Learning the friendly way

Saving and investing are two key elements to managing one's personal wealth. In this article, we explore the benefits and downfalls of both these tools and give you a broader understanding of the topics.

What Does saving entail?

Saving money is an imperative step in building one's wealth and involves putting money away on a consistent basis, consistency is key. These funds are usually kept in an interest-bearing account, allowing the value to increase passively over the years. 

In the United Kingdom, there are different types of ISA (individual savings accounts) that offer tax-free savings options.

In order to save, one must be spending less than they're earning. 

What does investing entail?

Investing involves buying an asset with the intention for it to accumulate in value. This typically comes after saving, although the earlier the better. People invest in the likes of stocks, cryptocurrencies, property and even themselves (education, capital for a business) in the hopes of generating returns. 

What's the difference between saving and investing?

The biggest difference between the two is the varying returns you can earn. Saving money in a bank account typically provides returns of 0.5 - 0.8%, while the return potential on cryptocurrencies and stock is much greater.

The other main difference between saving and investing is the risk. So, while earning higher returns on investments might sound much more appealing, the risk is usually greater. Savings accounts carry minimal risk and are usually insured while investment portfolios will rise and fall with the market and are only insured if the investment company fails. Investors should balance the options and establish which risk level they are comfortable with.

In light of these risks, savings are recommended for short term goals while investments cater better to long term financial objectives. This is because long term investments will ride out the ebb and flow of markets and recover even if there is a drop over a certain period. Savings on the other hand are more easily accessible and won't be "interrupted" if the funds are used for an emergency. 

However, savings are also susceptible to inflation as the interest rates are seldom higher than the inflation rates. For example, if your bank is offering a 0.6% interest on your savings account and inflation rose 2%, your savings would have actually decreased in value. Investing typically beats inflation.

The similarities between savings and investing

As both tools are excellent at building and creating more wealth, there are bound to be similarities between the two.

The main similarity between the two is that both options are best started now, whether you're in them for the long or short term benefits. This is due to compounding. Compounding is the process where the interest you earn on an investment or savings account is continuously reinvested, increasing the base sum each period. 

For example, if you put $1,000 into a compounding savings account and earned 2% interest each year. The next year you will be earning 2% interest on the lump sum plus the interest earned, $1,020. The next year you would earn $1,020.40 ($1,020 interest earned, $20.40). This doesn't sound like too much, but over a ten-year period, you would have amassed $219.20 without having done a thing. 

Before you get started

Before getting started on either of these options, ensure that you have a positive cash flow and are debt-free. You'll also need to establish what your risk tolerance is, your short term and long term financial requirements, and when you would like to access the money.

If you don't have one already, you'll want to establish an Emergency Fund that can cover your living expenses for 3 - 6 months. Should you lose your job you can then fall back on this loan and not have to rely on credit cards with high-interest rates. 

Experts also recommend setting up a retirement fund, with automated monthly contributions. Once your emergency and retirement funds are established, you can consider a short term savings account or long term investment, or both. 

Pros and cons of saving and investing

Below we highlight the pros and cons of both tools:

Saving

Pro: Money is accessible and can easily be withdrawn.

Pro: Exempt from market volatility.

Con: Cannot leverage on market gains (potentially missing out on large compound interest benefits).

Con: Susceptible to inflation.

Investing

Pro: Longer time frames allow for favourable compounding interest.

Pro: Could tap into large market gains. 

Con: Exposed to more risk as markets are susceptible to drops.

Con: May incur a penalty if the money is withdrawn too soon. 

The bottom line

Both savings and investment options carry their own set of risks and rewards and it's ultimately best for you to speak to a financial adviser who is able to provide you with calculated professional advice. 

Disclaimer: This article is intended for communication purposes only, you should not consider any such information, opinions or other material as financial advice. The information herein does not constitute an offer to sell or the solicitation to purchase/invest in any assets and is not to be taken as a recommendation that any particular investment or trading approach is appropriate for any specific person. There is a possibility of risk in investing as investors are exposed to fluctuations in all markets. This communication should be read in conjunction with Tap's Terms and Conditions.

