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Tag: Investment

Curious About Investing in Crypto? Here’s All You Need to Know

Posted on by prathod

Curious about investing in crypto and diversifying your investment portfolio? Mukesh Jindal’s Crypto the Disruptor sheds light on the transition from traditional money to digital currencies, offering valuable insights and tips for beginners and experts alike. Despite regulatory challenges, India’s crypto market is buzzing with innovation and there’s no better time to get into it than now. So, if you’re keen to explore crypto investments,  read this exclusive excerpt to know everything about this hottest currency trend.

 

Crypto the Disruptor
Crypto the Disruptor || Mukesh Jindal

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Although investing in crypto assets is not illegal in India, the government heavily taxes and regulates it. The Finance Bill 2022 imposes a 30 per cent tax on crypto holdings and transfers, making it costly to trade crypto in India. The government has also expressed its intention to create a central bank digital currency (CBDC) and ban private cryptocurrencies. However, despite these challenges, india is one of the fastest-growing crypto markets in the world, with over 100 million crypto owners. some of the most popular crypto assets in india are Bitcoin, ethereum, Dogecoin, Cardano and XRP.

 

The indian crypto market is witnessing a surge of innovation and entrepreneurship as more and more crypto projects and platforms emerge and gain traction. some examples include Polygon, a layer-2 scaling solution for ethereum; WazirX, a leading crypto exchange and platform; CoinDCX, a crypto investment app; and instadapp, a DeFi aggregator and manager. if you are a beginner and want to start investing in crypto assets in india, you need to follow five basic steps:

 

1. Choose a crypto exchange or broker that is registered with the Financial intelligence unit (Fiu) and complies with the tax and regulatory requirements. An Fiu is a national agency that collects, analyses and disseminates information on suspicious or unusual financial transactions that may be related to money laundering, terrorism financing or other crimes. Fius also cooperate with other domestic and international agencies to combat financial crimes. The Financial intelligence unit-india (Fiu-inD) reports directly to the finance minister-led economic intelligence Council. some of the leading cryptocurrency  exchanges in india are WazirX, CoinDCX, ZebPay and unocoin. They allow users to buy, sell, trade and store various digital tokens, such as Bitcoin, ethereum, Ripple and more. They also offer different features and services, such as crypto lending, margin trading, peer-to-peer (P2P) transactions and educational resources.

 

2. Create an account on the platform and verify your identity and address. You may need to provide your Permanent Account number (PAn) card, Aadhaar card, bank account details and other documents.

 

3. Deposit funds into your account using your preferred payment method. You can use the unified Payments interface (uPi), bank transfers, debit cards or credit cards.

 

4. start purchasing crypto assets of your choice. You can either buy them at the current market price or place a limit order to buy them at a specific price.

 

5. store your crypto assets in a secure wallet. You can either use the platform’s wallet or transfer your crypto to an external wallet, such as a hardware wallet or a software wallet.

 

As previously stated, there are two sorts of cryptocurrency wallets: software-based hot wallets and physical cold wallets. Hardware wallets, a sort of cold wallet, are one of the most secure methods of storing cryptocurrency. They function by keeping your private keys on a physical device (often a usB or Bluetooth device).
some of the benefits of using a hard wallet are:

 

• Control: You have full ownership and control of your funds as you manage your private keys without relying on any third-party service.

• security: Your private keys are kept offline at all times, which makes them immune to hacking, malware or phishing attacks.

• Compatibility: As long as the device supports them, you can store and access thousands of different cryptocurrencies with a single hard wallet.

• Convenience: You can easily connect your hard wallet to your computer or smartphone and make transactions with a simple click or tap.

 

Online platforms like TradingView can assist cryptocurrency traders and investors. They are platforms that provide advanced charting tools, market data and social features for traders and investors in various markets, including cryptocurrencies. They also support trading directly from the charts through various brokers and exchanges, such as Binance, Coinbase and Kraken.

 

Crypto investing offers a wide range of assets, pairs and derivatives to choose from. However, not all of them have the same performance and potential. Therefore, it is advisable to diversify the portfolio across different categories, such as Bitcoin, altcoins, stablecoins and tokens, as well as across different sectors, such as DeFi, nFTs, gaming and the metaverse. This way, one can reduce the correlation and dependency on a single asset or market and increase the chances of earning consistent returns.

 

***

Get your copy of Crypto the Disruptor by Mukesh Jindal wherever books are sold.

