CFI.co Blog - Page 35 of 48 - Business, Finance, Economics

Right now the world is facing the worst economic downturn since the Great Depression and many people across the world are going through extremely hard times.

But we also need to try and focus on the compelling positives there are now to create, build and safeguard money to reach our financial goals for ourselves and our loved ones.

The message from Nigel Green, founder and CEO of deVere Group, one of the world’s largest independent financial advisory organisations comes as the International Monetary Fund (IMF) projects global growth in 2020 to fall to -3 per cent. This is a downgrade of 6.3 percentage points from January 2020, clearly a significant downward revision within a very short time period.

Nigel Green comments: “The world has changed considerably in the first quarter of 2020. Coronavirus has sparked a truly global crisis like no other, with a horrifyingly high and tragic number of human lives lost.

“It has also been a monstrous source of economic upheaval and uncertainty for households, businesses and governments.

“But in these most unusual of times, it’s essential to seek the positives and there are increasingly significant reasons within the market to be cheerful.

“Looking beyond the gloom, many investors are using these to create, build and safeguard their money right now.”

He continues: “I believe that there are three main investment reasons to be cheerful.

“First, the market is cheap by historic standards and this represents a major, perhaps once-in-a-generation chance to buy top quality equities at lower prices to bolster investment portfolios. History shows that stock markets always go up over time.

“Second the worldwide loosening of monetary and fiscal policies. This will serve as a bridge for economies until the crisis passes and will go a long way to boost both supply and demand across all sectors. In turn, this will lead to more investment, increased confidence, and longer-term job and wealth creation.

“Third, pent-up demand will hit the global economy when lockdowns are lifted. Many people have not lost their jobs or suffered reduced incomes and have saved money during the lockdown. We can expect demand in sectors such as autos, travel, hospitality and entertainment to be strong.”

Whilst some investors appear to have not only locked down themselves, but also their financial strategies, increasingly both retail and institutional investors are “rightly looking beyond only the dark picture,” says Mr Green.

The deVere CEO concludes. “No economy – developed or emerging – has been spared this downturn, the worst since The Great Depression. The uncertain economic landscape is impacting on people’s lives and livelihoods.

“However, I also would urge investors to mitigate risks to their money and help create and grow wealth by looking towards the undeniable and compelling positive areas amid this tragic and unprecedented global situation.”

Technology

Online Gambling Industry rising as a consequence of the COVID-19 pandemic

ByCFI.co Blogger

We are living in unprecedented times with a global pandemic that has killed hundreds of thousands and countries all over the world ordering their citizens to self-quarantine.

With the suspension of all but the most critical industries business owners and governments alike are preparing for the arrival of a global recession – one which is feared to be far more devastating than the Great Depression and the 2009 Global Financial Crisis.

Given that COVID-19 spreads via water droplets expelled from an infected person,social distancing measures have been implemented in order to help break the chain of infection with many governments enforcing a strict curfew.

Online Gambling Industry rising as a consequence of the COVID-19 pandemic

Now with the United States becoming the epicenter of the pandemic, entire industries including casinos have been left in a lurch. According to a report by the American Gaming Association (AGA), the industry is slated to lose an estimated $21.3 billion in direct spending from consumers alone.

Here, we take a look at how we can expect the outbreak of COVID-19 to change the face of online gambling.

1. A Massive Increase in Customers

In early-April, Nevada’s Clark county reported more than 1000 COVID-19 cases and almost 30 deaths which prompted Governor Sisolak to order a shutdown of all casinos in the state despite severe pushback from various stakeholders including the Mayor of Las Vegas, Carolyn Goodman (I).

With almost all casinos in the United States shutdown, punters all over the country have turned to online gambling for all of their gaming needs. This has resulted in a windfall for online casinos everywhere with a nearly 50% increase in revenue with punters avoiding land-based casinos in favour of online ones.

Given that the COVID-19 pandemic has shown no signs of letting up and with a vaccine far off, the remainder of 2020 and 2021 is set to be a good year for the online gambling industry.

As the global economy grinds to a halt and uncertainty reigns supreme, many have begun to ask the question – will things ever be the same again? According to many experts, the answer is a resounding no.

