Vella Finance's Decision to Drop Crypto Services
Nigerian fintech startup, Vella Finance, has recently announced that it will no longer offer crypto-related services starting from October 30. Instead, the company will shift its focus towards providing banking services to small and medium-sized businesses. The decision to drop crypto services was made based on business reasons, according to co-founder Tolu Adedayo.
Reasons Behind the Pivot
Vella Finance informed its users and subscribers about the change on October 23. Adedayo explained that the startup has decided to fully embrace SME banking as it aligns with their existing business model and the regulatory framework. By leveraging user and transactional data, the company aims to offer an end-to-end banking system that better serves its customers. Adedayo also stated that providing cryptocurrency and banking services simultaneously is not practical.
Interest in Crypto Assets in Nigeria
Interestingly, Vella Finance's decision comes at a time when interest in digital assets, such as bitcoin and tether, is growing in Nigeria. According to a Chainalysis report, Nigeria is one of the six countries in the world's top 50 where crypto transaction volume has grown year-over-year. Additionally, the rapidly depreciating local currency in Nigeria is believed to be fueling the interest in crypto assets.
Vella Finance's Future Plans
Despite dropping crypto-related services, Vella Finance has plans to introduce new features that will solidify its presence in the business banking space. The company is committed to providing a comprehensive banking solution for small and medium-sized businesses.
What are your thoughts on Vella Finance's decision? Share your opinions in the comments section below.
Frequently Asked Questions
Should you Invest In Gold For Retirement?
How much money you have saved, and whether or not gold was an option when you first started saving will determine the answer. If you're unsure about which option to choose then consider investing in both.
Gold offers potential returns and is therefore a safe investment. It is a good choice for retirees.
Most investments have fixed returns, but gold's volatility is what makes it unique. As a result, its value changes over time.
However, it doesn't necessarily mean that you shouldn't invest your money in gold. You should just factor the fluctuations into any overall portfolio.
Another benefit to gold? It's a tangible asset. Gold can be stored more easily than stocks and bonds. It can be easily transported.
You can always access your gold if it is stored in a secure place. There are no storage charges for holding physical gold.
Investing in gold can help protect against inflation. You can hedge against rising costs by investing in gold, which tends to rise alongside other commodities.
Additionally, it will be a benefit to have some of your savings invested into something that won't lose value. Gold rises in the face of a falling stock market.
Another advantage to investing in gold is the ability to sell it whenever you wish. You can easily liquidate your investment, just as with stocks. You don't even need to wait for your retirement.
If you do decide to invest in gold, make sure to diversify your holdings. Do not put all your eggs in one basket.
Don't buy too many at once. Begin by buying a few grams. You can add more as you need.
It's not about getting rich fast. Instead, the goal here is to build enough wealth to not need to rely upon Social Security benefits.
Although gold might not be the right investment for everyone it could make a great addition in any retirement plan.
Is gold buying a good retirement option?
Buying gold as an investment may not seem very appealing at first glance, but when you consider how much people spend on average on gold per year worldwide, it becomes worth considering.
The most popular form of investing in gold is through physical bullion bars. There are many ways to invest your gold. It's best to thoroughly research all options before you make a decision.
If you're not looking to secure your wealth, it may be worth considering purchasing shares in mining equipment or companies that extract gold. If you are looking for cash flow from your investment, buying gold stocks will work well.
You also can put your money into exchange-traded funds (ETFs), which essentially give you exposure to the price of gold by holding gold-related securities instead of actual gold. These ETFs often include stocks of gold miners, precious metals refiners, and commodity trading companies.
Should You Get Gold?
In times past, gold was considered a safe haven for investors in times of economic trouble. Many people are shifting away from traditional investments like bonds or stocks to instead look toward precious metals such gold.
While gold prices have been rising in recent years they are still low relative to other commodities, such as silver and oil.
Some experts think that this could change in the near future. According to them, gold prices could soar if there is another financial crisis.
They also point out that gold is becoming popular because of its perceived value and potential return.
Consider these things if you are thinking of investing in gold.
- Consider first whether you will need the money to save for retirement. You can save for retirement and not invest your savings in gold. Gold does offer an extra layer of protection for those who reach retirement age.
- Second, be sure to understand your obligations before you purchase gold. Each type offers varying levels and levels of security.
- Last but not least, gold doesn't provide the same level security as a savings account. It is possible to lose your gold coins.
Don't buy gold unless you have done your research. Protect your gold if you already have it.
Who is entitled to the gold in a IRA that holds gold?
