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  • Forex on steroids!

    Forex on steroids!

    With all the negative and positive commotion surrounding the Crypto market – it still begs the question, for those still curious. What does it take to engage in the trading of Cryptocurrency?

    And by trading, we are not referring to the price speculation in a portfolio as one would with the price of a company’s shares or even CFDs. 

    We are rather referring to trading it as a commodity against other ‘Cryptos’ in a properly regulated online market setting. Similar to how a Foreign Exchange (Forex) market operates.

    As with trading traditional fiat currencies, the price is purely determined by good old supply and demand for the currency and monitored by the availability versus volume traded.

    It is therefore just a medium between traders where they can set limit orders to buy/sell Bitcoins for a certain price.

    So, in the true approach of Debunqed, we will decipher crypto-exchange trading by looking at what you need to do to get into it, and what you stand to gain.

    Here are the quick steps:

    The first step would be to open a secure Crypto wallet to physically purchase (own) some altcoins. Bitcoin, Ethereum, and Litecoin are the main coins offered by Crypto wallet providers.

    They hold the most value and can thus be broken down into smaller denominations (Altcoins). The same way the dollar is used as the main exchange for other fiat currencies. This example helps to put things into perspective.

    Make sure you do your research into which wallet you will use. Obviously, if you are mining a certain Cryptocurrency you would naturally purchase them directly from that software provider of the Altcoin.

    Using Ripple mining as an example, the platform is supplied by RippleNet and naturally, it follows that the Ripple company mines all the volume and controls its supply.
    Getting the digital currency into a wallet can be a quick exercise.

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    It can take as quickly as between 5 – 20 minutes via a peer-to-peer Bitcoin marketplace connecting buyers with sellers like at Paxful.

    Make sure you deal with reputable sellers.  This wallet provider rates suppliers based on how reliable they are so only deal with sellers of the highest ratings.


    The actual purchase (mostly conducted via online chat) can be made via a Credit/Debit Card, online banking or convenient money transfer facilities like (Europe-based) N26 Bank, Skrill or PayPal.

    You can even purchase and send gift cards from Amazon for instance, to the seller (to the value of the currency being purchased) for the seller to release the Altcoins.

    Security and storage

    The actual coins are stored as an alpha-numeric key code – with the currency value in the wallet once acquired.

    This after the wallet-broker takes a small fee for the transaction. This code/key needs to be kept secure – backed up online and offline (highly recommended). This is possible on special flash-drive (Crypto wallet) like the Trezor or a Ledger Nano. The device would hold the deposit key if you were transferring it to another wallet or to an exchange to trade.

    Time to go shopping!
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    Finding a good exchange

    The next step would be then to source a robust and user-friendly platform to trade your newly acquired currency on.

    The best cryptocurrency exchanges would allow you to swap fiat currency such as dollar/euro for the digital currency directly. Naturally, you can trade one digital currency for another as well.

    Binance

    There are quite a few to choose from so it is good to read the reviews. You should then select one based on the number of deposit/withdrawal methods, the fee structure level, number of countries served, availability of security tools and features.
    The last aspect is a huge determining factor: exchanges can be prone to hacking, or loss from outages. Lastly, their margins and exchange trading functions are good to observe too.

    For serious and equally secure trading, you will likely need to use an exchange like Binance that requires the user to verify their ID before being opening an account. Make sure you have all your documents ready and up to date!

    Trading

    When it comes to the actual trading, let’s take a scenario where two people want to sell an altcoin but not for the market price. One sets a limit order for lower and the other for a slightly higher price. So, the best price to purchase Bitcoins, in this case, would be the median of the two prices.

    If the buyer wants to purchase more than one altcoin, they will continually take the lowest price available. By doing this, the “price” of the altcoin will increase as the lower-price sell orders are no longer available.

    You will then, as with Forex, purchase pairs of where you think your digital currency will be stronger against another e.g. BTC (Bitcoin) vs XRP (Ripple).
    This combo would look like this on the exchange: BTC/ XRP – 0.00011960. What this means is that one Ripple coin is worth that much Bitcoin for instance.

    The little details

    This type of trading, like commodities or forex, requires constant attention and the monitoring of prices. But there are tools that can also help you set prices and have the trades auto-execute.

    So, a platform which provides such tools conveniently allows you the time to do other important things. Like paying attention to your spouse, formal job or family and friends. That would be ideal.
    If you have the cash, time, expertise and financial clout, it is even possible to run your own Crypto Exchange!

    This is another benefit of a decentralized currency system that will allow you to earn some cash by charging for the usage of your robust platform.
    Well, this may be until the fiscal authorities’ crackdown on all of the platforms with restrictive legislation.

    Finally, like many platforms that provide opportunities to purchase something, the software must be stable and be cost-effective to use.

    ADVERT

  • Manage your own trading portfolio

    Manage your own trading portfolio

    The natural inclination for anyone that hears about a new means of making money is: “how do I get involved?” It is therefore only right to not just dangle the carrot in front of faces but also to share tips.

    Despite the fact that investing in shares, securities and now Cryptocurrency, as mentioned in the previous blog, comes with a very high risk. 

    Your portfolio can be managed carefully to minimize the risk and here is how. Before we progress, please note that this is not fail-safe advice but only a guide, so do take heed of our disclaimer.

    Preparation

    As a rule, this applies to any website offering advice. We would like to warn you that just like eating regularly at a fast food joint – the risks are clear.

    So if you know your appetite for risk or have a lack of financial discipline and take this as information gathering to enhance your awareness.


