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Here Are Key Things No One Tells You About Crypto Investing

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Key Things No One Tells You About Crypto Investing | Fab.ng

People hear about cryptocurrency investing, and it sounds super complicated. But is it really harder than buying a regular stock or bond? These days, you can buy both stocks and bonds easily through an app, often even the same app! So, investing in crypto shouldn’t be much trickier, right?

If that’s true, then why doesn’t everyone talk about it like it’s no big deal? Shouldn’t buying crypto be more of a common conversation if it’s actually pretty simple? Something else must be happening here that’s making people think crypto investing is a mystery.

There are a few reasons why crypto might seem complex. But the truth is, with a little research, you can easily understand the basics and start investing with confidence. Let’s break it down and see a few other things you should pay attention to.

1. Learning how to manage those risks is key in Crypto Investing

If you are thinking about investing in cryptocurrency, here’s a crucial tip: take it slow and be smart! While the idea of making a quick buck might be tempting, the most important thing you can do is manage risk. This means setting realistic goals and avoiding putting too much money into risky investments.

People who just focus on the potential rewards often forget to consider what could go wrong. They think, “This could be amazing if it works!” But they don’t ask, “What happens if it doesn’t work out?” Think about the worst-case scenario before you invest. How bad could things get?

Instead of focusing solely on the coins that promise the biggest rewards, spread your investments out a bit. This way, if one coin goes down, it won’t wipe out your entire portfolio.

Imagine someone offering you a game. You give them $10. There’s a tiny chance, only 1%, that you’ll win $20. Not a great deal, right?

But what if the game changes? Now you give $10 for a 10% chance of winning a whopping $1,000! Suddenly, that $10 looks more interesting.

Investing is similar. You risk some money for a potential reward. The key is understanding the risks and rewards involved.

Think about it this way: Is it worth spending $10 for a small chance of getting $20 back? Probably not. But if that same $10 could win you $1,000, it becomes a more attractive option.

The amount of money you risk should always be weighed against the possible reward. This is called risk management. By being good at risk management, you can make smarter decisions and avoid putting yourself in bad financial situations.

The Silent Rise of Altcoins: An Investor's Guide

2. Thinking crypto will make you rich quickly? It’s not that easy!

Thinking you’ll get rich quickly by buying cheap crypto and selling it at a high price might not be the best plan.

Skipping established coins like Bitcoin or Ethereum for a shot at a new hotshot might seem tempting, but it’s risky. Imagine buying something because everyone thinks it’s the next big thing—you might be wrong! It’s like avoiding major currencies like the US dollar or Euro because they’re common—they’re still valuable!

Focusing all your money on a hot coin like Dogecoin (DOGE) because it seems trendy is even riskier. While some lesser-known cryptos might explode in value, it’s impossible to predict which ones.

The key to crypto investing, even with high-potential coins, is diversification. Spread your investments across different cryptos to protect yourself from crashes. This way, you’re not relying on a single coin to make you rich.

Many people get discouraged because they set goals that are way too high. Let’s say you invest in some cryptocurrency. Even if you make a cool $1 million in a year, you might feel bummed if you were secretly hoping for $10 million.

So, before you jump into any investment, do your research. Figure out what’s actually achievable in your situation. Set realistic goals that you can track. This way, you can check in on your progress anytime and see how you’re doing.

Remember, unrealistic goals are a recipe for disappointment and wasted resources.

3. Predictions can’t always be right in Crypto Investing

The first is that we can never know everything. Even the most powerful computers and fancy tools need complete information to make accurate predictions. It’s like trying to solve a puzzle with missing pieces; the picture won’t be clear.

Also, the information we have might not be perfect. Sometimes, the data used for predictions can be wrong or misleading. Imagine using a broken compass—no matter how hard you try, it won’t point you in the right direction.

So, even with amazing technology, predictions can still be wrong because of missing or inaccurate information.

Things can take surprising turns in the world of cryptocurrency. Just because a coin gets listed on a major exchange, like Binance, doesn’t guarantee it will go up in value. In fact, some coins even lose value after being listed.

This is why planning is important but also needs some flexibility. Even if you can’t predict everything, it’s still much better to make decisions based on information. Look into things like the coin’s market value, who uses it, the team behind it, and how easily it can be bought and sold.