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Day, Month,2021, LONDON: TAP Global has been shortlistedin the ‘Best Use of Crypto in Financial Services’ in the Emerging Payments Awards(EPA) 2021.

Now in its 14th year, the Emerging Payments Awardscelebrate innovation and collaboration by recognising companies thathave made significant impact in supporting and providing payment solutions forconsumers and businesses.

It is one of the most recognized awards within the UK payments industry with an independentpanel of 58 judges including this year:

·        Anna Maj FinTech Leader, Senior Advisor, Truffle Capital, SeniorLecturer CFTE

·        Jill Docherty [ of Business Development, UK & Ireland, Visa

·        Martha Mghendi-Fishe Founder & Executive Board Chair, EWPN

·        Mark Walker Co-founder & COO Editorial Director, The FintechPower 50 and The Fintech Times

·        Joanne Dewar CEO, Global Processing Services

·        Nikki Evans CEO EMEA, EML

Tap Global wasshortlisted for The ‘Best Use of Cyrpto inFinancial Services’ category based on criterias such as the benefits it providesto its end-users, how TAP stands out from its competitors due to its featuresand innovation, and the proven evidence of its success in the market.

“‘Tap was one of the first companies to launch a crypto prepaidpayment card with Mastercard in the EU’ in 2020 and our cryptocurrency-to-fiat prepaidMastercard and smartphone app give users the

power to instantly trade all major cryptocurrencies to fiat, andto make purchases with their cryptocurrency”, comments David Carr, CEO atTAP GLOBAL.

“Tap’s proprietary AI Middlewareconnects to multiple exchanges simultaneously, automatically validatingavailable liquidity and selecting the most competitive prices whilefacilitating trades in a matter of seconds. Users can convert their cryptocurrency assets to fiat instantly,allowing them to pay for goods or use an ATM anywhere Mastercard is accepted.

Through the smartphone app, users can securely send and receivecryptocurrencies and fiat, view their transaction history, lock and unlocktheir card in case of loss and instantly view their PIN. Tap offers its usersfull EEA coverage for card, banking and cryptocurrencies and a named EUR IBANand/or GBP Sort Code and Account Number, as well as secure, offline, coldstorage behind a multi-signature wallet with the highest grade security for allcryptocurrency assets”, he further adds.

“It’s an honour to be shortlisted for this award which furtherrecognizes the added value TAP brings to market and the benefits for our end-users.None of this would have been achievable without the hard work of our teams andthe support of our partners”, says David.

Commenting on theannouncement, Kriya Patel, CEO at Transact Payments adds, “The EPAawards are some of the most prestigious awards in our industry recognisingcompanies that are making a real difference in driving innovation in payments.We’re delighted to be working with TAP Global and being shortlisted for thisaward.”

Now in its 14th year, the Emerging Payments Awards celebrate innovation and collaboration by recognising companies that have made significant impact in supporting and providing payment solutions for consumers and businesses.

It is one of the most recognized awards within the UK payments industry with an independent panel of 58 judges including this year:

·        Anna Maj FinTech Leader, Senior Advisor, Truffle Capital, Senior Lecturer CFTE

·        Jill Docherty [ of Business Development, UK & Ireland, Visa

·        Martha Mghendi-Fishe Founder & Executive Board Chair, EWPN

·        Mark Walker Co-founder & COO Editorial Director, The Fintech Power 50 and The Fintech Times

·        Joanne Dewar CEO, Global Processing Services

·        Nikki Evans CEO EMEA, EML

Tap Global was shortlisted for The ‘Leading Financial Services or Payments Start-Up’ category based on criteria s such as the benefits it provides to its end-users, how TAP stands out from its competitors due to its features and innovation, and the proven evidence of its success in the market.