    Additionally, we would like to reiterate that running and maintaining your personal investment portfolio requires practice before jumping straight in.

    The first step is to identify the types of securities available. Research new articles and the respective financial statements. Once you’ve done that, start a free trial with an online trading account.

    There are several institutions offering online trading (each with its criteria for entry and for trading).


    Banks also offer this service but might charge a monthly service fee for it so the first step is to do a little shopping around.


    Not all online trading platforms are offered globally so one must find one that follows the financial compliance laws in your country/continent or territory.

    Taxation

    This is important because, like any other investment, your profits from trading are subject to tax (tax evasion is fraud). The type of tax, in this case, is Capital Gains Tax (CGT).


    This is payable as a percentage of up to 25% of your profits once you have closed a position and cashed out from the trading account.


    The CGT would have to be declared and paid for directly to your local authorities when you fill out your tax returns.


    There is still a grey area as to whether Cryptocurrencies are to be classified as taxable assets – which might work to your advantage.

    In Germany apparently, if you hold (without selling) Crypto on an online platform for more than a year – you are not liable for taxes.

    Nevertheless, be sure to factor CGT into your calculations, and don’t get caught out with that!

    The act of trading


    The actual trading itself requires some strategy. you should be including a combination of high risk and lower risk asset classes in your portfolio. ETFs and Equities are more on the “lower risk” side as they are purchased on a long-term outlook.


    Purchasing equities in well-grounded tech companies such as Amazon; Microsoft; Google; telecommunications and energy companies are considered as long buying. We highly recommend this option.



    However, while you sit on those over the months or years you would still want to make some short-term gains. This is where your high-risk high returns securities (Forex, Indices, Options, and Cryptos) come into play.

    As a rule of thumb, your high-risk assets should only be between 15-20% or less of your overall portfolio.


    This way any losses incurred can be absorbed or regained over the following few months allowing you to accumulate more stable/longer-term equities.

    Like a business, your trading portfolio can grow exponentially if you continue to re-invest your gains-profits.

    Your gains made in the short-term can be used to purchase the next long-term security. But n case of emergencies, they can be withdrawn to cover other needs (holidays, unexpected debts). It is better to regard your collective portfolio as a long-term asset.

    Four quick basic steps to getting into trading.

    Step 1:

    Decide on an amount outside your other investment vehicles (property, savings, mutual funds, or bonds) that you would set aside for trading. Again, this must only be a fraction of your overall investment.


    Most online trading platforms require a minimum amount to open a trading account of between 50 – 200 USD/EURs (you can use that amount for trading).


    You will need to ensure you have a good enough Laptop/PC and broadband with all the required security software installed. You can also use your mobile phone for short-term securities such as for binary options etc.


    Platforms such as IQOption and are available via Apps for phones and tablets as well.

    Step 2:

    Before choosing the platform, make sure you understand the costs to be incurred while trading (it’s wise to compare options).

    One main charge is commission. You pay it with a purchase of an online traded asset, interest from leverage (margin trading) to purchase the asset, deposit fees, and some even charge for withdrawal of funds.

    So, while one platform may charge a 0% commission on trading with some securities, they may offer other securities that require leverage or just charge a higher deposit fee. They are after all there to make money as well.

    Use your free trial to work out which pricing model suits your trading needs in addition to learning the market trends and getting a handle on technical analysis tools.

    Click here to see a video below of one of such tools.

    As part of the service, you would also get access to online chat, a personal assistant to call during office hours about anything to do with your account/portfolio and the option to upgrade your account. So you are never on your own really!


    Some trading platforms offer you benefits (in the form of cashable tokens or direct cash commission) for trading profitably, referring someone onto the platform and when they make money.


    One such platform called eToro is known as a social trading platform.
    It allows you to “shadow” successful traders and pays “leaders” handsomely in return for the number of “followers” you acquire.


    Many platforms like IQOption will reward you if the person you referred makes profitable sales of their assets. This comes in the form of a direct cash commission paid to their account.

    Step 3:

    So now that you have familiarised yourself with the tools, and have analyzed the technical aspects of the platform, you can begin real-time trading. This means switching from a trial to a paid account. You will need to provide your banking details (chequing account, credit card, or digital wallet). This is where deposits and withdrawals will be made from.


    Most platforms, which are usually located in your geographical region, allow you to pay from your local (debit) bank account, a PayPal, or other types of online money transfer services.


    The next step, which is important for security from both parties as well as for the financial and monetary authorities, is account verification.

    You will need multiple forms of identity: passport, proof of residence, social security or tax reference number, and of course contact details such as email and mobile (cell) phone number for various forms of authentication (e.g. two-step authentication to protect your account from unauthorized access or in case of password resets).

    Once completed and have been approved/verified you are good to go! This can all take 30 mins (and processed online) if you have everything in place.

    Step 4:

    The final step to running your own successful trading portfolio is to exercise the skill of patience. Learn to watch the market trends and do not act on impulse.


    The rule is simple: buy low and hold. Selling should only be done if you have credible information on the impending total meltdown of a company you own shares in. Otherwise, like a rollercoaster, be prepared to watch your stocks go up and down.


    When it comes to the risk of a downward trend you will have the tools on most of the platforms to help you control losses from price movements automatically (Stop Loss). with this tool, you don’t have to always be glued to your PC to monitor the longer-term securities.


    Binary Options (illegal in some countries) are different though and require quick execution of trades. Have a look at the first section of the resources page to familiarise yourself with how high-risk securities work.


