Investment News

Author: bmotrader   |   Latest post: Wed, 11 Dec 2019, 9:57 AM


How Hong Kong Protests Affect Bitcoin/Crypto

Author: bmotrader   |  Publish date: Wed, 11 Dec 2019, 9:57 AM

Hong Kong is receiving worldwide attention for the series of protests and tension over proposed legislation and its relationship with Chinese authorities. In some way, Hong Kong is the model of a 21st-century city amidst protesting. Scenes of lasers look almost like the opening sequence of a music arena than two groups at war with each other on the streets.

The protesters involved are also turning their back on fiat currencies out of fears that authorities can trace payments with protesting behaviours (seen as crimes), and it may come back to get them convicted in the future. Instead, they are turning to crypto for anonymity and protection.

Protesters are not just reaching for their lasers to confuse police or for their gas masks to protect against tear gas, they are also reaching for crypto exchanges and a Luno Bitcoin wallet to help them slip under the radar. By choosing to use crypto to pay for supplies rather than fiat currency, it will be harder for a higher Chinese authority to state Hong Kong citizens as protestors and harder to convict them of crimes down the line. But what does this mean from Bitcoin and other cryptos?

Surging Bitcoin Demand

The first protests started in the middle of June and at that time Bitcoin was trading at a $160 (USD) premium on one of the most popular Hong Kong exchanges, TideBit. This premium is still active and on the platform, Bitcoin is trading at $11,500, which investors will know is almost $80 above the rest of the market. This is common procedure in Asia where unorthodox fiat currencies may be exchanged. Nevertheless, it evidences that the demand for Bitcoin in the region remains high.

Bitcoin Price Increase

The demand for Bitcoin has led to a value increase. There of course may be more ambiguous factors that lead to Bitcoin’s increased market value, but the surge in value since Hong Kong’s biggest demonstration does suggest a link. Since June 9th when the biggest public protest occurred, Bitcoin has soared in value from around $8000 to over $11000, which is over a 40% value increase.

There are many other reasons that could have influenced this increase, such as the China-US trade war, but without reading tea leaves, it does appear that Hong Kong protests are pushing the value of Bitcoin to the ceiling.

What Does All This Mean for Crypto?

An increase in demand and market value can only be a good thing for cryptocurrency and those already involved or investing in it.

However, from a Chinese perspective, the use of crypto may have been tarnished by acting as a vehicle to protect people enacting crimes. Although to others what they are doing may not be seen as crimes at all. Cryptocurrency has a reputation of preventing criminals just as much as it does at working as a vehicle for crime - and these events may strengthen both arguments.


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Make the Most of Your Borrowed Money By Investing In Shares

Author: bmotrader   |  Publish date: Tue, 26 Nov 2019, 8:24 PM

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Not all lending institutions such as banks would openly let you borrow money to invest in the stock market. One of the reasons is that there is a risk that the money you borrowed will go down and you might not be able to pay back the loan. However, you can still get alternative funding from other lending institutions such as Mulligan Funding or the stock brokerage industry.

On a brighter side, getting a loan to invest in shares can be an effective way to boost your potential returns. But, you need to make sure that you are investing in the right shares that have high potential returns. If your investment increases at a rate that is higher than the costs of your loan, you can make an income out of it.

What kind of loan do you borrow?

The type of loan you need to get so you can buy stock shares is a margin loan or margin lending. Margin lending is like any other investment which offers high returns but also carries high risks. Many are attracted to it because there is a chance of multiplying your money and increasing diversification.

Though there is a chance that your money will multiply, you need to be extra cautious because not only could the value of your investment could deteriorate, but your loan obligation may increase if the market share takes a tumble.

It involves loaning money against the shares you own to purchase more shares. This can result in a portfolio where, depending on the lending institution, your borrowing range is between thirty to eighty percent of the value of your portfolio.

Your loan level will be set to buy shares up to the leverage level you specify. The interest and charges you need to pay are based on that sum. Most lending institutions set a minimum loan level for margin lending. For you to qualify for a margin loan, you just need to open a margin account with any stock brokerage firm.

Once you buy stocks in a margin account and the cost of the shares is greater than the amount in your account, the lending institution provides a margin loan to pay for the excess cost of the shares. Thus, a margin loan covers the portion of the cost that you cannot pay.

The Pros and Cons

In any situation, there are pros and cons to it. As a borrower and an investor, you need to make sure that the pros can outweigh the cons in it. Nevertheless, the more money you have invested, the more chances you can gain if shares in your portfolio go up in value.

Once the value of your shares increases, your leverage decreases as well. It gives you the capacity to borrow more. Aside from that, by having more money to invest in shares, you can increase diversification which reduces your downside risk.

The downside of it is the stock market volatility. If the stock market falls, the value of your shares will drop and you could be required to maintain the equity for the loan if your level breaches the minimum range. This is known as a margin call. A margin call involves selling shares at a loss or giving up-front cash payment. The proceeds of the said shares or the up-front cash payment will be used to pay down the margin loan.

Aside from that, the up-front cash payment or sell-off requires to be done within twenty-four hours. Unfortunately, if you cannot be contacted, the lending institution has the right to immediately sell down your portfolio.

