Hopefully, you have taken the time to set up your We Share Abundance account and are beginning to make money there. That should put you on the path to bringing in an Internet income without any money coming out of your pocket. With that in place, we are ready to take the first step in expediting the process so it doesn’t take us four years to get there. With that in mind, let’s start out by discussing what type if money we will be collecting and where we will keep it. Due to the topic of this page, it is longer than most. Be prepared to spend a little extra time reading this one.
I am sure you have probably heard of bitcoin. If not, I am not going to go into an explanation here. There are plenty of sources of what it is and how it works if you do a search on it. What you should know is that it is what is referred to a cryptocurrency, is perfectly legal, is accepted worldwide, and is gaining in popularity. Bitcoin is just one of many widely used cryptocurrencies, but it is the most well known and currently the most used. In this program, a lot of the income we will be generating will be in bitcoin or other cryptocurrencies. Let me explain why…
When most people do transactions over the Internet, they use their credit or debit card. However, in the transactions we will be participating in, using these items would not be in our best interest. Since we will be receiving the money instead of spending it, to use credit/debit cards we would have to have some kind of merchant account in order to accept the funds. With any kind of merchant account there are transaction fees involved. Usually, there is a set fee per transaction plus a percentage of the transaction amount. Since we are initially dealing with extremely small transactions, we would not even be able to cover the transaction fees. Secondly, there are unscrupulous people who troll the Internet that will dispute bank card transactions in order to cheat you out of your money. Finally, since people in different countries use different currencies, you could end up running into confusion as to the amount of the transaction due to exchange rates.
On the flip side, cryptocurrenties and the underlying blockchain technology, are completely safe from fraudulent activities. Like merchant accounts, there is a percentage of each transaction amount that is deducted, but it is generally much less that bank card percentages and there is no fee per transation. Also, since both parties in the transaction are using cryptocurrency, there is no confusion on the amount.
Another issue that has come up fairly recently is that Payza, one of the most popular online payment processors has had their assets frozen by the government. Due to this, they are unable to process transactions. Also, Paypal is starting to crackdown on sites like we will be using and freezing their accounts. Their reason for this is that since these sites often have multi-pier commission structures, Paypal is calling them pyramid schemes. This is NOT the case and these sites are perfectly legal, but PayPal’s policy is the freeze the account first and make them go through a long process of proving their company is legal before they will release the funds. Therefore, most of these sites will no longer accept PayPal payments. With these two majors players in the online payment processor community being not available and most other processors only being available in certain countries, a lot of sites have started moving to cryptocurrency.
Now that we understand that we will mostly be dealing with cryptocurrency and why, where do we put the cryptocurrency we receive? Since our bank only does transactions in the one currency (generally the one used in our home country), we cannot keep it there. Also, we cannot go to an ATM and withdraw cryptocurrency and put it in our wallet. Where does it go? Well, it does, in fact, go in what is called a wallet. There are several types of wallets (once again, you can do a search on cryptocurrency wallets for more information), but I will make the following suggestions:
Offline Wallet – This is generally a program that you download to your own personal device (computer, tablet, phone, etc.) that maintains your cryptocurrency balance(s) that is not directly accessible via the Internet. You must have direct access to the device in order to access the funds. This is like the wallet you have in your pocket/purse. It is much more secure than an online wallet. However, it is not as easy to process the amount of transactions we will be doing from this wallet. Also, some of the sites we will be using only talk to certain online wallets.
Online Wallet – This is an account you have with an online service provider. This is like the online banking that most banks make available to their customers. Since this account is online, there is a chance the account could be hacked, but not any more chance than your bank getting hacked. For your own safety, though, you should NEVER give anyone else access to your account. You will be creating an account number that you will be using for transactions which cannot be used to withdraw money from your account (similar to your checking account number) which you will use in your transactions. NOTE: You will have to have a different account number for each type of cryptocurrency kept in that account so all of the same types stay together. This is like having a personal checking account and a business checking account at the same bank. A true online wallet will offer to store dozens of different cryptocurrencies or you can have a microwallet which only offers a few different cryptocurrencies.
With this in mind, I am going to recommend you get an offline wallet (I use CoPay) and three online wallets:
CoinPayments – This is the main online wallet where larger sums can be stores. You will want to make sure to set up 2FA Autorization on this account. It will require anyone accessing the account to enter a code that will be emailed to you each time you login to the account. This is extra security to make sure someone other than you does not get into your account. When you start accumulating more than you use in your online transactions, you can transfer the funds to your offline wallet (which is even more secure).
Coinbase – There are some programs I use which prefer deposits through Coinbase. You an also use this site the deposit U.S. Dollars into your account and have them exchanged to bitcoins. As with any currency exchange, there is a fee for this transaction, so check the site before you make a deposit so you can make sure it will cover the associated fees.
Waves – This is where you be able to exchange the WESA tokens that you earn from your We Share Abundance account. There is an ton of other cryptocurrency that you can trade it for and the internal transaction fees are made with the in-house WAVES tokens, so you don’t have to worry about the fees coming out of your withdrawal amount. Plus, the transaction fees are minuscule. If you transfer outside of the Waves exchange, however, there will be additional fees.
So…now we have our cryptocurrency wallets in place, let’s continue to Step #3.
See you on the next page,
Garrey C. Dunn, Jr