Data Mining Techniques for Stock Market Analysis and Prediction

“Data is a precious thing and will last longer than the systems themselves.” – Tim Berners-Lee, inventor of the World Wide Web.

Analysis-based stock market prediction is essentially important since it can deal with the huge amount of money and stock buyers need a systematic and more accurate prediction. Because of high-risk investments, companies and individuals use different types of algorithms to predict the stock market. With the rising number of factors on global economy and the revolution of information technology, the number of financial data gets generated and accumulated forever at an extraordinary speed. Consequently, there is a compelling need for IT-based methods for monitoring massive amount of financial data to support companies and individuals before they take any strategic decision and investment planning.

The economy of every country is linked with the performance of stock markets. And also, apart from companies, common people are also interested to buy shares as a small investment. Consequently, analyzing stock market is not only related to macroeconomic parameters but also associated with everyday life. Therefore, there must be a systematic approach to reduce the uncertainty in stock market. Nowadays data mining has become one of the important technologies among various sectors and non-business organizations. Data mining techniques rely on data collection and warehousing with the support of computer processing. With these techniques, we can get the benefits of reduced cost, increased revenue, and stock market awareness. Applying data mining techniques for stock market analysis and prediction reveals some useful tips and predicts trends in the future and behaviours in stock markets. There are various data mining techniques in the world. Let’s study five key data mining techniques for analysis and prediction.

Neural Network in Stock Market

The neural network, one of the efficient data mining techniques, is used by companies for almost one decade. This technique is successfully applied in various learning applications for understanding a subject as per the way how our brain functions work. As it is a computational method, it is highly effective during this digital era. At the same time, it combines the features of brain functions and the structure of digital content. The key benefit of this method is that it can simultaneously forecast selling and buying signs with the prediction of future trends and decision-making tips for stock investors. There are various neural network-based architectures such as convolutional neural network, recurrent neural networks, multilayer perception and long short-term memory for predicting the stock price of companies.

Advantages of Neural Networks

  • Neural networks can work beyond the input and can produce the output.
  • The loss of data does not affect its functions since the data is stored in networks.
  • These networks can keep learning by observing examples.
  • We can get multi-skilled work from these networks.
  • Every piece of information is useful in the network.
  • These networks store information on the entire network.
  • Cost and time benefit. You can not only save money and time but also have your work done faster and error-free with quality and accuracy in results.

Decision Tree in Stock Market

Decision tree method is the best method for making decisions as it can deal with a lot of complex information and it is as simple as a ‘flowchart’ to assist you in making conclusions. It is used for building stratification and regression models to be used in data mining and trading. With the effective structure of decision tree, we get empowered to take systematic decisions with an accurate, balanced picture of the risks and rewards. When it comes to decision tree technique, the root of a decision tree is based on simple questions and related answers. Also, each question leads you to study another set of questions. Hence, this method is a simple technique for solving complex problems.

Advantages of Decision Tree

  • It works without the need of normalization of data.
  • It works without the need of scaling of data.
  • It is a simple method which can be easily explained to any technical team
  • It needs less effort for data preparation compared to other methods.
  • It makes us curious to take any decision as it is based on questions and answers.
  • It requires less training period.

 

Factor Analysis in Stock Market

This type of analysis is mainly useful in contexts in which a few common causes of variation determine a huge number of variables. Recently research on factor analysis concludes that a large number of information can be successfully summarized by a small number of approximate factors. It is a method which depends on a statistical approach and explains fluctuations among variables. Generally, there are four types of factor analysis such as exploratory factor analysis, confirmatory factor analysis, multiple factor analysis and generalized procrustes analysis.

Advantages of Factor Analysis

  • We can use both subjective and objective attributes.
  • We can use this algorithm to recognize the hidden dimensions which sometimes may not be available from direct analysis.
  • We can get accurate results using this algorithm.
  • It can be used to identify hidden constructs which may or may not be necessary from direct analysis.
  • It is not complicated to do, but it is low-cost and accurate.

Clustering in Stock Market

Clustering, an effective method for data analysis, solves problems of classification. The key objective this method is to classify data into groups. When it comes to clustering technique, algorithms that search for groups of records play a major role. Clustering helps single out important features that distinguish various groups.

Advantages of Clustering

  • It is very simple to implement.
  • We can use this method for large datasets.
  • It guarantees convergence.
  • It helps to generalize different clusters in one form.

 

Association Rules in Stock Market

Ability to predict association between buyers is very critical for market dealers or investors to boost their profits. Decision-making as such as whether to sell, buy or hold shared for investor in stock market is also a challenging task. This type of data mining algorithm determines the associations among factors in the database. For instance, this technique explores how buyer X is related to buyer Y and for decision makers before investment. The association rule discovers hidden patterns in the largest dataset of various domains. 

Advantages of Association Rule

  • It is appropriate for low cardinality sparse transaction database.
  • With lease memory consumption, we can use this algorithm.
  • It is very easy to implement.
  • We can eliminate repeated database.
  • Finding association is a more important task for marketers.

