Author: Editor

  • Is the Usage of Robo Advisors a Good Choice?

    Is the Usage of Robo Advisors a Good Choice?

    3 min read

    Is the Usage of Robo Advisors a Good Choice?

    For many investors, robo advisors are the future. 

    That’s because the robo-advisers give an investment chance that grows in reputation and popularity.

    First of all, there is no need to have financial education if you want to use robo advisors. They are available online and all you have to do is to fill out a brief application regarding your investment intentions. An algorithm will take care of the rest.

    Moreover, they are not expensive, and you will have an all-in-one: a diversified portfolio with assets you want and according to your risk sensitivity.

    But still, you can find a lot of many robo-skeptics. The question is why? There is no reason. The robo advisors supported by advanced platforms, provide you many advantages, more than human advisors. As we said, they cost less and, moreover, you will pay fewer taxes.

    Robo advisors employ high-quality portfolios

    But let’s make a brief comparison between human and robotics. When you choose a human advisor, that person can advise you based on his/her experience and very individual knowledge which can be questionable sometimes. For example, you are new in the market and they can advise you a very complex portfolio by experts. And adjusted for different investor plans. But every investor is unique and you would like advice adjusted to your goals, your temperament, your personal aims. 

    A traditional investment manager will guide your investment to particular stocks and that could not be in your best interest. Also, you have to pay a substantial sum for that opportunity. Yes, you can find a fiduciary adviser, such will work in your best interest. 

    But all they can give you are portfolios backed by historical data of previous investment. Also, a human advisor has limited time for the clients and for the research.

    But robo-advisor will give you a high-quality portfolio made with someone like you in mind. For example, the best robo-adviser will use low-cost ETFs with a powerful experience.

    Robo advisor never trade based on emotions

    Is the Usage of Robo Advisors a Good Choice?

    Humans will follow their abilities and wish a risky investment. It may be successful but it might be a disaster. A human can not avoid emotions while investing. Are you able to recognize when the price of some asset is enough low to be worthy of buying? Or high enough to sell it and profit from it? Evry of these decisions are led by emotions. Very often they are guided by the emotion on what you like or not, what you suppose to happen.

    The computer doesn’t have emotions when making decisions for you. So, be honest, which is better for your money?

    Even beginners know that emotional investing can produce big losses. With robo advisors, you don’t have that problem. They will pick the best investment suitable for you. 

    Will robo advisor predict the market downturns? Some are able, we are preparing the advanced algorithm for you. In a few weeks, you will be able to test it.

    Yes, robo advisor will predict the turbulence in the market but it will suggest you hold your investment until the market recovers. As you already know, when the market is a downturn you should not sell in panic, it is the worst thing you can do. Robo advisor will never tell you to do that. Rather it will advise you to stay in your investment and wait for the price swing back up when the recovery comes.

    Robo-advisers use low-fee funds to build your portfolio and low-fees to handle it

    The fund’s that robots uses have fees from 0.10% to 0.23%.

    The majority of robo-advisers invest only in low-cost ETFs. That provides your portfolio with low fees and high liquidity.

    When a computer manages your investments, you will pay a lot fewer fees. Also, you can find fee-free robo-advisor that charge nothing for advising assistance.

    Instead of paying about 1% for a human advisor for managing your portfolio, the robot will charge you from 0,25% to 0,35%.

    Moreover, robo advisors provide automated tax-loss harvesting.

    A human can’t actually follow this action the way a processor can manage tax-loss harvesting. The best part is that for more extensive portfolios, robo-advisor can add up to notable tax savings.

    Robo-advisers and automated trading are the future of investing

    The high-quality providers grant you investments suitable to your individual requirements.

    Robo advisors perform notably better than human financial advisers. The added advantage, they will cost you less and your all-in costs are more economical with this automated investment option. 

    Don’t diminish this difference. It can be worth thousands to your portfolio.

    Think about it. Maybe this is the right time for you to get in this developing trend. We, in Traders-Paradise, truly believe that automated trading and robo advisors are the future of investing.

    So, don’t be too conservative and take your place here. It is time.

  • Who Controls The Libra

    Who Controls The Libra

     

    Who Controls The Libra currency
    Alexandria Ocasio-Cortez had a dispute with Facebook’s crypto boss, David Marcus.

