Learning the friendly way

Overexposure is a common pitfall in trading, which occurs when a trader invests too heavily in a single asset, exposing themselves to a significant amount of risk. If the asset does not perform as expected, the trader's entire portfolio can suffer significant losses.
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To mitigate the risks of overexposure, traders can employ a strategy known as diversification. This involves investing in a range of assets across various industries and sectors, spreading out the risk and increasing the likelihood of positive returns. By diversifying their portfolio, traders can reduce the impact of a single asset's poor performance, as losses in one area can be offset by gains in others.
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Avoiding overexposure is an essential aspect of risk management, as it helps traders balance potential gains against potential losses. While it may be tempting to invest heavily in a single asset that appears to be performing well, this strategy can be risky, as even the most successful assets can experience significant losses due to unforeseen events or changes in the market.
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In addition to diversification, there are several other strategies traders can use to avoid overexposure. These include setting stop-loss orders, which automatically sell an asset if its price falls below a specified threshold, and regularly reviewing and adjusting investment strategies based on market conditions and performance.
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It is also important for traders to conduct thorough research before investing in any asset to ensure they fully understand the potential risks and rewards. By being informed and educated, traders can make more informed decisions about their investments and minimize the risks of overexposure.
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In conclusion, overexposure is a common risk in trading that can have significant consequences for a trader's portfolio. Diversification is an effective way to mitigate the risks of overexposure, and traders can also use other strategies such as setting stop-loss orders and regularly reviewing their investments.

Used across all markets, the spread is the difference between the buy (offer) and sell (bid) prices of an asset. Spreads provide an additional opportunity to traders to make money through buying and selling assets.

The spread of an asset will depend on the current demand or an asset and the market’s volatility and is presented in either a percentage or value form. Assets with markets displaying higher levels of demand will typically have smaller spreads and usually higher price points. 

As an example, when you look at an order book for Bitcoin you will usually see prices reflected in green and red reflecting the offer prices and bid prices. The spread will then be indicated above the most recent trades. As another example, consider foreign exchange counters where the buy and sell prices are different, this difference is known as the spread. Market makers use spreads to generate money from transactions completed at market prices.

Let's put this in context: George buys 100 shares for a £2 ask price in “ABC” a publicly listed company. George pays £200 in return for 100 shares. If he decides to sell the shares back at the same price he bought them for, he would sell the 100 shares for the bid price at £1.95 and would receive £1.95 each instead of £2. This would mean he gets a return of £195 and loses £5, which would be paid to the market maker.

The Sandbox is a pioneer in the movement to incorporate blockchain technology into the gaming sector. Created in 2011, The Sandbox is an play-to-earn game that allows users to be both creators and players, with the ability to monetize their in-game assets and earn SAND tokens.

Powered by the SAND token, the Sandbox’s native token serves as the foundation for all transactions and interactions. SAND tokens can be obtained by playing games, selling digital assets on the Sandbox Marketplace, participating in competitions, or buying it through a reliable exchange. 

What is the Sandbox platform?

The Sandbox is an Ethereum-based play-to-earn gaming ecosystem and metaverse that allows players to create, share, and monetize in-world assets and gaming experiences. The platform combines the powers of decentralized autonomous organizations (DAO), DeFi and non-fungible tokens (NFTs).

The Sandbox metaverse offers players a space to interact with one another and the games they have created.

The Sandbox is made up of three main components: 

1. VoxEdit, which allows users to create and animate 3D objects in the metaverse (i.e. animals, people, tools, etc). These are known as ASSETS and utilize the ERC-1155 token standard which allows both fungible and non-fungible (NFTs) to be minted at the same time. 
2. The Sandbox Game Maker, where users can create 3D games for free.
3. The Sandbox Marketplace, where users can sell their ASSETS for SAND tokens. 

Who created The Sandbox?

Initially developed as a mobile gaming platform by Pixowl in 2011, The Sandbox was intended to be a competitor to Minecraft. It quickly grew very popular and soon had more than 40 million downloads worldwide. However, in 2018, the co-founders Arthur Madrid and Sebastien Borget decided to explore the potential of creating a 3D metaverse on the blockchain.

