Buying The Actual Bitcoin And Its Pros And Cons


We all hear about the cryptocurrencies every now and then. Bitcoin is one of the most popular cryptocurrencies known for its easy and secure transactions. It has many features that make it one of the most desirable currencies that people would like to own. But what are the different ways one can trade the Bitcoins?

Following are the ways one can trade Bitcoin:

1) Buy: We can own Bitcoin by buying it from a cryptocurrency broker that owns the actual currency in Crypto wallets or we can buy it from the exchange.

2) Trade a Contract for Difference (CFD): Using an online forex broker to derivate and operate the cash margin.

3) Buy a security: Traders can use an online stockbroker to hold a share of Bitcoin that is bought through a publicly registered bitcoin-related security.

Buying the actual asset:

You can buy the actual bitcoin and become a direct possessor of the digital asset. Once you purchase the bitcoin, the virtual currency will be sent to your cryptocurrency wallet that is your bitcoin account or address along with the exchange. You can use this bitcoin for anything you desire to. Bitcoin can be used at various places to buy goods and services. You can transfer the Bitcoin to any other bitcoin wallet with the help of your private key that is used to verify the possession of the asset.

Owning Bitcoin comes with some responsibilities like safeguarding the private keys that verify the ownership of the asset. These keys are very important without which the coin holder will not be able to access any of his bitcoins. We will go through the pros and cons of owning the actual asset.

Pros of owning an actual Bitcoin:

1) If you own the actual Bitcoin with its private key you have the total control over the underlying virtual asset.

2) You can choose to make use of these coins as per your preference without requiring any verification or clearance from any third party like banks.

3) The ownership of Bitcoins is anonymous and encryption makes it difficult to trace giving you the full control over it.

4) There are multiple ways you can use the Bitcoins as selling, convert or exchange or transfer it to someone in return for goods and services.

5) If you do not want to use the Bitcoins immediately you can keep them in cold storage wallets without any risk of theft.

Cons of owning an actual Bitcoin:

1) Bitcoin comes with their own set of private keys and it is the coin holder’s responsibility to safeguard them. Without these keys, the coin holder will not be able to access the Bitcoin.

2) If the private key is lost the coin holder can lose the actual Bitcoin asset.

3) Holding actual Bitcoin can require a little bit of technical knowledge to carry out the transactions.

4) If you decide to store the private keys in the exchange you bought the Bitcoin at, there is a possibility of it to be hacked and can result in stealing your Bitcoins.

5) Not all third-party wallets are safe and can be prone to malware, phishing causing your Bitcoins to be stolen.

The bull-bear phenomenon and the effect it has on small individual businesses



News channels, newspapers, prime time chats, magazines all of them are always talking about market performances and all kinds of terms also get thrown in endlessly as if it is all that the world is dependent on it.

Actually, it is!

The nexus between the share market and the individual and the collective psyche is so prominent that one cannot but help in concluding that it is quite dependent on each other. It is almost domino-like!

The stock market influences the consumer behavior:

There is a co-relation between the amount of money that a consumer spends and the movement of the stocks that they hold in the market. Let me explain to you to bring the point home. In a bull market when the share market is doing excessively well, the consumers often tend to spend well on things that they would otherwise not consider buying. This is because in a market that is ‘up’ the general perception of the public is that they have become rich because the value of the stock that they are holding is also high.

On the contrary, when the markets are bearish, the consumers will pull themselves off from spending too much even on necessities leave alone luxuries because they tend to become cautious in a market where the value of the shares that they hold and generally also is low.

The other effects:

When the market is bullish, there is a rise in the value of the stocks of the various companies and the companies can capitalize on the rising stock as a currency. The best way to do this is to raise capital by issuing more shares to the general public thereby raising an issue to raise the capital in the company.

The company can even sell shares and stock to leverage and acquire other fledgling companies in order to avoid competition and to maintain a monopoly in the market.

It’s a circle and not everyone realizes it!