For example, if your portfolio share is worth seventy-five percent of your loan and the stock market falls, you must give additional money to make sure that the seventy-five percent is maintained at all costs. Thus, any decrease in the value of your stocks will increase your obligation.

To prevent that from happening, you need to constantly monitor your margin lending investment.

What Should You Maintain?

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You need to closely monitor the equity of your account because if the value of your stocks will fall, your equity will also fall. For example, you bought $20,000 worth of stock using $10,000 of equity. If the value of the stocks dropped to $14,000, you would have $4,000 in equity with the $10,000 loan still outstanding.

Once you drop below the minimum percent set by your lending institution, you need to add more money or sell some shares from your account.

Paying back what you borrow

As long as you maintain the equity above the minimum percent set by your lender, there is no need to immediately pay your margin loan. If your stocks increase in value or you add cash to your account, you can buy more stocks and increase the size of your loan.

If you want to decrease the interest that is charged to your loan, you can choose to pay down the loan at any time using the proceeds from stock dividends, additional cash, or selling some of your shares.


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Should You Consider Payroll Loans For Your Business?

Author: bmotrader   |  Publish date: Thu, 26 Sep 2019, 6:12 AM

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Visualize yourself in this circumstance: it is time to hand in payroll, yet you do not have sufficient working capital to fulfill your obligations. Your company has a later paying customer, and business has been slow. Of course, you know the money will be arriving soon. However, at the moment, you are in a bind.


If you think you are facing this situation and need fast cash to cover the paycheck, then you may leverage from a payroll loan. These loan types are advances or short-term loans that let you borrow cash to pay your people.


However, expectedly, payroll loans can be indeed costly. Also, the payroll financing firm will want you to repay the loan as soon as possible. For a little help, we will walk you through what payroll loans are, and how it can help you pay your people, as well as grow your business. Read on!

What You Need to Know About Payroll Loans

Payroll loans are extensive definitions for short-term loans created to make the cash flow of a company smooth. If you cannot repay your employees, then you will have more unmotivated, unhappy, and mad employees in your business. Also, you will need to face government regulators.


There are typically three payroll loan types. They arrive in one of the following types:


  • Invoice Factoring: For the most part, have you got any unpaid invoices in your company? If yes, then you can undoubtedly borrow cash against unpaid invoices through invoice factoring. Through this method, you will receive or obtain a cash advance of at least 85% of the total invoice and can utilize the unpaid invoices as collateral. Because the outstanding invoice is the collateral, you will not need to present your credit scores or business statements to be eligible with a factoring company.
  • Cash Advances: Rather than making a loan, you can, more often than not, sell a portion of the future credit card sales of your business for lump-sum funding. In some cases, business loans are more affordable than merchant cash advances. However, they can be much simpler to qualify because your credit score is not examined or appraised. As an alternative, only your credit card sales are, for the most part, considered.
  • Short-Term Loans: These loans have short terms since they’re aimed to be repaid as soon as possible. A lot of online creditors handles or deals with this type of loan in one business day. However, you will usually need to have at least 600 personal credit score, evidence, and verification of business income, and annual business history. Additionally, the creditor may ask you to convey a postdated check for the whole amount with them to guarantee and assure that they are paid.

Who Can Leverage From Payroll Loans?

Payroll loans must only be leveraged or taken advantage as the last defense option from unpleasant financial situations, such as having bad credit loans. The interest rates on this type of loan can be at least 30%. Therefore, you need to consider all choices before getting a loan from a payroll funding creditor.


The following are some instances in which payroll loans may benefit your business:


  • Traditional creditors have rejected your loan application: If traditional lenders reject or cannot get your business loans approved yet need to send salaries quickly, then payroll loans could be the best option. It may be best to take a 15-30% interest rate payroll loan than dealing with the repercussions of not sending paychecks to your employees.
  • You have hired extra people for a sudden rise in sales: Say, for example, your business is a seasonal type, then you may have financing fluctuations between your busy times and slow times. On the other hand, if you own a vacation business near the coast, you may need to pay an outsourcing company to hire extra people during the summer season. Prior to the busy season, you may not have sufficient money or income to pay your extra workers. Fortunately, payroll loans can help you so that you can pay all employees on time.
  • You are dealing with a lack of short-term cash: More often than not, cash flow is not always a smooth-sailing cycle. Oftentimes, paying for huge business expenses may leave you a small amount to pay for your employees. When you know your customer will pay you in a month, short-term loans could help you keep your company stable.


A payroll loan is much easier and quicker to be eligible for compared to bank loans or small business loans (SBA). Plus, you will get the funding instantly. However, you must thoroughly study and assess the terms and regulations before you apply.


This type of loan must be your last line of defense. It is not ideal for long-term financing solution. Ensure that you understand all aspects before getting a payroll loan.



Author's Bio

Tiffany is currently taking a degree in Investment Management Analysis in her junior year in college. In the context of decision making and business strategy, she focuses on finance and information interpretation.

