Dec
16
2022
Guide to Building a Well-Balanced Crypto Portfolio
There may be growth opportunities in the cryptocurrency market. What you might want to know to build a diverse cryptocurrency portfolio.
Read more
SoFi
Student Loan Consolidation and Refinancing
Dec
06
2022
The Envelope Budgeting Method: What You Need to Know
Finding the right budgeting system to help you manage your money is a valuable step toward financial wellness, and one system to consider is the envelope budgeting system. This is a very tangible, physical system in which you divide up a month’s worth of cash to be spent into good old-fashioned envelopes, organized by category.
This method can be a great way to literally get in touch with your money and see how it’s spent.
Key Points
• The envelope budgeting method uses cash to manage spending by dividing money into envelopes labeled by category, such as entertainment or groceries.
• This method controls discretionary spending by making it tangible and limiting purchases to the cash available in each envelope.
• Spending is halted in a category once the cash in its envelope is depleted, promoting financial discipline.
• Intentional spending is encouraged, helping to reduce overspending by increasing awareness of financial habits.
• This practical system aids in better financial management and avoiding debt by adhering to a budget but can be difficult for those who don’t usually pay with cash.
What Is the Envelope Budgeting Method?
There are many different budgeting methods to choose among. The envelope method for budgeting money (also sometimes called the envelope saving method) is a system that helps you track your spending by limiting it to cash transactions. In this way, an otherwise fairly abstract concept — your spending — is turned into something you must literally hold in your hands.
You determine your spending categories, such as entertainment, food, and so forth. You label an envelope for each, and then you divide your monthly available money from your checking account into the appropriate categories.
Then, as the month goes by and bills come in, you pay with the funds allocated in each envelope. Here’s one of the key points for envelope method budgeting: When the money is gone, it’s gone. The idea is to not dip in elsewhere to come up with cash for, say, a pricey sushi dinner you indulged in on impulse. The point is to get used to sticking to your budget.
Next, you’ll learn the steps to setting up an envelope budget.
How Does the Envelope Method of Budgeting Work?
Here’s a look at how the envelope method of budgeting works.
1. Determining Your Discretionary Income
The envelope method usually works best when you use it to budget for discretionary spending. Your discretionary spending is the money you spend on things you may not really need, such as entertainment.
To determine your discretionary income, take your monthly income and subtract any necessary expenses, including things like housing costs, utilities, and insurance payments.
You may want to include debt payments and savings goals (whether that means moving money into a savings account for an emergency fund or the down payment on a house) into this category as well. Anything you have left over is your discretionary income.
Budgeting rules of thumb, such as the 50/30/20 rule, can help you determine your discretionary spending as well.
2. Deciding on Budget Categories
Once you have a total for your discretionary income, you can begin to break it down by category. The spending categories you choose will depend on your own habits.
You may want to pay special attention to areas where you already have trouble with overspending. Eat out too much? Grab a latte almost daily? Consider this an opportunity to put a cap on that spending.
Other common areas to consider include groceries, entertainment, clothing, and gas money. You may want to build in a catch-all category that gives you some money to use for fun as well.
Assign a dollar amount to each category. Consider reviewing past bank statements to help you figure out what you normally spend.
Your bank or credit card may even break out your spending into categories for you, making it easy to tell where you typically spend. If you’re trying to cut back, assign dollar amounts that are lower in the categories where you can.
Recommended: Guide to Practicing Financial Self-Care
3. Withdrawing Cash and Putting it into Envelopes
The next step in an envelope method budget is to get one envelope for each category. Write the name of the category on the envelope and the dollar amount you have assigned to it. At the beginning of the month, withdraw enough cash to fill each envelope.
Depending on your situation, it may work better for you to spread your withdrawals out to align with your paycheck. If this is the case, you could take half the money out at the beginning of the month and the remaining half when you receive your next paycheck.
When you go to the bank, get the exact denominations that you need. For example, if you assigned $55 to your entertainment budget, make sure you get exactly $55 dollars. Make change if you use an ATM that only spits out $20s. With exact amounts, you’ll avoid the extra work of remembering where you need to shuffle dollars around.
If having a pile of envelopes feels too disorganized, consider using a coupon organizer. These look like little divided wallets or small accordion files. The idea here is the same as with the envelopes, and you should label each section with the category and dollar amount.
4. Spending Only Cash
Then, for the month ahead, the envelope method budget means that when you need to buy something, you take money from the appropriate envelope. You may not want to carry the envelope around with you, which could mean spending more than you need to or risking losing it. If you only bring $50 to the grocery store, make sure that your total doesn’t go beyond $50. Some tips to help this process:
• Try to avoid the temptation to spend with your credit card too. It might help to remove your credit card out of your wallet while you use the envelope method. If you choose to do this, consider storing the card in a secure place where you can access it when you absolutely need it.
