Bitcoin is a digital currency that is worth thousands of dollars. They are scarce and are difficult to obtain over some time. Bitcoins are based on a decentralized ledger technology, which is known as the blockchain. The value of the bitcoin depends on the faith of the investors, public interest, integration into financial markets, and its performance. Investing in bitcoin often seems to be complicated; however, it gets much easier when you break them into simple steps. Investors should understand the fact that investing in bitcoin involves some amount of security and technical issues. One can buy bitcoin by connecting the digital wallet to a debit/ credit card or bank account. Today we are going to discuss the steps involved in bitcoin investment.
Steps to invest in bitcoins
The following steps would help you to invest in bitcoins easily:
Step 1 – Get a digital wallet for bitcoin
To get started, the first thing that you would need is a wallet to store bitcoins. You will get several options for software and hardware wallets. Software wallets are referred to the mobile applications that need to be connected to your bank account. These wallets allow you easy and quick access to bitcoin. Coinbase is a leading software wallet that is popular and trustworthy. The Coinbase phone number can be dialed when any help is required. The software wallet can be trusted solely and you can store your bitcoins without the fear of being hacked. There are also many other wallets available which are equivalently good as Coinbase.
Step 2 – Get connected to a bank account
When you want to purchase bitcoin, you would have to connect your digital wallet to a bank account or credit/ debit card. All the payment modes perform the same function of transferring money securely. There are specific fees for exchanging traditional currencies for bitcoins. The transactions made by the bank account take up to four to five days to get process. By linking your bank account, you can easily buy and sell bitcoin and get the money deposited into your bank account directly.
Step 3 – Join an exchange
Bitcoin exchanges are the online market spaces where you are allowed to trade bitcoins for money. There are various exchange options available online and you can choose any one of them. Exchanges can vary in terms of reliability, security, exchange rates, cryptocurrencies, reputation, and processing fees. Look around carefully before settling down with one.
Before investing, make serious efforts to understand the features of the bitcoins. You should start risking your own money only when you are confident enough.
Future Financial Challenges and Opportunities for Small Businesses
While the economy has rebounded from the Great Recession, Biz2Credit found big banks still only approve about a quarter of the small-business-loan applications. Many companies are experiencing increased opportunities and funding. Yet, small businesses aren’t enjoying the same spoils. That may make it seem like the future of finance in small business may be more challenging.
Biz2Credit noted small-business-loan approval rates remain stagnant among institutional lenders. Small businesses can always entertain the possibility of earning funds through traditional banks. However, it’s smart to investigate other financing avenues as part of the future of finance in small business.
Many of these newer avenues to financing are poised to disrupt the industry. This is much like the small businesses they support. As financial outlets develop, they are addressing the challenges facing small businesses. However, there are other issues related to the future of finance in small business.
The challenges with the future of finance in small business
Traditional banks and financial institutions are built to service large businesses. This means their systems and processes are designed to assess risk in terms of big businesses with varied resources.
Some of the problems originate from simple data-gathering issues. The data isn’t consistent because three main credit bureaus are deciphering and delivering information about a candidate’s creditworthiness. Underwriting asks for endless reams of data about a business’s revenue. They also want to know about lines of credit and borrowing history. The time spent reconciling that information can also feel endless.
Worst of all, many lenders will use a small-business owner’s personal credit risk as a symbol of the business’s risk. Because these lenders use scoring models designed for either big businesses or individual consumers, they’re forced to try to apply their template for individuals to a small business. This results in the need for lots of judgment calls and system overrides. The more hoops a business owner has to jump through, the more likely he is to get caught in one of them.
That’s the process a small business endures with just one lender. Multiply that by five if an owner is shopping rates, and they are juggling several lengthy processes. Also, they are unearthing different sets of information for each. Because each asks for unique information, it’s difficult for many business owners to understand how they can improve their chances of accessing credit. Thus, they may find themselves in a loop of credit madness, using the same techniques to generate different outcomes and never knowing why.
The options shaping the future of finance in small business
Traditional lenders could be great options for small businesses. However, they would need to develop systems to evaluate small businesses by standards specific to their size and resources. Updating their scoring models, automating data collection, and streamlining their funding processes would benefit both. This would better indicate the degree of success a business could achieve with a lender’s help. Alternative finance, however, offers a window into what traditional lenders might hope to become.
Online lenders offer loans similar to bank loans. Yet, they offer a more streamlined product. These loans typically have less stringent qualifying requirements in terms of revenue, tenure and credit rating. Their processes are built on online platforms that allow for application and funding in the same space. Therefore, they demand fewer reviews and offer enhanced accessibility. These lenders eliminate lengthy wait times for qualification. Additionally, they assess more than credit history. Therefore, small businesses do not have to offer extensive collateral.
Kabbage, an online lender, streamlined its application process. They focus on live data connections to analyze a company’s real-time business performance over credit scores. A candidate must have been in business for a minimum of one year and achieved $50,000 in revenue in the past year or $4,200 per month over the past three months. This allows businesses to access lines of credit up to $250,000 with a free application that only takes 10 minutes.
Kabbage renders its decisions in real time. This means small businesses can use their lines of credit upon approval. It also highlights the benefits for users. Owners can maintain equity and control of their business. They keep their personal finances separate. Also, they avoid alienating those closest to them by accessing funds through a third party instead.
Crowdfunding platforms are another alternative financing outlet. This online pitching asks small-business owners to convince others that their companies are worth investing in. Crowdfunding asks people to invest in a given business, product or campaign. But the funds often don’t need to be repaid directly. Small businesses may issue lenders a free version of the item they supported or a percentage of future revenue.
