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Should Robinhood Mirror Coinbase for Maximum Profits?

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Robinhood mirror coinbase

Robinhood and Coinbase are two of the big names in cryptocurrency trading. In particular, these are the companies that crypto-trading newbies often find first. There are pros and cons to each. However, one of the biggest benefits of Coinbase in comparison to Robinhood is that it offers a wallet that allows for easy withdrawal of funds. Should Robinhood mirror Coinbase for maximum profits moving forward?

What Is Robinhood?

Robinhood is a “commission-free stock trading and investing app.” The app is popular among new investors interested in learning about stock trading for the first time. In particular, it appeals to people who want a quick-and-easy mobile solution to investing. Robinhood, as you can tell, emphasizes stock trading. However, you can also trade cryptocurrency through the Robinhood app.

What Is Coinbase?

Coinbase is “the easiest place to buy and sell cryptocurrency.” This is a mobile app solution for people who are interested in trading cryptocurrency. Coinbase launched in 2012. Initially, it was a Bitcoin trading app. However, today you can trade numerous forms of cryptocurrency through this app. Additionally, you can learn about different cryptocurrencies through their news sections.

Robinhood Vs. Coinbase

The primary difference between Robinhood and Coinbase is their emphasis. Robinhood emphasizes stock trading, although it offers cryptocurrency trading as well. Coinbase emphasizes, and in fact focuses entirely on, cryptocurrency. Therefore, if you’re interested in both stocks and crypto, then you might feel drawn to Robinhood. In contrast, if you want to learn about cryptocurrency and maximize investing there then you’d likely choose Coinbase. Since Robinhood does have that stocks edge, should Robinhood mirror Coinbase in terms of cryptocurrency then it might eventually be the better options.

Other Major Differences: Pros and Cons

Here are some of the other major differences between Robinhood and Coinbase:

  • Robinhood has a very limited number of cryptocurrencies. In contrast, Coinbase has dozens.
  • Furthermore, Coinbase allows you to trade your cryptocurrency. You can buy, sell, send, receive, and exchange money easily through the app. Additionally, you can easily transfer your funds to multiple accounts. In contrast, Robinhood only allows you to purchase altcoins, which you then must sell to cash out to an external account. Transaction options are minimal.
  • Coinbase has a lot of opportunities to help you learn more about cryptocurrency. In fact, you can earn cryptocurrency by watching videos on the platform to learn. Robinhood also has some learning tools. In fact, this is one of the ways that Robinhood mirrors Coinbase today. However, you’ll learn more about stocks than cryptocurrency.
  • Robinhood charges no commission fees. In contrast, Coinbase has arguably high fees.
  • Coinbase is a more global app. It supports use from people in over 100 countries. Robinhood, on the other hand, is for people in the United States.
  • If you’re interested in investing in gold then you can do so through Robinhood. Unfortunately, you can’t do that through Coinbase.

Should Robinhood Mirror Coinbase for Maximum Profits?

As you can see, there are similarities and differences between Robinhood and Coinbase. Both are digital apps that allow you to learn about and trade cryptocurrency. However, Robinhood has fewer cryptocurrency options whereas Coinbase is a leader in crypto trading for newbies and more advanced traders alike. On the other hand, Robinhood offers the opportunity to trade stocks and invest in gold.

Should Robinhood mirror Coinbase to maximize profits moving forward? If Robinhood were to keep, or even expand upon, their own strengths (stocks, particularly) as well as adopting Coinbase’s strengths in cryptocurrency, then it could certainly make it a forerunner in the market again. After all, Robinhood offers commission-free trading. Therefore, they could easily compete with Coinbase in terms of people interested in cryptocurrency trading if they offer both more cryptocurrencies and easier trading/selling within the app.

But, Is It That Simple?

It sounds fairly simple, of course. If Robinhood can compete with Coinbase in cryptocurrency while retaining its strong base in stock trading, then the company should profit. However, business is never quite that simple. What would it take in terms of investment and technology in order for Robinhood to make those changes? Would they truly be able to compete with Coinbase in terms of cryptocurrency? Or, instead, would they end up losing their edge in their own strengths while failing to take over the cryptotrading market?

One of the things that any company should keep in mind is that they’re on their own path. It’s all too easy to give in to the pressure to make everyone happy. When you see your competitors doing well in a specific area, of course you want to press forward in that same area. However, if that’s not your true strength, then it rarely works out. Whether or not Robinhood makes changes that make it more similar to Coinbase really depends on the company’s own values, mission, and plans for the future. It’s not a simple decision.

I’m New to Cryptocurrency, Should I Try Robinhood or Coinbase?