• If you choose to purchase something online, such as concert tickets, for example, note the purchase on your envelope immediately. You can then remove the cash you spent online from the envelope.
• When buying things online, continue to keep in mind the dollar amount you set for that category. Try your best to avoid overspending, based on the limits you set for each envelope at the beginning of the month.
Recommended: Emergency Fund Calculator
5. Once Your Cash Is Gone…It’s Gone
Here’s where the real discipline comes in with the envelope method. Once you’ve used up the cash in a given envelope, it’s time for a full stop.
This means no more spending in that specific category for the rest of the month. Remember, you’re trying to control your spending, so avoid borrowing from other categories.
Get up to $300 when you bank with SoFi.
No account or overdraft fees. No minimum balance.
Up to 4.00% APY on savings balances.
Up to 2-day-early paycheck.
Up to $2M of additional FDIC insurance.
If you deplete your entertainment budget, look for ways to save money on streaming services. Try free alternatives like watching movies at home. If you run out of money for groceries, get creative with leftovers and try to use up whatever food you have left in your cupboards and fridge. These exercises should hopefully help you begin to spend more and more intentionally as time goes on.
Pros of the Envelope Budgeting Method
Here are some of the most important benefits of the envelope budgeting system:
• It makes spending tangible. Buying things with plastic can make it feel as if you haven’t spent any money at all. When you pay with cash, you’re forced to consider your spending and may spend less.
• This system helps realize just how much you are spending on various expenses. For instance, you may not have realized how much you spend on take-out lunches until you see that $20 bill leave your hands every weekday.
• This budgeting technique also makes it all but impossible to overspend, since you have a hard and fast budget limited by the cash in your envelopes.
Recommended: 5 Ways to Achieve Financial Security
Cons of the Envelope Budgeting Method
Yes, there are good reasons to try this budget system. However, it’s worthwhile to know some disadvantages before you dive in:
• Carrying cash to pay for your daily expenses as part of this system can be risky; you might lose the money or, in rare cases, be robbed.
• The cash-centric nature of the envelope budget can be difficult for people who do a lot of online banking and online transactions, like to use a debit card, and/or patronize shops that are cashless.
• If you like to use plastic and get cash-back rewards or other perks, you will not be able to accrue those benefits while following the envelope budgeting method.
Recommended: 23 Tips on Saving Money Daily
The Takeaway
The envelope budgeting system is one method that can guide you on your financial journey. By putting cash into envelopes marked for specific purposes, you can gain insight into where your money goes and hopefully rein in areas where you can cut back.
Another way to take control of your money is to find the right banking partner.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
FAQ
What is the downside of the envelope budgeting system?
Some downsides of the envelope budgeting system is using cash to make payments. This can be inconvenient for people who prefer to use debit cards or online payments.
What is a budget system that involves envelopes?
The envelope budgeting method is a budget system that involves putting cash for different spending categories into separate envelopes. The cash is then used to pay your expenses; when you use up a month’s cash, that’s it. You don’t spend any more on that category.
How much money do you save with envelope budgeting?
How much money you save with envelope budgeting will vary, as it will with any budgeting system. For instance, if you discover that you use up more money than you allocated for dining out, you might decide to reduce your spending in that area from $120 a month to $70 a month and save $50 in that time period.
SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2024 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SoFi members with direct deposit activity can earn 4.00% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.
As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.00% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant. SoFi members with Qualifying Deposits are not eligible for other SoFi Plus benefits.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.00% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 12/3/24. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
This content is provided for informational and educational purposes only and should not be construed as financial advice.
Third Party Trademarks: Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements.
SOBNK-Q424-067
Read moreNov
30
2022
What Is a Dogecoin Mining Pool?
A mining pool is a collection of miners who pool their resources and share the rewards of mining a proof-of-work (PoW) cryptocurrency like Dogecoin (DOGE).
Individual miners receive a portion of block rewards in proportion to how much hashing power they contribute.
Miners may earn less overall when mining in a pool vs. solo mining, in which an individual tries to solve for a block on their own, using significant time and computing power. But they receive rewards on a more consistent basis and can maintain a profitable operation, even with smaller amounts of computing power.
💡 Recommended: Is Crypto Mining Still Profitable in 2022?
How Does Dogecoin Mining Work?
In order to understand Dogecoin mining and Dogecoin pool mining, it’s important to remember the qualities that distinguish DOGE among the other types of crypto.
What Is DOGE?
