Bitcoin fell on Monday morning after reaching a new record-high price over the weekend.

The world’s most highly valued cryptocurrency broke through the $60,000 barrier for the first time during weekend trading, reaching a high of $61,674 on Saturday. However, the price went into retreat at the beginning of the week, falling 4.4% to $57,847 at 9:15 AM in London.

This latest Bitcoin price shock comes amid reports that India will propose a law banning cryptocurrencies altogether, potentially blocking its use in one of the world’s largest markets.

Reuters reported on Sunday that senior officials in India’s government are looking to impose “one of the world’s strictest policies against cryptocurrencies,” which will impose fines on anyone trading or even holding digital assets. Bitcoin miners will also be penalised, sources claimed.

Under the proposed bill, cryptocurrency holders would be given six months to liquidate their digital assets, after which penalties will be levived.

Should the ban become law, India would become the first major economy to ban the use of cryptocurrency altogether.

As normally follows when Bitcoin suffers a price shock, the broader cryptocurrency market also went into retreat on Monday morning. Ethereum, the world’s second-largest cryptocurrency, was trading 5.7% lower against the dollar at a rate of $1,785.49 at the beginning of the week. The cryptocurrency market as a whole declined 4.5% over 24 hours.

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Despite this latest price plunge, the crypto market is still performing markedly better than it was six months ago. Bitcoin has rallied over 400% during this period, owing to interest from established players such as Tesla and Square. Adoption by PayPal has also helped to pull cryptocurrencies closer to the payments mainstream.

HSBC has acceded to investor pressure by tabling a shareholder vote on new plans to phase out the bank’s financing of the coal industry by 2040.

HSBC announced on Thursday that it would propose a special resolution to “set out the next phase” of its net zero plans. The special resolution will pledge to phase out all financing for coal-fired power and thermal coal mining in the EU and OECD by 2030, and globally by 2040.

Last October, HSBC committed to ensuring carbon neutrality across its client base by 2050, a move which environmental campaigners slammed as “baseline” for the banking industry. HSBC was also criticised for vagueness on the steps it would take to reach its goal.

Campaign group ShareAction coordinated with fifteen pension and investment funds earlier this year to organise a shareholder vote calling on HSBC to set clearer targets for reducing its financing for fossil fuel-affiliated companies, beginning with coal. Members of the investment group included prominent international asset managers and hedge funds such as Amundi and Man Group.

HSBC said in its Thursday statement that ShareAction and its allies had agreed to withdraw their resolution ahead of the annual general meeting to be held on 28 May.

HSBC CEO Noel Quinn hailed the agreement reached between the bank and campaigners. “This represents an unprecedented level of cooperation between a bank, shareholders and NGOs on a critical issue,” he said.

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The new special resolution will be binding if 75% of shareholders vote in favour.

HSBC is the second-largest financier of fossil fuels in Europe, according to the Rainforest Action Network, surpassed only by Barclays.

Gold is one of the longest-standing assets in the history of human investment. The asset has long been a store of value for hedging the economy. For some time, gold was even the basis for the US dollar’s value. However, a new asset has come into play: Bitcoin.

Considered by many to be digital gold, the next step in the precious metal’s history, investing in Bitcoin is debatably a good idea. If you’re unsure as to which is the best place to put your money, this guide is for you. We’ll break down the pros and cons of each investment, ensuring you know just where your funds should go. That, and we’ll establish the best places for you to invest in such assets.

Investing in Gold in 2021

Long-term investors might recommend still investing in gold. It’s what they know, after all, and it’s what made them successful in the past. They’re not entirely wrong, either.

For one, gold is still a reliable asset. It’s not too volatile, nor is gold going anywhere anytime soon. There are multiple ways to invest in it, as well.

Online gold exchanges, for instance, allow you to invest anonymously and with just a debit or a credit card. You simply have to create an account on the exchange and go from there. You can purchase the assets on the exchanges without much trouble, thanks to their various trading methods. They also allow you to hold the assets in a wallet - much easier than storing them with traditional gold.

Otherwise, investing in gold is expensive. You’ll need enough funds to afford a whole unit of the metal to start. On top of this, you’ll need to pay extra in vendor and convenience fees. Then you have storage fees.

Gold is still a reliable asset. It’s not too volatile, nor is gold going anywhere anytime soon.