Set Up Your Personal Finance Game Like a Pro with these ACTION-able Insights!

Posted on by prathod

Ready to level up your personal finance game? Discover how to become a financial pro with ACTION by Vivek Mashrani and Anand Venkitachalam! Dive into this exclusive excerpt for actionable tips on assessing your finances, setting smart goals, and crafting a budget like a boss. Get set to take control of your financial future today!

 

Action
Action || Vivek Mashrani, Anand Venkitachalam

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Financial planning is a systematic approach to using money wisely so as to achieve your life goals. The process includes an in-depth examination of your current financial status, the setting and prioritization of goals, the formulation of an action plan to reach these objectives, regular review of your progress towards this plan on an ongoing basis and then updating your plan as necessary. Timelines play an integral part in financial planning, as they dictate what investment options are available, your risk tolerance levels and your overall strategic decisions. Understanding your financial situation At the foundation of financial planning lies your understanding of your current financial status—knowledge of your income, expenses, assets, liabilities, risk tolerance, etc., as described earlier. Now that you understand your financial status and have a clear picture of your life goal, aligning with your financial goals should become part of your daily routine. To create an efficient personal finance goal-setting process, follow these steps.

 

1. Evaluate your financial situation
Evaluate the details of your monthly income and expenses by factoring in all sources (salary, rental income, etc.) against all expenses such as rent, groceries and transportation. Additionally, consider your assets (real estate, stocks, mutual funds, etc.) against your liabilities (home loan, personal loan, credit card debt, etc.). You can calculate your net worth from this, as described earlier.

 

2. Establish your financial goals
Reflect upon what financial milestones you wish to reach—for example, purchase of a home, saving for college tuition expenses for your children, planning an efficient retirement portfolio or an overseas trip.

 

3. Establish SMART financial goals
Your goals should be specific, measurable, achievable, relevant and time-bound to help ensure they will actually happen. Rather than setting generic retirement savings goals, such as ‘I want to save for retirement,’ make your goals specific—for example, ‘I plan to save Rs 2 crore by age sixty.’

 

4. Categorize your goals based on your time horizon for them
Classify your goals based on their expected dates of achievement to more efficiently allocate and prioritize resources towards meeting all your financial objectives. This exercise helps set clearer priorities when prioritizing finances for long-term objectives.

 

5. Prioritize your goals
Ranking your goals from ‘P1’ to ‘Pn’ is the easiest and simplest way to identify which ones are of highest priority to you, P1 being given top billing and Pn receiving no consideration at all. Establishing your priorities allows you to direct your effort, time and financial resources towards those goals which align best with your values and aspirations. Making more informed decisions regarding where your income, savings and investments go can also ensure that progress is being made towards your more important financial objectives.

 

6. Estimate the savings needs for each goal
Estimating the total investments required on your part for each of your goals and breaking up those investments into manageable savings targets require the consideration of factors like the time horizons you have in mind, the inflation rates and any associated costs. Using those figures, you can then set realistic savings goals for the allocation of funds for each of your objectives.

 

7. Allocate savings and assets according to priority
This involves matching up financial resources with each goal’s importance and time horizon. Prioritized goals, such as emergency funds or near-term objectives, often necessitate more conservative savings instruments, like savings accounts or short-term deposits. Medium-term goals could benefit from an array of savings and moderate-risk investments; long-term ones may require higher-risk vehicles like stocks or mutual funds to drive potential growth. By pairing savings and investment instruments with each goal, you can optimize your financial resources while increasing the probability of their fulfilment. Furthermore, this exercise will also assist with identifying lowpriority goals which need to be abandoned or postponed.

 

8. Establish a budget
A budget involves making a careful inventory of both your income and expenditure in order to craft an account that aligns with your financial goals, tracks your spending habits and savings, where applicable, and also allocates your savings to investments related to those goals. A good budget enables you to prioritize your financial goals while controlling your spending habits so as to stay within your means. The purpose of the budget is to ensure financial stability and prosperity for years to come.

 

9. Monitor your progress
Regularly assess your financial health using online tools or apps which sync up with your bank accounts to get an accurate picture of where you stand.

 

10. Review and alter your goals
As life circumstances shift, so must your goals. Marriage, children, health issues, job changes or income adjustments all may necessitate modifications to your financial goals. Financial planning should not be seen as a one-time activity. It is an ongoing journey. Your plan must adapt to your life changes and the shifts in your financial situation. Seeking advice from financial advisers may also prove helpful.