    But for all others, you will have tools such as stop-loss orders, take profit/limit orders, pending orders, and trailing stop orders. These will help you protect your profits and prevent colossal losses.
    Go forth and make a fortune – or at least some passive income and a decently rewarding long-term investment supplement!

    Start with a demo trading account now!

    RISK WARNING: YOUR CAPITAL MIGHT BE AT RISK.

  • An investor state of mind

    An investor state of mind

    As an Arsenal Football Club fan, one has the natural tendency to follow the progress of both present and past players of the revered North London title-winning institution.

    The prestige of playing for the club comes along with all the bell and whistles required to make life living in the small yet expensive hub city often dubbed to be the centre of modern Europe, a breeze.

    It was rather sad to read about the unfortunate fortune of a former player who had a big heart and passion for the beautiful game. He was, however, a bit aloof and care-free on the pitch. It turns out this was a character trait that perhaps extended to his financial affairs.

    He was recently reported as sleeping on the couch of a friend without a penny to his name. How can that happen, you might ask?

    His weekly wages were a reported 50 000 Great Britain Pounds! So how did he go from earning that figure, to being dead broke?

    Such a bad turn of fortune is not uncommon for celebrities, qualified professionals, and lottery winners. This can be explained by a simple lack of ‘investor mentality’.

    The right state of mind

    This mindset can be instilled in us from a relatively young age if you have had the luxury of growing up with parents, teachers or a mentor who imparts this knowledge to you. It can also be learned later in life – often the hard way.

    Similar to starting a business, the biggest barrier to entry into any form of investment is always the initial capital. Once you have it, coupled with the investor mentality, it’s hard to fail financially in life: just ask the current sitting American president!

    Now as obvious as this sounds, you need to put in money to make money. That is why investing, for instance, is mainly carried out on a large scale by banks – with your money!

    What you do with the money when you inherit it, win it, or save up from a weekly or monthly project-based income is more important than just having it in the first place.

    Wouldn’t you agree that money comes then often goes faster than you realize? Having a grasp on why it leaves so fast is what we should be paying attention to.

    Let’s firstly be sensible about this – investing is always a long-term project. A desire to reap short-term gains or having such a mentality is paramount to risky gambling or betting against the odds.

    “Patience is an investor’s game – if you don’t have any, don’t bother with the mechanisms that don’t lock you in for a few months to enable you to realize a return.”

    Enough of the rhetorical questions and statements. Let’s briefly look at a few investment vehicles in the true fashion of Debunqed.

    Savings

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    This is the least risky investing vehicle and tends to suit patient investors. Usually, it is for you if yo are the kind that loves to watch paint dry. 🙂


    Your only risk would be using a non-government backed bank for it. The higher the amount you invest, the better the interest rate you get. So this basically benefits the already wealthy. Some savings accounts are even known to offer you 0% or fractional decimal interest rates which are calculated nominally.

    So it begs the question – why would you even consider putting your money in savings? Well, using this investment strategy helps with a good credit score. That comes in handy when you apply for loans or obtaining financial backing to start your new business. So they do have some use.
    Risk level: Little to none.

    Property (residential or commercial)

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    This is the golden nest egg of investing – that is if you can raise the bond for property or inherit one.


    Property is one asset class that tends to only appreciate and relatively well over the years depending on what is happening in the area/town or economy.
    Getting in is the difference between having a spender or an investor’s mentality.

    What do we mean by this? Well, if you can save up for a deposit to buy a brand-new luxury car, you could and should do the same for a house.

    That way each “monthly rent” payment goes towards something you will eventually own. You could also buy-to-rent. The income generated from the tenant (rent) will help you pay off the bond.

    Consider the appreciation value of property in your local area over the years. But like anything valuable, you must be prepared to maintain its upkeep – the costs will be more than your weekly carwash.


    In the long-run when you realize the greater future value, you could even downgrade to have some extra cash to spend. You could then get that car of your dreams or travel and see the world.
    Risk level: Low to moderate.

    Share/Stocks

    The days of stockbrokers are numbered. Trading firms and hedge fund companies are slowly being replaced by AI computers. These days, you can take full charge of a portfolio of equities, CFDs, Futures, Commodities, Options, Forex and Cryptocurrency directly from your laptop.


    There are a number of online trading platforms out there so it is a good idea to go with the accredited ones.


    One of the key benefits is that they all offer a free trial – which often gives you a mock .account. That’s a great way to learn about the tools and the above-mentioned markets.


    There are aspects you need to pay attention to. One of them is leverage trading . It is essentially borrowing money to trade (payable with interest) – a double whammy if or when things go south for you.
    Risk level: High to Excessive.

    Mutual funds

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    As the name suggests it is derived from a pool of funds from a specific institution or industry. Mutual funds are offered by institutions as a supplement to retirement plans (pensions and annuities).

    They offer you a return (often a stable monthly or quarterly pay-out) based on a fixed term that you agree on with your portfolio manager.
    The offering institution would then apply your pooled monthly contributions into a diverse portfolio to spread your risk exposure.


    This, however, requires the attention of a (paid) portfolio manager and is thus susceptible to the principal-agent problem.
    Risk level: Low to moderate.

    Venture Capitalism/Angel funds

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    If you have some spare cash and don’t want to bear the risk and burden of running a business yourself, you can fund other people you believe will be successful.


    In this arrangement, confidence is placed by you on the owner and the offering. You can then state the terms for the release of your funds such as a quarterly return on investment or a larger stake in the business and its profits.


