Category Archives: Banking

How Cryptocurrencies Are Very Different From Traditional Banking Systems

The technology on Blockchain is greatly developing as the tech of the future. As the market of crypto is known to be extremely volatile, automated trading softwares are developed to ensure trades are done accordingly matching the real-time market as many individuals and businesses express their interest in cryptocurrency and incorporate cryptocurrency as payment option.

Cryptocurrency is very different from the traditional system of banking wherein money (and probably gold as well) may be stored in a vault as it waits to be withdrawn. Cryptocurrency have already entered the industry of FinTech, and because of this, traditional financial institutions and systems are probably finding it as threat.

Cryptocurrencies – What Are They?

Although cryptocurrencies have been around for almost a decade and all over the news, there are still those who are unaware of it. Cryptocurrencies such as Bitcoin, Litecoin and so much are encrypted virtual coins or digital currencies. One great characteristic of these currencies is its decentralized feature, while most conventional currencies are regulated by a centralized government, hence they can be regulated by an intermediary.

Cryptocurrencies, also known as digital currencies, are made and transacted in environments with an open source, wherein a code controls it and depend on peer-to-peer set-ups. Not a single unit could affect these currencies.

How It Works?

Cryptocurrencies such as Bitcoin operate by keeping all transactions from the origin of the cryoticurrency on a public ledger. The public ledger utilizes cryptographic systems to certify that records are correct and every identity of owners are encrypted.

Each owner or holder of cryptocurrency have a “digital wallet.” The task of the public ledger is to make sure that these digital wallets display an exact and correct spendable balance. Additionally, it verifies transactions making certain that the crypto owner is merely spending their personal balance in their digital wallet.

Cryptocurrencies are made when a “miner” deciphers an intricate computational problem to verify validate a transaction and include it to the ledger. These cryptocurencies do have a threshold, for instance there are 21 million Bitcoins, however you could think of them as completely having been made when it was initially created, denoting that miners are being remunerated with a new portion of that 21 million the minute they solve or verify a transaction. By supporting the currency’s value of as well as consenting to make use of it as money, value is then given to it. So far, the value of numerous of cryptocurrencies has risen steeply. As per NPR, if in 2010 you had bought Bitcoin worth 1000 US dollars, that investment you had made would be about $20 million now.


Options for Getting Financial Assistance either Personal or Business

Every businessperson knows the importance of having easy access to financial services to keep their business afloat. Aside from that, it is vital to be mindful of its types. That way, if you fail for one, there’s a backup where you can go to. On the other hand, what are exactly these types of financial services that can be applied for?

Financial Services Available

First stop will be the Equity Capital. This is otherwise referred to as net worth or book value. This is a figure that is representing the assets of the company minus the liability. There are businesses that are entirely funded with equity capital, which is the cash invested either by the owners shareholders into the company with no offsetting liability.

Despite the fact that it is the more favored capital by majority of businesses as they do not need to pay it back, it is unimaginably expensive. Furthermore, it demands strenuous workload in growing the enterprise if they’re funded in such a way.

Then we have Debt Capital. This kind of capital is the money given as form of loan to business with agreement that it should be paid back in the date discussed. In the meantime, the owner of capital which is usually a bondholder, bank or a wealthy person, they agree to accept interest payments. This is in exchange for making use of their finance.

Think of the interest as cost of rental or the capital needed in expanding your business.

Easy Expansion

For various businesses, debt could be the simplest way in expanding the business. It’s for the reason that it is easier to access and understood by average workers. This is thanks to the widespread homeownership as well as community based nature of the bank.

The profit for business owners is basically the difference between cost of capital and return of capital. For instance, you have borrowed a hundred thousand dollars and paid 10% interest yet, earned 15% after taxes. Your 5% is the profit or equivalent to 5,000 dollars. This would not exist without the business borrowing a debt capital. This may just be ideal when you want to see progression in your cryptocurrency by buying personal tradelines for sale.


Personal Finance – Its Significance

Every person necessitates money at each stage and phase of their lifetime. At times, unforeseen and unwanted circumstances may lead to financial instability and ultimately to bad credit. Individuals with a poor credit wouldn’t be able to obtain a loan since most lending institutions do credit checks for them to get approved. Luckily there are lending companies, such as New Zealand’s bad credit loan company, Need Money Now, who are designed to offer loans to borrowers with bad credit and are lacking and in need of immediate financial relief.

Whether you have a good or bad credit score and although there are lending companies and other financial institutions that would give out loans, it is important for any individual to learn about personal finance to avoid financial instability and bad credit.

Personal Finance – Its Significance

Personal finance is the word used in pertaining to the process of managing personal financial undertakings like generation of income, spending, investing, saving as well as protection.

There are several reasons why individuals must gain knowledge regarding personal finance. However, since personal finance is a tough matter to understand, individuals just naturally have a tendency to back away and make excuses to escape learning avoid about it. Nonetheless, personal finance is greatly important and here are two reasons:

Flow or Movement of Finances

If personal finance is something that you comprehend, you will then likewise comprehend the movement or flow of your money a whole lot better. There are several individuals who jumble through life shelling out the money they earned for mortgage and bills payment then spending the remainder of it or probably let it sit in their account in the bank. They are the typically people who lack the idea and understanding of the workings of personal finance. Therefore, although they wind up making the correct choices and decisions, they are carrying it out through luck and chance. Though this approach has nothing innately amiss about it, don’t you agree that knowing precisely what transpires with your flow of money would make you manage it much better?

On Utilization

  • If personal finance is really understood, then utilization is something you ought to absolutely understand. Individuals who don’t comprehend or value personal finance are people that are not likely to have savings since they spend any remaining money they might have after monthly expenditures on entertainment as well as impulse buying. This kind of utilization is something that may and could weigh you down sooner or later when your income or earnings starts to run out and you end up realizing that you lack possible prospects.
  • This could similarly happen to individuals, who don’t spend so much and don’t comprehend personal finance. Although the funds in your account are available to you rather than it spent on something rash and thoughtless, the money is not still being used or utilized to its maximum extent.
  • Only individuals with a good comprehension of personal finance would know that funds saved had better at least be situated in a savings account that has a high interest rate and soon after should also possibly be used as investment on effects that generate an interest rate that’s much higher.


Tips on Comparing Bank

Category : Banking


There are a lot of banks across the country to where you can put your money in. Maybe as an investment or simply just you don’t want your wallet to be bulky, bulging on your pockets. Here are some tips on choosing a bank to place your hard-earned cash.


How did Banking Started?

Category : Banking


Banks are just simply every present everywhere you go. From their corporate towers in the metro to small offices on the suburbs and the provinces, you know that these places houses stash of cash on their secured vault. Have you ever wondered how this form of business started? Find out here in the short video.