Increasing speculation is that the global economy could be headed for a recession in 2023. This comes as governments around the world continue to grapple with rising debt levels and sluggish economic growth despite massive fiscal stimulus packages. 
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Meanwhile, companies are facing headwinds from changing consumer preferences, technological disruption, and escalating trade tensions. All of these factors have raised concerns about whether the current economic expansion can be sustained over the long term. 
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Below we explore the likelihood of an upcoming economic downturn and guide you through how to protect your savings and investments should you be faced with one. 
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Are we headed for a recession in 2023?

According to economic research conducted by Bloomberg, economists have predicted a 70% chance of a recession next year, up from their 30% prediction in July last year. While not the technical definition, recessions typically take place after two consecutive quarters of negative economic growth, which was seen last year. 
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Despite the interest rates and inflation, consumer demand has deteriorated. After two years of bulked-up hiring, job search activity is now also waning. The stock markets have declined approximately 20% in 2022 with speculations indicating that further drops in 2023 are likely to follow suit.
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While these stats might cause panic, know that recessions are part of the natural economic cycle. In fact, there have been thirteen recessions since World War II, each lasting an average of 10 months, all of which recovered. With the right preparations, an economic downturn can cause minimal damage to your financial goals. 
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How to ride out a recession with minimal damage (hint: emergency fund)

First and foremost, build your emergency savings fund before the recession goes into full effect. This involves saving money to build up three to six months’ worth of expenses that can be used for any unforeseen costs that might pop up over times of economic slowdown. Building an emergency fund is a surefire way to protect your investments and recession-proof your finances.
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On top of this, experts recommend putting off any big purchases, especially luxury items, and creating (and sticking to) a budget. Look for valuable money-saving tips and implement these into your day-to-day life. These tips might help you to save money beyond the economic uncertainty and help you to offset the rising costs of living. Consider creative ways to beat the economy and cut costs.
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How to manage debt in an economic downturn

If you have a steady job, starting today, increase your payments to eradicate your debt. Don’t underestimate the freedom that comes with being debt-free, not only financially but emotionally too. Once you’ve paid this off you will have more room in your balance sheets to navigate the interest rate hike and increased cost of living typically associated with recessions. 
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Should you lose your job, try to minimize your unessential debt repayments and focus on having enough money to cover your four pillars: food, utilities, shelter, and transportation. If you have funds left over, put them in a savings account, particularly if you don’t have your emergency fund set up yet.
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Whatever happens, do not get into more debt, high interest debt will only make a bad situation worse. Consider speaking to a certified financial planner if you are unsure.
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How to recession-proof your savings

Assuming you still have your job, continue to save money and build your cash reserves. Don’t let economic downturns stop you from moving toward your economic goals. Ideally, you have your emergency savings fund set up to buffer any personal losses and cover your living expenses. This allows you to put your usual amount of savings into an interest-yielding account without any concern for “what ifs”. 
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Now is also a great time to review your budget and allocate every cent to a purpose. If there is any extra money left over, incorporate this into your savings or retirement account. If not, revise to see where you can cut spending and fill up your savings jar. 
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How to manage your stock market investments during a recession

The golden rule of managing your investments and maintaining your financial position during a recession is not to sell at a loss. Time and time again we see investors make trades based on fear, and ultimately make terrible losses while peers that left their funds in the stock market account see impressive returns once the economy has returned to normal.
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Remember: losses are only realized once you withdraw the funds from the investment vehicles. Leave them in there, as with every economic cycle in history, it will get better. And if you have the funds, consider investing a little more - stock market prices will be at “discount” lows. 
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Other valuable advice is not to make any sudden changes to your investment strategy, consider investing as a long-term approach. 
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Some long-term investors look to incorporate shares in consumer staples companies into their portfolios as a strategy to overcome market slumps. By investing in funds like the Consumer Staples Select Sector SPDR Fund or the Vanguard's Consumer Staples ETF, the hopes are that the success of these funds will offset the losses from other stocks within the portfolio.
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Avoid FUD and be prepared

Despite whatever economic situation might arise, rest assured that it shall pass. After all, if you are reading this now then you have most likely lived through several recessions before and come out on top. Don't let any worries stop you from being prepared in case of a recession, after all, these tips above on how to recession-proof your finances are your best chance of coming out on top, again. 