    By Traders-Paradise Team

     

    The subject was about who controls the Libra currency

    Two days of US congressional hearings were quite enough for everyone to reveal what problems may arise with a new cryptocurrency named Libra. We are not sure it is crypto at all, by the way. 

    AOC asked Marcus about who are the members of the Libra Association and how did they selected, trough election or on some other way. He answered that they are not democratically elected instead governed by membership criteria.

    Ocasio-Cortez concluded that Libra is “a currency controlled by an undemocratically-selected coalition of largely massive corporations.”

    Alexandria Ocasio-Cortez centered on a commentary David Marcus, CEO of Calibra. He said he would trust all of his assets in Libra.

    “You said yesterday you would be comfortable taking 100 percent of your pay in Libra. In the history of this country, there is a term for being paid in a corporate-controlled currency,” and asked, “Do you know what that term is?”

    Marcus’ answer was negative.

    Who controls the Libra

    Ocasio-Cortez proceeded,

    “It’s called ‘scrip.’ Do you think there’s a risk in taking your pay this way?”

    There was no answer from Marcus again.

    What is ‘scrip’?

    Scrip is a replacement for the government-issued legal tender. Some companies practice this to pay their workers. It is possible to use scrip only at those companies’ shops. For example, recently Amazon gave to their top-employees “Swag Bucks” and they could make purchasings only Amazon-themed merchandise.

    This tactic is well-known from the past. It was used to pay miners in the faraway mining camps where the cash was rare. And, of course, the price in such stores are under the control of the company.

    So, TP may conclude the Libra is fake currency. But, who controls the Libra is still unknown.

    Business insider published a transcript of their conversation in the US House Financial Services Committee. 

    The full article you can read HERE

    The other AOC’s attack happened when she asked Marcus about who support Facebook’s Libra digital currency.

    He said that Libra will be supported by real financial assets, particularly pointed to the US dollar, the euro, and government securities.  To pacify the audience, Marcus has accentuated that Libra will be conducted by a consortium of organizations.

    “So we are discussing a currency controlled by an undemocratically selected coalition of largely massive corporations,” AOC concluded.

    We have to say that national currencies are under the competence of governments. Do Marcus claims and Facebook’s plans show their influence on broad of governments or they want to say that their Libra, even declared as digital money isn’t crypto in essence. 

    This aspect of Libra could become a stumbling rock for Facebook.

    Who will trust it? 

    About Traders-Paradise’s doubts, you can read HERE

    Jamie Dimon, The CEO of JP Morgan Chase, said that he thinks Facebook’s future cryptocurrency Libra will not have a short-term influence on the bank. 

    When asked about Facebook’s approach to the financial sector by creating its own cryptocurrency, he said: 

    “We’re going to be talking about Libra three years from now. I wouldn’t spend too much time on it. To put it in perspective, we’ve been talking about blockchain for seven years and very little has happened.”

    Anyway, JP Morgan has its own plans connected to crypto. They plan to employ JPM Coin, but internally in order to speed up transactions, as he said.  Is this script too? We’ll see.

     

  • Investing in Bonds – How to Start

    Investing in Bonds – How to Start

    Investing in Bonds
    Bonds as an investment are not free of risks. For many investors, the bonds market is still mysterious.

    By Guy Avtalyon

    Investing in bonds isn’t as easy as you might think. Anyway, read this post to its end and things will be more clear. 

    If you are OK with the lower return but with considerably fewer risk sounds as a good investment for you, it’s time to invest in bonds. Reducing risk is essentially what bonds will provide you.

    Bonds are securities. They are very similar to loans. They are issued by governments or companies. And you can buy them. Governments and companies issued them because they want to fund some new projects, to continue the realization of plans, or some other reasons can be on the scene. 

    The issuer gives periodic interest payments and compensates for the full investment at the end of a prearranged time frame. The bond ends “maturity” when the investor can expect the principal will be returned, plus all accumulated interest.

    How to start investing in bonds?

    It is not so simple

    You can’t simply purchase bonds and hope you have a low-risk investment. Bonds are complex instruments in comparison with stocks. There are some risks involved. For example, the bond can be less worth after some time if the interest rate rises. If the interest rate rises continuously until the maturity of the bond, the value of your bonds will be lower even worthless in some extreme situations. That is the interest-rate risk. 

