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Risks Versus Returns on Coin Investments

Risk has an inverse relationship with returns. The riskier you are willing to go, the higher the returns. But, being in risky situations all the time is not safe. It may catch up to you one day or another. But how can you get the returns you want without all the risk? This is where good strategy can eliminate all your worries. If done correctly, you could achieve maximum returns without the any risks!

When you cut off all the risks, the returns are always low. Sometimes too low. So investors usually diversify their portfolios to lower their risks. This usually lowers their risks without sacrificing returns. What they usually do is put a certain percentage in extremely risk investments, then another chunk in medium risk investments, and most of it into safe investments. What they want to achieve is the highest return possible. But they always lose a lot of money in some of their riskiest investments. And then they lose some in the medium risk investments. The safe investments are usually safe. They could easily make more money if they do not lose money in their riskiest investments. But, this is inevitable because they were called risky investments for a reason. Their problem lies in the fact that their safest investments always give the lowest returns.

It’s a bit different with coin investments. In coin investments, the riskier coins usually have negative returns. So this means that you have to pick safe coins to invest in. But the same underlying problems still remain. Safe coins usually yield mediocre returns. I consider any coin that yields 6% a year or less is not a good investment. It doesn’t seem bad so why would I consider it a low return? Because it is an average of 6% over a couple of years. You would have to wait a couple of years for the coin to appreciate in value. You will get your 6% per year, but you don’t know when. I think if you have to play the waiting game, you should at least get 7.5% per year or more. That’s why I consider 6% a low return.

But if you know some good strategy, you might be able to get your high returns while cutting off all the risk. To counter the low returns and cut off all the risks you must diversify your portfolio in a certain way. All you have to do is buy high grade key dates to get your high returns. To cut off the risks you have to buy a different key date every time you buy an investment coin. So if you had 20 coins in your portfolio, you should have 20 different coins. Every single time you buy a different coin, your coin portfolio becomes more diverse. And the more diverse your portfolio is, the less risk there is. Sometimes I think that if this is done correctly, there will be almost 0% risk.

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Business Credit Cards Versus Business Lines of Credit

Business Credit Cards Versus Business Lines of Credit

Nothing quite matches the convenience of business credit cards. When you are looking for a good alternative to cash, checks, and personal credit cards, it is probably a business credit card you want. With credit-when-you-need-it convenience, savings and discounts on purchases, and extremely helpful reporting facilities, business credit cards can be a good tool in your financial management tool kit.

You will find it easier to get a business credit card than to open a business line of credit. For this reason, business credit cards can do a lot to help you ease your cash requirements even as you are still gearing up with office supplies and equipment. It can never be repeated too often: use business credit cards with caution and afford it the same respect you would afford any other business line of credit!

The ability to borrow money, whether from a business line of credit or from business credit cards, is something that you need for your business. Like business credit cards, the line of credit is a revolving credit, and both charge interest only on the balances that are left outstanding. The credit limit on business credit cards may be lower than on lines of credit, but both do have a predetermined ceiling. There are however a few differences between these two forms of business credit:

Business credit cards generally have higher annual percentage rates and lower credit limits, than lines of credit. When it comes to cost-effectiveness therefore, the commercial lines of credit will beat business credit cards anytime.

However, if you manage business credit cards wisely, you can maximize the 21 to 25 days grace period or float on purchases. When the statement comes and you pay off the entire balance, you will actually avoid paying any interest. The crux of the matter is that you get a 25-day interest free loan! Not bad…and only from business credit cards.

Business credit cards may lose on cost, but they are miles ahead when it comes to convenience. If your checking account is running low and you need to buy some supplies, you no longer have to call the bank to transfer funds from your credit line. You could easily charge the whole transaction to your business credit card, get out of the store and back to running your business. Business credit cards also offer you the convenience of easy bookkeeping and quick cost analysis.

What’s more, business credit cards are heavily loaded with perks like frequent flyer miles, purchase protection and warranty extensions, discounts and cash backs on hotel stays, car rentals, gas purchases, and more. These business credit card incentives can be valuable to a business, not only for the sake of convenience but also for the cost savings that you get.

Business credit cards and lines of credit are two financial tools that you can use together. Business credit cards are perfect for very short-term borrowings – we’re talking 30 days at the most. You should pay off the bulk of the balance when it falls due, to save on interest. You may want to carry 20% of the balance forward to the next month to make your business credit card issuer happy, otherwise they’re never going to earn any interest income from your business credit card account.

Lines of credit are perfect for larger purchases, particularly those that would exceed your business credit card limit, as well as for reserve funds when cash flow becomes irregular over a period. Lines of credit help you to shore up your working capital, such as payroll, paying off merchant credit and payables, or settling the quarterly taxes.