Le terme TradFi, diminutif de traditional finance (finance traditionnelle), est né dans l’univers des cryptomonnaies. Il sert à désigner l’ensemble des institutions financières centralisées comme les banques de détail, les banques commerciales ou d’investissement. L’idée est de différencier ces acteurs du monde décentralisé de la finance crypto, aussi appelé DeFi.

Qu’est-ce que la TradFi (finance traditionnelle) ?

La TradFi regroupe toutes les institutions financières classiques, mais aussi des entreprises fintech qui opèrent dans le système financier centralisé actuel. Ces entités sont fortement réglementées par les gouvernements, possèdent des bureaux physiques et offrent des services bancaires depuis des décennies.

Ces plateformes — comme JPMorgan Chase, Goldman Sachs, ou encore PayPal, SoFi et Square — exécutent les transactions via des systèmes centralisés. Elles imposent généralement des barrières à l’entrée élevées ainsi que des processus de vérification d’identité (KYC) et de lutte contre le blanchiment d’argent (AML) très rigoureux.

Les avantages de la finance traditionnelle

Seules les entreprises accréditées et réglementées peuvent fournir des services financiers en TradFi. En cas de problème, les clients peuvent déposer une plainte et espérer obtenir un recours via les autorités compétentes.

Les procédures strictes (comme le KYC) permettent également de limiter les fraudes, rendant plus difficile l’accès aux systèmes bancaires pour les individus malveillants.

Par ailleurs, la TradFi collabore avec les autorités pour surveiller les flux financiers suspects, chose plus complexe dans l’univers crypto où l’anonymat est souvent la norme.

Mais aussi quelques limites

Si la finance traditionnelle offre un cadre sécurisé, elle présente aussi des freins à l’innovation. L’excès de réglementation et de bureaucratie ralentit les évolutions technologiques. Et surtout, elle exclut une partie de la population mondiale qui ne remplit pas les critères requis pour accéder aux services financiers.

L’avenir pourrait bien reposer sur une collaboration entre TradFi, crypto et blockchain, pour bâtir une nouvelle infrastructure plus inclusive, rapide et résiliente.

TradFi vs DeFi : deux visions opposées

La DeFi (finance décentralisée) repose sur des blockchains et des smart contracts. Elle permet aux utilisateurs d’accéder à des services financiers sans intermédiaire, de manière directe et automatisée.

Principales différences :

• Dans la TradFi, les fonds sont émis par une banque et les transactions sont validées par des institutions.
• En DeFi, les fonds sont générés par un protocole blockchain, et les transactions sont validées par des smart contracts.
• L’accessibilité est plus grande en DeFi : une simple connexion Internet et du collatéral suffisent. En TradFi, les utilisateurs doivent passer par des vérifications strictes : revenus, historique bancaire, situation légale, etc.

TradFi vs CeFi : entre centralisation et innovation

La CeFi (finance centralisée) est un modèle hybride qui combine le meilleur de la TradFi et de la DeFi. Les plateformes CeFi permettent aux utilisateurs d’accéder à des services crypto (comme les échanges ou les comptes rémunérés) via une structure centralisée.

Certaines plateformes permettent, par exemple, d’emprunter des fonds en crypto contre un dépôt de garantie, comme dans un prêt bancaire — mais sans dossier à constituer.

💡 À noter : contrairement à la TradFi, les dépôts sur CeFi ne sont généralement pas assurés par l’État, ce qui en fait un environnement plus risqué.

Quelle place pour la TradFi dans l’écosystème crypto ?