The highly contagious nature of the COVID-19 virus and the variety of health complications means that social distancing measures will have to be practiced for the foreseeable future or until a vaccine is developed – which is highly unlikely.

Until a solution is found, it is highly likely that online casino betting will be able to enjoy an unprecedented increase in customers.

2. The Entry of New Competitors

While some may point out that casinos in Macau – the world’s largest gambling hub were able to resume operations after just 15 days, the stark reality is that things are far from normal. Casino floors are relatively empty and foot traffic remains low with many punters staying away from crowded areas.

Given the relatively low-barriers for entry and a market filled with investors hungry for opportunity, it is only a matter of time before new competitors begin appearing on scene. This can potentially be a problem for current online casinos who may want to consider diversifying their range of games offered.

With sports betting also affected by the lockdown, punters have begun turning towards online casinos and slot games for their gambling needs which may in turn encourage bookmakers to open up their own online casinos in order to capitalize on shifting market demands.

3. Stricter Compliance

Casinos and other gambling outlets have always been closely monitored and regulated by government bodies given the nature of the business. Now with the economy taking a turn for the worst and with jobs at stake, people are likely to be more anxious and stressed which in turn leads to compulsive gambling and other risky behavior.

This has forced governments everywhere to introduce more stringent regulations with regards to gambling, these measures have included restricting advertising, minimizing payouts and even banning gambling outright in some areas.

Given the current state of affairs and the increased levels of vigilance, online casinos and gaming sites may begin imposing limits on bet sizes and practice more thorough screening of punters.

4. Potential cash flow issues

Whilst the online casino business is and has always been a solid one, it is not entirely recession-proof. As businesses all over the world shut down or scale back on their operations, employees and business owners everywhere face the very real prospect of losing a significant portion of their incomes.

This in turn overlaps onto the online betting industry as punters begin to suffer from problems related to cash flow. Initially, the effects may not be tangible as we are yet to feel the true impact of a pending global recession.

Only when businesses begin to shut down and unemployment numbers rise 6 to 8 months down the line, will we begin to see a drop in revenue and takings. Consequently, operators should seriously consider putting aside cash reserves for the lean months ahead in order to stay afloat.

As the old proverb goes, “All Good Things Must Come to an End”, so will the windfall from the sudden influx of new punters. The COVID-19 pandemic is unlike anything that humanity has seen in over a century and even the most resistant of industries will not be safe.

Banking

UBX mobile ATMs to expedite gov’t covid-19 subsidies via rural banks & coops in the Philippines

ByCFI.co Blogger

UBX, the fintech company of Union Bank of the Philippines (UnionBank), recently started deploying a rapid and remote mobile-enabled ATM solution in response to COVID-19, as part of its i2i platform. With i2i Mobile ATM, rural banks and financial cooperatives across the Philippines are enabled to pay-out a wide range of government subsidies direct to beneficiaries in the historically underserved countryside. This will help address the growing need to access cash, as a result of the extended enhanced community quarantine (ECQ) in Luzon, the largest and most populous island in the country.

i2i’s Mobile ATM technology works just like a standard ATM and allows rural banks, financial cooperatives, their agents and associated merchants to offer cash out and balance inquiry transactions for all locally issued debit/ATM cards. Financial institutions that avail of i2i Mobile ATM receive i2i Mobile ATM devices within days of signing up. They are enabled to pay-out government subsidies and positioned to participate in the emergency subsidy program under the Philippine government’s Bayanihan to Heal as One Act.

UBX developed this state-of-the-art mobile ATM in partnership with leading Irish Financial Services Group, Fexco. Fexco currently employs more than 2,400 people across the globe, focused on delivering technology enabled financial services to a wide range of banking and fintech partners, and this initiative with UBX will build on the existing partnership in the Philippines.

Cathal Brendan Foley, CEO of Fexco Philippines, said: “We are very pleased to be partnering with UBX to assist Filipinos in this time of need. This partnership will allow us to rapidly deliver crucial financial services to consumers across the UBX and UBP banking partner network. Fexco and UBX are both dedicated to enhancing financial inclusion for both the businesses and the people of the Philippines.”

UBX’s i2i Network is the fastest-growing and largest network of financial institutions including rural banks, thrift banks, savings banks, cooperatives and other non-banking financial institutions. Since launching its technology platform in April 2019, the i2i Network is over 110 members strong with nearly 1,000 branches between them.