Storing gold is pricey. You can’t just keep it in your home. You need a safe to put it in. Safes can be expensive, though they’re worth it to protect your investment. Otherwise, you can pay a monthly fee to store it in a third-party space. However, note that you’re putting control of your assets in someone else’s hands if you do so. This is also an endlessly recurring cost on your investment.

Also, while gold is a fantastic stable investment, it’s not a great one for short-term profits. Sure, the asset may rise in the long-term, especially when considering the global economic climate, but otherwise, it stays around the same price. It could be years before you see a significant profit on your gold investment.

If you’re risk-averse, then this is great news for your investment personality. Otherwise, you may want to put funds elsewhere.

Investing in Bitcoin in 2021

Bitcoin is based on a blockchain. There’s no intermediary to go through, meaning transaction fees are much cheaper than otherwise. It’s also a global currency, allowing you to convert Bitcoin to any fiat, and vice versa, no matter where you are in the world.

On top of this, there is a limit on Bitcoin. There can only ever be 21 million of the asset, preventing inflation that fiat currencies are susceptible to. No one can create more Bitcoin - only that which is in the market can be traded. Bitcoin is verified by miners, users that take advantage of their computer’s power to ensure there isn’t any double-spending or similar bad activities.

Becoming a miner is difficult, but they are rewarded handsomely in Bitcoin. The more miners that are out there, the more Bitcoin that is put into circulation. Over time, this makes the asset less rare, eventually causing the price to stabilise. However, note that getting in early, assuming the asset is successful, would mean holding such a rare asset once it stabilises.

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Speaking of stabilisation, Bitcoin is much more volatile than gold. The price has gone up or down by the thousands in just a day, throwing off many investors. Those who aren’t a fan of risk might want to heed this activity. Of course, this is great for short-term profit if you’re smart. The long-term prospects of Bitcoin are yet to be decided.

Conclusion

Now you’re aware of both Bitcoin and gold. Decide which is best for your investment portfolio in 2021. That way, you’ll be better off in the future with your funds.

The retail sector has faced unprecedented challenges as a result of the ramifications of the pandemic. Recent news that UK retail figures fell by 1.3% in January, combined with new COVID variants, indicates a rocky road ahead for retailers as the pandemic continues to hamper customer spend and business survival. However, hope is in sight. Shoppers continue to migrate online and retailers that invest in omnichannel and digital initiatives will be poised for recovery and growth in the months ahead.

To enable this, brands should be exploring strategies that provide cost flexibility and resilience in another unpredictable year. To safeguard with a passive approach will be risky, and to overinvest in the wrong places would be equally detrimental to overall cash flow. The key will be to leverage financial management tools that present real-time data and provide valuable insights enabling agile actions. This includes providing visibility over costs for a proactive and sustainable way to free up liquidity and invest in the future.

Ronnie Wilson addresses the five investment opportunities retailers cannot afford to miss in 2021.

1. Pursuing an omnichannel approach

COVID-19 restrictions and subsequent lockdowns forced consumers into the digital realm for much of 2020, and this seems set to continue this year. Those who were reluctant beforehand may have come around to exploring its ease and immediacy. And retailers’ value-add offerings – in the form of chatbots, augmented reality and email promotions – seem to have encouraged more to convert to online shopping.

However, retailers should be prepared for a rebound effect, should health restrictions lessen later in the year. Despite all modern gadgets and tools, personalisation needs are still best met in person in a store, and many shoppers will have missed this physical experience. For businesses, the answer lies in balance, and not putting all their eggs in the online basket. Consumers supporting local bricks-and-mortar premises may well trigger a wider high-street resurgence, and to ignore investment into improving that area would be a big mistake.

2. Personalisation online as well as in-store

If there is to be a balance in how people shop in 2021, there will be an expectation that retailers provide the best of both worlds either way. This means personalisation. Shoppers will want the same variety and immediacy in-store as they get online, and they will want the same level of customer service online that they could get in-store. This is why the balance is so important, and why investment into tools that fulfil demand on both sides needs to be factored into the budget.

A prime example that businesses should be exploring is augmented or virtual reality. If consumers are forced into making purchases of items like furniture or clothing without seeing them in the flesh, then this AR compromise can still facilitate that to a high degree of success. Online chatbots, or self-service in-store systems, will also provide what customers really want – which is choice.