    Rapper Nas is known for his investment in Silicon Valley start-ups as a Venture Capitalist – which gives him a share in the companies he backs with the hope of it growing exponentially to increase that shareholding’s worth.

    Celebrities and sports stars usually have the capital to diversify their portfolio by investing in or starting up a new business. One such notable venture was the one where Rapper/Producer Dre’s Beats brand got bought by Apple for three billion USD.
    Risk level: Moderate to high.

    Rare items

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    Though not an easy commodity to come by because often the initial value can be quite high (unless of course, you are lucky to find an item at a junk sale or low-key auction), rare commodities can also form part of your future financial security.

    Rare coins tend to take a long time to mature in value. Likewise, a painting can appreciate quickly in value if the artist’s “interesting” background comes to light in the press for good or bad reasons.

    As an example, a rare Nelson Mandela coin once sold for 100 000 USD while he was still living. So, one can only imagine what the few in circulation are worth now.

    Read more about rare coins here.


    A rummage around old antique shops and secondhand sales can reap rewards if you know what you’re looking for.
    Risk level: Low to moderate.

    Bonds

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    These are long-term interest-bearing certificates issued primarily by governments (via monetary policy) but also by certain large public institutions.


    Bonds give you a guarantee of a future value using a specially controlled interest rate. They are usually issued with fixed terms and can only be accessed after 3 to 10 years.

    This locks you in, to hold the bond for the agreed period regardless of which way the interest rates are going.


    Naturally the higher the rates the better for you. As a cautionary note, you will be subjected to the regulatory activities and monetary policies of the country in which you hold the bonds. Choose where you buy very wisely.
    and research your product.

    Accessing bond markets is also not easy and you may be subject to complex rules pertaining to the country, residence status and your credit score, and so on.


    It is really for the long-term investor and can be used in the same way mutual funds tend to be applied, to supplement one’s retirement annuity package.
    Risk level: Moderate to high.

    All things investment

    You need to remember the importance of imparting this knowledge to our youth, friends, and family so as to continue the cycle.


    The simple answer being: Education. The lack of it is one of the fundamental causes of poverty.


    A number of celebrities and sports stars have overlooked it’s true importance so as to follow their true passion and skill. This is not necessarily a bad thing. If you have the right people around you to help you manage your finances.


    It was reported he signed documents without knowing the full content and liability of what was being presented to him. It was also said that she would even bring paperwork to the football club’s training ground for him to sign.

    Let’s be honest, we don’t know the full facts but there is a lesson. This “wife” character could be anyone that you entrust with managing your finances so, be wise as to who you choose to oversee your accounts.

    Make a plan

    Having a grasp of your assets (if any) less your liabilities is the first place to start. Once you know what you have or don’t have, you can then set goals.
    Think about what you need to do to achieve a net worth that will sustain you for the long term.

    Granted we all must pay bills. We will write down that part of our income but we need to focus on what is being done with the money that is left once your overheads are met.


    Educate yourself (skip a binge session on Netflix). Take a deeper dive into the investment vehicles briefly spoken about. The resources page will provide more comprehensive details about all seven vehicles discussed.

    It will also guide you on where to go to find out more once you have decided and which vehicle or combo would fit your investment type and appetite for risk.

    Make 2018 a sensible year finance-wise and happy investing!

  • The big Crypt-ture

    The big Crypt-ture

    I’m not quite sure if anyone has given some careful thought, whilst in the heat of this Crypto mania, to the actual ramifications of the blockchain and its impact on the global economy. So, this is an attempt to perform a calculated prophecy, based on the conversations had with like-minded visionaries. An introspection into this much talked about technology has led to endless possibilities and here is how:

    Presently, every Tom, Anastasia, and Patel are pursuing short-term gains. Relentlessly investigating ways in which they too can “cash in” on the new digital currency from an investment point of view. This is mainly driven by how the altcoin is performing in value. But the real appeal for each digital “currency” comes from the security, speed and of the transactions it permits, as well as the fact that it is decentralized, free from additional admin charges and commissions.

    Also, let’s not forget the anonymity it affords one – great for criminals, money launderers. Because of the increased risk, monetary authorities and regulatory bodies will definitely make a case for the tighter controls or the outright banning of this new currency altogether.

    Retail and commercial banks, are currently entrusted with the movement of funds (electronic transfers) and are governed by economic monetary policy set up by the watchful eye of their big brothers – the Reserve Banks. These are the “primary targets” so to say of the blockchain, and were, therefore, the first to react by investing or attempting to start up their own blockchains. Such projects, however, prove to be expensive and still risky ventures given that no-one knows the source and destination of the blockchain.

    Banks are nevertheless having to either make quick decisions as to whether they get on board (some are partnering with developers of Cryptos such as Ripple), or get left in the dust when it comes to adopting a disruptor that clearly works better than what they are currently using or offering to their clients.

    But we also must look beyond banks towards institutions such as credit lending facilities and money transfer institutions, who also are in partnerships with the banks. They stand to get wiped out by the blockchain if you think about it. I mean, who will want to cough up a 10% commission or a transfer fee on money sent abroad to your family when you can use something like IOTA which, by the way, is as a Crypto hovering around 3-5 USD per unit. It is capable of transacting very quickly (even more so than the known altcoins as it uses a different technology altogether) and securely with no transaction fees. And how so you may ask? Those details are listed clearly on their respective websites. This begs the question – what does that then mean for companies like Visa, Mastercard or even PayPal?

