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: 8 money lessons for the class of 2022

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: 8 money lessons for the class of 2022

Congratulations, you’ve made it, you’re a new college graduate. Now it’s time to head out into the working world. You will be earning money and getting a regular paycheck. Along with earning money comes responsibility. 

Here are 8 money lessons for the class of 2022. 

Live within your means 

Getting your first real paycheck can be exciting. It’s tempting to buy the things you might not have been able to afford as a college student. It’s OK to splurge a little bit, but it’s more important to understand your financial boundaries and live within your means. 

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Establish a monthly budget 

A great habit to establish early on is to develop a budget. What comes in each month and what goes out? On the income side, your primary item will be your paycheck. If you have some sort of side hustle that generates consistent income, be sure to include this as well. 

On the outflow side, take a look at everything you spend during the month. Items such as housing, food, a car payment, student loan payments and other fixed expenses should be part of your budget. Likewise with items like food, entertainment, gas and others that might vary a bit should also be included. 

Be sure to include income taxes in your budget by having an appropriate amount withheld from each paycheck to ensure that you don’t come up short at tax time. 

Track your spending 

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One of the best ways to help ensure that you are living within your means and that you are adhering to your budget is to track your spending. Having a budget does no good if you don’t stick to it, in order to determine whether you are on track it’s important to track your spending. This way you will know if you overspent in one area that you may need to cut back elsewhere that month. This can be done via one of the many budgeting apps available or via an old fashioned excel spreadsheet.  

Save for a rainy day

Stuff happens, often when we are least prepared for it. An emergency fund can help offset those unexpected bills like a big car repair or needing to buy a new laptop when yours crashes. Perhaps more important, the fund can help tide you over in the event of an illness or a job loss. 

One popular rule of thumb says that you should have 3 to 6 months worth of your ongoing basic monthly expenses set aside. Whether or not this is the right amount is open for discussion, but starting out it’s a good idea to set a portion of each paycheck aside in a liquid account like a savings account to build up an emergency fund.  

Save for retirement 

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While retirement might seem a long way off in the distance, one of the biggest advantages you have is a long time until retirement. The ability to have your retirement contributions compound over a period of 30 or 40 years or longer is a huge advantage. 

If your employer offers one, the easiest way to get started investing for retirement is by contributing a portion of your salary each pay period to the company’s 401(k) or similar retirement plan. Contribute as much as you can, but at least start with something. Even if the amount is minimal, try to increase the percentage of your salary that you are contributing each year. If your employer matches your contribution, try to contribute at least enough to receive the maximum match as this is essentially free money. 

If you are uncomfortable choosing your own investments, many plans offer a managed account option like a target-date fund. 

In addition to an employer-sponsored retirement plan like a 401(k), you can contribute to an IRA. A traditional IRA can provide a tax-break on your contributions, Roth IRAs offer the opportunity for tax-free withdrawals in retirement. 

Invest 

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It’s a good idea to start investing in a taxable account beyond what you are contributing to your 401(k) or other workplace retirement plan. While 401(k)s and IRAs are great retirement savings vehicles, the money in these accounts is not easily accessible prior to retirement. 

Investing in a taxable account provides diversification in terms of the types of accounts and the tax treatment of those accounts. Investments held in a taxable account can be withdrawn without the penalties that accompany a 401(k) or IRA. A taxable account can be an ideal way to save for goals that are a few years off, but not as far off as retirement. Examples might be saving for a down payment on a home or buying a new car. Additionally, investing in a taxable account is a good way to build wealth over time. 

There are a number of ways to do this. Major brokerage firms like Fidelity and Charles Schwab offer many ways to invest in a range of investments such as stocks, mutual funds and ETFs. With the advent of partial shares of stock investing is even easier. Many brokers and mutual-fund companies like T. Rowe Price and Vanguard offer auto investment options that let you start out small and increase the amount you invest over time. 

Give back 

One of the rewards for doing well in life is giving back to others who are not as fortunate. Giving to charity is one of the most rewarding things you can do with your money. Even in small amounts, every donation helps others in need. 

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Enjoy yourself 

A key money habit is setting aside some money to just enjoy yourself. This might mean going out for dinner to your favorite restaurant, seeing a play or attending a sporting event. It might just be going out with friends for a beer. 