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Why Invest In Bitcoins

Author: bmotrader   |  Publish date: Wed, 4 Sep 2019, 2:34 AM


To invest or not in Bitcoin today is something that you can consider as a hot topic. Given the ups and downs of the cryptocurrency since its inception, it may not be easy to judge whether you should test this digital asset in the investment arena. Being a young digital currency, the market is filled with stories of successes as well as failures when dealing with Bitcoin. Therefore, it’s essential to do some research before you make an informed decision.


Read this article to learn the best reasons why you should start investing in Bitcoin nowadays.


Bitcoin: A Quick Overview


In a nutshell, Bitcoin is the largest digital currency founded by an anonymous person only known as Satoshi Nakamoto. It’s often called as a cryptocurrency because it operates and exists online. With its introduction to the financial community, Bitcoin is significantly different from traditional currencies such as the Dollar, Yen, or Euro.


Below are the common differences between this cryptocurrency and regular money:


1.     Bitcoin is an electronic form of currency. It works in a virtual way through the blockchain technology.


2.     Bitcoin isn’t under the regulation of any single authority. However, it operates under a peer-to-peer network controlled by the online community across the world.


3.     When you invest in Bitcoin, you need to set up a digital wallet where you can store and make transactions online.


4.     Bitcoin transactions are irreversible and private. There’s no need for any personal information before completing a transaction. Once you send the Bitcoins to the receiver, you cannot get it back by any means.


Bitcoin: Reasons For Investing


Now that you already have a basic understanding of what Bitcoin really is, it’s time to tackle the reasons why investing in this cryptocurrency is worthy of consideration. Here’s why it may be a great idea to invest in Bitcoins today:


1.     Can Invest Without Red Flags


Bitcoin is a decentralized currency, and it doesn’t rely on the economic and political conditions of a particular state. In other words, its price value has nothing to do with the central banks or any governing body. For example, you can carry out a Bitcoin trade in any country and make a transaction without having to rely on any third-party authority. And wherever you are in the world, you can use the cryptocurrency for purchases without needing to convert it into the local currency.


2.     Offers A Variety Of Uses


Because of the widespread adoption of blockchain in the online industry, Bitcoin has emerged as something that can be used in several exciting things. Many businesses and organizations are now accepting Bitcoins as an alternative payment method. For instance, you can use the cryptocurrency in buying goods or services, online gambling, trading, and many more.


With Bitcoin’s volatility, many people have become interested in turning it into an investment vehicle to earn substantial amounts of profit. There are several trading platforms like Bitcoin Future that can help you execute your Bitcoin trades successfully. To find the right software, online resources like this Bitcoin Future review site can help in your decision-making process.


3.     Has A Young Market And Technology


Again, Bitcoin’s young market and technology make it a more interesting digital asset. Being around in the financial community for approximately ten years, there’s so much room for price growth and improvement. Bitcoin developers never stop working on how to improve the blockchain in terms of scalability, security, and other added features. Thus, because of the cryptocurrency’s potential growth, it goes without saying that investing in it can be a smart idea.


4.     Safeguards Your Privacy


When dealing with banks, you have to disclose your confidential information to complete a transaction. With sophisticated technology, they have access to your personal profile, including your location, contact numbers, and many more. With Bitcoin, on the other hand, it’s not necessary to give your personal information when doing a transaction. Nobody can trace your purchases with the cryptocurrency, which is why it’s the best way to protect your privacy compared to banks.


5.     Comes With Better Cryptocurrency Regulations


The exceptional rise in Bitcoin has caused the introduction of regulations that will shape the system. The presence of better cryptocurrency regulations now can reduce the fears and worries of potential investors and provide an excellent foundation for investments. Also, the implementation of tight Bitcoin regulations can help tackle security issues that may potentially reduce investment desirability. 


6.     Gives You More Freedom With Your Money


Another important reason why you should invest in Bitcoin is its flexibility in the market. When you decide to trade or invest in the cryptocurrency, you can also get it done on any day at any time. It also provides you with the flexibility to manage your investments without needing to worry about any barriers. Compared to stocks, investing in Bitcoin can be done round the clock, giving traders or investors like you the freedom to work with your money. Remember, the flexibility of the crypto market, aside from being attractive to traders, can help you create an active investment strategy. That way, you can be able to earn more profits in the long-term.


7.      Allows Faster Transactions


The Bitcoin blockchain technology can create a great payment system that enables faster transactions and unmatched technical security. With such technology in place, people can make a Bitcoin transaction in a cheaper, faster, and safer manner. The payment details will be recorded on the blockchain. That way, you can take advantage of the technology’s longevity and security, thereby allowing you to transfer money faster around the globe.


Final Thoughts


As modern technology continues to grow, Bitcoin is expected to rise. Typically, many people have seen the value of taking over their money completely, leaving banks and the government aside. Because of that revolution in the financial community, investing in Bitcoin has been a topic that’s trending nowadays.


Thus, after considering all of the things mentioned above, knowing whether or not the cryptocurrency is a good investment depends upon the type of investment you want to enter into. Lastly, deciding to invest can be seen as a matter of faith in the Bitcoin system, so do your research and study the market now.













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