John Januszczak, CEO of UBX Philippines, said: “By digitally connecting community-based financial institutions best positioned to serve the financially excluded, the i2i Network and i2i Mobile ATM are extremely well poised to support our government’s effort to contain the pandemic while enabling the provision of much needed relief to those affected.”

Investment Management

The Best Place to Invest 100K: Understanding UK Savings Accounts

ByCFI.co

If you have £100,000 or more in savings, keeping in safe is essential.

The risk-free, common-sense option to keep your money safe is to put into a savings account. Not only will your money be held safely, but it will also accrue interest.

But, are your savings working well for you? Are you getting the maximum amount of interest possible?

How well do you understand UK savings accounts?

We’ll explore the different savings options and the best place to invest 100k.

How to Find the Best Place to Invest 100k

There are several factors to consider before finding the best place to invest £100k.

Decide how long you would like to lock your cash away. The longer you leave your money, the more interest you will accrue.

Fixed-rate savings accounts that require you to hold your money in place over a certain amount of time can provide good returns. However, if you need your money back before then, you may not be able to access it.

Are you a pensioner or a student? Banks and building societies often offer preferential interest rates for different age groups. In which case, you should look for the best saving rates for pensioners or the best savings account for students.

You should also consider that you may need to split your money between multiple accounts.

Decide on whether you need access to your cash. Do you require online banking?

Is customer service important? Will you need to service your account in your local branch?

Work out what’s important to you, and make sure that you find an account that ticks all of the relevant boxes.

Don’t Put All of Your Eggs in One Basket

By spreading your investments across a range of different savings accounts, you will enjoy a variety of benefits.

If you have short-term requirements on some of your cash, put that money into an easy-access account with the best interest rates. For the rest of your cash, look for longer-term savings accounts that offer the best returns.

Similarly, if you are unsure about what you want to do with your money, keep it in easy-access savings accounts until you have decided. That way, you can still move your money out when you have a long term plan.

Financial Services Compensation Scheme

When you invest any money into a UK bank or building society account, you are protected. The Financial Services Compensation Scheme protects savings of up to £85,000, or £170,000 if it is a joint account.

If you are looking to place your £100,000 or more into any type of savings account, you will need to set up at least two different accounts with different banks to protect your money.

Alternatively, if you can set up a joint account, you will benefit from the higher level of protection.

The Financial Services Compensation Scheme is in place to protect your money in the event of the bank or building society being able to pay you your own money.

Making Use of ISAs

Savings accounts in the UK are subject to tax-deductions on interest payments.

Individual Savings Accounts (ISAs) offer the opportunity to save up to £20,000 each year, tax-free. If you have a partner, you could both invest £20,000 each in your own ISAs.

If you want to make the most of your savings, then you should take advantage of your tax-free savings allowance by opening an ISA.

You could opt for Cash ISA or stocks and shares ISA or a combination of both.

A cash ISA will act in much the same way as a savings account. With a stocks and shares ISA, your money is invested into stocks, corporate, and government bonds. You may return a greater degree of interest with this type of ISA; however, you may lose money too.

Finding the Right Savings Accounts

Find a savings account that offers you a rate of interest that is higher than the rate of inflation.

Inflation rates directly affect the value of your savings. If you place your money into an account with a 2% interest rate, then after one year, you will have 2% more money.

However, if the rate of inflation is greater than 2%, you will have more money, but that money will have lower purchase power than it did a year before.

Regular Savers

Regular savers accounts often offer interest rates that are higher than the rate of inflation.

With rates of up to 5% available, this type of savings account is certainly worth exploring.

You will need to be aware of maximum deposit limits, as well as the length of time that the rates will be valid.

Fixed-Rate Savings Accounts

Fixed-rate savings accounts will offer you the same rate of interest over a specified period of time. Typically, your money will be locked into the account for between one and five years.

The longer you are willing to leave your money in this type of account, the higher the interest returns will be.

Don’t Overlook Current Accounts

It is easy to think that a current account is just for holding your cash and paying your direct debits; however, they can be a useful tool for depositing large sums of money.

Many current accounts will offer a reasonably high rate of interest.