Dogecoin (pronounced dohj-coin), or DOGE, is widely known as the first joke cryptocurrency. It was launched in 2013 as a way to poke fun at Bitcoin. Nonetheless, the currency captured people’s attention and a fair amount of investment.
Dogecoin is an altcoin similar to Bitcoin and Ethereum in that it runs on a blockchain network using a PoW system. But the number of coins that can be mined are unlimited (versus the 21 million-coin cap on Bitcoin).
Despite its place as one of the biggest coins by market cap, DOGE trades at one of the lowest prices: $0.084 cents, as of November 18, 2022.
Understanding Dogecoin Mining
Dogecoin mining works in much the same way that mining any other PoW cryptocurrency works. Dogecoin is based off of Litecoin, which forked from the original Bitcoin source code.
The main difference between Bitcoin (BTC) and Dogecoin (DOGE) or Litecoin (LTC) is that the latter two are altcoins that use a mining algorithm known as Scrypt. Bitcoin mining, by contrast, uses an algorithm called SHA-256. Scrypt allows for faster block confirmation times, which means faster transaction times.
Here’s a quick guide to crypto basics and how the mining process works.
• A blockchain is a type of distributed ledger technology (DLT).
• Blockchain networks are the highways on which cryptocurrencies travel.
• The computers that maintain a blockchain network are called “nodes.”
• Some nodes can add new blocks of transactions to the network and gain rewards. These nodes are called “miners.”
• Miners solve complex mathematical problems to process transactions and achieve consensus on the network, ensuring everyone agrees which transactions are valid.
💡 Recommended: How Does Bitcoin Mining Work?
Like gold mining, mining for crypto requires time and energy, whether you’re mining Bitcoin or an altcoin like Dogecoin or Litecoin. But unlike gold mining, computers do all the work in crypto mining. Individuals set up their mining rigs (powerful computer systems) and monitor the process. For some, mining cryptocurrency offers an opportunity to obtain cryptocurrency without buying it on an exchange.
How Do You Pool Mine Dogecoin (DOGE)?
To participate in a Dogecoin mining pool, you must have a crypto wallet that’s compatible with DOGE, and all the necessary hardware and software for mining.
Using a pool involves one extra step: telling the miners where to “point” their hashing power. This typically involves entering a single line of computer code into the mining software. The mining pool will provide the specific command, likely somewhere on its website or in the software itself.
Dogecoin Mining Equipment
Crypto mining requires sophisticated and powerful computers known as Application-Specific Integrated Circuits (ASICs). In the case of Dogecoin mining hardware, the ASIC must be specifically designed to run the Scrypt algorithm.
While there might be some pools that allow users to use SHA-256 ASICs, contribute that hashing power to the pool, and take rewards in DOGE, those interested in mining DOGE specifically should stick to Scrypt ASICs.
ASICs take so much electricity that even smaller miners usually require a special power supply to connect to an electrical outlet. They also generate considerable heat, and miners must keep them cool to prevent damage.
In addition to the ASICs and their power supplies, miners will need a laptop or desktop computer. Running the Dogecoin mining software can take a considerable amount of central processing unit (CPU) or graphic processing unit (GPU) power, so that computer probably won’t be able to do much else while the mining is happening.
💡 Recommended: What Is a Bitcoin Mining Pool? Should You Join One?
Get up to $1,000 in stock when you fund a new Active Invest account.*
Access stock trading, options, alternative investments, IRAs, and more. Get started in just a few minutes.
Pool Mining vs Solo Mining Dogecoin
Before you decide whether you want to pool mine or solo mine DOGE, you want to weigh the pros and cons.
The benefit of mining solo is that 100% of the block reward will go directly to you. But it could be weeks or months before you find a block because there is so much competition.
Most miners choose to join a mining pool. Pool miners receive rewards in proportion to the amount of hashing power they contribute. However, they also have to pay a small fee in exchange for using the pool.
| Pros and Cons of Pool Mining | Pros and Cons of Solo Mining |
|---|---|
| Doesn’t require as much computing power. | Requires a lot of computing power & energy. |
| Earn rewards proportional to your hashing power. | 100% of the mining reward goes to you. |
| Easier to join a pool than find a block to mine. | Can be hard to find a block to mine. |
| Must pay pool mining fees, which eat into profits. | Overall costs of solo mining are quite high, which can eat into profits. |
Using a Pool to Mine Multiple Coins
Some mining pools mine multiple cryptocurrencies. This allows the pool to switch its mining activities should mining a different coin become more popular depending on the constantly changing variables of price and difficulty.
