research tools, right here within Robinhood.

However, if you’re looking for more advanced stuff, you find you have to utilize other brokerages out there for advanced trading tools, paper trading simulators, and different things like that.

So it has a lot, but some may find it limiting in terms of the features that they may be looking for, and so you might have to look elsewhere for more sophisticated tools and research things like that.

So now I wanna show you guys how to set up a watch list on Robinhood. So let’s say, for example, you’re just getting started with investing, and you wanna keep an eye on a couple of different stocks or funds, but you’re not quite ready to pull the trigger. What you’re gonna do is scroll down here to the lists section, and then you’re going to create a new list, and then you’re going to give it a name and set an icon.

So I’m going to call this one Stock I Am Watching, and then I’m gonna set an icon here, and it looks like you have a couple of different options, so let me do like the monkey emoji, ’cause that’s kind of funny.

So there we have a new list called Stocks I Am Watching, and now I’m going to add stocks to that list. So let’s say, for example, I’m keeping an eye on Tesla, Microsoft, and Netflix, I’m gonna add those three stocks now. So you would simply type in the name of the stock and click the plus icon, that adds that to my watch list. Do the same thing now with Microsoft, add that, and then I’ll do the same exact thing here with Netflix as well, and add that to my watch list.

So now if I click the X, I now have created a watch list of Netflix, Microsoft, and Tesla.

And you can also sort this by symbol, price, and percent change day today. So that is how you would create a watch list if you’re looking to keep an eye on a number of different investments. Now, also guys, you will find this messages tab here on Robinhood, which is just giving you notifications. So when you sell, or buy a stock, or earn a dividend, or anything like that, it’s gonna show up over here on the messages tab. And then finally all the way to the right where you have the person icon is going to be your settings.

In here, you can invite friends, if you wanna earn more free stocks, you can take a look at your different balances and get an idea of your total asset allocation between cash, crypto, and stocks, and options. It shows you your instant deposit limits, pending deposits, different things like that. And it will also give you an idea here if you are utilizing margin, whether or not you have a healthy amount of deposits, or if you’re at risk for a margin call, but it’s a little bit above and beyond the scope of this video. You can also transfer, as you saw, that’s where you transfer money in and out of Robinhood from into your bank account. You also can set up auto transfers here if you wanna do this on a regular basis, understatement, and history, this is where you’re going to get recent history in terms of your buy and sell orders.

This is also where you would go to get your tax documents and monthly account statements. And then other than that, you have your settings. If you want to turn on and off Robinhood Gold, set up subscriptions, and change different settings within the app. The last thing I wanna show you guys is how to turn on drip or dividend reinvestment. So if you do end up buying stocks that pay dividends, assuming you have fractional shares turned on, which you have to turn on when you actually purchase that stock by purchasing in dollar increments, rather than whole shares, if you have fractional shares turned on, you can also do dividend reinvestment for free, which is going to allow you to reinvest dividends in $1 increments back into the issuing stock.

So in order to do that guys, what you’re going to do is click on the investing tab, and you’re gonna scroll down, and you’re going to see where you have dividend reinvestment disabled. All you would do is click on enable dividend reinvestment.

I don’t have any dividend stocks in this portfolio, so I’m going to skip that for now, but that is how you would go ahead and do that. So anyways guys, there you have it, that is a step-by-step overview of how to buy stocks on Robinhood. And also pretty much probably answers all of the other questions about how this app works for a complete beginner.

Like I said if you wanna support me for putting this video together, and you’re opening up a Robinhood account for the first time, feel free to use my link below, and basically, at zero additional cost to you, it puts a little bit of extra money in my pocket and allows me to make more helpful videos like this on YouTube.

So again, that is never expected, but always appreciated, and I am affiliated with Robinhood. If you guys found this video to be helpful, please drop a like and subscribe, and hit that bell for notifications, and also feel free to leave me a comment with your thoughts and feelings about Robinhood, or any questions that you may have, or topics for future videos. But thank you so much for tuning in guys, and I hope to see you in the next video, and happy investing.

