Have you been dabbling in cryptocurrency in 2021? Are you still relatively new to the world of crypto and feeling your way around? While crypto can prove to be quite lucrative, it can also spark a lot of unexpected expenses if you aren’t careful and don’t use the proper tips. We’ve got four essential ways tips crypto traders can use to avoid unexpected expenses moving forward, making sure your experience with crypto is as positive as possible.
Make Sure You’re Working with a Strategy
When you get into cryptocurrency, it’s wise to look at it as you would any other type of investment. This means you have a plan and a goal of what you want to achieve. You also need to ask yourself how much of a risk you are willing to take. The answer will be different for each person, so don’t feel pressured to keep up with others. In general, cryptocurrency trading is seen as a high-risk activity, so you need to accept that going into it.
Diversification Can Help Limit Expenses
Any financial investment expert will tell you that diversification is an excellent way to balance your options and hopefully prevent any massive losses – or unexpected expenses. You can use this approach with cryptocurrency and make sure you’re diversifying.
Understand the Tax Laws and How They Apply to Crypto Investments
Did you know that you may be subject to paying taxes on your crypto assets? It’s something that isn’t always discussed, nor do all investors realise that this is the case. Cryptocurrency tax UK can be confusing and not something you want to glaze over.
Because you may face some crypto tax issues, it’s worth it to work with a company like Hodge Bakshi, which is a group of chartered tax advisors and chartered accountants. They are well versed in how individuals are taxed, what the code says, asset pools, capital gains tax and more. They can guide you through the process so there is no chance of an unpleasant surprise.
Keep An Eye Open for Cryptocurrency Scams
Unfortunately, scams are now popping up all over the place and if you get caught up in one, it can end up costing you money. There are business and investment cryptocurrency scams to be on the watch for. A popular one is where you are told to get others involved, like a rewards programme. So, the more people you manage to recruit into the programme, the more money you will make. This should be a huge red flag; you don’t want to get involved in any of these.
Another popular scam is the promise to convert your bitcoin to cash, which can result in you losing your money. Remember the saying – if it’s too good to be true, then it probably is. In other words, be sceptical and don’t get pulled into anything.
While it’s impossible to anticipate every possible scenario, these tips can help you to avoid unexpected expenses or at least limit their negative effects.
Wealth Managers and the Future of Trust: Insights from CFA Institute’s 2022 Investor Trust Study
Author: Rhodri Preece, CFA, Senior Head of Research, CFA Institute
Corporate responsibility is more important than ever. Today, many investors expect more than just profit from their financial decisions; they want easy access to financial products and to be able to express personal values through their investments. Crucial to meeting these new investor expectations is trust in the financial services providers that enable investors to build wealth and realise personal goals. Trust is the bedrock of client relationships and investor confidence.
The 2022 CFA Institute Investor Trust Study – the fifth in a biennial series – found that trust levels in financial services among retail and institutional investors have reached an all-time high. Reflecting the views of 3,588 retail investors and 976 institutional investors across 15 markets globally, the report is a barometer of sentiment and an encouraging indicator of the trust gains in financial services.
Wealth managers may want to know how this trust can be cultivated, and how they can enhance it within their own organisations. I outline three key trends that will shape the future of client trust.
THE RISE OF ESG
ESG metrics have risen to prominence in recent years, as investors increasingly look at environmental, social and governance factors when assessing risks and opportunities. These metrics have an impact on investor confidence and their propensity to invest; we find that among retail investors, 31% expect ESG investing to result in higher risk-adjusted returns, while 44% are primarily motivated to invest in ESG strategies because they want to express personal values or invest in companies that have a positive impact on society or the environment.
The Trust Study shows us that ESG is stimulating confidence more broadly. Of those surveyed, 78% of institutional investors said the growth of ESG strategies had improved their trust in financial services. 100% of this group expressed an interest in ESG investing strategies, as did 77% of retail investors.
There are also different priorities within ESG strategies, and our study found a clear divide between which issues were top of mind for retail investors compared to institutional investors. Retail investors were more focused on investments that tackled climate change and clean energy use, while institutional investors placed a greater focus on data protection and privacy, and sustainable supply chain management.
What is clear is that the rise of ESG investing is building trust and creating opportunities for new products.
TECHNOLOGY MULTIPLIES TRUST
Technology has the power to democratise finance. In financial services, technological developments have lowered costs and increased access to markets, thereby levelling the playing field. Allowing easy monitoring of investments, digital platforms and apps are empowering more people than ever to engage in investing. For wealth managers, these digital advancements mean an opportunity for improved connection and communication with investors, a strategy that also enhances trust.
The study shows us that the benefits of technology are being felt, with 50% of retail investors and 87% of institutional investors expressing that increased use of technology increases trust in their financial advisers and asset managers, respectively. Technology is also leading to enhanced transparency, with the majority of retail and institutional investors believing that their adviser or investment firms are very transparent.