Investing in cryptocurrency

4. Your Psychology When It Involves Investing

Digital currencies might be all the rage, but how we think about money stays the same. Even with these new investments, our emotions can still trick us into making bad decisions. One way this happens is called herd mentality. It’s like seeing everyone rush to buy something, and you suddenly feel pressured to do the same, even if you haven’t thought it through. You might not be afraid of missing out (FOMO), but you feel like you have to follow the crowd.

Another trick our minds play on us is confirmation bias. This means you already have an idea in your head, and you only look for information that proves you right. Imagine judging a new restaurant by only reading reviews from people who loved it. The same thing can happen with investments. You might ignore any warnings because you’re so sure it’s a good idea.

Loss aversion is another big one. This means the fear of losing money is much stronger than the joy of making money. Even if a new investment could make you a lot of money, the fear of losing it might hold you back.

These are just a few examples, and there are many more ways our brains can mess with our investment decisions. By understanding these tricks, you’ll be better prepared to spot them and make smarter choices with your hard-earned money.

Conclusion

Cryptocurrencies might seem strange and new, but for you as an investor, they’re basically just another investment option. Just like stocks or bonds, you can put your money into crypto. The key to success isn’t getting caught up in the details of each cryptocurrency. Instead, focus on understanding how to invest wisely. Learn how to manage your expectations and risks, and most importantly, how to make sound investment decisions. By following a clear plan, you’ll have a much better chance of doing well with cryptocurrencies, even if you’re not a tech expert.

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BUSINESS

These 4 Nigerian Banks Rank Among Africa’s Top Financial Institutions

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See Nigerian banks among Africa’s top financial institutions | fab.ng

Nigeria’s banking industry is making a big splash. Four Nigerian banks have been steadily climbing the ranks and are now considered some of the top financial institutions in Africa. This feat has been further amplified by a recent report from Global Finance, a respected authority on international finance.

Their spotlight on Africa’s best financial institutions has brought even more attention to Nigeria’s growing power in the African financial landscape. These banks haven’t achieved their success overnight. Their rise to prominence signifies a strong and stable foundation and a commitment to financial health.

This recognition by Global Finance isn’t just a win for the banks themselves but for all of Nigeria. It positions the country as a key player in Africa’s financial future and has the potential to attract foreign investment, boost confidence in the domestic banking system, and encourage further growth within the financial sector itself.

This is just the beginning for Nigerian banks. With their newfound recognition, these top-ranked institutions have the potential to expand their reach even further across Africa. This will provide innovative financial solutions to a wider range of customers. The future of African finance looks bright, and Nigerian banks are well-positioned to be at the forefront.

Let’s take a look at these banks below:

1. Zenith Bank Plc

Zenith Bank boasts a global team of over 10,000 employees. This extensive staff ensures they have the manpower to handle a large customer base and deliver quality service.

The bank has a massive physical presence within Nigeria, with a network of 500 branches and business offices. This extensive reach allows them to serve customers in a variety of locations across the country.

Zenith Bank isn’t satisfied with dominating the Nigerian market. They’ve strategically expanded their reach into other African nations, including Ghana, Sierra Leone, Gambia, and South Africa. This global presence positions them as a major player in the African financial landscape.

2. Access Bank

Access Bank is a successful commercial bank that operates in many African countries. They include Ghana and even have a branch in the United Kingdom. It’s part of a larger group of companies called Access Bank Group.

Access Bank is always looking to grow its business and recently made a move to expand into Kenya. To show how serious they are about growing in Kenya, they made an offer to buy a Kenyan bank named National Bank of Kenya.

3. United Bank for Africa (UBA)

The United Bank for Africa, or UBA for short, is very successful in Africa. They’ve won awards for their great service in countries like Burkina Faso and Sierra Leone.

UBA is a major player in African finance with over 1,000 branches spread across 20 African countries and more than 21 million customers.

However, there might be some trouble ahead. Recent political changes in Burkina Faso could make it difficult for UBA to operate there as smoothly.

4. Guaranty Trust Bank (GTB)

Guaranty Trust Bank, or GTB for short, was founded in 1990 and has grown into a very important financial institution around the world.

In 2021, they did a big reorganization and changed their name to GTCO Plc. This change also allowed them to grow their business even further. They opened offices in more and more places across Africa and even outside the continent.

Their dedication to doing a great job and keeping their customers happy is shown in how they were recently named the best bank in Gambia.