As of right now, there are similarities and differences to Robinhood and Coinbase. Should Robinhood mirror Coinbase in the future then it may be tougher to choose between the two. But as it stands, a newbie investor can easily consider a few key factors to choose between one or the other:

  • If you really want to learn about cryptocurrency, then you should choose Coinbase.
  • Moreover, if you want to have the most options available to you in terms of cryptocurrencies, then you should choose Coinbase.
  • However, if you’re just dipping a toe in the water and only plan to invest in major cryptocurrencies such as Bitcoin and Ethereum, then you might want to consider using Robinhood. After all, it’s commission-free.
  • Furthermore, if you want to combine stock trading and gold investing with cryptocurrency investments then you should choose Robinhood.

Of course, you could always download both apps. Then you could invest a little in each to see which one feels right for you.

What is your opinion? Should Robinhood mirror Coinbase for maximum profits?

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Can I Make Money Minting Writing As NFTs?

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writing as NFT art

I’ve always been interested in the market value of art. Therefore, the whole NFT art craze has captured my attention recently. It’s so fascinating to think about how we place a price on art in general, let alone when the art is digital. As this marketplace grows, I’m curious to see if I could leverage my interest and my many years of experience as a writer to make money minting writing as NFTs.

What Is NFT Art?

NFTs, short for non-fungible tokens, are essentially one-of-a-kind unique digital items. You can buy, collect, trade, and sell them. NFT art, then, is an art piece that has been minted on blockchain so that a specific version of it is the unique “original” version.

For example, the owner of a Nyan Cat GIF popular forever ago minted that GIF. The GIF has been online in many places for years. Anyone can still find it and enjoy it. However, the minted version becomes the collectible official crypto art piece. You can buy and sell that one. The buyer can display it in a virtual gallery. (Yes, there are virtual galleries for NFT art.)

That sums up the very simple aspects of what an NFT is and how it relates to cryptoart. In order to fully understand, you have to get a grasp on blockchain, minting, and cryptocurrency. Here’s a good place to start learning more.

NFT Art Is (Mostly) Digital Art

Usually, NFT art is created as digital-only art. However, in some instances, it’s tied to physical objects. For example, right now there’s an NFT art sale of a 1986 Basquiat drawing. The seller has linked the sale to the option for the buyer to destroy the original physical art piece.

Obviously, this is controversial for a whole variety of reasons. It brings up questions about “what is art” and “how do we value art”. These are age-old questions in the art world, with answers that have changed over time.

What Is The Value of Art?

This concept of the value of art has long fascinated me. How do we place a value on creativity? How does an artist decide what to charge for a piece? Who gets involved in the sales and marketing of art?

And this also gets directly linked to the concept of “what is art?” Who decides what things are art and thus, which things are valuable as art pieces?

Andy Warhol is obviously an artist who embodied these questions. He himself directly posed these questions. And continued soaring sales of his work keep the questions going. If you’re interested in learning more details about art as an investment and the world of art market sales, I highly recommend Richard Polsky’s two books, “I Bought Andy Warhol” and “I Sold Andy Warhol (Too Soon).”

Digital Art and Cryptocurrency

The question of the monetary value of art, and the idea of art as an investment, is fascinating on its own. It gets even more intriguing with this new layer. After all, you don’t exactly buy a piece of digital art to hang on your wall right? (Well, maybe; people are creating digital frames that allow you to do just that.)

But then again, you don’t buy a multi-million dollar work of art to hang on your wall either. So, on the one hand, it seems radically different to only own a digital “token” of an art piece instead of the real thing. Yes, on the other hand, the rest of the world can always view reproductions of your physical Mona Lisa, and you’re probably not touching the real thing if you buy it as an investment, so how different is this really?

Then there’s that layer about cryptocurrency. It’s still such a new aspect of investing for most of us. Therefore, it can still feel like it’s not “real money.” So investing in NFT art can feel like placing a monetary value on not-quite-real art using not-quite-real money. It’s a strange, intriguing foray into a new world, though the world of art is as old as time.

Is There a Market for Writing Minted As NFTs?

I consider myself an artist expressing myself primarily through the written word. Although I have moderate interest in investing in NFT art made by others, I’m especially interested in discovering whether there’s a market for my own writing minted as NFT art.

Writing is slow to take off as NFT art. So far, most big NFT art sales are visual art pieces. The most well-known example is the Beeple collage image that recently sold through Christie’s for nearly $70 million. That said, most seem to be GIFs. In fact, they’re specifically GIFs and memes that mock the whole world that they’re a part of.