Usually, current accounts will offer a higher rate of interest for a small amount, and then a lower rate for any money thereafter.

For example, a current account may offer 5% on the first £2,500 for one year, and then 1% on everything above that amount.

Always Research the Best Deals

The best place to invest 100k will depend on the interest rates offered by banks and building societies. Banking products change, so shop around and find the best savings account that will work for your money.

For more advice and information about making your money work for you, explore the other articles on the blog.

Business

5 Reasons Why Your Business Needs Managed IT Services

ByCFI.co Blogger

The way different companies used to do business has been changed dramatically in the last few years. Now, there are the latest and modern solutions for companies and businesses in order to enhance their productivity and grow their businesses.

Managed services for businesses have genuinely revolutionized the start-up culture. There are different kinds of service providers for your business all around the globe. It means you don’t have to a separate department for everything. Instead, you can just get managed services. For example, Managed IT services for small and mid-sized organizations are easily available, and you can easily take benefits from it.

Here are some of the reasons that make managed IT services a must-have for your business:

Efficient and Reliable IT Operations

When it comes to IT operations, you need to have an efficient and reliable team to take care of the important things. It is only possible when you have a team full of experts to perform on-demand IT support. Therefore, if you get managed IT services, you’ll know that you have a collaborative partner to make things easy for your business. Hence, you’ll be able to focus on matters other than IT support.

Enhanced Compliance and Security

IT management services make sure that they provide ultimate compliance and security to your business. If you have an in house IT team, then if things go south and there is a security breach, your system will be compromised. So, you’ll have to spend a good deal of money to make sure that you have unbreakable security. But, if you get managed services, then they will take care of all the security details for your business.

Proactive Maintenance Approach

When it comes to IT support, it means that you’ll be needing regular maintenance. This maintenance can be extremely time consuming, and if not done on time, it can affect your business operations. Therefore, make sure that you have the right approach for maintenance. It is important because, if delayed, it can cause serious damage to standard operations and workflow of your business.

A Cost-Effective Solution

If you are a small or medium-sized business, then obviously, finance is difficult for you to manage. You can’t afford to build a complete in-house tech support team. It requires a lot of infrastructure and resources. Therefore, getting the services of a company is a cheap and wise option for small and medium-sized businesses. Now, even the big companies around the globe are choosing such companies because of all the benefits they have to offer.

Enables the Internal Staff to Be More Productive

Lastly, the most important thing for any business is the high productivity of the staff. When you have managed services from another company, it’ll definitely easily burden off your own employees. Hence, they will have more time and resources to focus on other important business operations. It’ll be the ultimate help for your business’s growth because his growth highly depends on the productivity of your employees.

Economics

Coronavirus Research Index Reveals which Countries Put the most Effort in COVID-19 Research

ByCFI.co Blogger

Finbold.com has launched the Coronavirus Research Index (CRI) to identify countries that are putting in the most effort in finding ways to manage the COVID-19 disease.

The index ranks the countries based on the number of active medical coronavirus studies that show which countries are actually executing the most research related to COVID-19 to understand the virus to find the effective means of managing the disease. According to the Index, China, the United States, and France are the top three countries leading in the number of active studies related to coronavirus.

China leads in studying coronavirus

The CRI shows that China has 60 active studies, with the United States having 49 ongoing studies. On the other hand, France has 26 active studies. Idas Keb, a co-founder at Finbold, on the findings commented:

“Interestingly, the index also reveals that while there is some correlation between countries that have the most COVID-19 cases and the number of medical studies, the majority of the countries are still far behind on coronavirus research. For example, Spain, which is second by the number of confirmed coronavirus cases, is not within the top 5 countries in the research index.”

The report features studies that are labeled as ‘Active’ on the ClinicalTrials.gov database. The studies have a different status like Recruiting, Not yet recruiting, Active not recruiting and Enrolling by invitation.

The research index also highlights the study title, the status of the study, the institutions carrying out the study and the interventions placed into managing the condition.

Currently, the Finbold.com Coronavirus Research Index identifies 39 countries with ongoing studies on COVID-19. All listed countries have confirmed cases of the novel coronavirus.