    You can also imagine the implications for investment banks and its traders if markets such as the very volatile foreign exchange (Forex) are completely abandoned and substituted by Cryptos. There are now many an exchange for Cryptos in the appearing monthly.all coin logo

    So, you will be able to switch or trade Bitcoin for Ethereum, Litecoin, IOTA or Ripple if you need them for a specific transaction, country or product/service that only deals in that digital currency.

    While most people are understandably looking at it solely from an investment point of view – as greed never sleeps – its purpose is actually about changing the way we transact and pay for goods and services. The aim is to make it a currency not only accessible to attain but also if you have the resources to “mine “and own them, can be an alternative income generator alleviating the need for job creation – or a substitute for those who are perhaps made redundant by Automation and AI. So, once you mine the currency (provided you have the infrastructure and pay the overheads), you can use it to get the things you need or must pay for. e.g. your electricity bill can be processed and paid for directly from an IOTA-holding wallet.

    And speaking of electricity, I came across a very insightful article (referenced in the resource section) focusing on the impact energy consumption that global rampant mining will cause the price of electricity and the environment. Coupled with the switch to electric cars this could surely force us to invest in better ways to generate electricity if we are to maintain sensible levels of sustainability.

    Whether the price of electricity goes up or down will be determined by how quickly energy providers globally will be able to meet this surging demand. We can surely be in a position to observe the upcoming impact on electricity consumption from next year as more and more of the global population begin to mine altcoins for themselves.

    I also believe that the initial plan for Cryptos’ was to enable anyone to have access to a shared (decentralized) peer-to-peer type service which allows for secure transacting. One can look at the blockchain working in the same manner as BitTorrent or E-Mule (for those who remember that far back). In the way, that data, albeit mostly bootlegged music, videos, and software, was distributed and downloaded on the web.

    “Blockchain is essentially a quick peer-to-peer transaction of digital currency”

    So, while the value of Cryptocurrencies is now driven by a demand in terms of how well it works as a system, we must also look more closely at the added value it can offer society from a functional, practical, convenient and of course, cost-saving perspective.

    As we head into the festive season and bonuses are being paid out, be responsible for how you splash out. Do your research first – even if it means waiting a year to see how it all plays out.

     

     

  • The Big ‘Crypture’

    The Big ‘Crypture’

    I’m not quite sure if anyone has given some careful thought – in the heat of this ‘Crypto mania’. More specifically, have you ever considered the ramifications of the blockchain and its impact on the global economy?

    This is an attempt to perform a calculated prophecy, based on the conversations we’ve had with like-minded visionaries.


    An introspection into this ‘much-talked-about technology’ has led to endless possibilities.

    Presently, every Tom, Anastasia, and Patel are pursuing short-term gains. You are all probably investigating ways in which they too can “cash in” by investing in new digital currencies.

    This frenzy is mainly driven by how some of the altcoins are performing in value. Some digital coins are rising as much as 1000% in a ‘Crypto bull-run’. But the real appeal for digital “currencies” comes from the security, speed, and cost of transactions they facilitate.

    A case for Cryptos

    Most of you are understandably looking at it solely from an investment point of view – after all,  greed never sleeps.

    Also, let’s not forget the anonymity it affords one – great for criminals and money launderers. Because of the increased risk, monetary authorities and regulatory bodies will make a case for tighter controls.

    They may even push for the outright banning of this new currency altogether.


    Retail banks, are currently entrusted with the movement of your funds (electronic transfers) and are governed by economic monetary policy. This happens under the watchful eye of big brother – the Reserve Bank.

    These commercial banks are the “primary targets” so to say of the blockchain. They were, therefore, the first to react by investing or attempting to start up their own blockchains.


    Such projects, however, prove to be expensive and still risky ventures given that no-one knows the source and destination of the blockchain.

    Banks are nevertheless having to either make quick decisions about whether they get on board or partner with developers of Cryptos such as Ripple).

    We also look at other financial institutions such as credit lending facilities and money transfer institutions. They are also are naturally in partnerships with the banks. They, however, stand to get wiped out by the blockchain if you think about it.

    Really, who would want to cough up a 10% commission or a transfer fee for money sent abroad to your family? You could simply use something like IOTA which, by the way, is as a Crypto hovering around 3-5 USD (at time of publishing) per unit.

    It is capable of transacting very quickly and securely with no transaction fees!

    And how so you may ask? Those details are listed clearly on their respective websites.

    Peer review functionality

    It is the belief that the plan for Cryptos’ was to enable anyone to have access to a shared (decentralized) peer-to-peer type service that enables the secure transacting of literally – anything!

    You can look at the blockchain working in the same manner as BitTorrent or E-Mule (for those who remember that far back). In the way, that data, albeit mostly bootlegged music, videos, and software, was distributed and downloaded on the web.

    “Blockchain is essentially a quick peer-to-peer transaction of digital currency”

    The value of Cryptocurrencies is now driven by how well it works as a system. You must look more closely at the added value it can offer society from a functional, practical, convenient, and of course, cost-saving perspective.

    A real threat?

    So, what does that then mean for companies like Visa, Mastercard, or even a digital banking app like PayPal?

    You can also imagine the implications for investment banks and their traders. That is if markets such as the very volatile foreign exchange (Forex) are completely abandoned and substituted by Cryptos.


    There are now many an exchange for Cryptos in the appearing monthly.
    You will be able to switch or trade Bitcoin for Ethereum, Litecoin, IOTA, or Ripple.