For example, some pools mine both Dogecoin and Litecoin since both rely on the same mining algorithm. If such a pool’s miners were focused on Dogecoin but the price of DOGE stagnates, it could become harder to mine DOGE due to difficulty increases, meaning reduced profits for miners absent a rise in DOGE. Then they could switch to Litecoin.
Dogecoin Cloud Mining
Mining via the cloud is another option, and you won’t need physical hardware or software. Cloud mining DOGE involves buying a contract for a certain amount of hashing power over a certain amount of time. Essentially, you’re renting computing power from someone else.
Be careful, there have been many cloud mining scams over the years.
How to Join a Dogecoin Mining Pool
Other than the above, most mining pools don’t have any special requirements for joining. They want to make it as easy as possible for new miners to contribute because they take a small fee from each block reward. The more miners in the pool, the more often the pool finds new blocks, and the more fees the pool will generate.
Mining pools often have instructions on their website that teach new miners how to join. It usually involves little more than entering a line of code into a mining program. Computers handle the rest.
Here is a rundown of the steps that an individual will take when joining a mining pool:
Step 1: Obtain the necessary hardware. As noted above, joining a mining pool may require less sophisticated equipment than solo mining.
Step 2: Select a Dogecoin mining pool to join (more in the next section).
Step 3: Download and install the software from the pool’s official site.
Step 4: Set up a DOGE crypto wallet and enter the address into the software (so the software knows where to send the new coins.
How to Find the Best Dogecoin Mining Pool
To choose the best Dogecoin mining pool for you, consider the following factors:
Fees and Costs
Because mining cryptocurrency comes with a significant investment of time and money, miners will want to choose a pool that earns them the greatest profit. That involves a pool with the lowest fees and most equitable reward structure. The biggest Dogecoin pool may or may not be the best, as there are other factors to consider.
For example, the Dogecoin mining pool power cost is also important to consider. Mining requires cheap electricity to be profitable, and for miners to make more money.
In addition, the mining pool itself will charge a fee, maybe 0.5% to 4% of the reward. You’ll want to compare the fees charged by different pools.
Reward Distribution
The reward for each block of transactions is 10,000 DOGE, and it’s split among the mining pool members, in proportion to the hashing power that member contributed to the mining pool. For that reason, computing power does matter when you join a mining pool.
The bigger the pool, the more consistent your rewards will be. So while you might be able to score 10,000 DOGE per month as a solo miner, you could earn the same amount in smaller chunks when you join a mining pool.
Hashing Power
You want a pool with a high combined hashrate. That’s more important than the overall size of the pool. But the size of the pool is also an indicator of how trustworthy/secure it is.
The more hashing power you contribute, the bigger your share of the rewards will be. Hashing power is a function of computing power, so it’s something to consider as you invest in your rig, or cloud mining.
Server Locations
In theory, it may be smarter to join a pool with servers on the same continent, in terms of hash rate needed. Proximity to servers may enhance your rewards.
Security
The security of the mining pool is obviously critical, and there are various aspects to consider. First, you want to ensure that the pool is transparent about its hashrate and payout structures. Does the pool have a real-time dashboard of activity that you can review?
Stability is also important. Does the pool have a lot of down time, which can impact your ability to mine as well as potential profits.
5 Popular Dogecoin Mining Pools
While there are many Dogecoin mining pools, some are more popular. Remember that the number of coins mined is correlated with the pool’s computing power. A larger pool may equal more computing power, but not necessarily. A smaller pool running more high-powered computers would outperform a larger pool with older networks.
1. Aikapool
One of the oldest mining pools, Aikapool doesn’t charge a fee and there are no withdrawal limits. The payout is PROP, or proportional to your hash rate.
2. Prohashing
The Prohashing pool is one of the largest pools and it’s notable for paying in DOGE, vs. converting rewards to BTC or LTC.
3. Multipool
Multipool allows you to mine for more than one type of crypto at once, sometimes called merge mining. So you can mine DOGE and LTC, for example. Multipool charges a fee of about 0.25%.
4. 1CoinPool
1CoinPool has a transparent fee structure, and pays according to the PPS (proportional pay per share, where you get a fixed amount per work submitted). 1CoinPoll operates two mining pools – Litecoin and Dogecoin. Also, there are no fees for withdrawals. This means that the miners are rewarded proportionally as per the hashing power. Furthermore, the coins get automatically added to the wallet.
5. LitecoinPool
Litecoin also has a transparent reward system (PPS), and doesn’t charge fees, including no withdrawal fees.
The Takeaway
Cryptocurrency mining is not an easy task, and won’t be profitable for most people most of the time. All the right variables must align for an individual to make money mining in most instances. Many take up mining as a hobby and as a way to build a small crypto portfolio while contributing to the livelihood of the network of a particular coin.