    There is no bond protected from interest-rate risk. So it is likely to get a lot of risk with bonds. And it is not the case with low-grade bonds issued by the company with financial problems. The risk of investing in bonds may appear with high-grade bonds too because of interest-rate changes. 

    Bonds are assumed to be the firm and low-risk part of your portfolio, but the bond investing is still full of traps.

    Let’s find them!

    Are bonds risky?

    Bonds Market is still enigmatic.

    It’s hard to recognize are you aiming at a good price. Let’s say you want to buy individual bonds. You have to be sure you are not overpaying. If you buy stocks, your broker will charge a commission.

    But when you buy bonds, instead of a commission, you will pay an unrevealed margin on the cost of the bond.

    What is most important when investing in bonds?

    You have to reveal is the closing price you are paying for your bonds matches the price which other investors are giving for the same security. But even institutional investors with lots of money have the same problem: to identify pricing data. The reason is simple. Almost all bonds are traded over-the-counter not on some exchange.

    Bonds are rarely traded. Individual investors will hold bonds until they mature. So prices based on recent sales usually don’t even exist. They are changed or invisible. 

    High liquid Treasury bonds and notes are some other stories. Their prices are broadly announced. But this kind of market is the exemption to the rule.

    The issue price of a bond

    It depends on the relation between the interest rate that your bond pays and the market interest rate on the same date. 

    You have to determine the interest paid by the bond. For instance, a bond pays a 5% interest rate per year. That means on an amount of $1,000, the interest payment is $50.

    How to find the present value of the bond? Say the bond matures in five years, its present value factor is 0.74726, as taken from a table for the present value of 1 due in n periods, and based on the market interest rate of 6%.

    Investing in Bonds

     

    The present value of the bond is, therefore, $747.26.

    Now, calculate the present value of interest payments. The present value of an average annuity of 1 at 6% for five years is 4.212.

     

    When you multiply this factor by the annual interest payment of $50, you will come to a present value of $210.62 for the interest payments.

    Now, calculate the bond price. The result should be $957.88. That is the amount of the present value of the bond repayment at its maturity in five years, and the present value of the associated with future interest payments.

    You see, the price of the bond is lower than its face value. So we can say that the interest rate on the bond is below the market rate. Investors are therefore offering its price below. In order to reach an effective interest rate that equals the market rate. 

    Hence, if the result of this computation a higher price than the face value of the bond, then the interest rate on the bond would be more expensive than the market rate.

    So, we can easily conclude, as interest rates rise, current bond prices normally fall. But these modifications do not change all bonds fairly. It is a matter of duration. Duration regulates how a bond’s price will change in interest rates. Interest rates also affect the duration. The higher the interest rate, the lower the duration.

     

  • Microsoft stocks are worth to buy and hold

    Microsoft stocks are worth to buy and hold

    Microsoft stocks are worth to buy and hold

    by Gorica Gligorijevic

    Microsoft stock has increased this year which is the great news for investors. It is the most valuable company in the US, which the sparrows on the trees already know. The question is should you buy its stocks? If you want you should hurry. This year it is up 36%. But, more important, Cowen & Co. analyst Nick Yako initiated coverage of Microsoft with an outperform rating and $150 target price. 

    He recognizes the potential for Microsoft to gain a gradually increasing $100 billion in revenue by fiscal 2025. His prediction is based on Microsoft’s Office 365 and Azure cloud businesses. Yako is expecting those two to be the main growth generators. 

    Moreover, traders support Cowen’s opinion on Microsoft. Last week on Thursday, it scored a new all-time intraday high of $139.22.

    Microsoft stocks will grow more

    Microsoft stocks will grow more

    Not only Nick Yako is convinced that Microsoft stocks will grow. There are other experts too. For example, Pete Najarian from Institute.com truly believes that the great potential for this company comes from its Windows. 

    “By the way, we all want to say Windows is dead. Windows is not dead. That continues to grow as well,” he said.

    The co-founder of Najarian Family Office, Jon Najarian, also recognizes Microsoft as a great potential for growth. But he thinks that it is all about LinkedIn.