One exception was a half-million-dollar sale of a New York Times column NFT. Any of us can read the article online but now someone “owns” it.

The Vision for Minting Writing As NFT Art

Despite this, I see so much potential for writing minted as NFT art. I envision being able to sell what’s essentially the “first edition digital rights” to works. This would be comparable in a sense to collecting rare first edition signed books. You don’t buy them for the content. You buy them for the investment. Or because you absolutely love the book and author and that makes it valuable for you.

Similarly, if I mint one of my own books, anyone could still purchase or download it through Amazon and read it but only one person would own the NFT token for it. I envision digital libraries with shelves where each of us book lovers could showcase our collections of NFT writing we’ve purchased. Moreover, I think this could be a terrific way for the marketplace to support independent writers, allowing them to create art for the sake of art, rather than trying to write pure content just to monetize eyeballs. I think it would be good for the writing industry as a whole.

Where I’m at in the NFT Art Journey

So, here’s where I’m at so far:

  • I’ve begun to dive deep into the world of cryptoart.
  • Therefore, I’ve set up a Coinbase wallet. Now I’m the proud owner of some Ethers and Bitcoins. In other words, I have cryptocurrency for the first time in my life.
  • I’ve started looking into sites like Rarible and Open Sea where I might be able to mint my first writing as NFT art.
  • Importantly, I’m also looking into the issues with NFT art. One of the biggest concerns is that this stuff is all really bad for the environment right now because of the energy required to run servers for cryptocurrency and NFTs. However, there are promising leads in this area with the upcoming development of Eth 2, the launch of Palm.io and a company called NEAR.
  • I’m on the lookout for job opportunities or collaborative partnerships related to writing/creativity as NFT art.

I would absolutely love to hear your thoughts on this topic.

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If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

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Weekly Wrap: Coinbase IPO Sets Record As GameStop Strengthens Finances, Housing Steadies, and More Are Going Green

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Weekly Wrap

Coinbase debuted with a bang. In addition, GameStop helped its bottom line by shedding debt. Meanwhile, new home construction is trending up and so is ESG investing.

COINBASE IPO

The much anticipated Coinbase IPO exceeded expectations. The stock, which trades as COIN, closed Friday at $342 a share.

The reference or projected opening price of COIN was $250. However, the actual opening price jumped to $381 and closed at $321.28 Wednesday.

Coinbase functions as an exchange on which investors buy and sell cryptocurrencies. Subsequently, many buyers choose to hold cryptocurrencies as an investment. As a result, Coinbase also offers a digital wallet.

Coinbase Revenue Sources

Coinbase charges fees for transactions. One is a flat rate or percentage of each transaction. The other is the margin, up to two percent of each transaction. Other sources of income include:

  • Coinbase Commerce – provides payment processing for online merchants.
  • Coinbase Card- a Visa debit card that converts cryptocurrencies to U. S. dollars for purchases.
  • USD Coin– Coinbase’s cryptocurrency that is tied to the U. S. dollar.  

Cainbase took the unusual route of offering its IPO as a direct listing. That saves money in that the listing does not go through an investment bank as most IPOs do.

GameStop Continues Wild Ride

GameStop’s longest losing streak in a year ended this week. And though many analysts were pressing the sell button, the stock rallied on important news. It closed at $154.69 Friday. 

GameStop announced Tuesday it will use cash to pay off $216.4 million in corporate notes by April 30. Those notes are the last of the company’s long-term debt. That spurred a buying surge and the stock rose 18 percent Wednesday.

The retailer made several other moves to strengthen its financial position. It announced that it plans to sell up to 3.5 million shares of stock.

Changes At The Top 

CEO George Sherman forfeited 587,000 shares of stock for failing to meet performance targets Wednesday. The company is searching for Sherman’s replacement.

Ryan Cohen, former founder and CEO of Chewy, was announced as the company’s new chairman of the board Thursday. He will assume that post in June. Cohen, who has a 13 percent stake in GameStop, has been pushing the company to move more into the digital marketplace.

The Short Shift 

GameStop was among the 10 most shorted stock since March 15. However, the stock had gained as much as 650 percent this year. Its 52-week high was $483 a share compared to a low of $3.77 a share. 

GameStop’s meteoric price rise was triggered by social media-driven buying. Last year, many professional investors held short positions (betting the stock would drop). A surge of buying promoted largely on a Redditt forum forced short-sellers to buy the stock to limit their losses. 

It is known as a ‘squeeze’ and it propelled GameStop stock to new heights.

Going Green

It’s Spring and everything is turning green — even in the world of investing.