It’s worth acknowledging here that a taste for technology-based investing varies across age groups. More than 70% of millennials expressed a preference for technology tools to help navigate their investment strategy over a human advisor. Of the over-65s surveyed, however, just 30% expressed the same choice.
THE PULL OF PERSONALISATION
How does an investor’s personal connection to their investments manifest? There are two primary ways. The first is to have an adviser who understands you personally, the second is to have investments that achieve your personal objectives and resonate with what you value.
Among retail investors surveyed for the study, 78% expressed a desire for personalised products or services to help them meet their investing needs. Of these, 68% said they’d pay higher fees for this service.
So, what does personalisation actually look like? The study identifies the top three products of interest among retail investors. They are: direct indexing (investment indexes that are tailored to specific needs); impact funds (those that allow investors to pursue strategies designed to achieve specific real-world outcomes); and personalised research (customised for each investor).
When it comes to this last product, it’s worth noting that choosing advisors with shared values is also becoming more significant. Three-quarters of respondents to the survey said having an adviser that shares one’s values is at least somewhat important to them. Another way a personal connection with clients can be established is through a strong brand, and the proportion of retail investors favouring a brand they can trust over individuals they can count on continues to grow; it reached 55% in the 2022 survey, up from 51% in 2020 and 33% in 2016.
TRUST IN THE FUTURE
As the pressure on corporations to demonstrate their trustworthiness increases, investors will also look to financial services to bolster trust. Wealth managers that embrace ESG issues and preferences, enhanced technology tools, and personalisation, can demonstrate their value and build durable client relationships over market cycles.
5 tips to ensure CSR efforts come across as genuine
By Mick Clark, Managing Director, WePack Ltd
Corporate social responsibility – or CSR – is playing an increasingly pivotal role in the long-term success of modern-day companies.
The harsh reality is that only a paltry 46 percent of people trust the brands they buy from. And with more competition than ever in all walks of business, a positive brand reputation needs to be earned or customers will simply take their money elsewhere.
That’s why I share my insights on the importance of CSR in modern business and introduce an effective plan to avoid coming off as disingenuous to your employees and customer base.
The value of CSR
The needs of modern employees and consumers are changing. There is a higher emphasis placed on the ethics and morals of companies and their handling of hot button topics like the environment or social issues.
59 percent of UK workers believe their business should be investing in charitable initiatives. 67 percent of people aged 18-19 feel this way, showing a generational shift in favour of companies that support ethical, social, or environmental causes.
At WePack, we recognise the importance of this and make sure to regularly donate to a variety of charities including RRT (Rapid Relief Team), and donated £6,000 to the charity’s social causes last year.
An example of good CSR can be found in search engine giant, Google. It has had notable success with its CSR initiatives. Its flagship CSR campaign, Google Green, is a companywide commitment to using clean sources of energy, cutting down on its use of fossil fuels and drastically increasing energy efficiency as a direct response to the climate crisis.
It has been so successful that its data centres now require 50 percent less power to run than the average data centre and it’s poured over $1 billion into jumpstarting renewable energy projects.
Customer attitudes are fundamentally changing, and people are far more concerned about the values that their money could be indirectly supporting. In fact, 71 percent of customers prefer buying from businesses that align directly with their values.
In the modern-day, demonstrating high levels of CSR boosts brand perception. Businesses that make it a priority are more attractive – from an investment standpoint – to both customers and potential stakeholders.
For example, more than a third of consumers are also willing to pay more for a product or service if the business prioritises sustainability specifically – so it pays to be responsible.
Businesses with purpose-driven and ethical goals and proven commitments to CSR help retain employees. Millennials will make up 75 percent of the workforce by 2025, and it’s that cohort that is increasingly demanding socially responsible employers.
Those that fail to meet the needs will ultimately see their customers take their purchasing power elsewhere.
Addressing the challenges
As obvious as it may sound for a business to take on as much CSR as possible, many organisations face limitations.
Pressure from investors can disrupt the growth of CSR initiatives. Sometimes, the direction that stakeholders want to take the company doesn’t fully align with plans to target social or environmental issues.
Companies face becoming fixated on linking profitability with CSR programmes. It can be tough to present a genuine CSR programme without it coming across as a marketing ploy – presenting an extra hurdle for businesses to overcome.
Despite the challenges businesses face that are out of their control, many firms unwittingly make their own mistakes that cost them dearly.
For example, businesses can struggle to bolster their CSR programmes if they don’t consult their customers and staff first. A simple survey helps companies decide what issues to put as a priority and target to satisfy their customer base and employees.
Any attempt to create an effective CSR programme needs top-down support. Many businesses wrongly treat CSR as a separate entity, rather than fostering a companywide culture. This can lead any attempt to push back on global issues to appear disingenuous to those looking in.
Shifting the CSR approach
Because of the global shift in public needs and opinions in recent years, businesses need to better demonstrate their efforts to avoid having their campaigns labelled as a box-ticking exercise.
It’s no secret that consumers are doing more research and are becoming more switched on to spotting lacklustre approaches to CSR. Also, everyone can have their say online – it’s much easier to get exposed if your CSR campaign is nothing but an empty publicity stunt.