FAQ
Can Dogecoin still be mined in 2022?
Yes. Despite the ongoing volatility in the crypto markets, mining for many types of crypto continues. There are both solo Dogecoin miners and pool miners still active today.
How long does mining 1 Dogecoin take?
You can’t really mine 1 DOGE, because the rewards for mining a block is 10,000 DOGE. Given that it takes about a minute to mine a block of Dogecoin, depending on your equipment and the size of your mining pool, that’s roughly what it would take to obtain 1 DOGE.
How much Dogecoin could you mine in just 1 day?
Again, it depends on the number of blocks you have access to — either as a solo miner or as a pool miner — and how much hashing power you have. The supply of DOGE is unlimited, but you can only earn 10,000 DOGE per block of transactions that are confirmed.
Photo credit: iStock/Thirawatana Phaisalratana
SoFi Invest® INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below:
Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.
Crypto: Bitcoin and other cryptocurrencies aren’t endorsed or guaranteed by any government, are volatile, and involve a high degree of risk. Consumer protection and securities laws don’t regulate cryptocurrencies to the same degree as traditional brokerage and investment products. Research and knowledge are essential prerequisites before engaging with any cryptocurrency. US regulators, including FINRA , the SEC , and the CFPB , have issued public advisories concerning digital asset risk. Cryptocurrency purchases should not be made with funds drawn from financial products including student loans, personal loans, mortgage refinancing, savings, retirement funds or traditional investments. Limitations apply to trading certain crypto assets and may not be available to residents of all states.
2Terms and conditions apply. Earn a bonus (as described below) when you open a new SoFi Digital Assets LLC account and buy at least $50 worth of any cryptocurrency within 7 days. The offer only applies to new crypto accounts, is limited to one per person, and expires on December 31, 2023. Once conditions are met and the account is opened, you will receive your bonus within 7 days. SoFi reserves the right to change or terminate the offer at any time without notice.
First Trade Amount
Bonus Payout
Low
High
$50
$99.99
$10
$100
$499.99
$15
$500
$4,999.99
$50
$5,000+
$100
SOIN0822016
Nov
21
2022
7 Bitcoin Scams to Avoid in 2023
The crypto market is rife with fraud, and Bitcoin scams are very common. While crypto itself may be relatively new in the financial world, many of the more common rackets involving cryptos use old school tricks and common deceit to achieve their goals. These can involve fake exchanges, social engineering scams, and more.
Almost all types of fraud — be they Bitcoin scams or run-of-the-mill phishing attempts — are rooted in a schemer’s ability to gain a victim’s trust. Many crypto investors can be easily swayed by hype and con artists, too, which means they need to remain vigilant when considering investing in Bitcoin or other cryptos. Here are some of the more common Bitcoin and cryptocurrency scams, some things to look out for, and what to do if you fall victim to one of them.
Common Bitcoin Scams to Avoid
1. Fake Cryptocurrency Exchanges
One way to attract potential crypto investors who are eager to get in on the action? Create a cryptocurrency exchange — even if it isn’t real.
Fake crypto exchanges exist, and in some cases, have been used to scam investors out of their money. For fraudsters, it can be as easy as luring crypto investors with the promise of free Bitcoin or another crypto to get them to sign up for the exchange. Then, after making an initial deposit, victims may find that none of it was real, and they’ve been bilked out of their deposit.
As for how to avoid these fake exchanges? Sticking to the known, established crypto exchanges is a start. Think twice before creating an account with a new or unfamiliar exchange, and be sure to do some research to make sure it’s above board before making any moves. Refer to industry sites and newsletters, message boards and forums, and other reputable sources of information to find out more about an exchange’s credentials and reputation.
And it never hurts to remember the age-old adage: If it sounds too good to be true, it probably is.
2. ICO and Fake Cryptos
If you’re familiar with buying IPO stocks, then ICOs should ring a bell. ICO stands for “initial coin offering,” and is similar to an IPO. It’s when a new coin or crypto makes its market debut. That’s sure to attract some attention, right? That’s what fraudsters think, too. And it’s why some people looking to invest in ICOs may fall victim to a fake ICO scam.
An ICO scam might work like this: A fake ICO is teased, asking investors to pony up some cash to get in early. Money is exchanged, but the ICO never occurs, and investors never get their money back.
These types of scams are common. So much so that the U.S. Securities and Exchange Commission (SEC) even published a website that simulates them, only to lead you to educational tools when you try to invest, instead of stealing your money.
As with any investment, it is a wise idea to do your research before putting money behind a crypto ICO. Try to find out as much as you can about the company in question — from sources other than itself or the tease that first grabbed your interest. And take advantage of tools like the ones provided by the SEC or groups like FINRA, to help build some background knowledge about what you’re investing in.