    Handy if you need them quickly for a specific transaction, country, or product that accepts digital currency.

    More practical uses of Crypto

    The purpose of ‘Cryptos’ running on the blockchain is, therefore, to change the way we transact and pay for goods and services.


    The aim was to make it a ‘form of exchange’ but also to provide the resources for you to “mine” and own them.  This can be an alternative income generator alleviating the need for job creation. It can also be a substitute vocation for those you who were perhaps made redundant by automation and AI.

    So, once you mine the currency (provided you have the infrastructure and pay the overheads), you can use it to get the things you need or must pay for.
    Your electricity bill, for example, can then be processed and paid for directly from an IOTA-holding wallet.


    Speaking of electricity, we came across a very insightful article (referenced in the resource section) focusing on the impact of energy consumption that global rampant mining will cause the price of electricity and the environment.

    Coupled with the switch to electric cars this could surely force you to invest in better ways to generate electricity. That is if we are to maintain sensible levels of sustainability.

    Whether the price of electricity goes up or down will be determined by how quickly energy providers globally will be able to meet this surging demand.

    We can surely be in a position to observe the upcoming impact on electricity consumption from next year.

    More and more of the global population are beginning to mine altcoins for themselves.

    As we head into the festive season and bonuses are being paid out, be responsible for how you splash out. Do your research first – even if it means waiting a year to see how it all plays out.

  • Run your business on cruise control

    Run your business on cruise control

    Are you running your business as you did in the eighties, nineties? If so, you are probably working like a donkey and for the same kind of income – if you are even making any!

    Business automation has developed albeit quite slowly, over decades. It was accelerated significantly via the “www “.  And now even more so with the Internet of Things (IoT).

    Ways of doing business

    Let’s begin looking at communication – a key pillar in running any successful venture. Getting in touch with your clients can now occur in numerous ways.


    We have come a long way from shouting on street corners to invading people’s places of comfort with door-to-door sales visits.


    We can now get in touch physically via phone, Skype, Emails, online chatting, video-conferencing, and social media.


    And though it may sound like overkill, using these tools can actually help save you time and target your products effectively.

    This makes them efficient and worth every penny you spend on them.
    Hosting your email nowadays does not require the expertise of IT professionals.


    Likewise, IT pros are now discovering they have more time to perform administrative work (productivity reports). 

    As an IT expert, you must hate having to walk from PC to PC to install software. Such ‘excursions’ can consume hours during the day and, probably gets on the nerves of people trying to get work done.

    Hands-free IT

    As an IT pro, you can now administer and carry out IT-related tasks from the comfort of your office. You can even do it remotely from your, laptop, or your smartphone!


    So now, your emails can now be hosted with a few clicks. You can then receive them instantaneously on your desktops, mobile phones with a syncing feature. This is made possible by a newer mail protocol known as Simple Mail Transfer Protocol (SMTP).


    You can now synchronize your emails, calendars, and events, and contacts on your devices using Microsoft Exchange Online services.

    These are strenuous tasks that you would have had to manually create using special scripted rules. Tools like PowerShell, patches, domain routers would have to be applied to a physical server to enable such functionality.

    The cloud has made this all possible. We will not get into the intricacies and workings of the cloud but we have seen a massive uptake of it.


    Companies of all sizes, countries, and industries are moving to the cloud.
    This uptake of cloud services is happening on a regular basis as old servers are being made redundant and getting subjected to creative destruction.

    Software for hire

    Software as a Service (SaaS), is basically the hiring of software rather than owning it and leaving the maintenance to the software provider.


    Major cloud players such as Microsoft Azure, and Google Business, offer you the software just as a front-end and user-friendly application.


    They take care of the ‘back-end’ operations such as backups, updates, and upgrades, security, and compliance. All that for an annual or monthly fee.


    You can liken this to hire-purchase or the car leasing services that the automobile industry offers its clients.


    Our car servicing and maintenance are performed timeously by the manufacturer. You just drive it and pay for your own fuel on top of the monthly leasing fees. Such a service can even be monetized using Cryptos such as IOTA.

    Great collaboration tools

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    Another daunting yet integral task in running a business is the act of hosting meetings. Business meetings are often rescheduled as easily as procrastinating a spring cleaning exercise.

    Tools that facilitate online meetings like Skype for Business or Google’s Meet, allow you to schedule meetings from your calendar. This will send you and your meeting participants a reminder. With a click of a button, you can join, host or participate in an HD video or audio conference call.


    This can be done from wherever you are on the globe as long as you have a good enough broadband connection.

    The kicker with this tool is the ability to present your full (hopefully clean and avoid any embarrassing items) desktop, to all participants.

    So, you can present an Excel spreadsheet of financial data, discuss the design of a brochure or flyer for marketing, or run a PowerPoint presentation. The apps come even complete with an infrared pointer!

    For more solutions, have a look at the previous blog on sales software and CRM systems. This will help you understand a bit more about how SaaS can help grow revenue for your business.

    Good broadband is key

    Again, these services obviously require great Internet connectivity. This might also be the only stumbling block deterring many smaller companies and some big data-sensitive firms from taking on the cloud.

    But as Internet Service Providers (ISPs) and local governments are now actively getting involved in making broadband a necessity for us.

    There are endless possibilities that the cloud and good software, in general, can offer your business.

    No one wants to spend hours in traffic leading to stress at work or home. You also wouldn’t want to spend large budgets on unnecessary travel, marketing, and communication tools that are not effective.

