I Bought Some CryptoKittiesCryptocurrency
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Earlier today I took the plunge and bought some CryptoKitties, and now I feel a little bit ridiculous.
This probably is one of those personal finance blog posts that I might live to regret.
But before you unsubscribe from Money Done Right’s posts forever, let me add a disclaimer.
I only spent 0.05 ether (don’t worry about exactly what that is; just know that it’s the equivalent of roughly $20 USD as of this writing) on my CryptoKitties. So there.
What Are CryptoKitties?
Many have described CryptoKitties as virtual Beanie Babies, but instead of buying them at Hallmark with dollars, you buy them online with cryptocurrency.
And, like Beanie Babies, they can fetch a pretty penny (God knows why), or they can potentially end up worthless.
But if anything, by purchasing CryptoKitties, you’ll learn a little bit more how cryptocurrency transactions work, and you’ll have some fun doing it.
How Can I Buy CryptoKitties?
First, you’ll need to buy some ethereum.
You can do that at Coinbase.
Then you need to go to cryptokitties.co and follow the instructions there.
Are CryptoKitties a Good Investment?
Honestly, they’re probably about as good an investment as Beanie Babies.
You might get (or breed) a good one that is in extremely high demand and could fetch a high price tag.
But chances are, you’re not going to get rich off CryptoKitties.
If I lose my entire $20 CryptoKitties investment, I just look at it as the same thing as blowing $20 on a movie: it was worth it because I was entertained.
And if I make a little money off of my CryptoKitties, that’as just icing on the cake.
Do These Things Before Buying CryptoKitties.
I felt comfortable buying CryptoKitties because I have already laid a foundation in legit investments.
If you haven’t done all of these yet, I recommend plopping at least $100 in each of these investments before buying your first CryptoKitty.
1. Lend money in $25 increments earning 4-6%.
Lending out money is one of the oldest ways to earn passive income. It’s essentially renting out your money for either people to use, and the rent you charge is known as the interest rate.
Now, in the old days, if you wanted to lend money to somebody in particular, you were taking on a pretty risky business, unless he or she put up some form of collateral. But now, thanks to technology, you can spread out the risk by only lending your money in $25 increments.
How does this work? Well, let’s say Borrower A needs a $25,000 loan. Instead of going to one entity, like a bank or rich person, to borrow the full $25,000 — which would be very risky to that one entity — he or she borrows $25 from 1,000 people. This scenario presents much less risk because the most any single investor could lose is only $25.
Such an arrangement would have been administratively impossible just 15 years ago. But thanks to the wonders of the Internet, it is now very possible, and the peer-to-peer lending industry, as it’s known, is thriving for borrowers and investors alike.
2. Invest in dividend-paying stocks.
We love dividends here at Money Done Right.
When you invest in a dividend-paying stock, you are acquiring a portion of a company that somebody else built and that thousands of other people work for, and they are giving you a portion of their profits. Blows my mind!
There are plenty of great places to open up a stock-investing account, but the one that’s getting us hot and bothered at the moment is Ally Invest.
Ally Invest is great because you can trade dividend stocks for as little as $3.95 per trade compared to $6.95 at E*TRADE and Charles Schwab.
Ally Invest has developed a pretty amazing platform, and no matter if the stock market goes up or done, we still get dividends deposited into our Ally Invest account every quarter!
3. Buy plain old Bitcoin.
If you would like to receive a $10 bonus to start investing in Bitcoin and other cryptocurrencies, please click my Coinbase $10 Sign-Up Bonus Link to buy some right now (the markets are 24/7).
Logan is a CPA, Certified Student Loan Professional, and founder of Money Done Right, which he launched in July 2017. After spending nearly a decade in the corporate world helping big businesses save money, he launched his blog with the goal of helping everyday Americans earn, save, and invest more money. Learn more about Logan.