3. Social Engineering Scams
Many of the same tactics used in money scams or to con people out of their personal information are used in the crypto sphere, too. That includes things like hacking, social media scams, phishing attempts, and more.
For instance, crypto investors may get an email asking them to update their password or personal information on a crypto exchange — a phishing attempt, which is meant to trick users into providing their credentials. With that information, a fraudster could, potentially, gain access to an investor’s holdings and liquidate them.
The numerous types of social engineering scams mean that investors need to be extra judicious when being asked to reset their passwords or in their interactions in social media.
4. Ponzi Schemes
Ponzi schemes are very similar to pyramid schemes. They are, in essence, a game of hot potato, with investors who’ve been involved for a longer period of time being paid with the proceeds and investments from newer investors. It’s a common scheme in financial circles that has found its way to the crypto world.
The government has gone after Ponzi schemers in the crypto community, and that includes those that use Bitcoin to lure in fresh investors. In fact, government regulators say that they root out and prosecute many Ponzi scheme cases every year, which includes those involving cryptocurrencies.
One typical red flag indicating a Ponzi scheme (or nearly any type of fraud): the promise of investing your money at no risk to you with the guarantee of huge profits.
5. Pump-and-Dump Bitcoin Scams
For investors who are even somewhat familiar with the stock market, “pump-and-dump” should be a familiar term — especially after the Gamestop headlines of early 2021.
A pump-and-dump scheme involves a number of traders or investors buying up an asset (say, Bitcoin for example, or a penny stock) which causes its value to increase. Then, with values high, they sell it all off — or “dump” it. Investors who bought in during the initial run-up are often caught underwater as a result.
Naturally, this same play can be run with cryptocurrencies. Government regulators, such as the U.S. Commodity Futures Trading Commission (CFTC), have warned that pump-and-dump schemes can be particularly effective in the crypto sphere, and warn investors to do their homework before making any investment decisions.
6. Rug Pull Scams
A rug pull is a type of scam that is similar to ICO scams, in that a hyped up crypto project ends up being vaporware — it doesn’t actually exist. It may be common to see a crypto “aped” on social media or in crypto circles by founders or developers in an effort to gin up interest and get investors on board.
Then, the developer or creator simply disappears with investors’ money. In other words, investors have had the rug pulled out from under them. It doesn’t take much for a scammer to gin up hype, especially if they’re something of a showman, so these types of scams are somewhat prevalent in the crypto space.
7. Man-in-the-Middle Scams
A man-in-the-middle scam or attack involves a third party intercepting information between an investor and their exchange, or another investor. The scammer is able to gain access to sensitive information, like passwords or wallet keys, and use them to swipe your assets.
Scammers can pull these scams off by intercepting wireless internet signals and some technical trickery. They’re not the most common scams, but many investors may be at risk nonetheless.
How to Spot a Bitcoin Scam
As mentioned, most Bitcoin scams are age-old tricks used in many other areas of the financial world. As such, there are some common red flags to keep an eye out for.
Big Promises
If a project or crypto is promising massive returns on your investment, your radar should be going off as a possible scam. This is true for other types of scams as well, but in order to generate a large pool of potential schemes, a scammer needs to get people’s attention — by making big promises. If they do, tread carefully.
Scammers Often Request Up-Front Crypto Payments
It’s relatively uncommon that you’d be asked to pay upfront with cryptocurrency for a good or service. As such, this can be a common refrain from scammers. And if they take your money (or Bitcoin) and run, you’ll have little or no recourse. So, if someone asks you to send them Bitcoin with promises of delivering later, use caution.
Appeals to Emotion
A common tactic scammers use is to appeal to someone’s emotions — this is why dating scams are so common. If you find yourself growing close to someone (or believing that you are, anyway) and they start asking you to send them crypto for one reason or another, it could be another sign that you’re being scammed.
Ways to Protect Yourself from Bitcoin Scams
Given that there are a lot of people out there trying to swipe your Bitcoin, here are some ways to protect yourself from Bitcoin scams.
Stick to Known Exchanges
The crypto space is largely unregulated, and as such, there can be a lot of questionable exchanges and platforms out there. While you can create accounts and trade on many of them, it may be best practice to stick to ones that are well-known or generally well-regarded.
There are many bigger exchanges out there that are popular among traders and investors. You can easily look some of them up, too. This isn’t to say that a smaller exchange is a scam, necessarily, but your odds of falling victim are likely higher on a small, unfamiliar exchange than you are on a larger one.
