https://padlet.com/eric_chan5/iguem2um1s22 Benefits and Risks of each investment. [Eric Chan (100663397)] en-us 2019-04-01 23:02:21 UTC 2023-04-05 17:29:16 UTC hello@padlet.com https://padlet-assets.s3.amazonaws.com/icons/Growing.png eric_chan5 https://padlet.com/eric_chan5/iguem2um1s22/wish/347429883 On this padlet you will learn the benefit and risks of each type of investment. You will see different sources of information that could push or pull you towards an asset class pertaining to your investment style. ]]> 2019-04-02 00:44:37 UTC https://padlet.com/eric_chan5/iguem2um1s22/wish/347429883 eric_chan5 https://padlet.com/eric_chan5/iguem2um1s22/wish/347433043 In this video, Cryptocurrencies are explained. 

Cryptocurrencies are a different type of 'currency' meant to replace our traditional, fiat, paper money system. In its most popular form "Bitcoin" is a decentralized currency that records all transactions onto a block-chain public ledger. That means anyone using Bitcoin will be able to sell every transaction ever done. To be able to use bitcoin, you need a digital wallet. The wallet includes a private key and a public key. These keys help 'miners' verify that it was you that sent it. 'Miners' mine bitcoin by solving cryptographic hashes by using sheer computing power to guess a correct hash, once mined the block of transactions are verified and posted to the ledger and granting the miners some bitcoin. Hence 'Cryptocurrencies'.

This video simplifies cryptocurrencies down to fundamental knowledge on why a system of trade is created in the first place. ]]> 2019-04-02 01:02:10 UTC https://padlet.com/eric_chan5/iguem2um1s22/wish/347433043 eric_chan5 https://padlet.com/eric_chan5/iguem2um1s22/wish/347438120 This video explains the basics of a stock.

A stock is a security that signifies ownership in the issuing company. Public stocks are a method of generating capital for a business by issuing 'stock' or ownership of a company to you in exchange for your money for the business to grow. Continuing on, a stocks price is a reflection on how well the business has been operating. In huge companies nowadays (e.g. Apple, Amazon) all the shares have already been sold and Apple themselves have a certain amount. At those levels the higher the stock price, the more a company can earn from its products due to greater financial belief in the company. Stocks don't influence directly how much money the company has after its IPO as all shares are sold to private outside investors and those are sold on to the secondary market. 

This is a really quick video on why stocks were created in the first place and how equity works in a company. ]]> 2019-04-02 01:25:00 UTC https://padlet.com/eric_chan5/iguem2um1s22/wish/347438120 eric_chan5 https://padlet.com/eric_chan5/iguem2um1s22/wish/347443125 Trading stocks has its own risks, some of which are similar compared to Cryptocurrencies. 

Stock prices are based on future earnings of the company. How many dollars earned compared to shares of a company. Supply and demand controls a company's stock price, the price rises when there is a demand for the stock higher than the supply therefore the price rises to match demand for the highest bidder. This is also known as a market risk, news of all sorts control that supply and demand based on how well the company earns from it. Since stocks are a trusted and verified way of moving money it is very easy to borrow and leverage trades to risk higher profits. Traders can acquire 2-10x their actual capital for trading, this is known as a margin risk as you would owe money if you lost on a trade.  These are some of the largest risks when trading stocks

This video explains the most important risks pertaining to new traders.]]> 2019-04-02 01:51:59 UTC https://padlet.com/eric_chan5/iguem2um1s22/wish/347443125 eric_chan5 https://padlet.com/eric_chan5/iguem2um1s22/wish/347449237 Cryptocurrencies at the moment are a very small asset class compared to the stocks, bonds, etc. People invest and believe in crypto is because it is the future of trade and payment. Cryptocurrencies are a form of 'currency' rather than company such as a stock. The risks of trading cryptocurrencies is that you are purchasing value of future unrealized technology. Like all other companies, Crypto is still a small asset class and that we are betting on large future adoption to change worldwide use of currencies. The inherent risks of a small asset class of Crypto that it is easily manipulated by large market movers with a couple billion dollars since total market capitalization of crypto isn't that large it can be pushed in directions large players want it to. Since it is not regulated at the moment like stocks, many crypto companies can stop or scam their buyers without any consequences. As everything is digital, those without good cyber security are more prone to being hacked and lose their holdings. All this will solve itself in time as more adoption comes and structure is created for Crypto.