“‘Tap was one of the first companies to launch a crypto prepaid payment card with Mastercard in the EU’ in 2020 and our cryptocurrency-to-fiat prepaid Mastercard and smartphone app give users the power to instantly trade all major cryptocurrencies to fiat, and to make purchases with their cryptocurrency”, comments David Carr, CEO at TAP GLOBAL.

“Tap’s proprietary AI Middleware connects to multiple exchanges simultaneously, automatically validating available liquidity and selecting the most competitive prices while facilitating trades in a matter of seconds. Users can convert their cryptocurrency assets to fiat instantly, allowing them to pay for goods or use an ATM anywhere Mastercard is accepted.

Through the smartphone app, users can securely send and receive cryptocurrencies and fiat, view their transaction history, lock and unlock their card in case of loss and instantly view their PIN. Tap offers its users full EEA coverage for card, banking and cryptocurrencies and a named EUR IBAN and/or GBP Sort Code and Account Number, as well as secure, offline, cold storage behind a multi-signature wallet with the highest grade security for all cryptocurrency assets”, he further adds.

“It’s an honour to be shortlisted for this award which further recognizes the added value TAP brings to market and the benefits for our end-users. None of this would have been achievable without the hard work of our teams and the support of our partners”, says David.

Commenting on the announcement, Kriya Patel, CEO at Transact Payments adds, “The EPA awards are some of the most prestigious awards in our industry recognising companies that are making a real difference in driving innovation in payments. We’re delighted to be working with TAP Global and being shortlisted for this award.”

This year has proved to be an exciting one for the crypto adopters, with markets taking turns playing out to bulls’ and bears’ delights. Bitcoin crossed the $66,000 mark for the first time in history, and with that, a new data trend has emerged which has shone a light on a significant gap in the market.

Here we explore the vast potential of the integration of the corporate market into the crypto industry. Recent data has exposed the large gap between crypto trading taking place on major exchanges. It has been discovered that there is little trading activity between the retail or institutional type of trader, setting two extremes: retail investors trade hundreds to several thousands of dollars while institutional investors trade millions.

In other markets, this range is generally made up of family offices ,mid-to-large corporations, or high-net-worth individuals. However, in the crypto space it appears that navigating the $100,000–$500,000 trading bracket is not as common.

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An Overview of the ever-expanding cryptocurrency market

According to a study conducted by Chainalysis, cryptocurrencies usage across the globe increased by 880% when compared to that of last year. Meanwhile, experts forecast that this number is likely to increase. In 2021, major companies across many industries have taken an interest or invested in cryptocurrency and blockchain.

Cryptocurrencies are becoming increasingly popular, especially among institutions. This demonstrates that interest is no longer restricted to individual crypto aficionado traders. Large financial firms like BlackRock and Goldman Sachs have invested in cryptocurrencies, showing the potential of this asset class.

Bitcoin and Ethereum have grown popular and should be perceived as a positive development as it is a necessary step for cryptocurrencies to achieve widespread adoption. Some experts predict that more large, multinational businesses will accelerate the adoption of blockchain technology in the coming months.

Accepting cryptocurrencies as payment is something to consider if you run a business. As cryptocurrency adoption grows, so is the number of merchants who accept it.

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Bridging the gap

Several reasons why this corporate market is yet to engage in cryptocurrencies is believed to be due to the lack of trusted liquidity providers, reasonable pricing, banking partners or secure technology. If your company is interested in opening a corporate account enabling your business to accept crypto payment, transfer, billing, and trading, Tap can assist your venture getting started with cryptocurrencies.

Bridging the gap, Tap is launching a new service that will provide crypto exposure to this mid-range market through its trusted and verified mobile app. The new Corporate Account will provide specialised B2B services catered directly to companies looking to enter the world of cryptocurrencies.