    “It’s all about LinkedIn for my mind and for my money from here, rather than just focusing completely on the cloud.” 

    Microsoft bought the LinkedIn 3 years ago for $27 billion. This social network has about 610 million subscribers and its participation in the company’s revenue is more than 5%.

    Pete and Jon Najarian are traders.

    Pete Najarian is an options trader and market analyst. He is also the founder of optionMONSTER. This company provides market news and trading strategies.

    Jon Najarian is the founder of an online brokerage, tradeMONSTER. This brokerage provides trading information through the web without demanding clients to download trading software. It is a rival with other brokerage companies.

    Despite this optimism shown, they have some concerns.

    Microsoft’s P/E is high which can be “a signal that the stock is getting ahead of itself.” Pete Najarian still holds it’s stock and call options. But he is keeping an eye on the rising valuation.

    Microsoft’s share of the market went up to 13% from 10%. But Amazon continues to be the obvious leader with 33%.

    Hence, Najarian alerted in his comment for CNBC, “Microsoft is a deep distant second. But if they can claw some of that market share back, then absolutely, I think this stock can go higher.”

    Bottom line

    The Microsoft stocks hit the $1 trillion level in market capitalization in June. So, we can say that this company stays along with Apple and Amazon.

    This pre-internet pioneer of the PC era, Its operating systems, and software are used by computers all over the world. It owns LinkedIn, Skype and GitHub.  There are it’s Windows, which is developing, and the Xbox gaming, and also Office 365 businesses. Microsoft is a leader in cloud-computing services, artificial intelligence, and productivity tools. It is a true rival to  Amazon and Alphabet’s Google. So, we can say Microsoft stocks are worth to buy and hold.

    Microsoft stock has increased by almost 37% until July 11this year. It went ahead of the Nasdaq and doubled the year-to-date earnings for the S&P 500 and Dow Jones industrials.

    Microsoft stocks revealed a reasonable buy spot. Its stock has great long-term growth potential. 

    Generating growth possibilities in the highly competing tech area needs proactive management. Microsoft has it. Its CEO Satya Nadella has succeeded to shift to a business model that focuses on subscription-based products and services with constantly recurring revenue.

    The shareholders received a 1,5% dividend yield.

    And shareholders in this elite business, who also enjoy a 1.5%  Microsoft has a firm cash flow, which is a definite part to consider for dividend investors.

  • Greece announced the bond issue

    Greece announced the bond issue

    Greece announced the bond issue

    Greece announces bond issue under the new government. According to the Associated Press, the new government of Prime Minister Kyriakos Mistotakis plans to issue of a 7-year bond. It will be the first under the new government.   

    In a report published Monday, 15. July, Public Debt Management Agency of Greece listed banks on the control of running the auction. PDMA reports are usually presented on the eve of the auction.

    Greece is deemed to establish a 2.5 billion-euro ($2.8 billion) goal for its latest bond issue. That should complete market borrowing requirements for this year.

    The previous bond auctions were successful. The government under Syriza and ex-prime minister Alexis Tsipras issued 5-year and 10-year bonds.

    Greece rose funds on bond markets after a series of three consecutive international bailout programs.

    Low yields in EU countries were helpful.

    The new prime minister, Kyriakos Mitsotakis, has chaired his Cabinet’s first meeting. He promised to reform the system of governance. The main goal is to improve the everyday lives of Greeks, he said. Also, he urged the other members of the new government to follow this intention.

    Greece’s conservative New Democracy party won the national election on July 7, 2019. This party defeated the ruling Syriza party.

    New Democracy returned to power with decent success in snap elections. Prime Minister-elect Kyriakos Mitsotakis said he had a definite mandate for change, promising more investments. Also, he promised to decrease taxes.

    “I am committed to fewer taxes, many investments, for good and new jobs, and growth which will bring better salaries and higher pensions in an efficient state,” Mitsotakis said.

    Greece had a positive result after analysis by its EU partners who loaned Greece billions.

    The economic matters in Greece

    Greece announced the bond issue

    The focus is on Mitsotakis’s choice for the key economics ministries – finance, energy, and development. The minister of Foreign affairs come along with them. 