The IRS considers gold owned by an individual to be “a type of money” and is subject taxation.
You must have at least $10,000 in gold and keep it for at most five years to qualify for this tax-free status.
The purchase of gold can protect you from inflation and price volatility. But it's not smart to hold it if your only intention is to use it.
If you plan on selling the gold someday, you'll need to report its value, which could affect how much capital gains taxes you owe when you cash in your investments.
Consult a financial advisor or accountant to determine your options.
What's the advantage of a Gold IRA?
There are many advantages to a gold IRA. It can be used to diversify portfolios and is an investment vehicle. You decide how much money is put in each account and when it is withdrawn.
You have the option of rolling over funds from other retirement account into a gold IRA. This makes for an easy transition if you decide to retire early.
The best part about gold IRAs? You don't have to be an expert. They are offered by most banks and brokerage companies. You don't have to worry about penalties or fees when withdrawing money.
There are, however, some drawbacks. Gold has always been volatile. Understanding why you want to invest in gold is essential. Are you looking for safety or growth? Do you want to use it as an insurance strategy or for long-term growth? Only then will you be able make informed decisions.
If you plan on keeping your gold IRA alive for a while, you may want to consider purchasing more than 1 ounce of pure gold. A single ounce isn't enough to cover all of your needs. Depending on your plans for using your gold, you may need multiple ounces.
If you're planning to sell off your gold, you don't necessarily need a large amount. Even a single ounce can suffice. These funds won't allow you to purchase anything else.
What should I pay into my Roth IRA
Roth IRAs allow you to deposit your money tax-free. You can't withdraw money from these accounts before you reach the age of 59 1/2. If you decide to withdraw some of your contributions, you will need to follow certain rules. First, you can't touch your principal (the initial amount that was deposited). This means that you can't take out more money than you originally contributed. You must pay taxes on the difference if you want to take out more than what you initially contributed.
The second rule says that you cannot withdraw your earnings without paying income tax. When you withdraw, you will have to pay income tax. Consider, for instance, that you contribute $5,000 per year to your Roth IRA. In addition, let's assume you earn $10,000 per year after contributing. Federal income taxes would apply to the earnings. You would be responsible for $3500 This leaves you with $6,500 remaining. You can only take out what you originally contributed.
Therefore, even if you take $4,000 out of your earnings you still owe taxes on $1,500. You'd also lose half the earnings that you took out, as they would be subject to a second 50% tax (half of 40%). Even though you had $7,000 in your Roth IRA account, you only received $4,000.
There are two types if Roth IRAs: Roth and Traditional. A traditional IRA allows for you to deduct pretax contributions of your taxable income. When you retire, you can use your traditional IRA to withdraw your contribution balance plus interest. You have the option to withdraw any amount from a traditional IRA.
Roth IRAs won't let you deduct your contributions. After you have retired, the full amount of your contributions and accrued interest can be withdrawn. There is no minimum withdrawal requirement, unlike traditional IRAs. It doesn't matter if you are 70 1/2 or older before you withdraw your contribution.
Statistics
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
External Links
wsj.com
- Saddam Hussein's Invasion Helped Uncage a Bear In 1990 – WSJ
- Do you want to keep your IRA gold at home? It's not legal – WSJ
investopedia.com
bbb.org
finance.yahoo.com
How To
How to keep physical gold in an IRA
The best way of investing in gold is to purchase shares from companies that produce gold. But, this approach comes with risks. These companies may not survive the next few years. If they survive, there's still the risk of losing money due to fluctuations in the price of gold.
The alternative is to buy physical gold. You'll need to open a bank account, buy gold online from a trusted seller, or open an online bullion trading account. This option has many advantages, including the ease of access (you don’t have to deal with stock markets) and the ability of making purchases at low prices. It's easier to track how much gold is in your possession. You'll get a receipt showing exactly what you paid, so you'll know if any taxes were missed. You have less risk of theft when investing in stocks.
There are however some disadvantages. Bank interest rates and investment funds won't help you. You won't have the ability to diversify your holdings; you will be stuck with what you purchased. Finally, tax man may want to ask where you put your gold.
BullionVault.com offers more information on buying gold for an IRA.
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By: Terence Zimwara
Title: Vella Finance Drops Crypto Services, Focuses on SME Banking
Sourced From: news.bitcoin.com/nigerian-fintech-startup-vella-finance-drops-crypto-related-services/
Published Date: Tue, 31 Oct 2023 11:30:26 +0000
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