3. A targeted approach amidst fierce competition

While there will of course be exceptions, most retailers will be facing similar pressure points this year, and consumer trends will largely point in the same direction across verticals. Therefore, it should be expected that competitors will respond in similar ways, and it will be a challenge to differentiate.

The ability to stand out from the crowd once again comes down to that all-important buyer-seller relationship. When consumers’ budgets might be strained by outside events, they’ll likely turn to someone they can afford, someone they can trust or someone who’s bringing them the best deal.

Investment into AI-driven market analysis and forecasting can put you ahead in this regard, resulting in more targeted adverts, promotions, offers, rewards or loyalty programmes. Weighing up ROI as part of this process all hinges on data.

4. Leveraging sustainability as a strategic differentiator

Sustainability should be a primary concern for retailers for two reasons. Firstly, because ethical, environmentally conscious and socially aware behaviours are the right way to conduct a business, and it has become an industry differentiator as such. Secondly, because consumers now demand it. If they want their products to be ethically made and sourced, then they’ll also want them delivered in the most sustainable way possible. High-profile awareness of waste materials, the condition of our oceans and general climate change means that a failure to consider distribution strategies and footprints will alienate a lot of consumers. It’s therefore a revenue-based decision to invest in more sustainable operations.

5. Overcoming the COVID-Brexit-recession triple threat

The final challenge represents the social climate that businesses will continue to face in 2021. The UK’s COVID-Brexit-recession triple threat means even more unpredictability. It means the prospect of consumer trend fluctuations, mixed with the possibility of more entrenched economic difficulty.

This nexus of concern showcases once and for all the need for flexibility in investment strategies. Preparing cash flow for proactive expenditure in areas that cover the must-haves – technological tools like AR, omnichannel improvements, supply chain sustainability and relationship building – will hopefully bring about the returns retail businesses leaders need to then be nimbler for when unforeseen circumstances arise.

Smart investment for the future

As the financial and economic effects of the pandemic continue to put a strain on businesses in the retail sector, it’s vital that companies take a strategic investment approach. Freeing up liquidity through a successful business strategy is the most proactive and sustainable way to navigate ongoing uncertainty and pave the way for growth on the other side. Retailers must utilise the financial management tools needed to gain a transparent view of costs vs. business value generated. By leveraging this intelligence, retailers can cut costs in one area to strategically invest in another that drives greater value and ROI. Such tools can also enable fact-based scenario planning and effective decision-making. Through greater transparency, companies can then ensure that innovation and digital strategies take centre-stage in optimising services – as well as adding value.

Cryptocurrency can be a risky business, especially if you trade without knowing its basics. You can make huge profits, but you can also go bankrupt before you even study the market. There are several things you need to know, including how to choose a crypto exchange. Selecting the wrong crypto exchange could lead down a path riddled with distractions and wasted effort. Read on for five important tips that will help you choose the right cryptocurrency exchange.

1. Research the exchange’s authenticity and security

Thorough research will help you choose a secure and legitimate exchange platform. There are a lot of incompetent exchanges that not only expose investors to fraud, but also end up scamming the little investments left by online scammers. Before settling on an exchange, find out if it can protect you from fraud.

2. Compare the fee structures

Cryptocurrency exchanges have different fee structures and transaction fees. Many people overlook this factor and end up choosing exchanges with high transaction fees, not knowing that they could have used a good exchange that offers discounted fees. An exchange with tokens often has fewer transaction fees than those without. If you’re comparing two exchanges with tokens, pick the one holding more. A crypto exchange comparison can help you pick the exchange with the most appealing fee structure.

3. Know the different types of cryptocurrency exchanges

There are three types of cryptocurrency exchanges: brokers, P2P exchanges, and trading platforms. Learn about what each entails. Cryptocurrency brokers work like forex brokers by setting prices and providing a platform where buyers can purchase cryptocurrencies.

P2P exchanges link sellers and buyers for direct interactions and leave them to agree on transactions. They create a secure system to allow safe exchanges of cryptocurrencies. Most investors use trading platforms. Instead of direct interactions between buyers and sellers, each party interacts with the platform. The sellers place their cryptocurrencies on the platform, and buyers place their orders. The platform charges a transaction fee. Learn the basics of each before making a decision. Research the pros and cons of each and choose the one that best appeals to you.