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How Microstrategy CEO Turned “Scary” Bitcoin Investment Into More Than $250 Million

 

Key Takeaways

  • Saylor states that the economic crisis of 2020 caused hyperinflation of major assets.
  • “Bitcoin is about digital scarcity,” says Saylor.
  • He believes that cash is losing value at a pace far greater than the media reports.

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Michael Saylor, CEO of Microstrategy, recently made headlines for revealing that he personally owns $245 million worth of Bitcoin. His company’s stash is nearly double that. 

Under Saylor’s leadership, Microstrategy Recently increased its BTC holdings by $175 million to a whopping $425 million. 

But why the big bet? The pandemic, of course. 

More importantly, how this pandemic, and its economic fallout, has changed the world of money forever.

Stocks Are Now Hyperinflated. Cash Will Become Worthless

Saylor states that while the nominal rate of monetary inflation is zero, the pandemic caused hyperinflation of assets. This wasn’t reported in the news, however. 

Because central banks like the ECB and Federal Reserve have been increasing the money supply to stimulate the economy, the value of stocks and their companies has seen a major decoupling. 

“Every asset that represented the value of an entity was going up in value, while the actual value of the entity was going down,” explains Saylor. “The nominal inflation rate is zero, but the asset inflation rate is 15%.” 

The Microstrategy CEO pointed out that Apple stock has somehow doubled despite flat revenues. With rampant asset inflation and plummeting cash value, Saylor sought alternative assets to preserve his wealth.

At first, Saylor was skeptical of Bitcoin, saying it felt “scary.” 

However, he soon changed his mind, concluding that it was more efficient than gold or any other asset as a store of value. 

Saylor Has Invested Hundreds of Millions in Bitcoin

Since this realization, Saylor directed his company to buy $425 million worth of Bitcoin in total. He also personally holds over 17,000 BTC. 

The decision makes perfect sense, according to Sayler. 

He views money as a form of energy and Bitcoin as the most efficient way to channel that energy, especially now that the fiat supply is expanding rapidly. In his mind, the risk does not come with a broad bet on the crypto industry, but rather in choosing Bitcoin specifically.

“Bitcoin is about digital scarcity,” says Saylor. “If you don’t understand monetary energy, you don’t understand Bitcoin.” 

Saylor cut his teeth investing in valuable .com registrars, buying domains like “wisdom.com,” flipping them for a profit later. He views his confidence in the .com domain category as equivalent to choosing Bitcoin. 

Because Bitcoin is the dominant blockchain and has had ten years to mature, Saylor believes he has made the right decision, even if not everyone around him feels the same way. 

“There are people in the outside world that don’t agree with me,” says Saylor. “If they all agreed with me, I wouldn’t be able to buy Bitcoin. It would be too expensive.”

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The Absolute Beginner’s Guide to Cryptocurrency Investing

References are made wherever possible. All statements are based on the author’s experiences. I take pride in informing the public and helping as many as I can through sharing my experiences with my readers. That said, no one except you can take responsibility for your Cryptocurrency Investing decisions, so do think it through before investing.

It would be appropriate to start this guide off with the premise that an increasing number of e-commerce stores are beginning to accept cryptocurrency payments. These stores range from vape shops, recruitment sites, clothing stores, marketplaces, and many others. This is a clear indicator that cryptocurrency is to stay and it is, therefore, important to start from the beginning.

When I first started taking an interest in cryptocurrency I thought I was so lost in this huge sea of unknowns. Where do I start? What are the useful keywords to look up and keep in mind? What are the available helpful resources? This cryptocurrency investing guide is written so that in just 20 minutes, you would have a sense of what to expect of your upcoming crypto journey, and how to best go about starting it. Enjoy it, it might just be the most exhilarating ride of your life.

The Absolute Beginner’s Guide to Cryptocurrency Investing

Rise of the Cryptocurrencies
As the tech literacy of the population increases, acceptance of crypto as a legitimate store of value follows, and it boomed. Titles along the lines of ‘Bitcoin price hits new all-time high’ and ‘Ethereum price surges’ are starting to perforate the general public’s news feed. What we know for sure is that people who were once sceptical of Bitcoin and the technology behind it are slowly understanding and getting increasingly involved with crypto. As at the time of writing, the market cap of the entire crypto space is at 30.9 billion USD. It was 20 billion just four months ago. What would it be four months from now?