    Mitsotakis inherits an economy that is growing at a moderate growth. It is at a 1.3% annual pace in the first quarter of this year.

    The public finances may fall below the targets accepted with lenders.

    The Bank of Greece predicts that 3.5% of GDP primary surplus target without debt servicing outlays is possible to be missed this year. Its prediction is that Greece can reach 2.9% of economic output reasonably.

    The fiscal policy of the new government has to be rigorously watched.

    But, the true test will be next year’s budget.

    People in Greece live on the financial edge.

    The young people are leaving the country in order to find jobs outside their country, in the EU.

    Greek unemployment of 18% is the highest in the EU.

    Greece remains under monitoring from lenders guarantee to avoid potential future fiscal slippage. 

    The economic growth has returned since Greece wrapped up its last economic adjustment program in 2018.

    New Democracy has promised to create well-paid jobs. Honestly, they will have a hard job to answer the activities in some parts of Athens, where powerful anti-establishment movement is alive.

    Living in Greece is difficult

    The average monthly salary in Greece is about 600 euros. People, especially the young, are struggling to find decent jobs because of the absence of big international companies.

    The expense of living in Greece is relatively lower than in the rest of Europe. But despite romantic expectations, it is difficult and struggling.

    The per capita income is 18,613.42. That is almost 1/5 of Switzerland’s, for example. Yes, goods are cheaper there than in the rest of Europe. But the average salary isn’t enough so the people are hard to survive from pay-check to pay-check.

    The new government has a great challenge.

     

  • Bitcoin Price Falls Under $10,100

    Bitcoin Price Falls Under $10,100

    2 min read

    Bitcoin Price Falls

    Bitcoin price dropped $1.4K in 24 hours and hit a 2-week low. Majority of the top 20 cryptocurrencies are recording losses on the day we are posting. Bitcoin (BTC) fell under the $10,100 mark.

    Monday seems not to be a good day for cryptocurrencies.

    Take a look at its weekly chart, the coin is dropped by 10.14%.

    Some traders are awaiting the price to fall under $10,000. They say it will be time to buy.

    Bitcoin price

    Since June 27, the bitcoin price has fallen from almost $14,000 by more than 22%against the U.S. dollar in an almost large pullback. That led to the crypto market to fall. All major cryptocurrencies recorded a decrease in value.

    Yes, this is a drop-in price, but the bitcoin price grows more than 210% in comparison with its value last year. The other main cryptos tend to be more volatile. The exceptions are Litecoin and Binance Coin.

    A possible scenario: bitcoin price falls below $10,000

    The bitcoin price has moved from $4,000 to almost $14,000 in a time frame of four months. So, the huge reversals from the current price continue to be a possibility.

    The bitcoin price slips to recover behind $10,000, a pullback to the $9,000 zone is possible.

    Say, the trend of bitcoin is bullish. There are some important factors to study that could work as incentives in the next few months. For example, the block reward halving of bitcoin.

    Also, after US President Donald Trump recent comments bitcoin, it’s price recorded a small increase, but now we have this drop.

    It is about $1,000 less than where it was 24 hours ago. 

    The US President identified currencies like Facebook Libra as untrustworthy. He also said that it carries no value and that it doesn’t hold on a firm platform. He also said that he doesn’t care for cryptocurrencies and that they usually pull illegal action and that the cryptocurrencies are not real money.


    Do Trump’s words have any influence on Bitcoin price?

    We don’t think so. After Trump’s comments, the next few days bitcoin has maintained its position despite his words. But, despite the first expectations to rise more and more, the price falls quickly and drastically. The coin has scored its lowest rate since June.

    But the bitcoin price is higher than in April. Given it has retained its force, it is reasonable to expect price spikes in the following days.

    Since the bitcoin price fell around 10%, many alternative crypto assets like Ethereum, XRP, Litecoin, Bitcoin Cash, fell by 4 to 9% against the U.S. dollar.

    Bitcoin is down by around 43% from its highest price at about $20,000. The alternative crypto assets are down too, some by 80%, the other even to 90% from their greatest highs.

    Three months ago trader and cryptanalyst Josh Ranger recommended that the Bitcoin accumulation phase will last until mid-July 2019. And then there will be a steady price increase.