The stock market is presumed to be the most valuable tool for understanding the health of the economy on the whole. When the market prices of the shares rise, the people start feeling wealthier making them confident to purchase because they feel that their purchasing power has gone up. An increased buying n the market sees more influx and subsequently with more revenue generated in the market more things are made or manufactured to cater the consumers. The nexus is un-missable.

Risk Assessment – Benefit To The Client And The Advisor

Any investments based on the risk and return that the investor is able to take. This is used to analyze what kind of an investor he is. All the investors want to make the most of their investments however it is important that return is always balanced with risk. This is where doing a risk assessment becomes compulsory. The risk assessment lets the advisor know what investment is suitable for his client.

How does risk assessment benefit clients?

There are a number of benefits that an investor has when he goes through a risk assessment.

  • The risk assessment process helps to develop a risk profile for the client and they will be based on their risk-taking an appetite. This is used to decide on how the asset allocation will be done for an individual client and what kind of an investment strategy should be used to be appropriate to match the client’s risk-taking appetite and his capacity. This is important for financial planning and it is important that the risk assessment procedure is scientific.
  • When a client is a risk assessed his confidence in the system increases. This is because the investor knows now that the advisor is taking care to ensure that the investor’s risk and return profile is met. The advisor is not just guessing but making an informed decision and helping the client invest based on the client’s goals.
  • The risk assessment is also a way in which the client’s attitude to risk and his tolerance is analyzed to help him make better and informed decisions in the future. They understand the ways in which their risk rating is being measured and they use this knowledge to help them make future investment decisions.

How does risk assessment benefit the advisor?

The advisors play a very crucial role and doing a client risk assessment benefits them in many ways too.

  • The advisor will carry out a risk tolerance test and this will give him a detailed picture of the risk-taking the ability of his client. This will let him make suggestions and choose the appropriate investment tools and strategies. This will assist in the total process.
  • Risk assessment helps to build trust and it helps the advisor have a relationship with his client
  • In case of any dispute in the future, the advisor will be able to produce the risk tolerance test that has been totally employed. This protects the advisor in case any unexpected event happens and affects the client’s investment.

What Must Entrepreneurs Not Do During Capital Budgeting?

Anyone with an innovative business idea is labeled as an entrepreneur. It does not matter what background he/she comes from. However for the business idea to be a successful venture, there are few things with respect to finances that an entrepreneur must take care of. Here is a list of do’s and don’ts for an entrepreneur when it comes to capital budgeting.

  1. Learn the basics – You do not have to dig deep into subjects such as business, accounts, finance, and management. However, an understanding of the basics is essential to avoid loss. For example, you should be able to identify cash inflows from outflows and know the difference between profit and loss.

  2. Allot sufficient funds for the fixed costs – Fixed costs tend to be generally high. Fixed costs include expenses incurred for renting out office spaces, staff salaries, loans, mortgage payments, basic infrastructure, furniture, and similar others. Therefore, in addition to sufficient allocation of funds, it is necessary to prioritize and plan your fixed costs to ensure they are kept as low as possible.

  3. Calculate ROI for anything and everything – It is important to calculate the rate of investment (ROI) on every decision you make. Be it a fixed cost, variable cost, staff hiring, asset, or any other thing, calculating the ROI is important

  4. Allocate individual budgets – Capital budgeting or capital allocation is a skill that every entrepreneur must attain. Forecasting or projecting future expenses and returns must be foreseen in order to make the right financial decisions.

  5. Do not get ahead of yourself – Many entrepreneurs make the mistake of overestimating or overanalyzing the future revenues. Although it is a good trait for entrepreneurs to be optimistic, it is not a good thing to go overboard and make unrealistic assumptions, especially when it comes to finances. Therefore, budgeting, expense planning, and all investment decisions need to be realistic to avert losses. Additionally, you must plan for unexpected circumstances that can draw away your profits.

  6. Never underestimate any cost – Another common mistake that new ventures commit is that they spend more than the planned budget, thereby increasing the company’s turnaround time and break-even period. Therefore, it is not sufficient that you plan the budget but it is equally important you adhere to it.