Do Your Homework
It should go without saying, but before you sign up for an exchange or invest in a cryptocurrency of any kind, do some research. There should be supporting materials out there (white papers, etc.) or reviews to take a look at, so do some digging around to see what other people are saying before diving in yourself.
Tread Carefully
Aside from doing some research, you should always exercise a level of caution when investing. For instance, if you’re getting emails from a crypto founder or someone else in the space, always check the sender address on emails like this — one riddled with typos or oddball fonts is likely to be a fake.
It’s important to be careful on social media, too. Imposter social media accounts may contact you and ask for investments or deposits, only to take your money and run. A good rule of thumb? Go with your gut, and don’t trust social media accounts — it’s all too easy for bots or others to create fakes.
What to Do if You’ve Fallen Victim to a Bitcoin Scam
If you do fall victim to a Bitcoin scam — which is entirely possible, as many people do — there may not be much you can do to get your money back. Again, since crypto is still outside the scope of most government regulators, your assets or money may be as good as gone.
You can, and perhaps should, report it, however. You can report crypto fraud to the Federal Trade Commission (FTC), the CFTC, the SEC, the Internet Crime Complaint Center (IC3), and you can also consider lodging a complaint with the exchange on which you were scammed — is applicable.
Get up to $1,000 in stock when you fund a new Active Invest account.*
Access stock trading, options, alternative investments, IRAs, and more. Get started in just a few minutes.
The Takeaway
Bitcoin scams, and those involving other cryptocurrencies, are very common. They can take numerous forms, too, such as rug pulls, fake ICOs, and even Ponzi schemes. You can take measures to protect yourself, however, and learn to recognize a scam when you see one. A good rule of thumb is that if something sounds too good to be true, it usually is.
SoFi Invest® INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below:
Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.
2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.
For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.
External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
2Terms and conditions apply. Earn a bonus (as described below) when you open a new SoFi Digital Assets LLC account and buy at least $50 worth of any cryptocurrency within 7 days. The offer only applies to new crypto accounts, is limited to one per person, and expires on December 31, 2023. Once conditions are met and the account is opened, you will receive your bonus within 7 days. SoFi reserves the right to change or terminate the offer at any time without notice.
First Trade Amount
Bonus Payout
Low
High
$50
$99.99
$10
$100
$499.99
$15
$500
$4,999.99
$50
$5,000+
$100
SOIN0722044
Nov
20
2022
7 Common Moving Costs to Know Before You Pack Up
About 28 million Americans made a move in 2021, with about 5 million moving interstate. As you’re probably painfully aware, a move can cost several thousand dollars, whether you’re going across town or cross-country. Amid the chaos of purging and packing, it’s easy to forget some of the moving-related costs you might face.
The key to paying for a move without a load of stress is planning. We’ve drawn up a Moving Expenses Checklist that aims to include every little thing that needs to be accounted for in your budget, from supplies to cleaning to a new driver’s license and car registration.
Your Moving Expenses Checklist
Like a lot of things in life, moving costs aren’t entirely predictable. Much depends on how far you’re going, whether you’re crossing state lines, how much stuff you have, and so on. Our aim is to cover the basics — truck, strong movers — as well as the costs that sneak up on you midway. Keep on reading to find out what they are.
1. Moving Your Stuff
There are at least three different ways to get your stuff from one place to another: Rent a moving truck, pay professional movers, or rent and move a storage container.
Renting your own truck. Yes, this is usually the cheapest route. The downside is that you — and possibly your friends — will be putting in many hours of hard labor.
At first glance, renting a moving truck or van for an across-town move seems like a great deal. You may be familiar with companies advertising van rentals for $19.99. Except that figure doesn’t include gas, tolls, parking, damage protection, and cost per mile. Suddenly, that $20 becomes more like $100.
If you enlist friends and family to help, factor in the price of pizza, beer, or gift cards to lure them to your aid and keep them motivated. Also, long-distance moves may involve shipping some boxes, which adds up quickly.
Hiring pros. Get estimates from a few companies to make sure you’re getting a good deal. A local move is usually considered under 100 miles. A long-distance move is anything more than 100 miles. Expect to pay $800-$2,500 for a basic local move with two movers, and $2,200-$5,700 for a long-distance move.
The price of a local move is often based on an hourly rate; some companies may offer a flat rate. In some states, if you’re moving more than 50 miles, the cost may be based on the weight of the truckload instead of the hourly rate.
A packing service can add a chunk to these costs. You may also want to purchase “full value protection” insurance through your mover to protect your belongings in case of loss or damage.
Hauling a container. Moving a self-storage container, those units popularized by PODS®, is typically less expensive than using full-service movers. Three factors influence your cost: the size of your home, the distance you’re moving, and seasonality. A local container move can range from $1,100 to $1,600, including the container and transport. A 1,000 mile move costs on average $4,430 for the contents of an average-size home. Prices tend to be higher during “moving season,” typically March through August.