    According to the historical overview, the current price dynamics is alike to that seen in 2015. After Bitcoin hit the bottom, the growth period lasted 216 days. 

    This price drop is good for those who would like to buy Bitcoin. 

    According to CoinMarketCap data, the move down was also followed by a small rise in total trading volume of $2.8 billion over 24 hours. The traders wanted to gain profit and quick exit the markets because of declining prices.

    Moreover, the total market capitalization of all cryptocurrencies experienced a $20.1 billion loss for 24 hours. It is one of the biggest losses in one day. The same happened on June 27, 2019.

    In the short term, volatile will continue. 

    Sebastian Sinclair in his recent article for Coindesk wrote:

    “…so BTC could experience a bounce on today’s momentum, but that will need to be accompanied by strong levels in growing (bullish) volume in order to end the recent sell-off still being felt from July 10.”

     

  • Tesla Shares are Rising on the New Plans

    Tesla Shares are Rising on the New Plans

    2 min read

    Tesla Shares are Rising on the New Plans

    Tesla shares are rising. After Tesla (TSLA) reported a  record second-quarter car delivers, Jerome Guillen, its automotive president, announced the firm has a plan to make a big jump in production of electric cars. They are opening new hirings. 

    Bloomberg revealed Guillen’s email to employees: “The electric-car maker is “making preparations” to raise output at its factory in Fremont, California, Jerome Guillen, Tesla’s automotive president, wrote Tuesday. “While we can’t be too specific in this email, I know you will be delighted with the upcoming developments.”

    “As we continue to ramp up production, please tell your friends and neighbors that we have lots of exciting new positions open, both in Fremont and at Giga,” Guillen wrote in the email to employees.

    According to Guillen’s email, the previous problems with Tesla cars are fixed. In this email, he wrote the Tesla:  “hit new records in all production lines for output and efficiency,” and added that “quality is also reaching record highs.”

    In the first six months of this year, Tesla sold more than 67,500 new Model 3 in the US market. Tesla’s rivals sold at the same time from 3,500 to 8,500 units of their hybrids. 

    This new email can be a terrifying moment for them.

    As a consequence, Tesla shares are rising on that Guillen’s report that it will boost production.

    In the last trading day, Friday,  last week Tesla’s shares rose to $245,06 from Thursday’s close of $238,60 a share.

    Tesla shares are rising

    But nothing is so easy with Tesla.

    Tesla Inc. and Apple Inc. both assume they were betrayed by an engineer who defected to the same Chinese startup. They both accused an engineer who operated on its Autopilot program of taking the extremely secret files when he quit and start to work for.

    XMotors.ai is the U.S. research unit of Guangzhou-based Xpeng.

    A few days ago, Tesla asked for Apple’s cooperation in a prosecute. Tesla sued the mentioned engineer.

    The lawsuit is filed to a court last week.

    Tesla requires insight into the engineer’s emails and forensic examination on his electronic devices. The company revealed that it has also assisted the iPhone maker with a subpoena.

    The documents Tesla asks from Apple aren’t specified in the filing, it is obvious that they have a mutual opponent in Xpeng.

    Last July, one of Apple’s hardware engineers was prosecuted for similar reasons, he shifted to work for this Chinese company and took the secret data with him. The engineer has declared not guilty.

    Guangzhi Cao, the former Tesla engineer, confirmed in a court filing that he downloaded Tesla’s Autopilot-related source code to his private iCloud account, but rejected wrongdoing.

    Elon Musk’s automaker overcame Wall Street expectations. Tesla is expected to report second-quarter earnings on Aug. 7.

    “While we can’t be too specific in this email, I know you will be delighted with the upcoming developments,” Guillen said.

    Tesla Motors increased 2.72% in the last trading day, Friday, 12th Jul 2019. The share price rose from $238.60 to $245.08. 

    Moreover, the share price increased at 9.98% in the last 2 weeks. 

    Along with the price, the volume has grown too. In total, 1.62 million more shares were traded in comparison wit the day before.

    This exactly means, 9.08 million shares were traded for almost $2 224.42 million.

    The bottom line

    Tesla shares are rising and Traders-Paradise opinion about Tesla as an investment is positive. Yes, we know, Tesla had some problems.