Through these services, companies will be able to make and receive payments in the supported crypto and fiat currencies, enjoy reduced transaction fees through the native token XTP, as well as earn interest through the Earn feature. While the B2C market has become somewhat saturated, Tap Global has taken aim at the B2B market, providing an early entry, alongside transparent pricing, for corporate companies into the crypto sphere. 

As the financial landscape continues developing at a rapid pace, the app serves to provide an early and seamless approach to the future of payments that we are fast approaching. 

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From “Risky Investment” to global reserve

While Bitcoin hasn’t entirely evolved into a global reserve currency (yet), it has undoubtedly emerged from the speculative asset it was considered to be just several years ago. As crypto continues to break into new markets, the corporate market is growing in interest at a steady pace and seeking a way to integrate crypto payment and investments into their businesses.

With a range of reliable and tech-forward products on the market, there is little doubt that the rate of crypto adoption will continue to grow. While Tap provides a space for early adopters and high-net-worth investors, the company also opens its doors to a wide range of individuals and corporations, no matter where on the scale of net-worth or transaction volume they might sit.

As we explore the world of crypto assets, we take a look at the different types of crypto assets on the market and at the wide range of diversity in the new-age industry. As more people enter the market and start exchanging digital assets, the industry grows and expands to allow new variations.

Below we explore the vast diversity in the industry, from crypto assets used as money to ones that reward users for viewing a website. Each business offers a unique solution, and to navigate this we offer you guidance below.

What Are Crypto Assets?

The terms "crypto asset" and "cryptocurrency" can be used interchangeably. They both refer to a digital asset built using blockchain that can be transferred in a direct peer-to-peer manner. The first crypto asset to launch is Bitcoin, which entered (and created) the scene in 2009. Since then thousands of crypto assets have been created, each one with its own unique use case.

The Different Types Of Crypto Assets

While crypto assets might fall into one or more categories, each has its own set of rules and use cases. 

Payment-Focused

These crypto assets can be used to pay for everyday goods and services or as a store of value (in some cases). These include the likes of Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), etc.

Stablecoins

Stablecoins are crypto assets that have their value pegged to a fiat currency or commodity. These crypto assets are designed to bypass the volatility synonymous with the crypto market. These include the likes of Tether (USDT) and USD Coin (USDC).

Privacy Coins

Privacy coins are digital assets that hide details of the transaction, such as the origin, destination and amount. These crypto assets offer untraceable monetary transfers. These include the likes of Monero (XMR) and ZCash (ZEC).

CBDCs

Central Bank Digital Currencies (CBDCs) are crypto assets built and maintained by banks. Used as digital currencies alongside the traditional currency, CBDCs are designed to provide a digital version of the local fiat to which the value is pegged. 

Governance Tokens

Common among decentralized finance (DeFi) protocols, governance tokens provide holders with a say in the platform and in future updates. 

Utility Tokens

Utility tokens will typically provide a service to the holder on the platform on which it was created. Commonly created using the ERC-20 token standard, utility tokens might represent a subscription on a platform or a use case specific to that ecosystem. 

Non-Fungible Tokens

Non-fungible tokens, also known as NFTs, are crypto assets that cannot be used interchangeably and instead hold unique and rare properties. Each NFT represents a singular function that cannot be changed.

How Are Crypto Assets Created And Distributed?

Before crypto assets are created the project's intentions are generally circulated through a white paper. In this white paper, the asset's tokenomics will be outlined which will cover how the asset is created and distributed.

Bitcoin, for example, uses a Proof of Work consensus which means that new coins are entered into circulation through miners solving complex mathematical problems. The network was designed to only ever have 21 million coins created, and new coins are slowly entered into the system each time a miner verifies and adds a new block to the blockchain. 

Ethereum on the other hand has no limit to the number of ETH that can be created. The platform is currently moving from a PoW to a Proof of Stake consensus, which alters the way in which transactions are verified, however, new coins still enter circulation through verifying transactions. 

XRP minted all its coins prelaunch and slowly release them into the system through a central authority while Tether creates USDT on demand. For each $1 sent, 1 USDT is created, which can later be removed from circulation should it be sold. 