Current Makeup of the Cryptocurrency Space

You would have heard of Bitcoin and the ‘altcoins.’ How this naming convention started was because back in the days of 2011, forks of Bitcoin appeared in the markets. The forks, or clones, each aspire to serve a niche area, aiming to be ‘better’ than Bitcoin. Since then countless new crypto has emerged, eroding away Bitcoin’s crypto market cap dominance. These altcoins are gaining market share at an alarming speed. Ten times or more growth has been observed in a time span as short as six weeks (see PIVX, an altcoin).

Cryptocurrency, Stocks, and Fiat

The currencies we know are referred to as ‘fiat’ by the cryptocurrency community. Although having ‘currency’ in its name, cryptocurrencies share more similarities with stocks than currencies. When you purchase some cryptocurrency, you are in fact buying some tech stock, a part of the blockchain and a piece of the network.

QuinceMedia (CC0), Pixabay

Cryptocurrency Exchanges

The most common place where people buy and trade cryptocurrency is on the exchanges. Exchanges are places where you may buy and sell your crypto, using fiat. There are multiple measures to judge the reliability and quality of an exchange, such as liquidity, spread, fees, purchase and withdrawal limits, trading volume, security, insurance, user-friendliness. Out of all these, I find Coinbase as the best exchange hands down. It has a beginner-friendly user interface, and an unbeatable 100% crypto insurance.

After setting up an intermediary bank account and verifying your details with Coinbase, you are only five simple steps away from a Bitcoin purchase:

Access the ‘Buy/Sell Bitcoin’ tab

Select the payment method using the drop-down menu

Enter the desired amount

Click ‘Buy Bitcoin Instantly.’

View your credited Bitcoins on your dashboard

When you get acquainted with buying crypto and start to itch for some crypto trading (e.g. BTC/ETH), simply perform an instant transfer from Coinbase to GDAX free of charge and start trading. Think of Coinbase as the place to conveniently buy and store your crypto and GDAX as your margin trading platform. Transfers between the two are instant and free.

As you slowly get familiar with other currencies, you might want to have the option of investing in them. Bittrex and Polo are two exchanges that offer a wide selection range.

When signing up on these exchanges for the first time, do make it a point to verify your account with the required documents early, as you do not want to be caught in the middle of some tedious and slow admin work when the trading opportunity comes. Verification on these exchanges may take days, and purchase/withdraw limits may only increase gradually as you trade.

An additional point to note: if you are using a currency other than USD, do check out the exchange’s ease of funding and withdrawal. You do not want your exchange to come into fiat withdrawal problems like Bitfinex did recently.

DavidRockDesign (CC0)

Cryptocurrency Wallets

Exchanges have inbuilt online wallets to keep the cryptocurrency you purchased. However, for those who heard of the Mt. Gox hack, you might feel uneasy to put on an exchange. If you do not wish to keep your crypto holdings on the exchange, you have the option to either use a paper wallet service like myetherwallet.com or spend 99 USD on a hardware wallet like KeepKey. Both serve the purpose of removing platform risk, at the cost of taking up the responsibility of keeping your cryptocurrency safe.

To transfer your crypto from exchanges to your hardware wallet for long-term storage, simply follow these steps, using Coinbase and KeepKey as an example:

Plug in your KeepKey USB cable

Open your KeepKey Client (on Google Chrome under Apps)

Find your wallet address on the KeepKey Client UI

Access Coinbase ‘Send/Request’ tab and input your KeepKey wallet address

Confirm amount and click ‘Send Funds’

Take note to first send a tiny amount (e.g. 0.0001 BTC) for testing before sending the bulk, lest an error occurred and the transfer amount is lost. A small network transfer fee might be charged.

Personally, I own a hardware wallet, as I love the feeling of a having around a tangible reminder of my crypto holdings. Also, the hardware wallet’s user interface makes it easy to keep multiple coins, which is especially handy when you participate in ICOs (Initial Coin Offering) in the future.

Cryptocurrency as a Percentage of Your Investment Portfolio

This part will be wildly subjective. Crypto has the potential to realize many ‘rags to riches’ stories, but its volatility makes it unpredictable. As a precaution, the money you put in crypto should be money that you are fine with losing. I cannot emphasize the importance of this as we often underestimate how volatility affects our emotional capacities. The upside is huge, but it comes with lots of risks and, if I may put it, emotional torment.