This video explains the risks of using and trading cryptocurrencies at this certain point of its existence. Explained well and in basic terms compared to other videos. ]]> 2019-04-02 02:31:09 UTC https://padlet.com/eric_chan5/iguem2um1s22/wish/347449237 eric_chan5 https://padlet.com/eric_chan5/iguem2um1s22/wish/347452388 This website explains strategies of investing in stocks .

Day-trading:
 Day trading, as its name implies, is the method of buying and selling securities within the same day. Positions are closed out within the same day they are taken, and no position is held overnight.  Nowadays also referred to as high-frequency trading due to the ablility for programs and computers to trade for small profits hundreds to thousands of times per day. 

Position trading:
A buy and hold type of trading where the trader uses longer trends to define a trade and uses the value of the company now to determine future value as a way to trade in the long term. 

Swing Trading: 
The goal of swing trading is to identify the overall trend and then capture gains with swing trading within that trend. Technical Analysis is often used to help traders take advantage of the current trend in a security and hopefully improve their trades. 

Scalping:
A form of trading also very similar to arbitrage in cryptocurrencies.  It includes exploiting various price gaps caused by bid-ask spreads and order flows. The strategy generally works by making the spread or buying at the bid price and selling at the ask price to receive the difference between the two price points.  

This website covers the major topics in ways to trade.


]]> 2019-04-02 02:48:59 UTC https://padlet.com/eric_chan5/iguem2um1s22/wish/347452388 eric_chan5 https://padlet.com/eric_chan5/iguem2um1s22/wish/347455336 This website explains how to invest in cryptocurrencies and what you're really buying.

First you will need a place to buy cryptocurrencies, one of the most popular places are Coinbase to purchase Bitcoin, Ethereum to purchase other alt-coins. Then you would need to transfer these to a large crypto exchange (e.g Bianance) for liquidity reasons and trade there. ]]> 2019-04-02 03:04:41 UTC https://padlet.com/eric_chan5/iguem2um1s22/wish/347455336 eric_chan5 https://padlet.com/eric_chan5/iguem2um1s22/wish/347456081  A cryptocurrency wallet is a secure digital wallet used to store, send, and receive digital currency like Bitcoin. Most coins have an official wallet.

There are different types of wallets that you can use:

Desktop: wallets are  installed on a computer. They are only accessible from the single computer in which they are downloaded. Desktop wallets offer one of the highest levels of security however if your computer is hacked or gets a virus there is the possibility that you may lose all your funds.

Online: wallets run on the cloud and are accessible from any computing device in any location. While they are more convenient to access, online wallets store your private keys online and are controlled by a third party which can be less secure.

Hardware: wallets differ from software wallets in that they store a user’s private keys on a hardware device like a USB. Although hardware wallets make transactions online, they are stored offline off of any device so it is the most secure form of holding crypto as there is no way to lose it either than physically losing them.]]> 2019-04-02 03:09:17 UTC https://padlet.com/eric_chan5/iguem2um1s22/wish/347456081 eric_chan5 https://padlet.com/eric_chan5/iguem2um1s22/wish/347456477 Setting up a trading account in Canada with TD bank. The simplest trading account here is using a cash account that uses your personal funds to trade on major stock exchanges. Since there is no leverage you cant  trade options, short selling, or use margin trading for large amounts. 

This is the most direct and safest way to trade as you can only lose money you have and not owe the bank. Buying and selling stocks only reduces your risk factors compared to leveraged trading and trading options. ]]> 2019-04-02 03:12:00 UTC https://padlet.com/eric_chan5/iguem2um1s22/wish/347456477 eric_chan5 https://padlet.com/eric_chan5/iguem2um1s22/wish/347457435 This is the current chart of bitcoin which shows the immense rise in value. Cryptocurrencies are a very high risk, high reward type of investment at the moment.]]> 2019-04-02 03:17:52 UTC https://padlet.com/eric_chan5/iguem2um1s22/wish/347457435 eric_chan5 https://padlet.com/eric_chan5/iguem2um1s22/wish/347457578 This is a photo of the Dow Jones Industrial Average chart. The DJIA has increased 520x over its 100 year run, it is a standard benchmark of our economy. ]]> 2019-04-02 03:18:55 UTC https://padlet.com/eric_chan5/iguem2um1s22/wish/347457578 eric_chan5 https://padlet.com/eric_chan5/iguem2um1s22/wish/347459686 2019-04-02 03:35:01 UTC https://padlet.com/eric_chan5/iguem2um1s22/wish/347459686