    If you are seeing the stocks with a solid return, Tesla can be a valuable investment choice.  Based on their plans we anticipate a long-term gain. For five year investment, your return can be almost 13%, meaning if you invest $100 now, after 5 years your investment will be about $113 worth.

    Billionaire investor Ron Baron predicted that Tesla’s stock will touch $1,000 by 2020. 

    This means that Tesla’s stock could be traded between $500 and $600 next year. This indicates that there is an upside potential of at least 35%.

    As we wrote about a month ago Tesla shares drop but it could a 50% grow within a month

  • Bitcoin price, Trump or How Do You Understand All of This

    Bitcoin price, Trump or How Do You Understand All of This

    3 min read

    Bitcoin price

    Bitcoin has been growing of the new week after a drowsy weekend. The Chairman of the Federal Reserve revealed the chance of Bitcoin becoming the globally dominant currency. Hence, the current reserve assets could be worthless, admitted Fed.

    Let’s see first how Bitcoin performed in the past days. The Bitcoin price showed bullish signs this past week. But why now seems all of that real energy has vanished once again. What can we expect in the following days?

    Take the quiz at the end!!!

    Bitcoin made a drastic turnaround from where it was six months ago. At that time the prices pined around $3,500. But enthusiasm over broader mainstream approval has increased the hum about cryptocurrencies. The result was: the prices have the flight.

    John McAfee made a bet on July 17th, 2017: One single Bitcoin would be worth $ 500,000.00 in three years. Later he made some corrections and foretold $ 1 million by the end of 2020.

    Is that prediction really reasonable?

    Bitcoin price is about $11,300. To gain $1 million by the end of 2020, BTC should have a permanent-growth rate of almost $ 0,5 per day starting from the price level $2, 250 how much it was in 2017. on McAfee’s date of prediction.

    Yes, Bitcoin price so often changes the value so the 0,5% doesn’t sound too much. The charm of exponential increase.

    Bitcoin is limited. There is 21 Million BTC. Period. You see, we have more millionaires on this planet. There are not enough Bitcoins for each of them.

    The principle of how Bitcoin rise is simple.

    The more people are buying it, the price is higher.

    The market capitalization of bitcoin is still small. Of course, if we make a comparison to the stock market or gold for example.

    There is no need to buy one Bitcoin as a whole. You can buy a part of a bitcoin, so-called bits. And what will happen? The more people are buying, the price will grow more.

    There is no need to buy one Bitcoin as a whole.

    You can buy a part of a bitcoin, so-called bits. And what will happen? The more people are buying, the price will grow more. Moreover,  the popular fiat banking system is too complicated and you will find that bitcoin is a lot more practical. The price will jump again.

    Bitcoin against the politicians

    U.S. President Donald Trump on Thursday said he’s “not a fan” of cryptocurrencies. Moreover, he recommended that Facebook may need a banking license if the company wants to launch Libra. Sic!

    May any president have an influence on crypto?

    Well, Bitcoin doesn’t care about their opinions.

    Anyway, Mr. Trump tweeted:

    The bitcoin price rose after Trump said he is not a fan of it.

    Take the quiz at the end of the post!!!

    … and about Facebook’s Libra

    In the past 24 hours, the price of Bitcoin rose 7,9%.

    The other cryptocurrencies recorded even higher increases. Ethereum rose nearly 8% and Monero more than 13%.

    And BTC against the dollar marked changes that should cause the upsets. According to CoinDesk: it touched an unusual of $12,033.74 and a low of $11,142.79. Who won’t be worried?

    Bitcoin did not respect Trump’s anti-crypto comments.

    We saw the last trading! After Trump’s tweets, the BTC price was higher for 1% in one day, the price was $11,447.

    Even more, crypto doesn’t care about the Fed’s opinion. 

    Federal Reserve Chair Jerome Powell talked largely about Facebook’s Libra. 

    Powell accented that before proceeding, Facebook needs to address “serious concerns” in regards to “privacy, money laundering, consumer protection, and financial stability.”

    Same old words!

    The bottom line

    What we can say about the future of Bitcoin price is that there are some chances to drop below $11,000. The crypto market is well-known as volatile. But it can rise to $16,000 also to the end of July.