***

Get your copy of ACTION by Vivek Mashrani and Anand Venkitachalam wherever books are sold.

Learn the Power of Financial Planning with Abhijeet Kolapkar

Posted on by prathod

Are you tired of financial uncertainty? Dive into Abhijeet Kolapkar‘s groundbreaking book, Money Works where he demystifies the art of financial planning. With a checklist that lays out practical steps, this excerpt hints at the transformational journey from money worries to money mastery.

Money Works
Money Works || Abhijeet Kolapkar

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What Experience Reveals

Most of us live simple and straightforward lives; 90 per cent of our lives follow a pattern—school, college, job, marriage, life after marriage and retirement. We try hard to plan our lives. For example, in our twenties, we plan to finish our studies, buy a home by age twenty-seven, a car by age twenty-nine, and so on.

 

  • Our dreams need to be converted into goals to bring them to life. Pre-planning and execution are essential to achieve these goals.Also, backing our dreams with financial planning is important.

 

  • Most of us realize the importance of financial planning only as we cross our forties; however if we had realized the need for it in our twenties, a lot of our issues of the present might never have surfaced.

 

‘We do plan our finances but that does not last long.’

‘Is financial planning really necessary?’

‘Financial planning is not as easy as it seems.’

 

We hear such statements about financial planning.
Financial planning is clearly not unnecessary, and it is actually neither difficult nor impossible. It is a simple and straightforward process. What is really needed is to do it with the right intention and make sure you are proceeding with diligence.

 

Checklist for Successful Financial Planning

1. Plan your finances as early as possible: Delaying financial planning is injurious to your long-term financial health. Don’t start financial planning when emergencies arise.

 

2. Stay away from an extravagant lifestyle: Never celebrate by taking loans. Remember this line.

 

3. Avoid overuse of credit cards: One should use a credit card only when it is absolutely necessary. Using it just to avail of offers should be avoided.

 

4. Avoid comparing your situation with others: Know your limits. Instead of looking at what others are buying, think about whether those items are necessary and affordable for you. Understand your situation before spending.

 

5. Prioritize savings over spending: Expensive cars, gadgets and lifestyle choices may make you look rich, but will not make you a rich person. Prioritize saving and investing your earnings.

 

6. Save at least 5–10 per cent of your earnings every month: The first step in financial planning is to save every month and invest it to provide for emergencies.

 

7. Avoid financial investments you don’t understand: It is best to stay away from the type of investments you have no clue about.  In case you still want to go ahead, do so with the help of a financial adviser. Practise caution while investing.

 

8. Buying an insurance cover is a must: Insurance is not an investment but a productive tool to financially cover yourself or your family members in emergencies. That is why everyone should get health insurance, accident insurance and term insurance.

 

9. Invest for the long term: To get the benefit of compounding, invest a major portion of your savings in long-term options.

 

10. Regularly re-evaluate and review your financial strategies: You may have planned a robust financial strategy but failed to implement it or made a few wrong financial decisions. To understand this, you need to frequently review your financial strategies.

 

○ Re-evaluation: The goals based on which we decided on our investments in the past may change. For example, you may feel that saving money for your children’s higher education is more important than buying an expensive car, which was your earlier goal.

○ Review: We can re-prioritize our goals based on our current needs, after periodical reviews.

 

11. Discuss your strategy with your partner: Have a healthy discussion with your partner about your financial goals. Whether your partner is an earning member or not, you should consider their point of view as well.

 

12. Be ready for change: Life is full of surprises—be prepared, mentally and financially, to face any unexpected situations that may arise.

 

13. Read up on financial matters: You should regularly engage with financial newspapers, magazines, blogs and social media pages. Also, you should have books on the subject handy in your personal library.

 

14. Don’t be an emotional fool! Many a time we make decisions based on our emotions, which may lead to financial losses.  Hence, you should stay away from overconfidence, lack of confidence, haste, work, anger, greed, lust, jealousy, etc., while making your financial decisions.

 

15. Self-confidence is essential: No one can play your part better than you. That is why you need to study the subject of finance in depth and make the right decisions to get the most out of your wealth.

 

With this checklist, you can start financial planning based on the goals you want to achieve

***

Get your copy of Money Works by Abhijeet Kolapkar wherever books are sold.

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