Comme toute industrie, la finance traditionnelle doit évoluer avec son temps. Aujourd’hui, la blockchain et les actifs numériques sont au cœur d’une transformation majeure du système financier.

Pour rester pertinentes, les institutions TradFi vont devoir intégrer progressivement les cryptomonnaies et les technologies blockchain dans leurs services. Cela pourrait également faciliter l’encadrement réglementaire de la crypto, en l’intégrant dans un environnement déjà structuré.

Bien qu’encore séparés aujourd’hui, la TradFi et la crypto pourraient fusionner sur certains segments comme les prêts, l’assurance ou l’épargne. Une convergence qui pourrait allier stabilité réglementaire, innovation technologique et accessibilité à grande échelle.

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Interest is a fundamental concept in the world of finance and economics. At its simplest, interest can be understood as the fee charged for borrowing money, or the amount earned on invested money. Understanding interest is essential for anyone seeking to manage their finances effectively, whether they are borrowing money, investing their savings, or simply trying to make informed decisions about their financial future.

In this article, we will explore the basics of interest, including how it is calculated, the different types of interest, and how to navigate interest in various financial situations. We will also provide real-life examples and valuable tips to help you make informed decisions about your money.

Types of Interest

There are two primary types of interest: landed money interest and earned interest. Landed money interest refers to the interest paid on borrowed money, while earned interest refers to the interest earned on invested money.

Landed Money Interest

Landed money interest, also known as borrowing interest, is the interest paid by a borrower to a lender in exchange for the use of money. This type of interest is charged on a wide range of financial products, including mortgages, car loans, personal loans, and credit cards.

The interest rate on a loan is typically expressed as a percentage of the amount borrowed, and is determined by a variety of factors, including the borrower's credit score, the term of the loan, and the lender's own risk assessment. The interest rate on a loan can have a significant impact on the overall cost of borrowing, with higher interest rates resulting in higher monthly payments and a greater total cost over the life of the loan.

For example, let's say you take out a $10,000 car loan with an interest rate of 5% per year, to be repaid over a five-year term. Over the course of the loan, you will pay a total of $1,322.74 in interest, in addition to the $10,000 principal amount. If the interest rate were increased to 8%, the total cost of the loan would rise to $1,845.87, a difference of over $500.

Earned Interest

Earned interest, also known as investment interest, is the interest earned on invested money. This type of interest is paid to investors by banks, governments, and other financial institutions in exchange for the use of their money.

The interest rate on investments can vary widely depending on the type of investment, the term of the investment, and the risk associated with the investment. For example, savings accounts and certificates of deposit (CDs) typically offer lower interest rates but are considered low-risk investments, while stocks and other securities can offer higher potential returns but are also considered higher risk.

For example, let's say you invest $10,000 in a CD with an interest rate of 2% per year for a five-year term. At the end of the term, you will have earned a total of $1,047.13 in interest, in addition to the $10,000 principal amount. If you had instead invested the same $10,000 in the stock market and earned an average annual return of 8%, your investment would have grown to $14,693.28 over the same five-year period.

Calculating Interest

The calculation of interest depends on a variety of factors, including the amount of the loan or investment, the interest rate, and the length of the loan or investment term. In general, the formula for calculating interest is as follows:
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Interest = Principal x Rate x Time

Where:
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• Principal is the amount borrowed or invested
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• Rate is the interest rate expressed as a decimal
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• Time is the length of the loan or investment term, expressed in years
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For example, let's say you invest $5,000 in a savings account with an interest rate of 2% per year, to be held for three years. Using the formula above, we can calculate the interest earned as follows:
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Interest = $5,000 x 0.02 x 3Interest = $300
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In this case, you would earn $300 in interest over the three-year term, in addition to the $5,000 principal amount.