Big banks, investment managers, ETFs, and mutual funds are all moving more and more money into ESG (environment, social, and governance) investments.

Tomorrow Saving Advice takes a look at this trend and why the SEC (Securities and Exchange Commission) is interested.

Housing

Residential real estate is still a seller’s market. However, a number of new trends are developing. Mortgage rates seem to be stable; homes in forbearance are dropping; new home starts are up; and a further ban on foreclosures is in the offing.

Forbearance

The number of homes in forbearance continues to decline. Your home is in forbearance if your lender allows you to pay a lower rate or suspends payments temporarily. 

Black Knight, an analytics company, reported last week that 2.3 million mortgage borrowers remained in forbearance as of April 6. That is a decline of 228,000 over the previous week and the biggest drop in six months. 

The number of homes entering forbearance also plummeted. According to Black Knight, 158,000 homes entered the program in the previous four weeks. That is a decline of 18 percent.

Additional Foreclosure Safeguards

The Consumer Protection Finance Bureau (CPFB) last week proposed a new rule to bar foreclosures on principal residences until the end of the year. The ban would apply to both private and federal mortgages.

About 1.7 million homes will come out of forbearance in September, according to the CFPB. Many of those homes will be at risk of foreclosure. The objective of the ban extension is to give lenders and homeowners time to restructure their loans if possible.

Single Family Building Increasing

The number of single-family home construction permits issued in the first two months of the year increased 16.6 percent over the same period in 2020, according to the National Association of Home Builders (NAHB). About 164,901 permits were issued nationwide, reports the NAHB.

In addition, multi-family building permits were also up. The NAHB reported 83,110 such permits were issued across the country. That marks an increase of 17.7 percent over the 70,635 issued the first two months of last year.

What Lies Ahead

The housing market looks healthy, according to Freddie Mac’s Quarterly Forecast. 

“As the economy continues to improve, we expect conditions to remain generally favorable for the housing and mortgage market,” said Sam Khater, Freddie Mac’s Chief Economist.

Higher housing prices and rising mortgage rates have the potential to slow the housing market, cautioned Khater.

Looking ahead to next year, Freddie Mac’s forecast projects:

  • The average 30-year fixed-rate mortgage will be 3.2 percent in 2021 and 3.7 percent in 2022.
  • House price growth is expected to be 6.6 percent in 2021, slowing to 4.4 percent in 2022.
  • Home sales are expected to reach 7.1 million in 2021, falling to 6.7 million homes in 2022.
  • Purchase originations are expected to increase to $1.7 trillion in 2021 before dropping to $1.6 trillion in 2022.
  • Refinance originations are expected to be $1.8 trillion in 2021 before falling to $770 billion in 2022. 
  • Overall, annual mortgage origination levels are expected to be $3.5 trillion in 2021 and $2.4 trillion in 2022.

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If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started. Check out these helpful tools to help you save more. For investing advice, visit The Motley Fool.

Why You Should File Cryptocurrency Tax

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Why File for Cryptocurrency Tax

Cryptocurrency had a banner year in 2020.  Bitcoin, in particular, increased significantly in value in 2020.  While cryptocurrency used to be a fringe currency, it is becoming more mainstream and there are many types available.  As such, the IRS has caught up.  Over the last few years, the agency has been more stringent about receiving their fair share.  There are several reasons why you should file for cryptocurrency tax.

The IRS Is Becoming Increasingly Insistent

Back in 2019, the IRS sent several thousand letters to those who held cryptocurrency to remind them that they were under legal obligation to pay taxes on the money they make from cryptocurrency and on the income they earn in cryptocurrency.  At that time, the IRS stated in a press release, “The IRS is expanding our efforts involving virtual currency, including increased use of data analytics.  We are focused on enforcing the law and helping taxpayers fully understand and meet their obligations.”

Now, on the 2020 tax form, on page one, just below where you fill in your vital information, you will find a yes or no question: “At any time during 2020, did you receive, sell, send, exchange, or otherwise acquire any financial interest in any virtual currency?”  As this statement is front and center on the form, lying about it and saying you didn’t see it is no longer credible.

You Are Legally Obligated

Just as you are legally obligated to report income earned during a tax year as well as capital gains received, you are legally obligated to report income paid via cryptocurrency and gains realized from selling cryptocurrency.

But, that also means you can report losses on cryptocurrency if you sell at a loss.  You will need to use IRS Form 8949 to report your loss.  However, you must sell before you report this loss.  If you simply continue to hold the cryptocurrency, but it has lost value, you cannot report it.

