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Neo or Ethereum – where is your investment safer

cryptocurrencies

The advent of cryptocurrencies and its stellar rise, despite relative infancy and new technology, have arguably impacted the marketing world significantly. Booming in the previous year, 2017 saw a rush of millions of money poured into the cryptocurrency market. And considering its continuously growing network, there is no sign that 2018 will be any different.

Over the last few years, cryptocurrencies and other blockchain projects were able to gain very impressive returns that helped investors to be ridiculously successful. However, inevitably, many had experienced its dramatic declines as well. But despite the risk, more and more people are looking for the next big thing in the market which has the highest potential to multiply ones’ investment. And while there are hundreds of cryptocurrencies, that although represent opportunities to achieve sustainable growth, are also highly risky; and from which it is quite hard to predict which one gives the best result, this article will focus on the two of the most popular alternate coins (altcoins) of today – Ethereum and NEO.

Ethereum and NEO are both high-profile altcoins with massive community support and which many investors swear by one or the other. However, as “the competition for the coin is expected to become tougher in 2018 as new players enter the domain”, the question of whether which of the two will be left holding the scepter becomes less important – but rather, where will investments be safer.

To attempt to answer this question, let’s take a closer look at the two altcoins.

Ethereum versus NEO: Philosophical Differences

Ethereum, according to its website, is “a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference.”

NEO, on the other hand, is defined as a “non-profit community-based blockchain project that utilizes blockchain technology and digital identity to digitize assets, to automate the management of digital assets using smart contracts, and to realize a ‘smart economy’ with a distributed network.”

These respective definitions might sound remarkably similar – because, in many ways, they are. That is, both of them “run on a custom built block-chain that can move value around and represent the ownership of the property.”

Moreover, at first glance, these respective definitions might also imply that the two altcoins share the same objectives as both are aiming to dominate the cryptocurrency market by playing the similar roles of being the blockchain platforms for the new internet (or platforms that offer decentralized functionalities) such as Decentralized Applications (DApps), Initial Coin Offerings (ICO), and smart contracts. However, they aren’t, as there are subtle differences:

Ethereum’s goal is to develop its platform in response to new demands – that is, consolidating its role as the go-to platform for ICO’s. Whilst, NEO’s goal is mostly focused on developing its platform for future demands by realizing a so-called “smart economy” that will feature digitized physical assets which can be sold, traded, and leveraged through smart contracts.

Ethereum versus NEO: Backing and Partnership Differences

Because Ethereum is a certified government-agnostic, it is supported by some of the biggest global corporate names such as Enterprise Ethereum Alliance – making it enjoy popularity tointernational audience and thus, much larger support from the tech community.

All the same with NEO – the Chinese government might have gone far as to ban the ICO’s, but NEO remains to be China-based and Chinese-focused. Despite the country being seemingly unfriendly to the industry, NEO manages to receive backing from national banks and states – which allows it to capitalize on the huge Chinese market. Furthermore, it is also supported by Alibaba and Microsoft.

Ethereum versus NEO: Target Market Differences

There can be no doubt that Ethereum and NEO have the huge potential to become the next Bitcoin. Due to the impressive capabilities of their pluses to outweigh the minuses, both of which are continuously gaining popularity especially in comparison to other cryptocurrencies in the market.

Ethereum, which although has already been adopted by blockchain startups worldwide, is proportionally concentrated in the Western countries. Meanwhile, NEO is largely capitalizing in China.

Looking closely, Ethereum seems to benefit from a certain fallacy of thought that “West is the best” – which is quite true in terms of Western products catering to Western markets. But many fail to understand that Chinese investors are less likely to adopt Western technologies as they (like many East Asians) are far readier to support home-grown technology taking pride in and loyalty to national products.

NEO, however, might be having the advantage of a technologically-driven population that is nearly 1.4 billion people strong; not to mention that Chinese investors make up a very large percentage of the world’s cryptocurrency investors. But one should not fail to consider that the involvement of the Chinese government, which might have made NEO a state-mandated currency, plays a significant role in building a loyal following from Chinese investors.

Ethereum versus NEO: Where is your investment safer?

With the capabilities (i.e., both projects are open source and has massive community support) and differences (i.e., serving different markets and the opposite directions their visions are taking) that these altcoins have, should there really be a question of which among Ethereum and NEO is better, or should you invest in both?

While NEO appears and is turning out to be more investment-worthy – focusing on creating a “smart economy”, it should not be forgotten that Ethereum still holds the position of being the second most popular cryptocurrency in the world with a total market cap of $105 billion as compared to NEO’s $9 billion (as of January 25, 2018).