A conservative portfolio I would suggest is as follows:

30 years old (max) 30% Crypto, 50% Traditional Investments

30 – 40 years old (max) 20% Crypto, 60% Traditional Investments

40 years old (max) 10% Crypto, 70% Traditional Investments

This is not meant to be age discriminatory but considers the fact that one takes up more financial responsibilities (mortgage, family) as he grows older.

Within the designated crypto share of your portfolio, you may diversify your coins based on your risk appetite.

Show Me the Money! Cryptocurrency Investing
Now, this is where it gets exciting.
How do we pick the winner? How do we avoid picking the loser?

Note that crypto is now in a huge bull market and anything could rise over time. Also, do not dismiss the possibility that we may be in a bubble like the dot-com boom back in 2000. Still, ask yourself these questions before you decide to invest in a coin:

Are my investments safe with the dev team? The first rule of investing should always be the preservation of capital. Can you trust the dev team with your money? Are you about to leave your money with founders who have been involved in previous scams? If you see these telling signs, back off immediately. The coin’s price might grow for all you care, but it is just not worth it to put your capital at such risk.

Does my coin of interest have a long-term plan? If you cannot understand their yellow paper, at least read their white paper. What are the team trying to achieve? Do they have the means, or have they already worked towards their goals? What are the timelines and milestones?

Does my coin of interest seem like a well-marketed plan with no backup? Lots of ICOs these days just have a pretty webpage, and then they’re shipped out to sell. Watch out for these: are they able to deliver?

How long should I stay in this? Do I have an exit plan? There will be coins where you do not want to hold forever, but wish to flip for some short-term gains. In this case, be sure to set a timeframe, or an exit price, to reduce to effect of emotions on your trades. Stick to your plan and watch your emotions.

Does it have a real-world use case? Some coins seem to keep increasing in value simply due to supply-demand factors. This trend might not be sustainable. For a coin to have long-term supported value, it must have a real-world use case eventually. Look out for coins that look too much like a get-rich-quick scheme.

Short-Term Trading with Margin

Once you get familiarized with crypto, you may want to trade on your ‘stash’ in hopes of increasing it. For the experienced forex traders, this is nothing new. But for the new crypto investor, you may want to brief up on how to make a leveraged trade.

Short-term trading takes advantages of incoming news to make a quick buck. If you foresee good news from an upcoming release of a coin, you may want to open a long and see how it goes. Remember, buy the rumor, sell the news; act fast and be daring if you wish to make a profit with short term trading.

Mining

For those who are more comfortable with a predictable form of reward, mining is the way. Mining involves setting up of a rig, consisting of GPUs or CPUs and an investment in the electricity. Mining is only possible on cryptocurrencies that follow the Proof of Work protocol. It takes some effort to set up and gets things running, but it is attractive as a long-term passive income as long as you frontload the work.

Staking

Staking is the Proof of Stake version of ‘mining.’ Think of this as making dividends on your stock. The reward rate and staking method differ greatly among Proof of Stake coins, but in general, it takes less effort as compared to mining.

Arbitraging

As you get a hand in multiple exchanges, you may wish to buy from one exchange and sell on another to make ‘arbitrage’ gains when you spot an arbitraging opportunity. Take note of two things if you wish to do so: remember to factor in fees, and remember that the price could change when you are transferring your coin between exchanges, especially during volatile times. USD tends to be liquid so this happens less for it, but for other currencies such as CAD (Canadian dollar) and SGD (Singapore dollar), there may exist more arbitraging opportunities to exploit.

Helpful Resources

Check out coinmarketcap for the tabulation of various coins’ market cap and price. Check out cryptowat for the prices of popular coins across different exchanges. Check out the respective coins’ subreddits for available news and market sentiments. Lastly, check out hhypecoaster for how much more crypto you need for a Lamborghini Aventador ? I would also recommend that you check out for the latest laws and regulations governing the cryptocurrency sphere.

That’s about all I have, for now, invest smart and most importantly, don’t forget to have fun!