Having said that, you are expected to keep track of and report gains, losses, and income yourself.  You may receive a 1099-K if you had more than 200 transactions or $20,000 in gross proceeds.  Anything less than that, and you will not receive a 1099-K.  However, just because you didn’t receive a form doesn’t mean you don’t have to report any transactions.

Cryptocurrency Doesn’t Always Appear on Your Taxes

Why File for Cryptocurrency Tax
Photo by Kelly Sikkema on Unsplash

You can mark that yes, you did have a financial interest in any virtual currency and still not have a taxable event.  That happens if you have cryptocurrency but did nothing with it this year; you just held it.

Final Thoughts

One of the main reasons why you should file for cryptocurrency tax is because the IRS has made a question about cryptocurrency front and center on the tax form.  In addition, you don’t want to risk legal repercussions for hiding the money you may have been paid or earned through cryptocurrency.

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.
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Everything You Need to Know About Dogecoin

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Everything About Dogecoin

Everything About Dogecoin

Dogecoin is a type of cryptocurrency that was created by Billy Markus and Jackson Palmer mostly as a joke. The coin has an image of a dog on the front and was inspired by a popular internet meme that features a Shiba Inu.

Palmer and Markus never expected dogecoin to catch on, but it’s recently grown to become the 10th most valuable crypto. To help you decide whether or not dogecoin is a good investment, here’s everything you need to know about this unique currency. 

What is Dogecoin?

Dogecoin is a type of cryptocurrency that’s stored in a digital wallet. You can trade it, hold it as an investment, or spend it online. 

Most retailers don’t accept cryptocurrency because it’s more volatile than fiat money like USD. But you can still use it to purchase gift cards through services like Bitrefill. Many fans of dogecoin also use it to give tips to online content creators to thank them for their hard work. 

Is Dogecoin a Good Investment?

Dogecoin has recently surged in popularity. Many celebrities like Elon Musk and Snoop Dogg have started tweeting about it, which has created some buzz and caused its price to increase. 

Everybody’s talking about dogecoin, so it may seem like a good time to invest before prices go up even more as they did with bitcoin. However, there’s no guarantee that dogecoin will continue to rise. 

Many people believe that part of why bitcoin is in such high demand is because the supply is limited. There are only a certain number of bitcoins, which may be driving up the price. 

However, dogecoin is uncapped, so the supply isn’t limited. Experts believe that this may prevent it from becoming as valuable as bitcoin and other major cryptocurrencies. 

It’s also worth keeping in mind that cryptocurrencies are considered risky investments because prices rise and fall in a pretty volatile way.  So even if you think dogecoin is the next big thing, you definitely shouldn’t pour all of your money into it.

If you want to purchase dogecoin, it’s wise to keep it as a small part of your portfolio and allocate most of your savings toward traditional, proven investments. 

How to Get Dogecoin

You can either get dogecoin by mining it or purchasing it through an exchange. Here’s a closer look at both options. 

Mining Dogecoin

If you’re not familiar with mining, it involves running software on your computer that confirms the accuracy of recent cryptocurrency transactions. This helps secure the network and prevents people from lying and claiming they have more coins than they actually do. 

In exchange for performing this task, you may get a small reward. But your computer has to be the first to document the transaction and add it to the blockchain, so you’re not guaranteed any dogecoins. It’s kind of like playing the lottery, so you can’t go into it expecting to win every time. 

However, the great thing about mining dogecoin is that you have a much higher chance of winning than you would with bitcoin. It also takes less computer power and time, so it’s easier to get started with. 

Buying Dogecoin

If mining dogecoin sounds like too much work, you can purchase it on exchanges like Binance and Kraken. 

Unfortunately, you can’t buy dogecoin with USD. So you’ll have to purchase another cryptocurrency that’s listed as a pairing and trade it for dogecoin. 

Wrapping Up

If you’ve never bought in cryptocurrency before, dogecoin is a great coin to start with. But don’t get carried away by the hype and invest more money than you can afford to lose.

Even though prices have been on the rise recently, they could fall at any time. Cryptocurrency is a pretty volatile investment, so you should always exercise caution when deciding how much to buy.

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If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.
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Here’s What To Expect From Cryptocurrency in 2020

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cryptocurrency in 2020 The cryptocurrency market is largely about speculation. It is dramatically impacted by what investors (both current and potential) think will happen in the market. As a result, cryptocurrencies have had some incredible highs and shocking lows over recent years. The volatility makes it hard to figure out what you can expect from the market in 2020. However, by understanding various trends and upcoming events, you might be able to predict a bit of what the future will hold. If you’re wondering what you can expect from cryptocurrency in 2020, here’s what you need to know.

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