Thus, given that we are dealing with two very robust technologies, it might be better to conclude that there is certainly space aplenty for both altcoins to coexist.

And as to where your investment will be safer, perhaps the most suitable answer is in the altcoin where you can best tolerate the risk and that you understand well. There are more and more investors getting on board who often have a very limited understanding of the technicalities of the cryptocurrency they support, ending up investing based on brand loyalty and hearsays and even merely along the lines “Ethereum of China” NEO vs Ethereum.

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Finance

What You Ought to Know About Quant Traders

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Quantitative trading is an area of quantitative finance that is highly sophisticated. This article introduces some of the basics of a quantitative trading system and the necessary background to become a qualified quantitative trader.

What is Quantitative Trading?

Quantitative trading or quant trading is a type of trading that uses quantitative analysis as the basic strategy to identify trading profit possibility, including mathematical calculations. The most common data inputs in the quantitative analysis are price and volume.

Transactions involved in quant trading are usually large, which includes the sale and purchase of hundred or even thousands of shares and securities. This is because quantitative trading is typically practiced in the financial institutions.

The four primary components of a quantitative trading system include:

  • Strategy identification
  • Backtesting strategy
  • Execution system
  • Risk management

What Does a Quant Trader do?

Quantitative traders, also known as quants, utilize modern technology, comprehensive databases, numbers and mathematics to derive a logical trading decision. Using mathematical models, quantitative traders then identify trading opportunities.

Quant traders research the available price and data from the enormous amount of data in algorithm trading and high-frequency trading, find profitable trading opportunities, create relevant strategies, and grab the opportunity faster with the help of computer programs.

Generally, quant traders need an in-depth understanding and knowledge of mathematics, possess computer skills, and have some exposure to trading.

Technical Background of a Quant Trader

To become a full-fledged quant trader, one needs to have the following professional background:

  • Great with numbers: Quant traders must be excellent with numbers and quantitative analysis. An in-depth understanding of mathematics is required to carry out trading activities such as data researching, results testing, development, and implementation of trade strategies.
  • Educated in a relevant course and training: Studies involving theoretical concepts and the introduction to quantitative trading provide a better background for quant traders. This may include a master’s degree or a diploma involving financial engineering, quantitative financial modeling, or any course with electives in quantitative.
  • Armed with unique trading strategies: Quant traders should have in-depth knowledge about common trading strategies and have the ability to develop their unique trading strategy.
  • Possess programming skills: Quant traders should know at least one programming language such as Python, Java, C++, or Perl. They also need to have knowledge about automated trading, data mining, analysis, and research, which are usually involved in algorithmic trading and high-frequency trading.
  • Familiar with the computers: Quant traders need to be familiar with analysis software, spreadsheets, and broker trading. Also, they should be able to develop their algorithms on real-time data.

Soft Skills of a Quant Trader

Besides the above-mentioned technical skills, quant traders need to possess the following soft skills:

  • The spirit of a trader: Successful traders will brainstorm innovative trading ideas, can take on a massive volume of data, quickly adapt to the ever-changing trading market and can work on extended hours.
  • Able to take risks: Quant traders are risk-takers that understand the impact of risk, its management, and mitigation techniques.
  • Accept failure: Although the developed strategy may seem foolproof, failure is sometimes inevitable. Quant traders must always be ready to accept defeat, willing to let go of their concepts and develop a new one.

Becoming a quant trader may seem complicated, and it requires a lot of hard work. However, the lucrative income and innovative system of quantitative trading make quant trader an excellent career choice.

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Finance

How can a personal loan help you save money?

piggy bank

People in debt have traditionally been unable to easily consolidate it all. In the past, the best tactic has been to focus on one type of debt at a time (usually starting with the debt accruing the most interest) to clear it.

About 20 years ago, a new product became available called a personal loan. These unsecured loans were designed to help people manage multiple debt sources and repair their credit score. As with most types of unsecured debt, applicants are typically expected to provide a guarantor. Such a loan can be anything from £1,000 to £50,000 with a fixed interest rate payable over a fixed term, typically 4-5 years or more. Applicants use these instant guarantor loans as they realise just how much money they can save when used in certain circumstances.

No matter the interest rate on existing debt, personal loans are lower

One reason most people take out a personal loan is to consolidate different debts of varying and disparate interest rates. If you have £5,000 on a credit card (typical APR 29.9%), £1,000 overdraft (typical APR 15-20%), £1,000 of debt on a store card (typical APR an eye-watering 39.9%) among others, that’s a lot of interest you’re paying every month needlessly.

When taking out a personal loan, you’ll notice that the APRs are much lower. The average rate is 8% when borrowing under £10,000 and 5% when borrowing over this amount. Pay off the outstanding balances with the new instant guarantor loan and you will stop accruing all that interest, clearing the balance instead.