We all work hard, it’s important to take some time and money for what you enjoy every so often. 

These money lessons will provide a solid foundation for your money journey as you graduate and as you move through the various phases of your life. 

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SEC Chairman Gary Gensler calls Bitcoin a commodity

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SEC Chairman Gary Gensler calls Bitcoin a commodity

SEC Chairman Gary Gensler calls Bitcoin a commodity SEC Chairman Gary Gensler calls Bitcoin a commodity Andjela Radmilac · 42 mins ago · 2 min read

The Chairman of the SEC said that Bitcoin is the only cryptocurrency he was ready to call a commodity.

2 min read

Updated: June 27, 2022 at 5:16 pm

SEC Chairman Gary Gensler calls Bitcoin a commodity

Cover art/illustration via CryptoSlate

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U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler said that Bitcoin was the only cryptocurrency he was prepared to publicly label a commodity.

Gensler made the comments on CNBC’s Squawk Box, where he discussed the implications of labeling particular cryptocurrencies commodities rather than securities.

Distinguishing commodities from securities

Speaking to CNBC’s Jim Cramer, Gensler addressed his earlier calls to introduce more regulatory clarity to the crypto market.

He said that all of the main market regulators in the U.S. agreed that cryptocurrencies were a highly speculative asset class. Both the SEC and the Commodities Futures Trading Commission (CFTC) have been following the ups and downs of this asset class for a long time, focusing not just on Bitcoin but on hundreds of other tokens on the market.

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Observing the market has led the SEC to conclude that the investing public was hoping for a return from most of those tokens, just like when they invest in securities. Gensler said that many tokens on the market have the “key attributes” of securities, which puts them under the jurisdiction of the SEC.

Bitcoin, on the other hand, falls into a different category.

Gensler said that “some like Bitcoin” are commodities.

While he was careful when choosing his words to avoid hinting at any other tokens or revealing potential moves from the SEC, he was clear that Bitcoin was the only cryptocurrency he was ready to publicly label a commodity.

Later on, he said that market regulators in the U.S., which include the SEC, the CFTC, and various other banking regulators, have a lot of work to do in order to introduce comprehensive laws that would protect the investing public.

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Gensler called for full and fair disclosures in the crypto market, saying that the U.S. is open to having hundreds, if not thousands of tokens on its market if they complied with SEC laws.

When asked whether the public was already too comfortable with investing in Bitcoin, especially now that the SEC has called it a commodity, Gensler said it was no different from investing in traditional markets.

“There’s a lot of risk in crypto, but there’s also risk in classic securities markets,” he told CNBC.

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It’s a Curve-y road to recovery as CRV faces these market effects

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It’s a Curve-y road to recovery as CRV faces these market effects

Over the last few months, most DeFi protocols have struggled with “extreme market conditions” occasioned by the downturn of the general cryptocurrency market. Still reeling under the effect of this bloodbath, Curve Finance, an automated market maker platform, continues to see a decline in its Total Value Locked (TVL).

According to data from DeFiLlama, in the last two weeks, the Decentralized Exchange (DEX) has registered a 51% decline in its TVL. Two weeks ago, this stood at $7.82 billion. However, now ranked at #5 on DeFiLlama’s list of protocols with the highest TVL, the TVL of Curve Finance stood at $5.16 billion, at the time of writing.

A look at data from CoinMarketCap revealed that the governance token for the DEX, Curve DAO Token (CRV), has declined steadily over the last two weeks.

It’s all going down…

Exchanging hands at $0.7804 per CRV, at the time of writing, the alt has plummeted by 31% in the last two weeks. Over the last 24 hours, the crypto has registered a 5.17% decline in price. Trading volume was spotted with a 3% uptick within the same period.

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Furthermore, the market capitalization saw a drop in value over the last two weeks. It recorded a decline from $518.37 million to $420.27 million, at press time. 

Source: Santiment

Since the beginning of the month, increased distribution of CRV tokens has forced its price to plummet. Since then, the token’s Relative Strength Index (RSI) has moved further away from 50, with the same aiming for the oversold position.