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BUSINESS

10 African Countries Where Cryptocurrency Is Restricted

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Cryptocurrency: 10 African Countries Where It Has No Use | Fab.ng

Cryptocurrency transactions remain banned in some African countries, despite the potential for regulatory frameworks to support their development.

According to Chainalysis, Africa is one of the fastest-growing crypto markets globally, with Kenya, Nigeria, and South Africa having the highest number of users in the region.

Many governments are wary of digital assets due to concerns over money laundering, illicit activities, tax evasion, and financial fraud, as cryptocurrency transactions can be hard to trace.

In 2021, the Central Bank of Nigeria (CBN) ordered banks to close all customer accounts involved in cryptocurrency transactions. However, this ban was lifted in December 2023.

On May 6, 2024, the Securities and Exchange Commission (SEC) increased restrictions by delisting the naira from all peer-to-peer (P2P) platforms. The Director-General of the SEC, Emomotimi Agama, mentioned that the government is drafting new regulations for the crypto sector, following the advice of the International Monetary Fund (IMF).

Here are countries in Africa where crypto transactions or digital currencies has no use:

Tunisia is one of the African countries taking a particularly cautious approach to cryptocurrency. Back in 2018, their central bank made headlines by actually criminalising the use of cryptocurrencies.

They issued a strong statement warning people against using any digital asset that the Tunisian government did not officially approve. This strict stance shows just how seriously some African countries are taking the potential risks associated with cryptocurrency.

Sierra Leone has been very cautious about cryptocurrency. In 2019, their central bank took a strong stance against it. They shut down two cryptocurrency companies and made it clear that they wouldn’t be granting any licences to businesses or banks that wanted to deal with cryptocurrency deposits or trading.

This shows that Sierra Leone is concerned about the potential risks involved with cryptocurrency and is taking steps to limit its use in the country.

The situation regarding cryptocurrency in the Democratic Republic of Congo (DRC) is a bit unclear. The International Monetary Fund (IMF) reports that the Congolese government has completely banned cryptocurrency.

However, a 2018 study by Ecobank suggests the opposite. They found no official statements from either the Congolese government or the Central Bank regarding cryptocurrency’s legality or use.

This lack of clear communication from Congolese authorities makes it difficult to say for sure what the official stance is on cryptocurrency. However, from the IMF reports, it is assumed that the government does not accept its use.

Ghana is another African country taking a wait-and-see approach to cryptocurrency. The Ghanaian government has completely banned crypto transactions within the country.

Despite the ban, the government is still interested in the underlying technology behind cryptocurrency, blockchain. They’re currently studying how blockchain could be used to improve Ghana’s payment systems.

This cautious approach is evident in their actions. In 2022, they reaffirmed the 2018 ban on using cryptocurrency for any financial transactions in Ghana.

Algeria has a strict ban on cryptocurrency. Back in 2018, their parliament passed a law that completely restricted digital currency activity in the country. This law prohibits Algerians from buying, selling, using, or even just owning cryptocurrency.

In 2018, the country’s central bank raised a red flag about cryptocurrency. They issued a statement warning people against promoting or investing in crypto because it wasn’t regulated or officially licensed by the government. This suggests they’re concerned about the potential risks involved.

Morocco’s relationship with cryptocurrency has been a rollercoaster. In 2017, the Ministry of Economy slammed the brakes on crypto transactions, fearing they violated the country’s exchange regulations. This meant a complete ban on buying, selling, or trading cryptocurrency in Morocco.

However, things seem to be changing. In 2023, there was a positive shift. Morocco’s central bank announced they were working on drafting new regulations specifically for crypto trading. This suggests a move towards a more controlled and monitored crypto market in Morocco.

Tanzania is another African country where cryptocurrency exists in a bit of a grey area. There aren’t any written laws or regulations specifically about cryptocurrency transactions in Tanzania.

However, the Tanzanian central bank has taken a cautious approach. They issued a public statement advising people against trading or using virtual currencies like Bitcoin. The bank made it very clear that the only official currency recognised in Tanzania is the Tanzanian shilling.

Cryptocurrency is a hot topic in Central Africa, but there are no clear rules yet. Cameroon, for example, belongs to the Central African Economic and Monetary Community (CEMAC). This means they use the Central African CFA franc, managed by the Bank of Central African States (BEAC).

Right now, the BEAC hasn’t set any regulations for crypto trading. This might seem surprising considering the growing popularity of crypto. However, the good news is that the Cameroon government is working on it. They’re currently reviewing new rules to create a framework for cryptocurrency use in the country.