Personal loans put a deadline on repayment

People, couples and families with a lot of debt spread over multiple areas often feel there is no end in sight for the debt. This is especially the case for those types of debt with no deadline such as an overdraft, and credit and store cards.

The ability to consolidate all this debt into one personal loan automatically creates a deadline. Sometimes you may choose this; sometimes the provider will specify when it will be. Not only will you know the rate of interest that will accrue on top of the debt, you will also know how long you have left to pay off that debt. The stress and anxiety of accruing more and more is alleviated and you can prepare for having more liquid cash once your personal loan comes to its natural end.

Early payment option will save more

With lower rates of interest than most common types of borrowing, personal loans help you save money as a matter of course. When you are able and willing to pay back the debt faster than anticipated, this will save you even more money.

Not all personal loans allow you to settle early, for example pay off the last six months of payments in a lump sum while the term remains, but most will. You may be required to pay an early settlement penalty or premium such as one-or-two-months interest. If there is an early repayment option, carefully check the agreement’s wording. Even with a penalty on top, it could still be less than the interest you would have paid if you had let the loan run its course.

Personal loans improve your credit score

Customers who use unsecured guarantor personal loans use them to consolidate and manage debt as well as reducing their interest burden. So long as you stick to the terms of the agreement and have enough money each month to make the payment, your credit score will begin its improvement process.

What does this have to do with saving money? It’s a long-term strategy. Most credit cards and loans are not open to people with a bad credit score, however, there are ways you could potentially be able to get a loan with a bad credit score. Unfortunately, those loans that are not open are usually those products and services with the best interest rates and the most attractive rewards. With an improved credit score, you can apply for credit products with lower interest rates, better payment terms, and even earn a little something in the process such as cashback or air miles.

Cheaper than finance agreements

Most of the items in our list concern people looking to improve their credit rating and those with borrowing spread across multiple accounts. If you’re in the market for a new or nearly new vehicle, the seller will offer financing terms. They tend to offer a single product with a single finance provider; in short, it’s a take it or leave it choice. This is not always the cheapest way to buy a new car, but it is convenient which is why most people accept the terms that the motor trader offers.

Before singing that finance agreement, consider a personal loan. Interest rates are lower on average than motor finance. When the vehicle’s price tag is over £10,000, that interest rate drops considerably, sometimes as much as half of the annual interest rate.

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Finance

Financing A Business With A Home Equity Loan

contractor

Finding funds for a business is no easy task. Qualifying for a business loan is not guaranteed; therefore many companies leverage their owners’ assets like the family home to raise the funds they require in their enterprise.

There are many ways to use personally guaranteed funds too and one option is what’s called a home equity loan or home equity line of credit, These loans can also be ideal for debt consolidation of say high-interest borrowing like credit cards, personal and short term loans but in this blog post we’re focusing on how these loans work for businesses.

There are many more obstacles or hoops to jump through when seeking an actual business loan and often it’s the financial statements of the business that fail to pass the lending criteria due to the startup phase requiring more investment and not showing a profit.

Entrepreneurs starting out, are therefore renown for sourcing investment from wherever they can get it. The credit card has been the go-to source for funds, but the interest rates are very high, so it’s not a long term borrowing solution for a business.

Before long, the owner is seeking other sources to keep the business afloat or to grow it. They may take out personal loans but before long their requirements exceed what they borrow without additional security so this is where many use their home.

As a business owner, it may make perfect sense to use a home equity line of credit to draw down funds for the business and then repay them when in lump sums and repeat as and when required. So what is a HELOC?

HELOC

This type of loan allows you to have an open line of credit on the equity you have in your property.

HELOC’s has longer repayment periods that can be 10 – 20 years much like a usual mortgage and as the property owner you can borrow up to 85% of the home’s value minus what you may owe it. For example, if your home is valued at $750,000 and you have a mortgage of $250,000 on it already. Your line of credit may be as much as $425,000.

HELOC rates are higher than your standard mortgage rate, so it’s very much ‘caveat emptor’ or buyer beware, get professional expert advice from your accountant, financial advisor and maybe also your lawyer. Remember all loan agreements are legal documents, and they have terms and conditions that the borrower must comply.

There are many other ways to fund your business, including angel investors, offering shareholdings, so while using the equity in your home is an option it may not be the best way forward as the risk is your business cannot pay back what it’s borrowed, and you are personally liable to repay it or lose it.

Remember it is your equity and if your business borrows too much of it and can not repay it, and the lender calls in the loan it could be that you are forced to sell your home. It’s a dreary thought, but it’s better to know the pros and cons when borrowing money for any venture.

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