Tips for Navigating Interest

Navigating interest can be challenging, particularly for those new to the world of finance. Here are some valuable tips to help you make informed decisions about interest in various financial situations:

1. Understand the terms of your loan or investment: Before taking out a loan or investing your money, make sure you understand the terms of the agreement, including the interest rate, term length, and any associated fees or penalties.
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2. Shop around for the best interest rates: When taking out a loan or investing your money, be sure to shop around for the best interest rates. Compare offers from multiple lenders or financial institutions to ensure you are getting the best deal.
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3. Consider the impact of compounding interest: When investing your money, consider the impact of compounding interest. Compounding interest is interest that is earned on both the principal amount and any accumulated interest, resulting in exponential growth over time.
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4. Avoid overexposure: Be careful not to overexpose yourself to any one type of investment or loan. Diversify your portfolio and consider spreading your investments across a range of asset classes to minimize risk.
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5. Take advantage of tax benefits: Some types of interest, such as mortgage interest and student loan interest, may be tax-deductible. Be sure to take advantage of any available tax benefits when borrowing or investing.

Real-Life Examples

Let's look at some real-life examples of interest in action:

1. Car loan: You take out a $20,000 car loan with an interest rate of 4% per year, to be repaid over a five-year term. Over the course of the loan, you will pay a total of $2,164.17 in interest, in addition to the $20,000 principal amount.
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2. Savings account: You deposit $10,000 in a savings account with an interest rate of 1% per year, to be held for three years. Over the three-year term, you will earn a total of $308.18 in interest, in addition to the $10,000 principal amount.
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3. Mortgage: You take out a $300,000 mortgage with an interest rate of 3.5% per year, to be repaid over a 30-year term. Over the course of the mortgage, you will pay a total of $184,968.79 in interest, in addition to the $300,000 principal amount.

In Conclusion:

Interest is a fundamental concept in the world of finance and economics, and understanding how it works is essential for anyone seeking to manage their finances effectively.

Whether you are borrowing money, investing your savings, or simply trying to make informed decisions about your financial future, understanding interest can help you make better decisions and maximize your potential returns. By considering the tips and real-life examples presented in this article, you can navigate interest with confidence and make informed decisions about your money.

So you decided to go deeper into the fundamentals of investing and learn what an APY is. You've come to the right place, let's get you started with this perplexing "APY" term.

What Is APY?

In conventional finance, a savings account frequently offers both a low-interest rate and an annual percentage yield (APY). Let's look at what they are and what they mean.

• The Annual Percentage Yield (APY) is the annual return from the principal and accumulated interest on investments or savings, expressed as a percentage.
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• The simple interest rate is the amount earned on the original deposit. 

Assume an account at a bank offers a yearly interest rate of 5%. If someone deposits €2,000 into the account, it will be worth €2,100 after a year with the 5% yearly interest rate.                                           

The Difference Between Interest Rate, APY and APR

The APY takes into account the impact of compounding, whereas the interest rate does not. The APY is the projected rate of return earned annually on a deposit after taking compound interest into account.

Compounding interest is the interest that a person accrues from their initial deposit, as well as the interest they earn from their original investment (or in other words, the initial deposit amount plus the interest generated).

The terms APY and APR are frequently used interchangeably, although they represent two different things. These words are sometimes confused due to their close resemblance. However, APY and APR aren't the same things.

The APR (annual percentage rate) is a formula that determines how much interest you'll pay when borrowing money and is the rate of return earned if your funds are invested in an interest-bearing account. 

When a person takes out a loan, their lender sets an APR that varies based on the loan. APRs are either fixed or fluctuating depending on the type of loan the user requires. However, the APR is a rather basic interest rate and does not take compounding into account, unlike APY. 

How Is APY Calculated?

APY represents your rate of return, also known as the amount of earnings or profit you can make. Of course, your ultimate earnings will vary depending on how long you keep your assets invested while the holding period will influence how much you will earn. 

APY measures the rate of the annual return earned on any amount of money or investment after taking into account compounding interest.

