Financial Education and Crypto Explossion

One of the reasons cryptocurrencies are such an attractive investment option is due to its volatility. Managing volatility is crucial in order to minimize risk and maximize returns. What is volatility and how can you manage your portfolio better?

What is volatility in the crypto market?
Volatility is the degree of variation in the price of an asset over a period of time. For the crypto industry, volatility means rapid and dramatic fluctuations in the market price. For example, in 2017 the price of Bitcoin increased by over 1 000% and lost more than 80% of its value the following year.

Volatility exists in all financial markets, not just in the crypto space. Volatility may be greater in the crypto market due to lack of regulation and underlying fundamentals.

How to manage volatility.
Here are a few useful tricks to help you manage volatility:

1. Rand-cost averaging

If you are buying a coin for the long term, it is advisable to consider rand-cost averaging. As oppose to spending all your money to buy the coin, keep some funds in your ZAR wallet aside to buy more when there is a dip.

2. Diversify

Don’t put all your eggs in one basket, or one coin. Be sure to invest wisely in a number of reputable cryptocurrencies.

3. Know what you are investing into. Before puting money in a project do your research. This will help you understand the tokenmics and fundamentals that make up the project so to see its purpose in the Crypto market and see if it good for long term or short term investment. To do this check the road map and the white paper of a project. A lot of Crypto projects are scams out there so you also need to know the team behind the project.

4. Time horizon
Regardless of how experienced you are as a trader; market volatility can get the better of one. It is easy to panic sell when the market is dropping or to fomo buy when prices are going up. Be sure to have a trading strategy in place so that you are prepared for the possibility of significant price swings. This way, you are one step closer to achieving your investment objectives.

Most of us do not pay attention when spending, we may live on budget however, expenses always tend to mess up our budget in some type of way. Today I would like to share some smarter tips on how to avoid reckless spending.
1. Do price comparison- if you have something new to buy, try to compare prices tags at various stores in that way you will be able save more money.
2. Shop with a list- this is something that we do most of the time, so dotting the things you need before entering the store will assist in saving . Also try to resist temptation.
3. Buy in bulk - buying products in bulk is much cheaper than shopping each and every week as you only take the right amount of groceries you need. So buying in bulk saves a lot of money as you are able to pay for discounted price for the products.
4. Use coupons when purchasing - this will help save money as it allows you to pay less money than usual for the product.
5. Only use cash when purchasing- this will help as you will only have limited money for the product instead of using card.
6. Break your budget into small achievable goals, and buy things that will help you in future instead of buying for now only.

Let's continue to empower ourselves with financial literacy, more post on finances.

Good day everyone. Today's inspiration is taken from an online book by James J Cramer, titled the only three questions that count. It is said that most people do not invest in knowing what others do not know yet financial markets are discounters of widely known information. As we look on business that are good for investments and dieying businesses think about what you can invest in that others do not know to be unimaginably wealthy.

Firstly, traditional savings or fixed bank deposits where you get 2% to 5% on savings and 6% to 8 % on fixed deposits per year. In Africa where inflation rise by 15% in a year so all your interest and part of your capital is eaten by inflation. You rather invest your money in the US stock market, Crypto investments and real estates.

Secondly, traditional radio broadcasting. In the era where the world is going digital hence people get their news and information in digital media. It is only those who are legging technologically and elders who rely on traditional radio broadcasting for news. Therefore, 10 to 15 years from now this business would be dead. If you are above the age of 35 by then it would be difficult to recover from the lose. You rather invest in agriculture.

In conclusion, as we are in the 4th industrial revolution which result in digitization and artificial intelligence which takes the world by storm, we need not to be scared of it but liverage and embrace it to make the most out of it. Artificial intelligence has to do with development of computer systems able to perform tasks that would require human intelligence. It is here to disrupt everything e.g. music, writing, agriculture, driving, labour etc. Research about It, liverage it and incorporate it in your business.

Being financial literate is essential for everyone even students. Today I urge every student to be financial literate especially on expenses. Expenses are the money we spend in return of goods and services. Expenses are classified into 4 types.
1. Fixed expenses-these are expenses that remain the same for a long time.
2. Variable expenses- these expenses changes from month to month, they include groceries, clothing etc.
3. Intermittent expenses- they occur in large amounts and at various times throughout the year, for example tuition fees, car repairs etc.
4. Discretionary expenses- these are the expenses that we don't need, they are non essential. They include eating out, buying gifts, going to movies. These are the expenses that tend to mess up our budget most of the time.

It is essential to manage your expenses so to save money , here is a smater way to manage your expenses.
* stop purchasing on impulse- if you see something you like don't buy it immediately, instead ask yourself if you really need that product.
* Identity ways to cut your expenses and save money - if you eat out or order in, consider cost effective ways such as eating at home.
* control montly expenses at home -cut down on monthly bills that can save you money. For instance cutting back on streaming services like Netflix and showmax could save u a lot of money.
* Learn how to manage your debt - you know while waiting for allowances we tend to engage ourselves in a lot of debt and it may be hard to pay the off at once. Instead try to talk to creditors to negotiate better rate, even though it is very hard to negotiate with them.

Empower yourself with financial knowledge, follow for more educational posts on finances.

Most varsity students are living on a budget. If not they are likely students getting themselves into a cycle of debt while neither is fun or easy, you can become smarter about the way you spend your money. Today I want us to go through some saving tips that can save the day.

1 budget during the first term/semester
It is hard to budget when you are keen to have fun, but it is worth holding off on extravagant spending early on

2 plan meals in advance
Walking back from a lecture, instead of pick up lunch and a coffee with friends, try preparing food at home. It is a great way to save money over the week

3 Travel smarter
Travelling home for a weekend or visiting friends at other universities can be costly, but do not let that put you off. Why not travel with other people? If you have a car, you can offer seats to paying passengers.

4 Buy non-branded products
We understand that there is something less glamorous about supermarket value ranges, but do not let that stop you. Avoiding the household names can mean a hefty saving on filling the fridge, so it would be wise to look beyond the labels

Watch out for more of our educational post on finances

Thinking of Valentine? Make payments less stress with digital Banking.

It's February, the month of Love! We wish you a health, wealth and new blessings to count each day on this month of Love. Thank you for choosing Financial Education and Crypto Explosion!
With lots of love and sweetness this February.

Having grasped the advantages of digital money over fiat/ cash can we give advantages of fiat money in the comment section.