Where can I buy the stock trades in the Global Intelligence Portfolio?
There are numerous zero-commission brokerages that allow you to sign up and start trading, often in just a few minutes.
I use and recommend Fidelity. Charles Schwab and E*Trade are also fine choices. I would steer clear of gamified services like Robinhood and Webull, since they list fewer stocks.
What cryptocurrency exchanges are best for people living outside the U.S.?
Binance and Coinbase are both available to non-U.S. residents. If you live outside the U.S. and wish to use Binance, be sure you go to Binance.com and not Binance.US, which is specifically for U.S. clients.
You can find full, step-by-step guides on setting up accounts and purchasing cryptocurrencies through both these exchanges in the bitcoin report available as part of your subscription to Global Intelligence.
Once you buy bitcoin or any cryptocurrency, can you designate a beneficiary on your account?
At the moment, no. You would need to arrange something through an attorney.
The challenge is that crypto wallets are tied to “seed phrases” that you use to gain access to an account if you lose a password. But if those seed phrases are in anyone else’s hands, that person has immediate, unfettered access to your account. They could withdraw your crypto at will and you would never be able to trace the money or get it back.
You could assign the account to a trust upon death, but again how does the new beneficiary gain access to the wallet without the seed phrases or passwords? You would have to include those seed phrases and passwords in a document that others can see, whether it’s an attorney or the staff at an attorney’s office.
The best advice is to check with a lawyer knowledgeable about crypto assets and end-of-life planning.
Do I have to use 2 Factor Authentication (2FA)?
2FA is a security mechanism that prevents anyone other than you from gaining control of your account and draining it. Some crypto firms will require 2FA before they allow you to invest. Others don’t require it. Best practice is to always use 2FA of some sort, whether that’s an “authenticator” app on your smartphone or a text message from the firm with a one-time code you must enter.
Also, where it’s offered, you should set up an “anti-phishing phrase.” Once that’s established, every email from the firm will include that word, number, or phrase at the top of the correspondence. That way you know the email is authentic and not a hacker trying to phish for your account details.
Can you recommend a company that could take my 401(k) and invest it in cryptocurrencies?
401(k) management firm ForUsAll now has a plan that will allow you to invest up to 5% of your assets into bitcoin or any of 50 other crypto assets. But you would need to work for an employer that uses ForUsAll’s 401(k) services. There are hundreds of those.
I saw that Binance faces a probe related to money laundering. Should we be concerned about using Binance?
The Binance money laundering issue isn’t about Binance laundering money. It’s about Binance customers who may or may not be laundering money, and potentially using Binance as the conduit.
Also, the inquiry does not relate to Binance.US, only the Cayman Islands-based parent company, Binance.
Can Canadians open BlockFi or Coinbase accounts?
Yes, BlockFi and Coinbase are open to residents of most countries.
You recommend Nexo for New York residents, but is it available in other jurisdictions?
Nexo is open to savers globally.
I recommend it for New York residents since some other Decentralized Finance firms like BlockFi do not accept New York residents due to state regulations.
Nexo is based in Switzerland and accepts residents from every country except those against which sanctions have been imposed, such as North Korea, Iran, etc.
Which network do I use when sending crypto to BlockFi or Nexo?
If you’re sending bitcoin to BlockFi or Nexo, then you will send it on the bitcoin network.
When sending other cryptos such as Ethereum or stablecoins like US Dollar Coin (USDC) or Tether (USDT), you must use the Ethereum network (ERC20). This is important. If you’re sending stablecoins, pay attention to what network they’re on. Some exchanges such as Binance.US may give you other network options like BEP2 that may be cheaper, but BlockFi and Nexo currently only accept ERC20 tokens.
So, when you’re transferring to BlockFi or Nexo, make sure you’re transferring through ERC20, otherwise you risk losing your tokens. And if you’re using another DeFi service, check which networks they accept. ERC20 tends to be the industry standard, but that is changing.
You mention PAX Gold as a crypto to own gold exposure. Is there a similar crypto for silver?
Yes. It’s called SilverToken, or SLVT.
However, you will need to buy it directly from SilverToken’s website, or through IDEX, a decentralized exchange.
Are interest payments at BlockFi paid in cash or cryptocurrencies?
You will earn interest in crypto. You have two options for what this cryptocurrency should be:
Option 1: Earn interest in the same crypto you deposit.
In this case, if you deposited one form of crypto, say US Dollar Coin, your interest would be paid in the same crypto, so in this example, more US Dollar Coin.
If you deposited three forms of crypto, say bitcoin, Ethereum, and US Dollar Coin, your bitcoin would earn more bitcoin, your Ethereum would earn more Ethereum, and your US Dollar Coin would earn more US Dollar Coin.
Option 2: Choose a single crypto to earn as interest.
In this case, all your crypto payments will be paid out in the crypto you select. Say you choose bitcoin. If you deposit US Dollar Coin, you’ll receive interest payments in bitcoin.
And if you deposit more than one form of crypto, say US Dollar Coin, bitcoin, and Ethereum, interest payments on all three cryptocurrencies will be paid out in bitcoin.
Which crypto should I claim as interest at BlockFi?
I recommend bitcoin, so long as you are comfortable with the volatility and risk. Bitcoin can move by 10% or more in a day. If you are fine with that, then owning bitcoin is a good, long-term investment.
If you prefer stable, predictable returns, you should choose to claim your interest in a stablecoin such as US Dollar Coin.
Can I transfer what I earn at BlockFi to my bank account as cash?
It is possible to convert the crypto in your BlockFi account directly back into U.S. dollars and wire it back to your bank account. However, at present, BlockFi only supports wire withdrawals of this nature in the amount of $5,000 or more.
However, you can withdraw your crypto earnings to a crypto exchange such as Binance.US or Coinbase, where you can convert them into dollars and send them to your bank account. At time of writing, BlockFi offers one free crypto withdrawal and one free stablecoin withdrawal per calendar month.