You can find the research and try out the tool here: https://finbold.com/coronavirus-research-index/

Banking

Is a SIPP (Self-Invested Personal Pension) a Good Idea for Freelancers

ByCFI.co

A quarter of British adults have nothing in savings. Meanwhile, one in 10 Brits admits they tend to spend more than they earn. As a freelancer, you can’t get caught without a good nest egg awaiting you during retirement. By setting up a self-invested personal pension (SIPP), you can prepare yourself for the year to come. A SIPP will help you save for retirement without worry you’ll spend your savings.

What is a SIPP pension exactly, and how does it work?

Keep reading to find out everything you need to know about SIPP investments as a freelancer!

What is a SIPP?

First, what exactly is a self-invested personal pension?

A SIPP is a pension that holds all of your investments until you retire and begin drawing a retirement income. This form of personal pension works similarly to a standard personal pension. The main difference, however, is that a SIPP offers more flexibility with the investments you choose.

Once you have your SIPP set up, you can add regular contributions to your nest egg. You can also make ad hoc payments into your self-employment pension. Then, your pension provider will claim tax relief and add it to your savings.

How Does It Work?

How does a SIPP work and help you save for retirement?

With a standard personal pension, all of your investments are managed for you. They’re controlled within the pooled fund you selected. With SIPPS, however, you have the freedom to select and manage your own investments instead.

You can also pay an experienced, authorised investment manager to make the decisions for you.

SIPPs are best for people who want to manage their own funds. By giving you control, your self-invested personal pension also allows you to switch investments as you’d like. That way, you have the peace of mind that you’re making investments with your own best interests in mind.

Why Is It Important as a Freelancer?

The majority of Brits between the ages of 22 and 29 have no more than £1,000 tucked away in savings. If your self-employed, it’s up to you to start a pension on your own.

Unfortunately, many self-employed people struggle to make ends meet as they grow older. By planning for SIPP investments now, you can prepare yourself for any rocky roads ahead.

There are a few benefits to choosing a SIPP, including:

You can receive pension tax relief from the government
A strong pension plan will give you low-cost access to professional investment managers
The right investment manager can help you invest your money in a range of assets
Choosing the right assets can help you manage risk in a sensible way
If you die before you turn 75, your pension will pass on to your beneficiaries as a lump sum
New pension freedom rules allow you to decide what to do with your pension savings when you reach retirement

As a freelancer, having the freedom to choose what you do with your self-employed pension is essential. Many full-time employees are already paying into a pension. In fact, employers are now obligated to automatically enrol employees into a workplace pensions scheme.

Other Options

If you’re currently self-employed and want to set up a private pension, start by finding any old workplace and personal pensions established in the past. Then, combine them into your new pension. Completing this process will make your new self-employment pension easier to manage in the long-run.

Working with a financial advisor can make this process easier, too. They can help move your pensions over into their system. Then, they’ll combine and transfer your pensions into your new SIPP pension plan.

Otherwise, might need to contact your previous pension providers to get your pension balances on your own.

In addition to a SIPP pension plan, you might decide on other options, including a personal pension or stakeholder pension. Self-employed individuals can also utilise the government scheme National Employment Savings Trust (NEST), too. However, there’s no “best” pension for self-employed workers.

It really depends on your own specific circumstances.

Ideally, try to find a provider who lets you make contributions when you want. As someone who is self-employed, your income might not end up as predictable as you’d like. Having control over the details of your self-employed pension can make it easier to manage.

Investments

Now that you know a little more about how SIPP investments work, let’s review the assets you can choose from. A few include:

Unit trusts
Some National Savings and Investment productions
Commercial property (shops, offices, factories)
Investment trusts
Government securities
Individual stocks and shares (quotes on the recognised UK or overseas stock exchange)
Insurance company funds
Traded endowment policies
Deposit accounts with banks and building societies

However, this is only a shortlist. Speaking with an expert can help you explore your options. There are also different SIPP providers who have different investment options available for you to choose from.

You can’t hold residential property directly within a SIPP with tax advantages that usually accompany pension investments.

However, you can hold residential property in a SIPP through certain types of collection investments. For example, a real estate investment trust would allow you to include the property in a SIPP without you losing tax advantages.

These investments are often subject to restrictions. It’s also important to note that not all SIPP providers will accept this type of investment.