    This old guy is smarter than we think and no one should underestimate a possibility to surprise us. Moreover, many traders expect exactly that. The price to go up.

     

     

  • Getting a Personal Loan

    Getting a Personal Loan

    Getting a Personal Loan
    How is possible to get a personal loan even with a bad credit score

    By Guy Avtalyon

    A personal loan is a good choice if you need funds for a particular purpose. But you have to consider many factors when deciding the variety of loan that suits you. You can use a personal loan to decrease debt, repay unpredictable payments, make home repairs, and more.

    How to get a personal loan?

    Personal loans allow low-interest rates for people with good credit. They are usually smaller loan products than other kinds of loans. We have to say, they aren’t undoubtedly the best choice for everyone.

    Before getting a personal loan, you have to consider several important things.

    The first thing you are asking yourself is: How much money can you get?

    Well, loan sum varies from lender to lender.  Usually, you can expect between $1,500 and $100,000.  That depends on your creditworthiness. This means that the lender will estimate your ability to pay them back before they decide to lend you money.

    How does a personal loan work?

    You will get a fixed sum and have to pay it back with interest in monthly parts until you pay back the whole amount.

    That can be after 12 to 84 months. After you pay back all, your account will be closed and you, if there is a need, can apply for the new one.

    Nevertheless, before you apply for any loan it’s crucial to consider why you require the money. Depending on that, you may choose the variety of loan that’s most suitable for your financial situation.

    What are the types of personal loans?

    You see, there are two types of personal loans: secured and unsecured.

    Unsecured loans are not backed by collateral which means that the bank determines are you qualified to get the loan. The lender will estimate your financial history. If you don’t pass for some unsecured loan maybe you’ll find the lenders who want to offer secured options.

    Secured loans are backed by collateral. Collateral is a savings account or CD. Why this is called a secured loan? Because if you are not able to pay on time, the lender can require your asset as payment for the loan. Your asset, a savings account or CD is the guarantee that the lender will get its payment.

    Where you can get a personal loan

    In the first place, it is a bank. But you must know they are not the only place where you can get a personal loan. There are other lenders too. For example, online lenders, consumer finance companies, or credit unions are places where you can acquire a loan.

    The one thing is important, you have to be qualified applicants.

    Also, you can take a risk and contact some online lenders. There are plenty of them. But you must be careful. It’s true you can get a personal loan very quickly from them. But some of them are not legit and often they are scammers. Check them first. 

    As we said previously, personal loans can give the money you need, but they are not, at the same time, the best choice for everyone. Sometimes, a credit card could be a better alternative.

    But be careful with this too. If you take a balance transfer card and you are not able to pay off your balance, you may catch an enormous amount in interest charges.

    For homeowners, there is a home equity loan. This kind of loan will give the aid you need. Usually,  it is a larger loan sum at low rates. You should be aware, you are giving your house as collateral for these kinds of loans. If you fail to pay, your lender has the right to use your house as payment for debt for the loan.

    How personal loan may impact the credit score?

    When you demand a loan, the lender will count your credit as an element of the application process. This is recognized as a hard inquiry. It will regularly reduce your credit scores by a few points.

    On the other hand, the lenders that you previously had an account with will just review your credit. This is identified as a soft inquiry and will not affect your credit score.

    It is obvious where to ask as first.

    Interest rates and fees

    Interest rates and fees can create a big distinction in how much you will pay to the end. Here are several circumstances to consider.

    Interest rates typically vary from around 5% to 36%. That depends on the lender and your credit. Meaning, if you have good credit, the interest rate will be lower. But, you will pay more interest if your loan is long-term

    Some lenders will charge you a fee to cover the expense of processing the loan. That is origination fees. It can be from 1% to 6% of the loan sum depending on lenders’ rules.

    Some lenders will charge you a fee if you pay off your loan early. What? Yes, if you pay off early the lenders will lose the full interest that they would have earned in established agreement.

    You have to know all of this or you must be informed by your lender about all the circumstances before signing anything.

    A personal loan may be a good solution when you need extra money for a particular intent. But there are many circumstances to consider. You have to decide what sort of credit is best for your condition.

    You must feel comfortable.  Also, you must find the payments like the one you can afford and not feel captured. Measure twice, cut once.