If you’re comparing quotes, know that each company handles costs differently. Some itemize the costs for each part of the move; others include everything in one quote.
Recommended: Get Your Personal Loan Approved
2. Transporting Yourself
Short or long move, you’ll have to get yourself there, too. That could mean a road trip, which includes gas, tolls, possibly lodging, and meals along the way. An online fuel cost calculator can help you tally how much you’ll spend on gas. Otherwise, it means the cost of a plane ticket, getting yourself to and from the airport, and possibly the price of shipping your car.
3. Moving Supplies
You probably know that you’ll need boxes. But don’t forget the oodles of tape, bubble wrap, packing peanuts, labels, and protective blankets for furniture. And you’ll need to rent or buy a dolly if you’re planning a DIY move.
You may be able to save by asking for free boxes from local grocery stores and using recycled newspaper as packing material. But the little things can still add up.
4. Costs Upon Arrival
If you’re renting, you might owe a security deposit and first month’s rent to your new landlord. You may also be responsible for a pet deposit or fees for getting utilities hooked up.
If you’re moving into a home of your own, you might need to make repairs before you settle in. Some new homeowners also invest in changing locks, putting in security alarms, or replacing smoke detectors.
You may also want to take care of renovating some areas before all your stuff is in the way, and if you have a lawn for the first time, you might need to buy a mower or hire a service.
Will you need a storage unit? Plan on $100 to $300 a month.
Recommended: Personal Loan vs Credit Card: What’s the Better Option?
5. Cleaning Costs and Supplies
You might be responsible for leaving your old place in tip-top shape. That means paying for stuff like floor cleaner, mops, brushes, and wipes. You may also need to hire a carpet cleaner or house cleaners if you’re short on time or your place needs serious attention.
On the other end, you might need supplies to clean your new apartment or house before you unpack everything.
6. Furniture and Other Items
Even if you’re bringing a lot of things with you, chances are you’ll need to buy some furniture for your new home. You might save by searching online or perusing garage sales and flea markets.
Still, if you need any substantial pieces, like a bed, couch, or table, you could be looking at a few hundred dollars. Beyond furniture, if you’ve moved far away, you might need to stock your new place with all kinds of everyday items, from groceries and pantry staples to toiletries.
7. New License and Vehicle Registration
If you’re moving to a different state and have a car, you’ll need to apply for a new license and register your car with the local department of motor vehicles. This comes with a fee, of course. Vehicle registration can cost up to $225, depending on the state. A new driver’s license can cost around $30 to $60.
Awarded Best Online Personal Loan by NerdWallet.
Apply Online, Same Day Funding
Preparing for Moving Costs
When making a moving-cost checklist, the worst budgeting mistake you can make is underestimate your needs because you’re not sure how you’ll pay for them. If anything, you want to pad your budget so that unexpected costs don’t make the experience harder than it has to be.
If you’ve got the cash to cover your move, great. That’s what emergency savings are for. You can also use a 0% interest credit card, crowdsource from friends and family, or consider a personal loan.
Personal loans are a form of installment debt, where you receive a lump sum that you then repay in equal monthly payments. There are different types of personal loans, so you can choose the terms that best fit your budget and circumstances.
Believe it or not, moving expenses are one of the most common uses for personal loans. And because of their relatively low fixed rates compared to high-interest credit cards, you can roll in related new-home expenses like new furniture and painting.
The Takeaway
Moving is a major financial commitment, but it doesn’t have to break the bank. When planning a move, first decide whether you’re going to DIY or hire pros. Then make a list of packing supplies, cleaning supplies and services, and the cost of moving yourself if it’s long-distance. Next, consider your costs upon arrival: security deposit, prepping your new space, replacement furniture, and new household items. If you’re moving interstate, there may be car-related expenses, such as a new license and registration. And it’s always wise to pad your budget — 10%-20% — to accommodate anything unexpected.
Planning a move and need money to help? A SoFi personal loan can be a smart way to cover your costs without adding emotional baggage. Our personal loan calculator can help you choose the terms that are right for you.
* Same-Day Personal Loan Funding: 86% of typical SoFi Personal Loan applications, excluding Direct Pay Personal Loans and Personal Loan refinance, from January 1, 2021 to December 1, 2021 that were signed before 7pm ET on a business day were funded the same day.
SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Non affiliation: SoFi isn’t affiliated with any of the companies highlighted in this article.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
SOPL0922006
See what SoFi can do for you and your finances.
Select a product below and get your rate in just minutes.