The new and improved platform allows users to truly own their creations, in the form of NFTs, and earn rewards while participating in the ecosystem. The Sandbox team introduced the new Sandbox project in 2020 and it became one of the fastest-growing games in the cryptocurrency world, alongside Axie Infinity and Decentraland. 

The following year the platform raised $93 million and attracted over 50 reputable partnerships, including CryptoKitties, Snoop Dogg and The Walking Dead. 

How does The Sandbox work?

The Sandbox is a dynamic virtual world filled with user-generated content. Players can create and develop their own NFTs, including avatars, virtual goods, and even games, using the platform's VoxEdit and Game Maker. They can also interact with other players as well as monetize these NFTs by selling them on the Sandbox Marketplace, fueled by the SAND token.

The Sandbox's VoxEdit

VoxEdit offers artists and players user-friendly software to create, rig, and animate NFTs. The NFTs are in voxel format, square 3D pixels that look like lego blocks, which can quickly be edited to create different shapes. Users can design and create everything from animals and game tools to avatar-oriented weapons and clothing to any goods that you can use in The Sandbox. 

All these virtual goods can then be exported and traded as NFTs on the Sandbox Marketplace for SAND token.

The Sandbox's Game Maker

The Game Maker is designed to allow users to test their 3D game creations within the metaverse. With no prior coding experience needed, the program allows users to design and organize various objects and elements in a space called LAND (including the VoxEdit NFTs).

The Game Maker allows users to curate quests, place buildings, and characters, edit terrains, etc. Users can then share their designs with the greater community or sell them on the Sandbox Marketplace.

The Sandbox Marketplace

The Sandbox ecosystem has its very own NFT marketplace was launched in April 2021 and creates a space where users can trade ASSETS (in-game assets) with the native token, the SAND token.

The ASSETS (NFTs) can be anything from wearables to buildings to entities, and can then be used within the platform in the Sandbox game and incorporated into LAND to create unique games using the Game Maker. The Sandbox's marketplace is accessible to all users on the platform.

What are SAND tokens?

Sandbox, referred to as SAND, is an ERC-20 token with a supply of 3 billion. The token functions as a utility token, governance token, and can be used for staking.

SAND as a utility token facilitates all interactions and transactions within the Sandbox ecosystem. In order to take part in the activities available on the platform, from playing the games to buying LAND, trading ASSETS or customizing avatars, users will need to own SAND. The LAND tokens are ERC-721 tokens while ASSETS are user-generated NFTs.

The native token also functions as a governance token within the Sandbox ecosystem, allowing SAND token holders to vote on changes made on the platform through the Sandbox DAO (Decentralized Autonomous Organization) structure. 

Lastly, the token can be staked on the platform, allowing holders to earn rewards and a share in the revenue from all SAND transactions. Staking offers the bonus advantage of allowing users to increase their chances of finding valuable game resources designed to boost ASSETS' rarity, known as GEMs and CATALYSTs. These are valuable when looking to create assets and play games.

There are two ways to acquire SAND: either through playing games and contests in The Sandbox, or by purchasing it on a cryptocurrency platform like Tap.

How can I buy the SAND token?

For those looking to incorporate The Sandbox into their crypto portfolios, or simply enter the metaverse gaming sector, we have great news. The Tap app has recently added SAND to the list of supported currencies, allowing anyone with a Tap account to easily and conveniently access The Sandbox market. 

Users can buy SAND by using balances in either their crypto or fiat wallets or with your debit card, you can also buy the cryptocurrency with traditional payment options like bank transfers. Through the integrated wallets on the platform, users can also store and manage their SAND holdings easily and conveniently. 

USD Coin is a prominent stablecoin in the cryptocurrency market. Providing a plethora of use cases to both crypto and traditional investors, financial services and traders, USD Coin sits among the top 10 biggest cryptocurrencies by market capitalisation.

In this article, we explore this celebrated stablecoin and all it has to offer in terms of being a traditional investment opportunity, savings relief and digital value settlement service.

USD Coin is relatively new to the market, launching in September 2018. The stablecoin is pegged to the US dollar, meaning that its value will always reflect the price of the dollar on a 1:1 ratio.