    We are not fully in favour of substituting your human interactions with technology.  It will, nevertheless, help you to find ways to bridge the gap when you find that personal contact is not possible.

    Allow software automation to help you!

  • Out with the old school…

    Out with the old school…

    Creative destruction has become our new favourite buzzword. It also aptly describes this new wave or phenomenon of Crypto-mania driven by the blockchain and its shining star – the Bitcoin.

    Suddenly, people who normally would not bat an eye at trading are now asking how to invest in Crypto.

    Bitcoin

    We must note that anything that goes up very abruptly and abnormally – eventually comes tumbling down. The same way the big dot.com bubble burst and left many in dire straits after they over-indulged in overvalued tech companies.

    Turbulent history

    Bitcoin will eventually find its peak and there will be a mass sell-out and a ‘crash’ at some point.

    We even had the likes of an ironical skeptic – the dubious Ponzi-scammer dubbed ‘the Wolf of Wall Street’ Joel Belmont. He attempted to pre-empt a crash of Bitcoin.

    The funny thing is, however, most of the critics are people who have not invested themselves. Perhaps they suffer from a case of ‘sour grapes’ or they simply don’t understand how it works to even get involved.

    Doubt is prompted by fear of an unknown. Most investors themselves don’t understand the complex algorithms that went into designing the blockchain. However, it is proving to be resilient and gaining intrinsic value by the day.

    A new industry borne

    Bitcoin (at the time of writing), which was hovering around $17000 after breaking its latest resistance level, and poised to reach the $20000-mark.

    Creative destruction does not result in the reinventing of the wheel. It does, however, make the previous version look ancient very quickly. So while Bitcoins may not even last long, it has brought about its add-ons or spill-over effects.

    There are now hundreds of cryptocurrencies. While not all and most will not experience huge price surges like that of Bitcoin, Ethereum, or recently Dash, they are still in circulation.

    One of the spill-over effect includes the creation of jobs for new entrepreneurs, gamers, and developers across the globe.

    Though it might be too late for investors to delve into the above-mentioned ‘big boys of crypto’, institutions are constantly developing blockchain solutions.

    The fact of the matter is that the use and process of a blockchain makes sense and will, and is in the process of removing the old currency system.


    Now, this may take a while before it completely phases out fiat money. This will also hopefully, much to the delight of governments and fiscal authorities, help eradicate the scourge of counterfeiting. 

    Applications of blockchain

    tesla-1738969_1920

    Think about the big picture, the blockchain technology will allow you or any institution smart enough to copy or modify a part of the anonymously written code. Blockchain is open-source, so anyone smart enough can create their own.


    We can now have Crypto for shopping, for buying cars; getting your salary paid by a multi-national company irrespective of where you are based; or paying for using Internet services (IoT).


    The latter already exists and is called IOTA – read more about it on the resources page.


    This technology can enable one to find creative ways to monetize a cryptocurrency to serve any purpose. This while providing a secure and lightning-quick means to transfer funds.


    Litecoin and Dash boast amazing speeds of under 10 seconds to complete international money transfers.


    It would be interesting to observe any bank try and beat that without charging an arm and leg for that type of service!

    The motor industry

    The critics, who thought Elon Musk was crazy for inventing electrically powered battery motors to run engines and now trucks – are now eating their shorts.

    Not only did Tesla´s market capitalization beat that of Ford and recently BMW, but it also outperformed petro/diesel-powered vehicle companies. Outdoing them in speed and performance, attractive looks, and practicality – Tesla is changing the motor industry.

    Manufacturers like Volvo, Porsche have now rolled out their own hybrids cars. They are looking to go the route of fully electric motors within a short matter of years.

    Such notable paradigm shifts in the way we do things embody the beautiful concept of creative destruction. Those that shun it get left behind.
    And while it is not all about the monetary gains, you can own the coins to use for transactions rather than for investment.

    It will serve you better, in the long run, to get in the know of what is out there.

    Beware of scammers

    Be wary and vigilant, as like with money and investment, there are sharks out there (offering deals). The aim is to exploit you and many other unknowing technophobes looking to make a quick buck or two from Crypto.

    Mining Cryptocurrencies (is particularly conducive for gaming enthusiasts) and using them to benefit you quickly and securely in the way of a new digitized future.

    Some Internet pirates in desperation use anonymous digital currency such as Monero. They now use java-scripted mining devices (hidden behind ads) to drain hash power unsuspecting from your web-page browsers.

    The way forward

    Everyone is trying to get a piece of the action! There are also legitimate paid commission-based add-ons for trading as well – opening up a new world of digital earning online.

    Don’t get left behind. But as with any investment, and a caution to the wise: Cryptocurrencies are highly volatile, and should not substitute any investment portfolio. They should only and always account for a fraction of your overall investment.

  • Globalization 2.0

    Globalization 2.0

    The implementation of globalization has not been without its major flaws. Abolishing it, however, is paramount to anti-socialist behaviour or looking inwards. This concept is against the tendencies of human nature.

    If you read up on any definition of globalization, you will see that the intention was always genuine. The need to integrate and collaborate for the mutual benefit of nations.

    It can, however, like any product (like knowledge), be exploited out of selfish desires and lead to exploitation.

    Of course, it also doesn’t mean that globalization must apply to every sector of your economy.  Some inward investment is always healthy. It should, however, not lead to extreme nationalism for a fear of loss of national identity.