  7. The other do’s & don’ts – Save up on the expenses, plan short-term & long-term, and do not get into the habit of too much borrowing. These are essential to keep the cash rolling and operate smoothly without any financial hiccups.

Although capital budgeting may not seem everyone’s cup of tea or as exciting as the business idea, it is necessary to get a hang of it in order to manage finances in the best possible manner.

What are the various types of transactions occurring in a forex market?


Definitely, there occur a large number of transactions on a daily basis in the vast market of foreign exchanges. Some of them include

  • Spot transferring: This type of transaction requires an instant effect delivery and that too instantaneously at the spot itself. The settlement takes place for the spot rate and at the spot market.
  • Forward transferring: Everything is pre-fixed for a characteristic value in advancing future date by mutual consent. So it can be said that a contract delivery takes place at a forward market for the forward exchange rate. The point to be noted is each republic owns a set of principles for working with this type of transfer.

Other characteristic features include the OTC contracts, the payoff profiles of vendor and purchaser, credit understanding and so on.

  • About the future: A focus on a future contract indicates its dependence on standardized size and maturity dates. Margins are not at all a requirement for this. Only a particular security amount has to account for assuring the futures title.
  • An optional contract: This is a type of contract or financial device that transfers a holder right to get or give a specific asset quantity on basis of a pre-fixed future date and price.

An option associated with acquiring an asset is known to be as a call option and that requires a giving is referred as a put. These two process accounts for the exercising of the option.

Further, the specific price given or obtained is called as an exercise or striking price and the option price is called the premium. In addition to this, the buyer involved in the long and the seller is the short or writer of the option.

There exist options varieties like the one exercised only at the maturity period or at expiry and the second can be established at any period during the contract term.

  • Swap operation: Sometimes, the forward transferring business operated by commercial banks may switch to a swap to better adjust their forward financial position. The whole process involved in the sale and get off a spot currency is known to be the swaps or twin deals because the spot is switched against the forward.
  • Arbitrage: This includes the instantaneous process of purchasing and vending of external currencies with the profit motivation offered from its difference with existing exchange rate at the various markets at the same time.

What To Know Before Availing A Working Capital Loan

Working capital is a necessity as it is a measure of the financial health of a business. A positive value indicates a stable business while a negative value denotes the opposite.

Why Avail a Working Capital Loan

  1. To maintain a positive value that projects the company’s financial stability

  2. To survive during financially troubling times such as during a low sales period or to meet high market demands

  3. To meet financial obligations and short-term goals

  4. To satisfy other business needs including hiring expert staff, expanding the business, relocating operations, and others.

Advantages of a Working Capital Loan

  1. Working capital loans or finances are flexible due to its interest rates and repayment terms, thus allows in fulfilling unexpected financial requirements.

  2. Not all working capital loans require collateral. Thus, businesses can avail loans with or without depositing collateral, however, the interest rates in both cases are found to vary.

  3. Availing a working capital loan is easy, fast, and simple, as the paperwork involved is minimal. Good credit scores and online application processes have increased the process further.

  4. Working capital loans, unlike specific business loans, can be used to meet the business’ any short-term requirement and require no probe.

  5. Availing a working capital loan is better and preferred to over investors investing in your business during a financial crunch because loans allow you to maintain ownership unlike outside investing where a part of your decision-making ownership is lost to the investor.

Important Tips for Availing a Working Capital Loan

  1. Know your eligibility criteria such as the loan amount and requirements based on the business you are involved in such as Sole Proprietorship, Private Limited, Public Limited, or a Partnership.

  2. Know when to apply for a cash credit and an overdraft. Although these are used for short-term financial requirements, the features and terms & conditions vary.

  3. Get an understanding of the different types of working capital loans that are available so that you can make use of the best one based on your need. For example, avail an export credit to meet your exporting requirements, a “buyers credit” or “letters of credit” to deliver goods on time, bank guarantees to protect your business against deferred or non-payments.