The following is the formula for calculating APY:

APY = (1 + p/n)ⁿ − 1

Where:

p = periodic rate of return (or annual APR)

n = number of compounding periods each year
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Bear in mind that an APY can be calculated in a variety of ways depending on the provider.

Qu’est-ce qu’Etherscan ?

Etherscan est un explorateur de blockchain gratuit et largement utilisé qui permet à n’importe qui de consulter les transactions effectuées sur le réseau Ethereum. Mais pas seulement : vous pouvez aussi y voir les blocs, les frais de gas, les adresses de portefeuilles, les smart contracts et d’autres données on-chain.

En résumé, Etherscan agit comme un moteur de recherche pour la blockchain Ethereum. Il donne un aperçu clair de l’activité du réseau tout en illustrant les avantages de la transparence propre à cette technologie.

Aucun compte n’est requis pour consulter les données sur Etherscan. Cependant, en créant un compte, vous pouvez accéder à des fonctionnalités supplémentaires comme des alertes sur les transactions entrantes, des outils pour développeurs ou encore des flux de données personnalisés.

Que vous investissiez dans une dapp, suiviez une adresse de portefeuille, ou vérifiiez un dépôt dans un jeu basé sur la blockchain, Etherscan vous permet de visualiser tout cela facilement.

Pourquoi Etherscan est-il si populaire ?

Etherscan est l’explorateur Ethereum le plus utilisé dans l’écosystème crypto. Il est particulièrement apprécié pour sa simplicité et sa fiabilité.

Même s’il ne permet pas de stocker ou d’échanger des tokens, Etherscan offre une vue transparente de l’activité sur Ethereum : transactions, contrats intelligents, frais, historiques… c’est une vraie vitrine de ce qui se passe sur le réseau.

Il permet aussi de mieux comprendre le fonctionnement de la blockchain, et peut aider à repérer des mouvements suspects – comme la vente massive de tokens par un projet ou les déplacements de fonds importants (whales).

Comment utiliser Etherscan

Que vous cherchiez à vérifier une transaction ou à consulter les détails d’un smart contract, Etherscan est là pour ça. Voici comment suivre une transaction.

Comment trouver une transaction sur Etherscan

Comprendre comment suivre une transaction peut s’avérer très utile, notamment pour savoir combien de confirmations elle a reçues ou quels frais ont été payés.

Chaque transaction sur la blockchain est associée à un identifiant unique, appelé TXID ou hash de transaction – l’équivalent numérique d’un numéro d'identité. Cela ressemble à ceci :

0x3349ea4144aed83291f87b3904b02f8f1e76c3b5bfed0d95a000fafddaed01bc

Pour suivre une transaction en temps réel, il vous suffit de copier ce TXID et de le coller dans la barre de recherche sur le site d’Etherscan.

Vous verrez alors tous les détails liés à cette transaction.

Vocabulaire utile sur Etherscan

Voici les principaux termes à connaître lorsque vous consultez une transaction :

• Transaction Hash : identifiant unique de la transaction
• Status : état actuel (en attente, échouée ou réussie)
• Block : numéro du bloc contenant la transaction
• Timestamp : date et heure d’exécution
• From : adresse de l’expéditeur
• To : adresse du destinataire ou du smart contract
• Value : montant transféré
• Transaction Fee : frais de transaction (ou frais de gas)
• Gas Price : coût unitaire du gas au moment de la transaction (en ETH et en Gwei)

Comment trouver les frais de gas sur Etherscan

Lorsque vous interagissez avec le réseau Ethereum, vous devez payer des frais de gas, qui varient en fonction de l’activité sur le réseau.

Etherscan propose un Gas Tracker qui vous montre les prix actuels du gas et l’état de congestion du réseau. Cela peut vous aider à choisir le bon moment pour envoyer une transaction avec des frais optimisés.