For example, Volkswagen’s reputation was left in tatters after its ‘greenwashing’ scandal promoted a newer, cleaner diesel vehicle that wasn’t any better for the environment than previous models. The company took it further by fitting a device that helped it cheat emissions tests – resulting in a $125 million fine.
For this reason, CSR campaigns need tangible results to be credible and trustworthy.
Sharing top tips
When it comes to structuring a strong CSR campaign, it’s critical to demonstrate several things to prove your strategy is effective in helping the chosen cause.
Firstly, evidence the fact that your efforts are helping wider communities. Whether it’s through statistics or showing proof of investment in social causes, tangible evidence goes a long way when legitimising your CSR campaign.
Secondly, balance your rhetoric. Effective communications are vital to the success of a campaign. However, it can damage a company’s image when done poorly. Businesses should speak about their chosen issues in their dialogue rather than spending too much time talking about the solutions the company has implemented. This stops them from becoming too self-promotional or sounding braggy.
To further avoid this, make sure you can directly tie your CSR campaign to corporate values and beliefs. As well as helping to strengthen your comms, it will also guarantee that company values are more than just surface-level – helping to facilitate tangible, long-term change.
Rivery Raises $30M B Round of Venture Funding from Tiger Global
With data needs growing and data talent scarcity, there is huge demand for Rivery’s 100% SaaS solution to create an...
Wealth Managers and the Future of Trust: Insights from CFA Institute’s 2022 Investor Trust Study
Author: Rhodri Preece, CFA, Senior Head of Research, CFA Institute Corporate responsibility is more important than ever. Today, many...
Q&A with Andréa Jacquemin, founder and CEO of Beamy
Beamy is a fast-growing scale-up that focuses on pioneering a new approach to SaaS management for large companies. Founded in...
How to reignite your store with streamlined operations and a distinctive customer experience
Colin Neil, MD, Adyen UK Retailers know that prioritising customer experience is vital to success today. This, amongst the...
5 tips to ensure CSR efforts come across as genuine
By Mick Clark, Managing Director, WePack Ltd Corporate social responsibility – or CSR – is playing an increasingly pivotal role...
How to Build Your Credit Up Safely
by Taylor McKnight, Author for Compare Credit What Is Credit? Credit is money owed by a person that allows...
PCI DSS Compliance in the Cloud – Everything you should know
Introduction PCI DSS 4.0 is the latest and updated version of PCI DSS that was introduced on March 31st, 2022....
2022 ESG Investment Trends
Jay Mukhey, Senior Director, ESG at Finastra Environmental, Social and Governance (ESG) themes have been front and center throughout...
PROTECT THE VALUE OF YOUR SAVINGS AND AVOID RISING INFLATION PRESSURE
Planning for the next financial year? Former Bank Manager and successful whisky investor, Roger Parfitt, tells us why cask ownership is...
UK Organisations turn to artificial intelligence to fight sophisticated cyberattacks
New research by cybersecurity expert Mimecast finds that email attacks are becoming more frequent and sophisticated More and more companies...
The power of diversity: The need for female role models in FinTech
By Isavella Frangou, VP of Sales and Marketing, payabl. As our world is constantly evolving, it’s easy to believe...
Securing BNPL Platforms for Merchants
By: James Hunt, Payments SME at Feedzai The buy now, pay later (BNPL) market has boomed because it offers...
Addressing the talent gap within cybersecurity
By Merlin Piscitelli, Chief Revenue Officer, EMEA at Datasite Rising geopolitical tensions and increasingly sophisticated cyberwarfare tactics have meant...
Biometric payment card FAQs with Michel Roig, Fingerprints’ President of Payments & Access
We sat down with Michel Roig to answer your frequently asked questions regarding biometric payment cards – their benefits, current...
Opportunities for UK Challenger Banks to address AML Compliance
Author: Gabriel Hopkins, Chief Product Officer, Ripjar UK challenger banks have revolutionised the banking sector with innovative products and...
HOW GOING DIGITAL COULD HELP CHARITIES OVERCOME THE CHALLENGES OF INFLATION
By Shaf Mansour, not for profit solutions specialist at The Access Group. The topic of inflation and its impact...
How to manage transformational change successfully
Adrian Odds, Marketing and Innovation Director, CDS 2020 accelerated change in the business landscape significantly. Many were already considering –...
Why the pandemic has put the pressure back on fintechs
Ben Walker, Partner & CTO, Airwalk Traditionally, the only genuine threats to the incumbent banking giants were macroeconomic instability and...
Neobank Fi launches new feature ‘Connected Accounts’ allowing users to sync multiple bank accounts on a single app.
Neobanking app Fi launched its ‘Connected Accounts’ feature to become one of the first fintechs to build a product on...
Accounts Payable fraud: Do you know who’s accessing your finances?
Mark Blakemore, CFO at Compleat Software The use of social engineering and phishing attacks on accounts payable (AP) departments...