Investing

A derivative is a contract between two or more parties that derives its value from an underlying asset.

If an investment has reached maturity it means that it has paid out the original purchase amount, and the investment agreement has come to an end.

Bitcoin and Uniswap run on different infrastructures and have different intended purposes. Bitcoin is a digital currency used for electronic transfers, and Uniswap is primarily designed for its underlying decentralised exchange.

Risk management is the process of identifying, analysing and choosing whether to accept the risk involved in your investment decision or trying to limit it.

Diversification reduces the risk of a large concentrated loss. And instead spreads out your investments among a number of different areas.

Treasury bills and treasury bonds are government-issued investments that are paid out periodically and/or when the investment reaches maturity.

A security is an umbrella term used for virtually any asset issued by a company or other common enterprise that can be bought and sold, but classification depends on the regulator in a country.

Although the name can mean a lot of different things, you’ve most likely interacted with or set up a fund of your own at some point, be it a money pool at work or a savings fund for a rainy…

You’ve probably heard the expression ‘don’t put all your eggs in one basket’, a warning about investing too much in one particular area over others. An exchange-traded fund (ETF) takes that expression literally as it packages a number of securities…

Liquidity refers to the ease of converting assets into cash. High liquidity means there is an abundance of buyers and sellers for an asset, which makes it easy to complete trades. Low liquidity, or illiquid markets, have low numbers of…

Fiat money can be defined as a government-issued currency that is not backed by a physical object such as gold or silver.

Equity is quite a broad term and has a number of applications in finance. Primarily it refers to a shareholder’s size of ownership in a company and the value of the shares if they were sold off once any debts…