En conclusion

Etherscan est un outil indispensable pour tous ceux qui utilisent Ethereum ou des tokens liés à son écosystème. Qu’il s’agisse de confirmer une transaction, d’analyser un contrat ou de consulter les frais de gas, Etherscan vous donne une vue complète et transparente du réseau.

Un incontournable pour mieux comprendre vos opérations et explorer l’univers d’Ethereum en toute clarté.

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When Satoshi Nakamoto created Bitcoin, they designed it in such a way that should the value increase dramatically, there would still be an inclusive decimal value for the masses. Satoshis could one day be how we buy a cup of coffee anywhere in the world, using the same currency from Britain to Japan.

How many Satoshis are in a Bitcoin?

Much like fiat currencies, cryptocurrencies can be divided into smaller units. While the US dollar and Euro has cents as its smallest denomination, Bitcoin has satoshis (also referred to as SATs). But unlike cents, satoshis are 100 millionth of a Bitcoin, meaning that Bitcoin can be divided into 100 million units, that's eighteen decimal places. 

See the table below illustrating the various values of Bitcoin vs satoshis.

How many Satoshis are in a Bitcoin, exactly?

1 Satoshi 0.00000001 Bitcoin
10 Satoshi 0.00000010 Bitcoin
100 Satoshi 0.00000100 Bitcoin
1,000 Satoshi 0.00001000 Bitcoin
10,000 Satoshi 0.00010000 Bitcoin
100,000 Satoshi 0.00100000 Bitcoin
1,000,000 Satoshi 0.01000000 Bitcoin
10,000,000 Satoshi 0.10000000 Bitcoin
100,000,000 Satoshi 1.00000000 Bitcoin

As defined by the technology, only 21 million Bitcoin will ever exist, meaning that there will only ever be 210,000,000,000,000 satoshis. That's a tough figure to wrap your head around. As indicated above the link between satoshis and Bitcoin is several decimal places, certainly not calculations we were taught in school. A less complicated notion to digest is that satoshis were named after Bitcoin's creator, Satoshi Nakamoto.  

Bitcoin measurement units

The creator of the peer-to-peer digital currency outlined in the Bitcoin white paper the decimal places that Bitcoin is divisible by. Throughout the whitepaper, they only referred to two measurement units, Bitcoin itself and satoshis. Several years down the line as the BTC price continued increasing, market research and various discussions resulted in the decision that more measurement units were required.

Five years after Satoshi Nakamoto disappeared from online forums, a universal ISO update was released that recognised two new Bitcoin measurements. 

• MicroBitcoin (μBTC) 

1 BTC = 1,000,000 MicroBitcoins (μBTC) = 100 SATs

• MilliBitcoin X (mBTC)

1 BTC = 1,000 MilliBitcoins (mBTC) = 100,000 SATs

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When taking a glance at your Bitcoin wallet you can choose to see satoshis, microBitcoins or miliBitcoins. By any account, it will likely take a few years before we're referring to buying goods in SATs.

How to calculate SATs

As we've already established in the information provided above, 1 BTC is worth 100,000,000 SATs. While one could do the maths, there are plenty of tools available online that can do the sums for you. Better yet, as satoshis are recognised as universal units of value, you can change the currency setting on several sites.

For instance, on Coin Market Cap, you can change the default currency to SATs by selecting the currency drop down option in the top right-hand corner. Select the Satoshi option under Bitcoin units.

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This will then display all values as satoshis. 

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Alternatively, you can use one of the many satoshi calculators available online, which will instantly convert your currency value into SATs. In the future when using SATs as a form of payment, the value owed will likely be presented to you in the same form, allowing for a much easier consumer experience.

‍Key Takeaways

SATs are used by the Bitcoin network and crypto exchanges. Miners on the Bitcoin blockchain use SATs to determine the fee owned to them for transactions validated, while some exchanges use SATs to measure altcoin's value and performance against Bitcoin.

It is likely if in the future Bitcoin is fully integrated into our financial systems that prices in shops and supermarkets will be reflected as a value in SATs as opposed to BTC.