This is established by keeping an equivalent amount of the circulating supply in a reserve account, i.e. for every 1 USDC in circulation, $1 needs to be held in reserve. The reserve is a mixture of cash and short-term U.S. Treasury bonds.

What Is The Point Of The USD Coin?

Built on top of the Ethereum network, USDC is a tokenised version of the US dollar that can operate over the internet and public blockchains. It is designed to provide a stable digital currency in an industry prone to volatility.

Setting itself apart in an increasingly saturated stablecoin market, USD Coin has received wide interest due to it providing a strong layer of transparency. The platform maintains strict protocols to ensure that the reserves are always at the correct levels, ensuring holders that they can withdraw 1 USDC for $1 at any given time, by way of enlisting a major accounting firm.

All USD holdings are required to be reported regularly by USDC issuers, which are in turn published by Grant Thornton LLP (as witnessed in the news). Unlike Bitcoin, while the company uses the decentralized network of Ethereum to function, it has a centralized agency controlling it.

Who Created USD Coin?

The coin was created by the Centre Consortium, a foundation consisting of the peer-to-peer payment service company, Circle and cryptocurrency exchange, Coinbase. Circle and Coinbase were the first commercial industry users of the stablecoin.

In 2020, Circle and Coinbase announced an upgrade to the USDC protocol and smart contracts. These upgrades were implemented to increase the cryptocurrency's usability for everyday payments, commerce and peer-to-peer transactions.

Both companies are well-funded and have achieved regulatory compliance, confirming the cryptocurrency's stability and international transparency appeal.

How Does USD Coin Work?

USD Coins are created through a process of minting. Users send USD to the USDC issuer's bank account, which then uses the USDC smart contract to create the equivalent amount of USDC. The digital currencies are then delivered to the user, with the fiat payment held in reserve.

Should the user wish to liquidate their USDC, they can send a request to the USDC issuer who then sends a request to the USDC smart contract to take a certain amount of USDC out of circulation. The issuer then sends the equivalent amount of USD (minus fees) to the user's bank account, taken from the reserve.

USD Coins can be traded through exchanges for other cryptocurrencies, or sent to crypto wallets around the world (provided that they support ERC-20 tokens). The coins are also often used to hedge against cryptocurrencies going through turbulent or crashing market periods.

What Is USDC?

USDC is a fiat-collateralised ERC-20 token hosted on the Ethereum blockchain platform. The stablecoin has an unlimited total supply with currently just under 37 billion USDC in circulation.

The coin provides an easy means of transferring funds internationally at a fraction of the cost and time that sending the traditional fiat would take. It has also proven to be a popular innovation in the DeFi (decentralized finance) space.

How Can I Buy USDC?

If you're looking to add USDC to your crypto portfolio you can do so conveniently through the Tap app. In a recent upgrade, the Tap app has added support for a number of prominent cryptocurrencies, including USDC.

Users can simply exchange one of the supported cryptocurrencies for USDC, or purchase USDC using fiat money. These can then be stored in the unique wallets integrated into your Tap account.

When referring to the yield on an investment, this indicates the earnings generated over a certain period of time. It is generally presented in percentage form and includes the interest or dividends relevant to the initial investment. 

While returns are calculated using the difference in value at two specific points in time, the yield will calculate the total (net) value earned over a period of time. This provides an invaluable tool in helping you understand the potential value of an investment. 

Basic yield is calculated as the net realised return divided by the initial investment amount. For example, if an investor bought $100 worth of Bitcoin which grew to $2,000 in the next year, then the formula would look like this:

$1,900 / $100 = 19
-> which translates to 1900%. 

There are several different formulas based on the type of yield you wish to calculate. These include:

• Yield on Stocks
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• Yield on Bonds
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• Yield to Maturity

• Yield to Worst

• Yield to Call

A high yield isn’t necessarily a good thing. Should the market’s decline or the company pays out high dividends the yield will still reflect as high. Always do your own research when considering an investment, or trust a financial advisor. 

In this article, we delve into the distinction between revenue and profit, essential for businesses aiming to thrive financially. In a nutshell, revenue represents the total income generated from core operations, while profit is what remains after deducting all expenses. Join us as we explore the nuances between these two crucial concepts and their significance in business success.