The Future Of Crypto Assets

With the ICO Boom in 2017, the DeFi boom in 2020 and the more recent NFT Craze, crypto assets aren't going anywhere. With constant innovation and increasing adoption, crypto assets have become an integral part of the modern day financial landscape.

While mainstream adoption is on the rise, a few wrinkles still need to be ironed out. For one, regulatory bodies around the world are working toward creating legal frameworks in which these crypto assets can exist, while centralized banks are exploring whether CBDCs can co-exist with their physical counterparts. While the world seeks to figure these out, one this is for certain: crypto assets are here, and the industry is becoming bigger by the day. 

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n the world of finance and technology, benchmarks are a vital tool for measuring performance and quality. A benchmark is a standard or point of reference used to evaluate the performance or quality of something, such as investment returns or the efficiency of software and hardware systems. This article will explore what benchmarks are, why they are used, provide examples, and explain how to use benchmarks to make more informed investment decisions.

What is a Benchmark?

A benchmark is a standard of comparison used to evaluate the performance or quality of something. In finance, benchmarks are often used to compare the performance of investments to a specific market index. For example, the S&P 500 index is a commonly used benchmark for evaluating the performance of a portfolio of stocks.
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Benchmarks are also used in the technology industry to evaluate the efficiency and performance of hardware and software systems. For example, a computer's processing speed may be benchmarked against industry standards to determine how well it performs compared to other computers on the market.

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Why are Benchmarks Used?

Benchmarks are used for a variety of reasons. In finance, benchmarks are used to evaluate the performance of an investment or a portfolio of investments. By comparing the performance of an investment to a benchmark, investors can determine whether their investment strategy is successful or not.
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In the technology industry, benchmarks are used to evaluate the efficiency and performance of hardware and software systems. By benchmarking a computer or a software system against industry standards, developers can determine how well their product performs compared to other products on the market.
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Examples of Benchmarks
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There are many different benchmarks used in finance. Here are a few examples:
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1. S&P 500 Index - This is a benchmark used to evaluate the performance of a portfolio of stocks in the United States. It is widely used by investors as a measure of the overall performance of the U.S. stock market.
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2. Dow Jones Industrial Average - This is another benchmark used to evaluate the performance of the U.S. stock market. It is based on the stock prices of 30 large U.S. companies.
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How to Use Benchmarks

To use a benchmark, you first need to select the appropriate benchmark for your needs. For example, if you are evaluating the performance of a portfolio of stocks, you would select a stock market index such as the S&P 500 or the Dow Jones Industrial Average.
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Once you have selected a benchmark, you can compare the performance of your investment or product to the benchmark. If your investment or product outperforms the benchmark, then it is considered successful. If it underperforms, then you may need to adjust your investment strategy or product development.
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How Do Benchmarks Help You Make More Informed Investment Decisions?

Benchmarks help investors make more informed investment decisions by providing a standard of comparison for investment performance. By comparing the performance of an investment to a benchmark, investors can determine whether their investment strategy is successful or not.

For example, if an investor's portfolio of stocks outperforms the S&P 500 index, then the investor can be confident that their investment strategy is successful. However, if the portfolio underperforms the S&P 500, then the investor may need to reevaluate their investment strategy.

Benchmarks also help investors identify trends in the market. By tracking the performance of a benchmark over time, investors can identify trends in the market and adjust their investment strategy accordingly.

Conclusion:

In conclusion, benchmarks are a fundamental tool used in finance and technology to measure performance and quality. They provide a standard of comparison that helps investors and developers evaluate the success of their investments and products.

Using benchmarks to evaluate investment performance and product efficiency can help you make more informed investment decisions. By comparing the performance of your investments or products to industry standards, you can determine whether your investment strategy or product development is successful or not.

Overall, benchmarks are an essential tool for evaluating performance and quality, and understanding how to use them is crucial for success in finance and technology.

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