    Trust issues

    The problem, like many others, lies in the hands of politicians who are controlled and dictated to by a handful of large corporations. These ‘corps’ have one and only self-interest – profit, power, and control.

    The main concern for sovereign governments is that ‘giving up’ or sharing one’s technological, innovative, or manufacturing secrets to other countries. The premise is that this would make them ‘vulnerable’.

    The real issue lies in a lack of trust – leading to the notion: “I will not let you know how I do it because you may use it against me – in trade or war”.

    Despite the existence of supposedly ‘compartmentalized’ trading blocs and free trade areas like NAFTA, EU, ECOWAS, SADC, etc, the rate of globalization has sped up significantly in the past decade.

    This is due to boundless advances in information technology as accurately predicted by Neoclassical Growth Theory.

    Information technology has now given us valuable new tools to identify and engage in economic activity.

    Tech provides access to and faster, more informed analysis of information, transfers of assets, and collaboration.

    The impact on finance

    A globalized world means that with the aid of technology, you can buy and sell shares of an Italian firm from a desktop in Namibia!


    You would then only have to deal with the commissions and transaction fees (capital gains tax) locally pertaining to your online trades.

    And think about it, on a micro-level. If globalization is entirely a bad concept then no-one should be using Amazon, eating MacDonalds, or watching Netflix in protest. Hard to imagine, isn’t it?


    We must praise its positive outcomes and work hard against the negative impacts. The negative ones are also giving rise to a new era of extreme nationalism or populism.


    You can only do your bit by promoting and backing policy-makers who can enforce good trade laws.  This would force both local and international competitors to play by the same rules.


    Penalties for financial misconduct should be a lot greater to deter exploitation. Rather, perpetrators still get the proverbial slap on the wrist.


    The creative destruction of the financial system will be brought about by cryptocurrency and its underlying blockchain technology.

    Depending on its uptake, and whether the authorities can legitimize its legality, we may see individuals and governments using decentralized currencies.


    The Venezuelan president is investigating the concept of a national cryptocurrency dubbed ´Petro´. They would use it to alleviate dependency on (heavily interest-ridden) loans.

  • Rise of the machines

    Rise of the machines

    As a young man born in and living in Pretoria South Africa, multi-billionaire Elon Musk – better known for pioneering the Tesla battery-operated motor concept – was shunned by the Industrial Development Corporation several times.

    His innovative ideas were denied financial backing so he moved to the USA for better support. The rest as we all know is history.


    The futuristic thinker, however, took a rather skeptical and worrisome handbrake-turn when it came to the topic of artificial intelligence (AI) and its benefits to society.


    When a man like that with so much insight into technology warns of its potentially harming effects, it warrants notice. Musk warned that its use could foster ‘the coming of third world war’. We have to for such reasons,  delve a little deeper into the topic.


    We have rapidly progressed from longer periods of stone, iron, industrial, to that of space, technological/information ages. The world is now apparently fused between the latter three.


    Despite skipping a few ‘crucial’ stages, we have now surged into the age of digital automation. This is while sadly still dealing with the ravages of poverty, disease, and irreversible damage to our environment.

    Automation & AI usage

    Automation is helping business through software like ERPs that take over traditional back-office finance and operations.


    In the IT industry, the Internet of things (IoT), cloud services, and general Software as a Service (SaaS) have simplified things for IT managers. You can now just monitor and attend to more pertinent issues and tasks (hopefully not just stream movies and play games on duty).


    While seated comfortably, you will be able to now perform tasks such as deploying new software, installing/removing updates on multiple machines/devices simultaneously. All with a push of a few buttons.

    Trading bots

    In the high-risk investment scene, automation has given traders more room for better research and analysis Thus relieving you from the known stresses and mundane tasks associated with trading.


    For many trading houses and brokers, AI has even completely taken over the mundane task of making and executing trades.

    iqoption
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    If you haven’t already, read this great book entitled: The Fear Index (thriller by Robert Harris). Though fiction, it illustrates the use of a machine learning tool using algorithms to help a hedge fund company generate billions for its investors.


    The use of AI is not without fault. It can also lead to costly system-generated errors like the trading error a few years at Goldman Sachs cost the firm $100 million and other cases.

    Other use cases

    It can still, on a ‘micro’ level, help free human capital (individuals) from PC-related issues. So things like having stress, headaches, backaches, and lack of time spent with family and friends can be a thing of the past.


    In the industrial and manufacturing sectors, the advent of AI creates even more of a fear and a concern. The number (staffing) of redundancies, may increase when it is introduced.


    This would require careful planning to ensure the blue-collars that are ‘replaced’, are compensated. More so, they would need to be incorporated into different areas of businesses.

    Limits of robotics

    Obviously, not every task need to be automated or performed by robots. We (as humans) are still required to check-up, inspect, and perform quality checks for instance.
    We can, as a result, deal with inter-personal jobs that require more empathy like in customer and social service.


    Human resources or getting into corporate social responsibility (CSI) projects that reach out to communities.

    Embracing it

    More importantly, policies by governments will need to focus ever so more on job-creation. Governments must now adopt innovative means of creating jobs or foster and supporting entrepreneurship. Projects like those of Mr. Tesla/Mr. PayPal/Mr. SpaceX has created thousands of new jobs.


    As for the use of AI in weaponry and military defense systems, the less said the better. When it comes to privacy and security concerns we can only hope that rogue politicians don’t get unregulated access to such technology. In such a case we would only be able to protest and hope not to feature in a real-life James Cameron sequel to Judgment Day.
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