What is revenue?

Revenue represents the total income earned by a business through its core operations, such as sales of goods or services. It can also be referred to as the top line of an income statement. It's essential for covering expenses, investing in growth, and generating profits.

Revenue comes from various sources like product sales, service fees, subscriptions, licensing, and advertising. Understanding and managing revenue streams are crucial for sustaining operations, attracting investors, and ensuring long-term viability in competitive markets. Thus, revenue serves as a vital performance indicator for businesses of all sizes and industries.

What is profit?

Profit refers to the financial gain a business achieves after deducting all expenses from its total revenue. On an income statement, profit is typically known as net income, however, the term "bottom line" is more commonly used.  Profits appear on an organisation's income statement in a variety of ways and are used for various purposes and are a key metric indicating a company's financial health and efficiency.

There are two main types of profit:

Gross profit

Gross profit equals revenue minus the cost of goods sold, which consists of the direct material and labour expenses related to creating a company's products.

Operating profit

Operating profit equals gross profit minus other business expenses that are associated with running the company, such as rent, utilities, and payroll.

Essentially, profit is calculated by subtracting total expenses from total revenue. It's vital for business sustainability, expansion, and rewarding stakeholders and accurately measuring and maximising profit margins is essential for achieving long-term success and competitiveness in the market.

Revenue vs profit

When people refer to a company's profit, they are usually referring to the net income, which is what's left after expenses. It is possible for a company to make money but still have a net loss.

In an example below illustrating the importance of understanding revenue and profit, say a company producing light bulbs makes $10 million in the income generated. This sounds great, however, if the company's core business operations and debt add up to $12 million, the company is making a loss. Let's take a look at this example in greater detail below:

Business revenue or Total Net Sales: $10 million

Gross Profit: $4 million (total revenue of $10 million minus COGS of $6 million)

Operating Profit: $2 million (gross profit minus other business expenses such as rent, utilities, and payroll)

Profit or Net income: –$2 million (illustrating that the company is making a loss)

Profit will always be lower than revenue as this amount is determined after deducting all the operating and other costs. 

A look at expenses

Operating expenses, including salaries, rent, marketing, direct costs, and utilities, which are necessary for day-to-day operations, and non-operating expenses, like interest payments or one-time costs, can impact profitability differently. By adequately controlling all expenses, businesses can maximise profit margins, reinvest in growth initiatives, and provide returns to stakeholders.

Overspending on unnecessary costs or failing to budget properly can significantly reduce profit margins, hampering long-term success. Therefore, monitoring and optimising expenses are integral parts of financial management strategies aimed at ensuring profitability and competitiveness in the market. With an effective strategy in place to measure and manage expenses, the price of goods and total sales will hopefully increase. 

The importance of financial metrics

Financial metrics encompass a range of indicators used to assess a company's performance, including revenue growth rate, profit margin, and return on investment (ROI). These metrics provide insights into the effectiveness of business operations, helping organisations gauge their financial health and make informed decisions.

For instance, the revenue growth rate indicates the pace at which a company's sales are increasing over time, while the profit margin measures the proportion of revenue that translates into profit. Additionally, ROI assesses the efficiency of investments by comparing the gains or losses relative to the initial investment, aiding businesses in evaluating their investment strategies and maximising returns.

How to measure business performance

Measuring how well a business is doing means looking at both its revenue and profit. Revenue is all the money a business makes from selling things, while profit is what's left after taking away all the costs. By finding ways to make more money and spend less, a business can increase its financial health. Keeping an eye on important numbers like sales growth and profit margins helps a business see where it's doing well and where it can improve. This helps the business stay strong and competitive in the long run.

In conclusion

Companies base their success on two very important metrics: revenue and profit. While revenue is referred to as the top line, a company's profit is what really matters and is referred to as the bottom line.

It is crucial for investors to take both revenue and profit into account when making investment decisions, and to review the company's income statement in order to get a full view of the company's financial health.

In conclusion, revenue is the income a company makes without factoring in expenses such as debts, taxes, and other business costs. Profit, on the other hand, factors in all company expenses and operating costs.

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