This indicates that CRV tokens are being oversold. This also explains the sustained decline in price. Still, in a downward curve, the RSI was positioned at 41 at the time of writing. 

Source: TradingView

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On-chain analysis says…

On a social front, on-chain data revealed that CRV registered declines in its social dominance and social volume in the last two weeks.

Within this period, social dominance saw a 20% drop while social volume went down by 15%.

Source: Santiment

Additionally, the number of daily active addresses dropped by 14%. Network growth, on the other hand, saw a 27% decline.

Source: Santiment

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While other metrics registered some deprecation in the last two weeks, developmental activity went in the opposite direction. In fact, within the aforementioned period, developmental activity grew by 7%.

Source: Santiment

Abiodun is a full-time journalist working with AMBCrypto. He is also a lawyer with over 2 years of experience. With a keen interest in blockchain technology and its limitless possibilities, Abiodun spends his time understanding the technology, building projects, and educating people about it.

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Glassnode report shows 2022 bear market is the worst in history

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Glassnode report shows 2022 bear market is the worst in history

Glassnode report shows 2022 bear market is the worst in history Glassnode report shows 2022 bear market is the worst in history Oluwapelumi Adejumo · 2 hours ago · 2 min read

Bitcoin and Ethereum will trade below their ATH in their previous cycle for the first time since their creation.

2 min read

Updated: June 27, 2022 at 2:56 pm

Glassnode report shows 2022 bear market is the worst in history

Cover art/illustration via CryptoSlate

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Blockchain analytics company Glassnode’s latest report reveals the 2022 bear market as the worst in history and many investors have sold their Bitcoin (BTC) holdings at a discount.

According to the report, Bitcoin’s dip below the 200-day moving average, net realized losses, and negative deviation from realized price make this the worst bear market in the history of the cryptocurrency.

The 2022 bear market has been brutal for #Bitcoin and #Ethereum investors, realizing massive capital losses.

In our latest research, we quantify the severity of this bear, and makes a case for it being the most significant in history.

Read more👇https://t.co/FlSehPo3FB

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— glassnode (@glassnode) June 24, 2022

It continued that this is the first time on record that BTC and Ethereum (ETH) will trade below their ATH in their previous cycle, which means significant unrealized losses in the market. Every investor who bought BTC or ETH between 2021 and 2022 is now underwater.

While many are still holding on, the financial pressures of limited liquidity and rising inflation is pushing several investors to sell at a loss.

Bitcoin declines below moving average

Per the report, the first sign of a bear market is the decline in Bitcoin price below its 200-day moving average and, worse, 200-week MA. Bitcoin is trading at less than half of the 200-day MA level at the current price.

The report also pointed out that this is the first time since 2015 that the Bitcoin price will fall below 0.5 Mayer Multiple (MM). The MM for this cycle is currently 0.487, much lower than the last cycle, which was 0.511.

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Source: Glassnode

The Mayer Multiple shows oversold or overbought conditions by considering the changes in the price above and below the 200-day MA. “Only 84 out of 4160 trading days (2%) have recorded a closing MM value below 0.5,” the report said.

Additionally, the current market conditions are pretty severe, reflecting the spot price dropping below the realized price. Instances like this are sporadic, and this is only the fifth time it has happened since Bitcoin launched in 2009.

According to Glassnode, only 13.9% of all Bitcoin trading days have seen spot prices below unrealized prices. It further added that the investors locked in a loss of $4.234 billion on the day Bitcoin dropped below $20k.

Like Bitcoin, like Ethereum

Ethereum isn’t doing better either. Similar to Bitcoin, those who bought Ethereum in 2021 and early this year have unrealized losses. Most of the decline in Ethereum price is due to DeFi deleveraging and its dominance decline since November 2021.

Additionally, it is trading at a 63% discount to its 200-day MA, and its Mayer Multiple has hit 0.37, below the 0.6 MM band downside deviation. So far, the token has only traded below this band for 29 days, far below the 187-days in the 2018 bear market.

Based on all of the available data, Glassnode concluded that this current market capitulation event:

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Is one of, if not the most significant in history, both in its severity, depth, and magnitude of capital outflow and losses realized by investors.

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