How Millennials Can Invest for Success

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The cost of living in Australia is rising fast, consumer debt from credit cards to student loans is at an all-time high, whilst the level of income inequality has plateaued since the GFC, wealth inequality has continued to grow and today's millennials are feeling the pressure.


If you're a millennial, you can better alleviate your financial fears and balance the competing priorities of your current needs and your future financial goals.

Learn to control what you can with these simple steps toward investing:

  • Keep costs low.

  • Maximize the power of regular micro- investing.

  • Diversify your investments

1. Keep Costs Low

You can't control the market's ups and downs. But you can control the costs of investing in the market. Fees and expenses matter. Every dollar that you pay for transaction fees and commissions, is a dollar that reduces your returns. So invest through a provider that has transparent and low cost fees.

2. Maximize the power of Micro-investing:

For millennials facing a retirement that could last 30 years or more, it is never too early to start saving. Micro-investing is the modern day answer to the piggy bank. As the name implies, micro investing allows you to invest money in small amounts, often automatically.

With the power of micro-investing and time on your side, you could start earlier, and invest less money, regularly – but in the end have more to spend.

3. Diversification:

One of the most important principles of investing is to ensure that you have a diversified portfolio. This means ensuring that you spread your capital amongst different investments so that you’re not reliant upon a single investment for all of your returns. The key benefit of diversification is that it helps to minimise risk of capital loss to your investment portfolio.

How can we help?

Launching in 2019, taurex.io is an Australian based digital asset investment platform with zero trading fees. This means that you can invest as little or as much as you like, as often as you like. You’re in control. Start building for your future today. Simple.

But we're not just about trading, we're passionate about education and research, to help you be the best educated investor that you can be.

If you haven't registered to receive our updates yet, just head over to www.taurex.io and join us.

The information contained on this website is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.

What is Bitcoin?

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What is Bitcoin?

Bitcoin is a digital currency created using encryption known as cryptography. Transactions in Bitcoin are made on a public digital ledger called a blockchain. Each transaction on the blockchain is recorded, open to the public, irreversible and unalterable.

Bitcoin was created by an anonymous person or people under the pseudonym Satoshi Nakamoto between 2008-2010. The first Bitcoin transaction, known as the genesis block, took place on 3 January 2009.

There are a maximum of 21 million Bitcoins and no more can ever be created.

Transactions are made between electronic wallets each having a public address (used to send and receive Bitcoin - like an account number for your bank account) and secret private key (used to access the Bitcoin contained in the wallet - like a password for your bank account)

The key difference between a transaction on a blockchain and a traditional financial transaction, say a bank transaction, is that no single third party acts as a gatekeeper for the transaction. Blockchain transactions are verified by a global network of computers controlled by unrelated parties who are incentivised to record transactions accurately to receive a small transaction fee.

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This distributed characteristic is what makes Bitcoin so attractive to many who think that the ‘sky is the limit’ for its future potential uses and applications. Think about it. We live in the age of the ‘middle man’. A typical transaction we make on a day to day basis involves a third party standing between the sender of money and the receiver - banks, credit card companies etc.

Bitcoin allows quick and frictionless transactions directly between the sender and receiver anywhere in the world without incurring time consuming and sometimes costly third party involvement, transaction fees or in the case of international transactions currency exchange fees.

The information contained on this web site is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.

How to decide which digital assets to invest in?

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Fundamental Analysis

Fundamental analysis is a method of evaluating an asset in an attempt to measure its intrinsic value, by examining related economic, financial and other qualitative and quantitative factors. Measuring the intrinsic value allows investors to determine whether a digital asset is overvalued or undervalued and hence fundamental analysis is an imperative process for investors to undertake when deciding on potential investments. Long-term investment without fundamental analysis is no better than gambling.

Here are four fundamental values to help you define the market price of a cryptocurrency and whether or not to invest your capital.

  1. Functional Benefits

There needs to have a useful purpose (utility) for the coin in order for it to have a functional intrinsic value. If there’s no real reason for users to buy it, the market price will fall as soon as investors lose interest.

Questions to ask when judging a coins utility potential.

  • Is there a real-world problem that the company is trying to solve?

  • Will their proposed solution drastically improve the way things are currently done?

  • Will the currency attached to this project provide functionality which only a cryptocurrency can deliver?

  • Is there a tangible benefit to using a cryptocurrency for this solution as opposed to a cheaper, faster, easier to create non-blockchain technology?

  • Does the company have any pre-existing businesses, apps or products that you can review and, if so, are they any good?

2. Market Potential

If a coin is useful, but only one person needs it, the demand will be too low, and its price will fall to zero. There needs to be a significant market for the currency to flow through, to create enough volume to drive demand.

Questions to ask when judging a coins market potential.

  • Are there enough potential users of this service to drive stable demand for its currency?

  • Is this company well positioned in its selected industry?

  • Is it a growing industry?

  • Is this company the one most likely, amongst its competitors, to succeed at creating a blockchain solution for the problem they’ve identified?

  • Are you satisfied that there are no foreseeable changes to society or technology that will alter the need for the company’s proposed solution?

3. Adoption Strategy

Having an idea that can change the lives of billions of people doesn’t matter if it’s never finished, or if it’s finished and never used. Adoption strategy is the connector between ideas and results. It’s the bridge between dreams and reality.

Questions to ask when judging a coins adoption potential.

  • Does the company’s roadmap outline a sound strategy towards gaining users?

  • Does the company have a sound marketing strategy?

  • Is the company currently on track with their roadmap?

  • Do they have a good track record of achieving their milestones on time?

  • Based on their experience, do the team demonstrate the ability to achieve their roadmap and market their project?

 

4. Room to Grow

Financial investment helps projects develop a functionally beneficial service, it gives them the resources to capture their target market, and it fuels their adoption, however if the first three above factors aren’t in place, no amount of financial investment can make a project successful in the long-run.

Questions to ask when judging a coins room to grow.

  • Is the currency undervalued? Is its market cap low? Is its trading volume low? Is there room to grow?

  • Are the milestones listed on their roadmap newsworthy? Will their successful completion create hype and demand?

  • If the company was to solve its selected problem, would the solution be newsworthy, profitable and useful to society?

  • Will the solving of this problem create demand for the cryptocurrency?

  • Assuming that 90% of projects will fail, do you believe this cryptocurrency will still exist in 5 years time?

Research Resources

You will find that the answers to the above questions are readily available, provided that you are willing to search. Here are 6 places you can find the information you need:

  1. The company website

  2. Competitor websites

  3. LinkedIn

  4. Facebook

  5. Google

  6. The community, Telegram, Discord, GitHub

 

And remember …..Long-term investment without fundamental analysis is no better than gambling.