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4. Purchase methods

Cryptocurrency purchase methods vary based on exchanges. Some platforms require users to use PayPal or bank transfers, while others accept debit and credit cards. Still, some require buyers to purchase using cryptocurrency. Before settling on an exchange, find out how long it takes to complete a purchase. A platform that processes transactions instantly is better than another that takes days or weeks.

5. User experience

User experience and functionalities is a critical factor to consider, especially if you’re trading cryptocurrency for the first time. Exchanges with good user experiences attract the largest growth in transaction volumes. Some platforms provide their users with free tokens, and it would be helpful if you choose an exchange with such offers.

Endnote

If you just got into cryptocurrency, it’s essential to weigh different factors before investing your money. Exchanges operate differently and have varying degrees of security and user experiences. Explore all the available options and pick the exchange that guarantees users’ safety.

Finance Monthly hears from Richard Kershaw, partner at Hunters Law LLP, on how changes in markets can impact divorce settlements and whether there may be a chance to reopen them after they have been finalised.

Over the past twelve months, as COVID-19 has raged around the globe, the FTSE 100 index has seen significant volatility, hitting a high of 7156 and a low of 4993. With asset values in a state of flux, a divorce settlement reached shortly before the outbreak of the pandemic may now look significantly unbalanced if the assets retained by one party were heavily invested in a sector badly hit by the crisis. How does the family court deal with this?

The family court places a high value on the finality of divorce settlements to enable both parties to move on, and encourages taking a long-term view. It does, however, allow for the re-opening of settlements in very limited circumstances. There have been attempts to bring market volatility within that framework, with the latest effort, FRB v DCA (No 3) [2020] EWHC 3696 (Fam), relying on the financial consequences of COVID-19.

The couple were both from extremely wealthy families, and the divorce proceedings had been highly acrimonious, focusing on the wife’s concealment of the child’s paternity and the husband’s attempts to minimise his assets. A judgment of 28 February 2020 made an award of £64 million to the wife. At a hearing on 27 March 2020, four days after the UK’s first national lockdown started, the husband stated his preference to settle the award in cash rather than by transferring some of his investments, and volunteered to make the first payment by 30 September 2020.

Just before the first payment was due, the husband applied to re-open the settlement on the basis that his assets were held in countries, or underpinned by businesses, hard hit by the pandemic (his assets included interests in the international hotel sector, commercial property and care homes). His application failed for a number of reasons, including his failure to provide detailed evidence on the alleged decline in value of his interests - the court noted that his interests were diverse and some may have benefitted from the financial consequences of the pandemic. It was also significant that, after the pandemic had already hit, the husband had declined the option of satisfying the award in shares rather than cash, which would have shared the financial risk between the parties, and had instead volunteered the payment schedule.

The family court places a high value on the finality of divorce settlements to enable both parties to move on, and encourages taking a long-term view.

Crucially, the court said it is “essential” to take a “long term” view, as most commentators consider that the world economy will recover within the next couple of years to pre-COVID-19 levels. Therefore, orders will not be re-opened simply due to significant fluctuations in value; market fluctuations are to be expected and go both ways. This reflects the approach taken by the court in the wake of the 2008 financial crash. For example, in Myerson v Myerson (No 2) [2009] EWCA Civ 282, the court refused to reopen a divorce settlement even where the husband’s business interests had declined in value to such an extent that the settlement would give the wife more than 100% of the assets.

Following this judgment, anyone hoping to re-open their divorce settlement due to the financial impact of COVID-19 will need to think very carefully before making an application. Even substantial fluctuations in asset values are unlikely to persuade the court that the settlement should be re-opened. A claim where a general economic recovery would not assist in the particular case - for example where a business has gone bust due to the pandemic - might have a better chance of success, but the claim would still be speculative.

What, then, can be done? For those currently negotiating divorce settlements, careful consideration should be given to the level of risk attached to each asset when dividing the family’s resources. One party may be willing to take on more risk in return for a higher proportion of the overall assets, or the parties may prefer to share both the assets and the risk equally. However, a settlement that does not take risk into account has higher prospects of unfairness.

For those whose settlements have already been finalised, there may be areas of flexibility worth exploring to relieve immediate financial pressure. In respect of the capital settlement, if there are sums still to be paid then it is possible to apply to the court for (or, if possible, negotiate) a delay in payment to ease cashflow concerns. If the settlement required the sale of assets, or the extraction of cash from a business within a certain timeframe, but the current financial climate would make this a poor time for the transaction, then an application to defer it may assist. The court will need to be satisfied that there is a genuine financial need for the delay rather than simply a preference for it.

