Crypto markets rebound after Binance settles with US DOJ 📈

Hola folks!

Happy Monday! Hope you are all doing well and keeping yourself warm and cozy as temperatures have started dropping across the country. Grab a hot cup of coffee or tea as we fill you in on important developments in the crypto space last week and give you the lowdown on different kinds of mutual funds in an educational video. We also feature a discussion on how to build a portfolio in your 20s and early 30s, review a book on finance and investing that will help you build your portfolio, and as usual, wind up with a fun crypto crossword.  

Enjoy this informative read as you sip your coffee/tea. 

Do you want to invest in mutual funds, but the different types of mutual funds got you confused? We are here to help you. Click on the link below to get a comprehensive overview of mutual funds. 

Discover the different categories, including equity funds, debt funds, hybrid funds, and more, and know the specificities of each with potential risks and advantages. By the end of this video, you'll have a clear understanding of which types align with your investment goals.

We have talked about financial lifestyle, savings, the magic of compounding, etc in the Money Simplified section. We will now start putting it all together as we start a series on portfolio-building in your 20s and early 30s. Read on!

Portfolio building in your 20s and early 30s- Part 1

Young adulthood is an interesting phase of life. People join the workforce, start earning, and have their first taste of financial independence. People who start earning in their early 20s will have an even more interesting journey as there are high chances of them having limited financial responsibility and thus, higher disposable income. 

Investing and building a portfolio at best might be an afterthought, which shouldn’t be the case ideally. We are here to help you answer some vital questions on when, how, and why you can start building your portfolio in your 20s and early 30s.  

When should you start building your portfolio? 

As a prospective investor, you might wonder when is the best time to start investing. The most fitting reply to this question would be–right now. The earlier you start investing, the more time you will have to grow your wealth. Therefore, the answer to when should one start investing is always ‘now’ irrespective of your age. 

Learn the basics of personal finance

The basics of money management, finance, and investment aren't taught in school. Therefore, you will have to educate yourself on the basics of finance before you start your investment journey. 

While there is a lot to learn about investing, individuals in their 20s should initially focus on 5 key areas of personal finance: 

1. Budgeting

2. Saving

3. Investment Products

4. Financial Metrics 

5. Taxes

By understanding these basic financial principles, new investors will be better placed to learn and understand the more complex personal finance topics at a later stage. 

How to start your portfolio-building journey? 

Begin your investment journey by giving serious thought to your short-term, intermediate, and long-term financial goals. Now, start researching for investment options that best align with your financial goals. 

Your plans will most likely change over time, but getting started with at least a retirement plan is one of the most important things you can do for yourself in your 20s.

Not only will you ensure your money keeps up with inflation, but you’ll also reap the benefits of decades’ worth of compound interest on your contributions.

Think about the basics of your financial goal and note them down. We will be back next week with expert suggestions to design your financial goals. 

Last week, crypto markets saw increased price volatility as the much-awaited court settlement for Binance was made public, along with hefty fines and possible jail term for founder CZ. The overall crypto market cap dipped sharply after the news but has recovered strongly as the impact of the judgment is assessed, and is now inching closer to the $1.5 trillion level. 

Market leaders BTC and ETH traded flat, with slight gains for the overall week, and remain anchored around $37k and $2k levels respectively.

The details of the Binance settlement have aided the rebound in prices, as after pleading guilty to violating the Bank Secrecy Act and various AML lapses, CZ was released from custody on a $175 million personal recognizance bond. He will face trial in February and Binance will stop operations in the US, after settling charges with the DOJ for a record-breaking $4.3 billion.

A couple of positive developments from the week include crypto-friendly Javier Milei's election as President of Argentina, where he's been actively promoting Bitcoin as a store of value against the central banks’ monetary debasement. Another was a report from Glassnode, that stated that the percentage of Bitcoin's circulating supply that was last active on-chain at least a year ago has reached a record high of 70.35%, surpassing the previous peak of 69.35% in July 2023. 

We also witnessed two major hacks last week, one on DeFi giant KyberSwap losing $48 million to a smart contract hacker, while Justin Sun's HTX reported a hack after suspicious transfers of over $100 million.

For the broader crypto markets, there was a lot of token-specific price action, and barring a few outliers, most tokens traded sideways, in a narrow range. 

The clear loser in terms of negative price action was Binance's BNB token which came under strong selling pressure after the $4.3 billion settlement with US DOJ. The resultant weakness in the market after the judgment also caused heavy selling in tokens that had recently shot up in price, and profit booking resulted in sharp corrections for SOL, MATIC, NEAR, and AVAX. 

On the flip side, a clear beneficiary of the Binance settlement was DeFi DEXs as traders moved away from centralized exchanges, and the largest player Uniswap's UNI token jumped higher in prices. 

Also worth highlighting was the surge in Blur NFT marketplace's BLUR token, as it announced the successful listing on Binance following the rollout of the second season of its airdrop.

• BNB $229 ⏬ 7.49%

• SOL $$56.19 ⏬ 6.57%

• AVAX $20.65 ⏬ 7.90%

• UNI $6.07 ⏫ 15.26%

• BLUR $0.5255 ⏫ 55%

(All data here is as of 3.30 p.m., 27 November, 2023)

Before we conclude, here’s a quick look at some important news from around the crypto world.

• Block Scholes, a London-based crypto analytics firm, raised $3.3 million in an investment round to expand its team and develop products. The company said the funding came from Record Plc, Investcorp, Dair Capital, Saison Capital, CoinSwitch, and FunFair Ventures.  Read more here.

• Cryptocurrency exchange Bullish has bought CoinDesk, the Wall Street Journal reported. Bullish, which is run by former New York Stock Exchange (NYSE) president Tom Farley, bought 100% of CoinDesk from crypto-focused investor Digital Currency Group (DCG) in an all-cash deal, WSJ said. Read more here. 

The tales of finance, money, savings, and investments have been as old as time. Today, we bring a timeless classic talking about financial prudence and financial wisdom in the simplest of terms. 

The Richest Man In Babylon

By: George S. Clason

Beloved by millions, this timeless classic holds the key to all that you desire and everything you wish to accomplish. The book reveals the secret to personal wealth and offers practical advice through engaging stories set in ancient Babylon.

This book is a classic guide to personal finance and wealth accumulation. Read it to traverse the savings and investment territory with confidence and see your portfolio grow with time. 

Before you get on with your day, don’t forget to flex those brain muscles with our weekly crypto crossword.

That’s it for now. Thanks for sticking around.

See you later, folks! 👋

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