Fundable is a crowdfunding platform dedicated solely to businesses. The site educates users on the fundraising process. They have built guides on crowdfunding, business operations and investing. It prohibits certain types of businesses and charges a monthly rate in lieu of taking a cut of the money earned. Also, Fundable allows users to determine whether they want to give rewards or equity to investors.
Invoice factoring is an alternative funding method. It relies on outstanding invoices rather than a business’s credit history. In this model, an invoice factoring company purchases a small business’s unpaid invoices at a discounted rate. This puts the focus on customers’ ability to pay rather than on the small business.
BlueVine is a company offering invoice factoring. It has built a streamlined dashboard that allows small businesses to attach the invoices they want funded. Small-business owners can see the rebates the same day. These are advanced at rates of 85 percent to 90 percent of the invoices selected. BlueVine does not require much paperwork.
Online banking also defines the future of finance in small business. It simplifies previous processes while enhancing the services of its brick-and-mortar sisters. Banking apps make it easy for small-business owners to keep tabs on their finances with one click. They can handle everything from transfers to deposits without visiting a branch. Many online banking platforms offer services geared specifically toward small businesses. They integrate with QuickBooks and other SMB financing software. Also, these online banks allow in-platform invoicing and payment collection. All these automated services save small businesses time and streamline the tools used.
Chime is an online bank account built to help users save money. Its Automated Savings program empowers entrepreneurs to automatically set aside money or round up their purchases, putting the “extra” into savings. Chime offers real-time transaction alerts and daily balance updates to keep them on top of their finances. And, they can seamlessly transfer funds between accounts, pay bills and issue checks. Unlike many big banks, it doesn’t charge monthly fees, overdraft fees or transfer fees. Also, users don’t have to maintain a minimum balance.
Small businesses aren’t earning funding attention at the same rate as their bigger competitors. To avoid the roadblocks of trying to compete with big businesses that have vast resources, small businesses should consider alternative financing.
Source Article: www.entrepreneur.com
8 Great Entrepreneurial Success Stories
It never ceases to amaze me how much time people waste searching endlessly for magic shortcuts to entrepreneurial success and fulfillment when the only real path is staring them right in the face: real entrepreneurs who start real businesses that employ real people who provide real products and services to real customers.
Yes, I know that’s hard. It’s a lot of work. What can I say, that’s life. Besides, look on the bright side: You get to do what you want and you get to do it your way. There’s just one catch. You’ve got to start somewhere. Ideas and opportunities don’t just materialize out of thin air.
The only way I know to get started is by learning a marketable skill and getting to work. In my experience, that’s where the ideas, opportunities, partners, and finances always seem to come from. Sure, it also takes an enormous amount of hard work, but that just comes with the territory.
If you want to do entrepreneurship right, here are eight stories you’ve probably never heard about companies you’ve most definitely heard of.
Related: How to Be Smarter
The John Ferolito and Don Vultaggio way. Back in the 70s, a couple of Brooklyn friends started a beer distributor out of the back of an old VW bus. Two decades later, after seeing how well Snapple was doing they decided to try their hand at soft drinks and launched AriZona Green Tea. Today, AriZona teas are #1 in America and distributed worldwide. The friends still own the company.
The Matt Maloney and Mike Evans way. When a couple of Chicago software developers working on lookup searches for Apartments.com got sick of calling restaurants in search of takeout food for dinner, the light bulb went off: Why isn’t there a one-stop shop for food delivery? That’s when the pair decided to start GrubHub, which went public last April and is now valued at more than $3 billion.
The Joe Coulombe way. After operating a small chain of convenience stores in southern California, Joe Coulombe had an idea: that upwardly mobile college grads might want something better than 7-11. So he opened a tropical-themed market in Pasadena, stocked it with good wine and booze, hired good people, and paid them well. He added more locations near universities, then healthy foods, and that’s how Trader Joe’s got started.
Related: Success Does Not Follow a Time Clock
The Howard Schultz way. A trip to Milan gave a young marketer working for a Seattle coffee bean roaster an idea for upscale espresso cafes like they have all over Italy. His employer had no interest in owning coffee shops but agreed to finance Schultz’s endeavor. They even sold him their brand name, Starbucks.
The Phil Robertson way. There was a guy who so loved duck hunting that he chose that over playing pro football for the NFL. He invented a duck call, started a company called Duck Commander, eventually put his son Willy in charge, and that spawned a media and merchandising empire for a family of rednecks known as Duck Dynasty.
The Konosuke Matsushita way. In Japan in 1917, a 23-year-old apprentice at the Osaka Electric Light Company with no formal education came up with an improved light socket. His boss wasn’t interested so young Matsushita started making samples in his basement. He later expanded with battery-powered bicycle lamps and other electronic products. Matsushita Electric, as it was known until 2008 when the company officially changed its name to Panasonic, is now worth $66 billion.
The Steve Wozniak and Steve Jobs way. While they had been friends since high school, the two college dropouts gained considerable exposure to the computer world while working on game software together on the night shift at Atari. The third Apple founder, Ron Wayne, was also an Atari alumnus.
As I always say, the world is full of infinite possibilities and countless opportunities, but your life and career are finite, meaning you have limited time to find what you’re searching for and make your mark on the world. This is your time. It’s limited so don’t waste it. Find something you like to do and just do it. That’s how real entrepreneurs always start.