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Ongoing maintenance for a former spouse or for children is always subject to variation, both up or down, and if the pandemic has significantly decreased the payer’s ability to meet the agreed payments then a prompt application to vary should be made. If the reduction is likely to be temporary the recipient may be open to agreeing a short-term decrease in payments, especially as many people have found their spending levels reduced during lockdown. As ever, any application will need to be supported by detailed evidence.

Managing divorce settlements can be challenging at the best of times, and economic turmoil adds to the challenges. Whilst the court is unlikely to reopen past settlements, in many cases options do exist for mitigating the impact of the crisis.

Institutional investors have maintained more than $1 trillion worth of investments in the thermal coal industry despite the sector’s significant contribution to climate change and green commitments from many top investors.

New research from 25 climate groups including 350.org Japan, Rainforest Action Network, Reclaim Finance and Urgewald discovered that around $1.03 trillion was invested in the thermal coal sector by the end of last year across 4,500 institutional investors.

Of the funding, 60% came from US-based organisations, with BlackRock and Vanguard alone making up 17%. Researchers described the two asset management companies as “in a class of their own” on coal investment.

Looking into the banking industry, researchers found that 381 banks have lent a total of $315 billion to the coal industry in the past two years, with commercial banks also helping the sector to raise more than $800 billion on share sales and bond issues.

The three most significant coal lenders were based in Japan, but Citigroup and Barclays ranked as fourth- and fifth-biggest respectively. Both banks have lent over $13 billion to companies involved in the coal industry.

Researchers concluded that the actions of major banks and asset managers were not in line with the goals set out by the 2015 Paris Agreement, where leaders agreed to take action to limit global temperature increases to 2°C this century. Part of the agreement involved cutting back fossil fuels, including coal – and especially thermal coal, which is one of the worst fuel sources for climate change.

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Paddy McCully, Rainforest Action Network’s climate and energy program director, described Wall Street as “a huge driver of climate pollution around the world” and identified its coal industry investments as driving the planet deeper into its climate crisis.

“Vague net zero announcements for 2050 – an entire generation into the future – are masking financial institutions’ refusal to take decisive action now,” he said.

Sezer Sherif, Founder and CEO of investment group Vector Capital, explores the strengths of alternative property investment in the UK.

There is no question that COVID-19 has completely torn through the UK economy, with signs of initial recovery towards the end of 2020 largely dashed as the country continues to navigate through a third round of lockdown restrictions.

Yet, one sector that has continued to fair well despite initial and ongoing restrictions is the residential property market, with data from HM Revenue and Customs confirming an estimated 129,400 house sales in December 2020 – which was nearly a third (31.5%) higher than December 2019 and 13.1% higher than in November 2020.

However, according to a recent study by Citizen’s Advice, the same positive stats cannot be reported for the rental or buy-to-let sector, which found that almost a third of renters across the UK had lost income during the pandemic and 11% were in rent arrears. Furthermore, the number of private renters behind on their rent has also doubled over the last 12 months.

In addition to the challenge of rent arrears, landlords haven’t been able to generate viable yields on buy-to-let for a long time, with evolving landlord taxes resulting in an average annual return of 3.53% for the UK market; a figure even considered to be ‘over-performing’.

When compared to the projected returns and no hassle promise of property bonds, it is clear to see why hundreds of thousands of landlords are now selling up and reinvesting funds into the alternative market, with COVID-19 standing as the final catalyst for making this change.

Asset-Backed Investment, No Hassle

In brief, alternative property investment enables high net worth or sophisticated investors to invest funds into the construction of large-scale property developments, without the hassle of actually owning or managing it.

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By essentially ‘lending’ funds under a legally binding agreement, which usually comes with a fixed rate of return, investors don’t have to worry about managing tenants, finance or maintenance issues and instead reap a financial reward of between 6 – 10% for helping to fund the build – a somewhat significant increase when compared to buy-to-let.

Savvy Investors Diversify 

The COVID-19 pandemic has completely obliterated many investment channels in addition to buy-to-let, with the stock market having also taken a serious hit – something repeated when details of the new COVID-19 variants came to light.

However, the savvy investor has been circumventing volatile markets for years, particularly following the Brexit referendum several years ago together with political uncertainties overseas.