In addition to your self-invested personal pension, make sure to take the time to develop an overall investment strategy. Planning now will help you in the future.

You can access and use your SIPP more flexibly now. According to new rules, you can now access the money in your SIPP at the age of 55.

Take a SIPP: Understanding Your Self-Invested Personal Pension as a Freelancer

Prepare for the future and make the most of your money. By understanding the importance of creating a self-invested personal pension, you can save away money as a freelancer. Then, you’ll have what you need to prepare for the day you retire!

Searching for more helpful investment tips? Explore our latest Investment Management guides today.

Wealth Management

Core principles to boost up your profit factors

ByCFI.co Blogger

While trading, every trader uses a unique trading strategies to navigate in the Forex market. Strategies are used by traders to help them to trade in a profitable way. You need to understand the fact that not all the strategies will work for every trader. A simple trend trading strategy can help you to secure profit, but still, you might not be able to make a decent profit after a few months. The market is always changing its nature and it’s your duty to keep pace with this dynamic market.

The market allows a trader to work as per their skills and strategies. If you have good and effective skills and strategies you will be able to make profits but if you have a lack of skills and strategies then you will find it difficult to make profit. Although there are some important principles that are common in the entire market for all traders to achieve their goals.

Pay attention to the indicators

It’s important for all traders to understand what is happening and what might happen in the market. Through the analysis of Forex indicators, you can understand the market better. Indicators play a crucial role in the market, so all traders should learn their uses. When you learn the use of the indicators, open a demo account with Rakuten so that you don’t have to lose too much money.

You can find out the economic situation of the market’s currency by using the indicators. The indicators also help traders to identify the best time for entry and exit in a profitable way. If you can identify the best times then it will maximize your profits by reducing your losses.

Keep a personal trading record

Many traders fail to keep accurate and faithful trading records and thus can’t identify their previous mistakes or rectify them. Trading records can enhance a trader’s entire trading system, as it allows you to trade by thinking twice to find out whether you will make profit or not. Once you develop the habit of keeping the record, you can execute quality trades in the fx trading account. Most importantly, you will start building up confidence which is the most crucial component of trading.

You can make better strategies and skills in your trades by keeping trading records. A trading record acts as a guideline for traders as it helps them to rectify their previous mistakes and to trade with better strategies in the next move.

Embrace the risk management

If you want to become a successful trader, you should never avoid risk management in your trades. Risk management is essential for all the traders as they can lower the percentage of losses in the trades by setting proper risk management. Never break the rules of risk management as it can blow up the trading account. Stick to the safe method so that you can earn big amount of money. Analyze the losing orders and learn from your mistakes. Once you become good at trading, start placing trades with confidence.

You should never risk more than 2% of your trading capital and never change your risk management out of greed. Many new traders set higher risk management in their trades and thus end up losing their capital. It is also known that proper risk management is a savior for traders as it reduces the percentage of losses.

Conclusion

You can have your own rules for trading in the Forex market but don’t ever avoid the principle trading methods. The above points will help you to trade in a profitable way, you also need to pay attention to all the terms and conditions of the market. The entire trading system may become easier for you if you learn and understand the market more precisely. Mastering the Forex market is a never-ending learning process.

Technology

How do the professional cryptocurrency miners make a profit

ByCFI.co Blogger

Mining has become a very lucrative business. Due to the rising demand for cryptocurrency, thousands of people are trying to earn their living by mining it. In the past, mining Bitcoin was extensively popular. But things are getting much better. People are mining different types of crypto to compete with giant mining companies. Though you could have once made a decent amount of money as a solo miner, nowadays it has become way more difficult.

Does that mean, we the individual miners have no place? Well, it’s a bit of a tricky question as the answer is related to the actions of miners. If a person knows the ins and outs of the mining business, it can be a life-changing profession. Let’s learn some of the key steps which miners are using to make big profit from this market.

Return over investment

The professional miners have a clear knowledge of ROI which is often known as a return over investment. You don’t want to spend a huge amount of money setting up a personal mining rig without knowing the ROI. You have to consider mining as a business and only then will you be able to come up with a unique idea that will tell you how much money might get from per month. Once you know your monthly income from mining, it’s just basic math to find out how long it will take to cover the investment. In the past, the mining process was much easier but things are extremely difficult now. Unless you have a super-powerful mining rig, you should not expect to get a full return from your investment within a short time. So, consider the ROI factor whiling mining cryptocurrencies.