  4. Know the criteria for loan assessment including sanction limits, the minimum number of active business years, annual turnover, sources of cash flow, and others.

  5. Find out and determine whether the loan tenure, loan charges, and interest rates are attractive or not. Evaluate all parameters collectively to choose the best loan option.

  6. Check if you need to provide collateral or not and if not enquire the difference in the interest rates that you need to repay.

Reasons why you should consider debt mutual funds


If you have some funds that you can set aside every month for investment there are various deposits like recurring deposits. And then there is the option to invest in equities, currencies, and commodities. But if you suddenly have a large amount that you can invest then fixed deposits are perfect. There are so many such options when it comes to choosing an investment that suits your financial goals and spending patterns.

When we talk about mutual funds these are funds that are managed by the fund manager. So you would be able to make a deposit and allow the fund manager or the fund management company to invest them in the ideal locations. There are equity funds as well as non-equity funds available. Equity funds are invested in stocks. Non-equity funds are invested in debt-income securities or in gift funds. There are various non-equity funds available. Debt mutual funds are one of the most popular when it comes to non-equity funds.

Here are of the benefits that debt mutual funds offer:

  1. You have a stable portfolio

The market volatility affects equity mutual funds. But debt funds are not impacted by it. There are various places where debt mutual funds are invested and all of them are stable bonds and securities.

  1. Stability and flexibility in one

Fixed deposits and other such long-term investments are often bound by some rigid terms. But the flexibility in debt mutual funds is what makes them favorable. You either choose to invest a bulk amount or you can invest smaller funds as and how your savings grow. For smaller sums or larger sums debt mutual funds are suitable for both.

  1. Tax benefits increase for long-term choices

If you choose debt mutual funds, in the long run, you would be able to save more on tax than with other similar deposits. The indexation benefit is what gives the debt mutual funds an edge over the others. Because for tenures more than a year the returns are often seen as capital gains for the long term. So there is a relatively lower tax deducted.

Besides all the above benefits there is also an inherent security attached to debt mutual funds due to the instruments in which the funds are invested. The market risks thus do not have a role to play in these funds as with conventional mutual funds.

How Does CSR Impact The Financial Aspects Of A Business?

Corporate Social Responsibility (CSR) has gained much acceptance in today’s business world. Although, critics invariably argue that investing in CSR activities may not be in accord with the company’s profits, a lot of resources and funds have been allocated by many industries to carry out research exclusively on CSR activities in order to improve the social welfare of an organization and its employees.

However, CSR goes much beyond than just contributing to an organization’s culture. Here are some viewpoints as to what insiders feel CSR is all about and how it affects a business overall.

  • CSR provides a dynamic foundation for a company’s competitive advantage to sustain the markets. Several entrepreneurs and managers have even considered that CSR is an excellent marketing tool that has the potential to build and sustain a competitive advantage for the company.

  • CSR activities are being viewed as a practical business strategy to improve the company’s position in the market. Through this, CSR activities have the capability to change the way in which ordinary businesses are being carried out from good to better to the best.

  • Moreover, CSR initiatives add immense value to the society as a whole. It contributes to the improvement of the social welfare, not just of the present condition but also for the future by creating sustainable and value-added benefits for all the stakeholders of the company, including its customers, suppliers, shareholders, investors, government, society, and others.

  • In addition, corporate social responsibility has the power to drive the social welfare of certain business organizations based on the strong obligation towards corporate & social governance, open communication & feedback from both the internal & external stakeholders of the organization, and a plan to attain environmental sustainability.

  • CSR business strategies may be applied to create a strong link between stakeholder expectations and company’s profits, as corporate social responsibility offers several benefits in terms of its measurement, evaluation, and estimation of a company’s profits.

  • CSR provides ground for not only a positive societal impact but also offers a very flexible strategy for increasing the financial status of the company by means of social investment.

Thus, the number of organizations getting involved in CSR initiatives has increased since the past. Further, companies these days are preparing CSR drives that are in line with the organizational objectives in order to prevent it from becoming a liability, in which customers have lost faith.