Although COVID-19 has taken investment challenges to a new level, it is these periods of uncertainty that force investors to think differently and to diversify their portfolio and investment decisions in order to make viable returns.

The alternative property investment market is one such route, and with construction not impacted by secondary lockdown restrictions, both developments and resulting returns are more likely to remain on track.

As it stands, there is no definitive end to the current COVID-19 pandemic. However, the initial pangs of panic have disappeared and there is definitely a stronger resolve amongst business leaders, developers and investors to fight back, disrupt and diversify, where one great place to start is with the alternative property market.

Bitcoin stabilised near $50,000 on Wednesday following news that payments business Square, headed by Twitter co-founder Jack Dorsey, purchased a further $170 million worth of the cryptocurrency.

In its Q4 earnings report released on Tuesday, Square disclosed that it had bought 3,318 bitcoins for a combined $170 million, following on from a $50 million purchase disclosed last October. Square now has 5% of its total assets invested in Bitcoin.

The price of the virtual currency surged following the report, surging 7.5% to settle around $50,683 by 4 AM EST after hitting $51,369 hours earlier. As has become routine during Bitcoin bull runs, other cryptocurrencies saw surges of their own, with Ethereum and XRP climbing 11.3% and 7.4% respectively.

"Square believes that cryptocurrency is an instrument of economic empowerment, providing a way for individuals to participate in a global monetary system and secure their own financial future," Square said in a statement. The firm stated that it plans to continually assess its aggregate investment in Bitcoin relative its other investments.

Square CEO Jack Dorsey is a well-known proponent of Bitcoin, believing that the token will eventually become the “single currency” of the internet.

Shortly after reaching record highs above $58,000, and only days after crossing the $50,000 milestone, comments from US Treasury Secretary Janet Yellen questioning the efficiency and value of cryptocurrency caused a widespread sell-off across the crypto industry. Bitcoin’s own price dropped 12.5%, falling back under the $50,000 mark.

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Bitcoin’s 400% rally since October has coincided with attention from prominent companies including Tesla, PayPal and BNY Mellon, all of which have announced plans to accept Bitcoin from clients in the future.

Bitcoin is the most valuable cryptocurrency in the world, with a value making up 60% that of the global crypto market.

The cryptocurrency was struck by a widespread market sell-off at the beginning of the week, ending a bull run prompted by both corporate and retail interest.

Bitcoin, which accounts for 60% of the cryptocurrency market by value, was sitting at around $57,500 at midnight on Monday before tumbling over the day’s trading and finally coming to rest down 12.5% at $48,876 by 8:15 AM Tuesday in London.

Most major cryptocurrencies also suffered a sharp drop on the day, with Ethereum – the world’s second-largest cryptocurrency – falling 14.8% to $1,600. The meme asset Dogecoin, which recently surged in popularity due to tweets from Tesla CEO Elon Musk, also shed 10% to $0.0508.

CoinMarketCap.com estimates that the global cryptocurrency market fell 14% over the last 24 hours.

The sell-off, which began on Monday, was apparently triggered after US Treasury Secretary Janet Yellen criticised Bitcoin, describing it as “highly speculative” and an inefficient means of payment.

“People should beware it can be extremely volatile and I do worry about potential losses that investors could suffer,” Yellen said during an interview with the New York Times.

Bitcoin has surged in price over the past year, reaching over $1 trillion in total market value. Its rising value and status as a mainstream mode of payment has drawn further attention from both individual investors and established companies, which has helped to lift other virtual tokens along with it.

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Crypto’s latest bull run was prompted by Tesla’s investment of $1.5 billion in Bitcoin earlier this  month, boosting the currency to a then-record high of $43,968. CEO Elon Musk, who had previously tweeted positively regarding Bitcoin and cryptocurrency more broadly, distanced himself from Tesla’s decision and remarked that the price of Bitcoin and Ethereum seemed “high”.

The good news is that it's now easier than ever to join the ranks of the world's millions of active traders in a number of different ways.

For instance, you can hire a broker and purchase shares directly, use a trading app, buy CFDs (contracts for difference), join a DRIP (dividend reinvestment program), sign up with your employer's stock purchase plan, and get in on the action in other ways. Here's a short list of how people from all walks of life are getting involved in the securities markets. Note that you aren't limited to only one way because it's legal and common to use two or more methods at the same time.

