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Bitcoin is Worth More than Gold!

Bitcoin has since increased in value massively along with many other cryptocurrencies.

Bitcoin has just made headlines by topping the value of gold for the first time in its history. Experts believe that Bitcoin is surging in value thanks to high demand from buyers in China and they expect the value of the cryptocurrency to hit the £3,000 mark by the end of 2017.

Bitcoin is Volatile

This upward trend in value is in sharp contrast to 2014 when Bitcoin prices collapsed, but with Bitcoin now the currency of choice for people looking for ways to channel money anonymously, it’s unlikely that Bitcoin will fall in value in the short-term. Indeed, there is hope that Bitcoin will soon be recognised as a legitimate currency, which is helping to push its value up. Nevertheless, Bitcoin remains a volatile investment, so prices could just as quickly fall over the next few months.

The value of Bitcoin fell last year after reports in the media suggested China moving to outlaw its use. Beijing did try to crack down on Bitcoin trade at the beginning of the year, amidst concern that large amounts of money were being illegally channelled out of China, but although the currency dropped temporarily, it soon picked up again.

Governments Can’t Control Bitcoin

When a currency rises sharply in value, it has an inflationary impact on the economy. A strong currency might sound like a good thing, but in reality it causes a significant drag on the economy, affecting interest rates, prices in the supermarket, and capital flow into and out of the country. Bitcoin is different because it is unregulated. Governments can’t control Bitcoin, even though they would like to. The price of Bitcoin is purely down to supply and demand, so as more people trade using Bitcoin, its value rises.

Will Bitcoin Soon Be Recognised as a Legitimate Currency?

China’s leading search engine, Baidu, recognises Bitcoin and allows people to use Bitcoin to pay for certain services. In the US, the Federal Reserve has indicated it may be open to the idea of Bitcoin as a legitimate currency in the future.

More Facts about Bitcoin

Until recently, very few people had heard of Bitcoin, but it is well on the way to becoming mainstream. Bitcoin was invented in 2009. The idea was to create a mathematical payment system where payments could be transferred electronically, instantly, with virtually no transaction fees. Unlike pounds and pence, Bitcoin is not a “real” currency. Rather, it’s a cryptocurrency, or virtual currency.

Bitcoin are produced by computer algorithms, a process known as Bitcoin mining. A computer on a network solves a mathematical problem. For every problem the computer solves, a block of bitcoins is generated. Bitcoin miners earn bitcoins, which are stored in an electronic wallet. This is completely anonymous, so you are protected when making a Bitcoin transaction online.

Very few mainstream businesses accept Bitcoin, but this could change in the future. However, if you have some Bitcoin in your virtual wallet, you can use it to pay for a trip on Richard Branson’s Virgin Galactic space venture.

Buy and Sell online with Alibaba

Buying and selling is one of the oldest most common methods of making money. The idea is simple, buy low and sell high. Whether that’s purchasing new products or used it all works the same and anyone can do it.

Since the internet buying and selling has exploded from what it used to be as it’s so much easier to sell online. While the internet makes it easy to access a potential market to sell your products, it’s also a place of fierce competition. However the idea of buying a product and then selling it on for more money is incredible and feels great!

You can virtually source your products from anywhere but as the title suggests we are going to focus on Alibaba. Alibaba helps exporters in China to potential buyers all around the world. This website will allow a business in UK to find a manufacturer in China and import the various products they create or manufacturer something new for them. It’s said to account of 80% of all online retail sales in China. If you don’t want to use Alibaba or you’d rather sell offline then please continue to read as this guide will work for anywhere you import from and generally any sell to. So, what are the steps for getting you on the way to buying your first products and selling them to make a profit? We’ve listed steps below on what we think are the major ones.

Product Research / Development

The first thing you’ll have to do is hours and hours of research. This is where, if you haven’t already is find what product or area you are going to focus on when trying to buy and sell. It’s best to browse through Alibaba or anywhere online to get inspiration what you want to deal in. This really links well with our last step “where to sell” your product. You need to search through any market place you might be using to sell your product and look at competitors.

Niche or New Product?

Of course you don’t always have to try and find a niche or a new product. You could just try and source a product cheaper than a rival and undercut them however this is usually very difficult. Not only has the competitor probably been doing it for a while and has better connections, if you’re just starting out they will probably have a larger buying power too.

Branding

This step isn’t always necessary. You don’t have to brand your products with your own logo or business, you could just leave it blank or continue to leave any manufacturer branding on however it’s always better in our opinion to brand it. Not only will it feel a little more professional but it can potentially help with repeat business. Branding your product usually costs extra so try hard in your negation to get the best deal.

Price

The price is easily the most important step along with product research. If you buy too high you will have to hope at selling your product for a profit. Negotiating hard to get a better price might mean the difference between a successful enterprise compared to a failure. If you struggle to get a lower enough price then always Walk Away. Don’t try and make it work just because you’ve spent a lot of time researching the product, If your too expensive people will shop elsewhere.

Be careful when dealing with certain products, especially electrical. Manufacturers will often have certain grades of products and it will be cheaper the lower grade you go. For example USB memory sticks will have grades from A to maybe C. An A grade is usually quite reliable where a C grade is very likely to corrupt and fail. Buy low but don’t let your product quality suffer.

Shipping & Import Tax

Shipping your product can be costly depending on what it is, obviously like the bigger/heavier it is the more it will cost to ship. You can usually pick the courier of your choice. Airfreight is quite a bit more expensive than having it shipped on a container shipment but usually unless you’re buying a lot you will only have the choice of Airfreight.

You might have to pay import Tax on your product when it enters the country. Check out our small Import Duty & Tax Guide to find out more.

Where to sell

Selling online is what we are focusing on here but you can sell your product anywhere you think it could sell.

The main places online for you to sell would be:

  • Amazon
  • eBay
  • ecommerce website

You could even sell wholesale you retailers in UK depending of course of the product you are selling. It would be less of a mark-up but generally you would sell a lot more.

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Money Making Expert aims to provide the best content relating to money making, business, marketing and all our other guides and articles. All information is researched fully and correct to the best of our knowledge however we cannot accept any liability if things go wrong. We are open to any feedback about the website so feel free to get in touch.