Selection of the digital asset

Selecting a digital asset is the most complicated task. It’s more like knowing what cryptocurrency to buy. Those who think Bitcoin mining is the only way to make money have a lot to learn about the crypto mining industry. People are mining Ethereum, Litecoin, Dash, etc. which is relatively easy. So, how do you find the best digital asset to mine? Pro miners use the real-time market data from bigX and they find the cryptocurrencies which are most likely to go in up the near future. So, it’s obvious you can’t make a big profit by mining one specific set of the asset. Try to diversify your mining rigs so that it increases your win rate. It might be tough for new miners but they must educate themselves to become pros.

The cost associated with mining

Setting up the mining rig is not the only cost by which you can make a decent profit from this market. You have to know about the associated cost in mining. In most cases, electricity consumption becomes the killers. But the professional miners use alternative solar power to mitigate the mining cost. Setting up a solar power hub for the mining rigs might be a very expensive process. Unless you are going to commit to this business in the long run, you should not entertain this idea. At times, you will also have technical faults in the mining rigs. To fix these problems, you have to spend a good amount of money. Include those costs in your mining business and find out how much money you can make from this industry. This data will help you to scale the business.

Conclusion

Mining can be a very profitable business for those who know the perfect way to run a rig. It requires constant supervision and adjustments to the strategy so that you can efficiently mine cryptocurrencies. Though new miners might not understand the importance of focusing on the minor details, it plays a crucial role in the ROI factor. So, follow the tips of this article very carefully.

Finance

Finding the standard size of your trading account

ByCFI.co Blogger

Very few traders pay attention to the size of their trading account. In most cases, the traders are biased in favor of leverage and they are enjoying the high-risk trading environment. But leverage is only for the expert Singaporean traders who know the risk management policy from the core. They often find it hard to manage the leverage trading account. The best practice is to use 1:10 leverage (maximum) while trading the real market. You can say that without using the leverage, you won’t be able to support your family. Well, it depends on the size of your account. If you invest $1000, it’s very obvious you are not going to make a significant profit from this market.

This content is not going to be like a traditional article. We are going to give you some key metrics that will allow you to manage the risk in trading. Most importantly, it will help you to find the amount of money which you must have to live your life with trading business.

Your family needs

First of all identity your family needs. Calculate the basic costs of your family life so that you know the minimum amount of money you need to make per month. In most cases, rookies don’t believe in such an approach. They become fairly aggressive with the trading method and try to earn money without having any goal. But such things are not going to work. This is not how the professionals place their trade in real life. They have specific sets of goals and for this reason, they can make a decent profit from this market. Being a new trader in the Forex market, it will be tough to trade with goals. Without developing these skills, you won’t be able to know the amount of money which you must invest in trading.

Depends on your win rate

The success rate of retail traders in the exchange traded funds greatly varies. You have to know your success rate by using the demo account. Those who have a high success rate can effectively use leverage. So, they will require a small amount of money. On the contrary, those who don’t have a high success rate must trade with a low leverage account. For them, leverage is like a time bomb. They will never know when it costs them a fortune. So, work hard on your trading strategy so that you can have a great win rate in trading. Never try to deal with the market with a low win rate as it makes the trading process much more complicated.

Profit factors

You might be thinking about how much money you can earn from this market. The professional usually makes 5-10%+ profit per month. So, use the simple mathematical calculation and find out how much money you need to support your family. If the number of too big, you must increase the size of your capital. But this should be done professionally. Borrowing money from other people to trade the market is a very big mistake. This is one of the most common reasons why rookies are losing money in trading.

The rookies might not be able to earn so much profit for the first few years. They should be happy with a 2-3% profit per month. Once they become good at analyzing the profit factor, they can easily scale up the size of their account balance.

Conclusion

There is no fixed rule to investing money at trading. But stop investing money that you can’t lose in trading. If we talk about the rule of thumb, it is imperative to invest at least $2000 at the initial stage. Anything less than that will force you to overtrade. Once you start overtrading, you are going to have a very long journey towards success.