Traditional Stocks

You can always take the traditional route and call a brokerage firm to place an order for shares of your favorite corporation's stock. This method has been around for more than 100 years, and people still use it. However, with all the speedy technology available today, and the ability to bypass traditional brokers, this way of getting involved in securities trading is not as popular as it once was.

CFDs: Contracts for Difference

If you prefer to use an online broker, as millions of people do every day, CFDs offer a fast, inexpensive way to take part in the action of the global securities exchanges, either as a buyer or a seller. CFDs are unique instruments that let you go long or short, with no commission, by purchasing a contract rather than directly buying shares. That contract is essentially a prediction that you make about whether the underlying stock will rise or fall in value. They're one of the simplest ways for new and experienced traders to get involved in today's fast-moving markets.

CFDs are unique instruments that let you go long or short, with no commission, by purchasing a contract rather than directly buying shares.

Trading Apps

Some investors prefer to do everything on their mobile devices, which is why some of the trading apps have become wildly popular. It's easy enough to follow multiple prices and securities, make instant buys, sell just as quickly, and do it all from your handheld device, tablet, laptop, or virtually any computer that's connected to the internet. Keep in mind that you can combine just about any of the popular apps with your own brokerage account. Most of the better online brokers offer site-based apps, programs, and platforms that can do just about any kind of analysis you need. Plus, you can use nearly all of them on your mobile device as long as you download the software from your brokerage site.

ETFs and Mutual Funds

Exchange-traded funds (ETFs) and mutual funds are two of the common ways for investing enthusiasts to gain exposure to a broad range of companies or sectors at the same time. They behave much the way index funds to but with a narrower focus. For example, you might select an ETF that tracks the entire healthcare industry and is made up of 20 or more stocks in that particular niche. When healthcare, as a whole, does well, so does your ETF. Mutual funds work pretty much the same way but tend to come with more fees and not offer as direct a connection to specific market segments.

DRIPS

Dividend reinvestment programs have been around a long time but are enjoying a new surge of popularity among first-time and experienced investors. When you join a DRIP, there's usually a small fee, but after that all your purchases are commission-free. When one of your holdings pays a dividend, the amount is automatically reinvested into the portfolio in the form of a fractional share. If your DRIP doesn't offer fractionals, then the money is simply held in your account until the amount is sufficient to buy another whole share. DRIPs are an effective way for account holders to magnify the power of their dividends by plowing the money directly back into the portfolio.

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Employer-Based Funds

If you're lucky enough to work for an exchange-listed company, it's possible to buy a set number of shares at reduced prices on a set time schedule. Many companies allow workers to purchase five shares, for example, every month for slightly less than market value. Most of these employer-designed programs forbid buyers from selling for a certain amount of time, like one year or six months.

The price of Bitcoin continued to climb on Wednesday, setting further records as it gains greater acceptance among mainstream investors and companies.

Bitcoin’s value reached as high as $51,140 before sinking back down to $50,828.83 in early Wednesday trading in London, extending a bull run for the currency that began in October last year.

Only a day earlier, Bitcoin raced past the $50,000 milestone on several stock exchanges, earning renewed attention from investors who witnessed the coin’s jump to $48,000 less than a week prior.

Bitcoin has been on a steady rise since 2020 as stock market turbulence drove investors to seek out new havens. Late in the year it received a crucial boost towards the payments mainstream after PayPal announced that it would accept the currency as a payment method on its platform. February 2021 also saw Elon Musk’s Tesla invest an unprecedented $1.5 billion in Bitcoin, a show of confidence that triggered the coin’s most recent price surge.

This rise has also lifted other cryptocurrencies, with rival token Ethereum reaching all-time highs of its own.

However, investment gurus have cautioned that Bitcoin’s rally may be short-lived. JPMorgan strategists led by Nikolaos Panigirtzoglou wrote in a memo on Tuesday that the price surge “looks unsustainable” given current volatility.

“Movements since January this year appear to have been more influenced by speculative flows," the analysts said.

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Whether or not Bitcoin’s price drops down again, it is unlikely that cryptocurrencies’ march towards the mainstream will be reversed. Earlier this month, BNY Mellon also stated that it will begin to hold, transfer and issue Bitcoin and other virtual currencies for its clients, furthering the tokens’ adoption in the financial services sector.