Things are complicated when it comes to cryptocurrency in Egypt. In 2018, a major Islamic legal authority called Dar al-Iftai issued a religious decree. This decree said that trading Bitcoin goes against Islamic law (Sharia Law). They basically classified it as forbidden, which is the meaning of the word “haram.”

This was followed by a move from the Egyptian Central Bank in 2019. They announced plans to create a new law. This law would make it illegal to create, trade, or even promote cryptocurrency without a special licence.

So, while using digital currency isn’t completely banned, it seems Egyptian officials are cautious about it and want to regulate it very closely.

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Employment Will Teach You These 10 Lessons

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Employment Will Teach You These Lessons | Fab.ng

Employment, or working for a living, can be a double-edged sword.

Sure, employment is a great way to achieve financial security and independence. It allows you to pay your bills, afford the things you need and want, and build a nest egg for the future. But let’s be honest, it also comes with challenges you might not expect when you’re first starting out.

Let’s explore these employment lessons below:

1. Startup costs can be a hurdle

You start a job to earn money, but you also need money upfront for things like professional work clothes, reliable transportation to get to and from work, and maybe even some basic office supplies. It can feel ironic that you invest your own money just to be able to make more money at your new job.

2. The Monday blues can hit hard

If you’re not passionate about your job and employment, Mondays can feel especially dreadful. It’s tough to be motivated and energised to tackle a long week of tasks you don’t enjoy, even if the work itself is relatively easy. This can affect your overall mood and productivity.

3. Making ends meet can be a constant juggling act

You work diligently every day, putting in your hours and effort. But depending on your employment salary, your paycheck might only come once a month.

This can make it challenging to budget effectively and ensure you have enough money to cover all your expenses throughout the entire month. It might require some creativity and financial planning to stretch your paycheck as far as possible.

4. Payday loans can become a trap

If you’re not careful with your money management and overspend throughout the month, you might find yourself broke before your next paycheck arrives. It can be tempting to resort to payday loans or credit cards to cover your essential expenses until payday.

However, these options often come with high interest rates and fees, which can trap you in a cycle of debt and make it even harder to manage your finances in the long run.

5. Your well-being is paramount

When you’re desperate for a job and trying to get your foot in the door, you might downplay the importance of work-life balance and readily agree to work under pressure on your resume. But a job that constantly stresses you out and takes a toll on your mental health might not be worth it in the long run.

There are some things money can’t buy, like peace of mind, good health, and strong relationships. It’s important to get employment that offers a healthy work-life balance and doesn’t come at the expense of your well-being.

6. The side hustle can be a lifesaver

When your income from your main job isn’t enough to cover your bills and your desired lifestyle, you might find yourself brainstorming ways to make more money on the side.

This could involve starting a freelance business, taking on a part-time gig, or exploring other avenues to supplement your income.

The extra income can help you achieve your financial goals faster, reduce financial stress, and give you more breathing room in your budget.

7. Health truly is wealth

One unexpected illness or injury can wipe out your savings quickly. Medical bills and medications can be very expensive, and even basic health insurance might not cover everything. This makes staying healthy even more important.

Taking preventative measures like eating healthy, getting regular exercise, and getting enough sleep can help you avoid costly health problems down the road.

8. Relaxation is key to avoiding burnout

If you don’t take breaks and prioritise relaxation, you might get sick, which can be a financial burden due to missed workdays and medical bills.

It’s important to schedule time for vacations, hobbies, and activities that help you de-stress and recharge. A well-rested and relaxed employee is a more productive and resilient employee in the long run.

9. Sometimes privacy is necessary

Depending on your social circle and financial situation, you might try to hide the fact that you have a job, especially if people around you constantly ask for money.

You might avoid them to escape the pressure to lend them money or give financial handouts. This can be a way to protect your financial security and avoid feeling taken advantage of.

10. Appreciation for your parents grows

Seeing how quickly money comes and goes can make you appreciate your parents more. You realise it wasn’t easy for them to provide for you when you were younger.

They likely had to make sacrifices and manage their finances carefully to make ends meet. This newfound understanding can bring you closer to your parents and give you greater respect for their hard work.

Even though having employment has its challenges, it doesn’t mean being unemployed is better. Life can be tough, but you can learn to develop strong financial habits, find a job that aligns with your values, and prioritise your well-being to navigate the complexities of working life.

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