What's happening at FTX?

When it came to trading the digital currency known as bitcoin, FTX was a major player on the global stage. Over the weekend, FTX's issues escalated and put the entire market at risk. To begin the year 2019 properly, Sam Bankman-Fried established FTX. He rapidly expanded the trading firm by courting Silicon Valley's most prominent backers. This past week, FTX filed for bankruptcy. Bankman-Fried has left his post. The corporation claimed that some funds had vanished. In addition, analysts estimate that hundreds of millions of dollars may have been misplaced.

FTX's downfall is shocking in a cryptocurrency market that has had its share of issues this year. Last week, investors ran away from FTX because they were worried the company didn't have enough money to survive. Also, FTX has settled on a deal to sell itself to Binance, another cryptocurrency exchange. However, when Binance was investigating FTX's finances, the agreement fell through. FTX and a number of its affiliated entities filed for bankruptcy last Friday. The range of valuation was between $10 billion and $50 billion for the company. In its bankruptcy petition, it listed more than 130 international business partners with whom it had partnered. Bankman-Fried, who had saved other bitcoin firms, also stepped down as FTX's CEO.

What will happen with FTX now that it has filed for bankruptcy is unclear. But if it does fail, it will wipe out billions of dollars in wealth and sow more seeds of doubt about cryptocurrencies.
Sequoia Capital is well-known for its investments in companies like Apple, Cisco, Google, Airbnb, and YouTube. According to the company, meeting Bankman-Fried was like "talking to the world's first trillionaire," and the meeting influenced its decision to invest in FTX.

Following FTX's bankruptcy filing, Sequoia wrote off all $213 million of its investment in the company. Similarly, an Ontario, Canada, pension fund wiped out its investment. There was some criticism levelled at Bankman Fried prior to the FTX collapse. The majority of FTX's operations were supervised by the United States, despite the company's headquarters being in the Bahamas. However, Bankman Fried has advocated for increased oversight of the cryptocurrency market. Many crypto enthusiasts are against centralised regulation. It's possible that the downfall of FTX will strengthen calls for stricter oversight.

Should you be worried when the market fluctuates?

 

It is only normal if you are worried about when the market will fluctuate, you are investing so much, we know how it feels like when the market is not going the way you want. 

 

The continual ups and downs in stock prices can be attributed to supply and demand shifts. If demand for a stock rises, so does its price on the market. The price of a stock usually goes down when there are more sellers than buyers. In terms of supply and demand, the latest news can have a huge impact on the dynamic.

 

When investors hear bad news, they typically sell their investments. Many, if not most, stock prices fall in response to selling pressure after unfavourable news such as a disappointing earnings report, a governance breakdown at a company, or general economic and political unpredictability.

 

People frequently rush to acquire stocks as soon as they hear positive news. News that businesses are performing well, releasing new goods, making acquisitions, or witnessing positive economic indicators causes stock values to increase.

 

However, negative news for some stocks might be positive for others. For instance, the announcement that a hurricane has made landfall can drive utility stock prices to drop in anticipation of exorbitant emergency response and repair costs. Depending on how bad the storm is, insurance stock prices will decline as a result of the news. In the meantime, home improvement retailers' stock prices will increase in expectation of increased sales in the upcoming months.

 

Events like a significant auto safety recall, an uprising in oil prices due to unrest in the Middle East, or an extended drought that destroys crops are examples of things that are simply impossible to predict. Although traders may believe they are factoring in risks, there is always a chance that anything could go wrong. Consequently, news that is unexpected rather than just any old news moves prices in one direction or the other.

 

So if you are wondering whether you should worry or not, you don't have to. The market fluctuates day to day, which is why it is called volatility. Just have to wait patiently while doing research. 

3 steps to Financial Freedom

One definition of financial freedom is being able to do what you want with your money without having to worry about your bank account. When you have financial freedom, you can take that amazing trip to Tahiti without worrying about missing work. It means being able to buy the house your family wants and still have money left over for other things.

Some people think that financial freedom means being able to retire whenever you want, which is important, but you don't have to wait until then to be financially free. Depending on your situation, having financial freedom could mean being able to do what you love and make money from it. It could mean not needing a 9-to-5 job so you can spend time with your kids or help your partner build a business they're passionate about. Connecting with your deepest values and having enough money in the bank to support those values without worrying about paying the bills is what it means to be financially free.

Define what it means to you

 

To each, their financial goal might be different, so you have to figure out where your goals are and work towards it. If your goal is to retire at the age 30, good, work towards that, if it’s mid 50’s, it is still good as long as that’s what you want. Just have to remember that everyone’s road is not linear, so you're only in a competition with yourself rather than everyone. 

 

Be financially literate

 

Financial literacy is the ability to understand and use different money skills, such as managing your own money, making a budget, and investing. Financial literacy is the foundation of your relationship with money, and it's something you'll keep learning about for the rest of your life. If you want to make money, education is the key. The earlier you start, the better off you will be.

 

Build passive income

 

2022 is coming to an end and at this point, if you're still relying on your active income, then I have some bad news for you. Build yourself some passive income, it can be as simple as selling an ebook on the internet to investing. Is investing considered a passive income? Yes, with proper research and guidance from platforms like MTX. Dont wait up, do your research about trading, staking and investing. 

 

People often use the words "financial freedom" and "financial independence" interchangeably, but they don't mean the same thing, and it's important to know the difference if you really want to be financially free. The key word in "financial independence" is "independence." It means being able to meet your own financial needs without having to depend on anyone else. When you're financially independent, you have a steady source of income, pay all of your own bills (including debts like student loans or a mortgage), and have some money saved. You might even start to save money. You're not financially free yet, though.

Financial independence is an important first step toward financial freedom, but it's not the end goal. Financial freedom is a long-term goal that will help you build the life you want. "Success is doing what you want, when you want, where you want, with who you want, as much as you want," says Tony Robbins. That, too, is financial independence.