What is crypto?

| roger nunn

Cryptocurrencies and token are a way of keeping a permanent record of transactions. Sounds boring and gives rise to the comment, ok, so what!

This explanation sounds as though it could have been written to put you off the idea. A better explanation is that it is a new technology that uses mathematical certainties to ensure that all transactions cannot be altered and that passes via the internet.

There are so many parts to crypto that is it difficult to know where to begin, especially as it’s uses and new developments are taking place at an ever increasing rate. A simple example is Bitcoin. Most people have now heard of it (currently trading at over US $ 34,000 each) but they are completely unaware that there are actually thousands of other coins or tokens being traded, with new ones and new uses coming online every day.

Transferring money seems to be the best known use of the blockchain (the name of the tech behind crypto currencies), and often vilified because it can be used for nefarious purposes. Oh Dear! I believe that cash is used in nefarious purposes all the time. The real benefit is that you can transfer money virtually instantly, anywhere in the world and at almost no cost. I remember going to the bank and filling in paper forms to send money abroad, money that would only get there a few days later, after paying transfer and currency conversion costs.

If I want to pay in a crypto currency, the person i’m paying needs to have only a phone and internet access. Nothing else.

Money transfer is only scratching the surface for crypto, it has a myriad of uses, I will talk about some of them another time.

Share and Crypto trading

| roger nunn

Buying shares has got much easier than it used to be.

It works like this. First you pick a suitable trading site and set up an account. The setup is very easy but you have to spend some time with the infamous KYC procedures. It actually means that you have to have a utility bill handy as well as your passport. The Site will also insist on a selfie. I find that usually it is very quick and that you are ready to trade quickly. There are a number of online trading sites and I am not here to do your research for you. The choice depends on which countries you want to trade in as well as your nationality and country of residence. I have accounts with several but tend to use degiro.

So far so good. You have setup the trading account and now have to add money to it. This is the moment of truth as share trading ties up your money and is not guaranteed. First you have to start with an amount of money that you are willing to risk in the aim of increasing your overall wealth. The first time that you transfer money to a trading account feels (and is) dangerous. I tend to console myself with the idea that there is no easy way to get good returns without increased risk. So you choose a small amount and transfer it, either through your bank or a bank card.

Next you have to choose what to invest it. This is the hard part, something that people devote years of their lives to trying to master. No one knows what will happen next.

However, you can find ways to try out the investing game. I call it a game deliberately because you have to always be aware that you might not win. Right now you need to go and learn about investing, I would start with one simple idea, like share ownership, just to test the waters.

You have to build a strategy, shares go up and down in value, and if you buy and sell based on your emotions from watching the changing prices, you will be very likely to lose money.

I have bought and sold various different shares, always starting with small sums. I usually choose an industry, read about different companies and then buy some shares. At the time of buying I decide at what price I want to sell them and sell when they reach the price. It is a boring technique that brings small but steady returns. If I like the share, I will sell enough to cover the initial investment and keep the rest, hoping for bigger profits if they continue to rise.

These were just my initial thoughts, there is a lot more to come and Crypto trading is for another day.

Slowly gaining wisdom

| roger nunn

Somethings in life need time. In fact, all things need time, so I will rephrase it.

Gaining wisdom needs time. Time by itself does not add wisdom, it is added through the alchemy of time, experience and openness to learning.

Let’s look at my progress through life.

As a baby spent my life learning how to use my hands, my eyes, etc. This is useful to life, it is the acquisition of tools to be able to operate. These tools just gave me a way to express myself and to learn about life.

However, tools are only the means to an end

No cut and paste

| roger nunn

The statistics for the increase in information on the internet are amazing. I know that statistics are supposed to be used as proof of whatever you want to prove. Looking at the increase in information flow around the world is good way to visualise the meaning of a geometric progression.

Given the  way in which news spreads, there is a great deal of difficulty in judging the veracity of the written word. Something can be said  by one person and because it is then copied by many thousands of others it can have the appearance of being correct. This is the basis of fake news, and getting back to the actual source can be difficult.

This post is actually about providing original content. I wrote it entirely out of my own head, without having to go and look things up, and certainly without having recourse to copying anything written by somebody else.