Conclusion
The more data we collect from customers the more analysis and prediction we can get. And the more accurate prediction we have the more revenue we can generate. Hence when it comes to stock market prediction, data collected from customers plays a major role. In view of the above techniques, we have concluded that by using data mining techniques, it is possible to obtain data with accuracy and reliability, which provide share buyers result-oriented solutions on investing their valuable money. Data mining, the method of uncovering consequential trends and patterns, sifts through large amounts of financial data stored. With the support of technologies of pattern recognition, and methods of statistical and mathematical techniques, the process of data mining turns raw data into useful information. Hence, either companies or individuals can learn more about public listed companies so that they can develop effective strategies before any investment.

 

Want to focus on business opportunity, breakthrough, and prosperity? Get our PCPB!

PCPB of Dhunicorn

PCPB is a comprehensive business solution that is powerfully designed to serve 40,000 public listed companies around the world to achieve BREAKTHROUGH, GROWTH, and PROSPERITY. The nine core components and 36 subcomponents help public listed companies to achieve multi-perspective and multi-facet improvements in businesses.

 

Component 1 – Growth, Public Companies Business Opportunities

Has five powerful resources to help the public listed companies connect with other companies internationally:

  • for business breakthrough & growth
  • for acquiring strategic business partnerships and new ventures
  • for vertical & horizontal expansion opportunities
  • for increasing market capitalization and enhancing market value

 

Component 2 – Growth, Sales & Marketing Improvement

Helps business development by improving sales via its global B2B portals, sales leads referral services, sales and marketing team training, the portal to find strategic business partners around the world, and etc.

 

Component 3 – Corporate Learning & Continuous Improvement

Offers professionally developed robust online training courses and business courses by international world-class speakers. Our courses play a vital part in strengthening and elevating the knowledge, skills, values and abilities of the companies’ workforce, thereby help companies improve performance and business growth!

 

Component 4 – CEO SuperThinkTank

Corporate officers experience a lot of challenges & issues in their business operations. This component helps them get business advice, solutions & consultations from a team of business experts, specialists, advisors, and consultants.

 

Component 5 – Global Business Network and Resources

Allows businesses to have an opportunity in becoming a member of one of the world’s most prestigious business clubs. It gives chance to connect, discuss, share knowledge, and build meaningful collaborations through a network of the world’s top business elites.

 

Component 6 – MarketSuccess

Provides comprehensive market exploration assistance in China, India, Asia, Australasia, Europe, North America and South America to find profitable opportunities in these regions. Through MarketSuccess, your business results and success in these countries will be enhanced.

 

Component 7 – D.H.Unicorn Discovery

Helps in discovering investment opportunities in the future Unicorns, Decacorns, and Hectocorns.

 

Component 8 – Business Excellence Summit, Conferences & Reports

Facilitates participation in some of the most inspirational & grandeur business events that gather top business leaders around the world.

 

Component 9 – Global Golden Business Awards Competition

Opportunity to join and win awards in the prestigious business competition held by the DHUNICORN & judged by a panel of business specialists.

 

These 9 components can benefit you in:

  • Discovering innovative business opportunities
  • Exploring investment opportunities
  • Enhancing business operations
  • Achieving competitive excellence
  • Improving overall business performance

 

PCPB is all about prosperities. We would like to invite you for a FREE videoconference by our experts. Let our experts reveal to you PCPB’s 9 powerful components focused on vigorous growth and success of your business. So, why wait? Book your date now!

Contact Us
For further information and to know how Dhunicorn can help your company achieve all-round success, contact us at inquiries@dhunicorn.com

Strategies to Discover Hot Investment Opportunities in Future Unicorns

If you are going to be in business, you must learn about money: how it works, how it flows, and how to put it to work for you.” ― Idowu Koyenikan

Investment is the best course of action if you wish to make your money work for you. Investments allow an investor not only to grow wealth but also generate an additional income. Hunting for right investment opportunities is an ever-growing phenomenon all over the world. For investors, identifying a successful investment is just like an enigma.

Recently, unicorns have emerged as a potential means for investors. To discover future unicorns for investing is no cakewalk since it needs an effort with lots of foresights. According to CB INSIGHTS, there are more than 400 unicorns in the world. Every unicorn is somehow revolutionary as novelty in business is a proven method to create a dynamic result. The next unicorn may not be a splashy consumer brand but it should be a product or a service which will help others get things done.

Why are Unicorns Successful?

  • It provides a simple solution to complicated problems.
  • A product or service from a unicorn makes consumers more engaging.
  • Tech unicorns become a digital place where users can easily interact.
  • Unicorns have a strong and more viable value proposition.
  • It has a long vision with high-tech services and products.
  • Unicorns make the world more productive.
  • Future unicorns may become a solution for economical recession.
  • Investors keep looking for future unicorns.
  • With a unicorn app, users can get multiple services in one platform.
  • It may later become a decacorn or even a hectocorn.

Future-centric components

Successful start-ups spread their wings with three future-centric components; the first in the industry, world-shattering innovation and customer-friendly. Investors should keep an eye on investing their time to find out start-ups that emerge with these three elements.

The First in the Industry

Most of the start-ups are technology visionaries and trendsetters. They emerge as the first service provider or product introducer in their industry to change the way people do things. Gradually, these start-ups become a unicorn that is a must for the society.

World-shattering Innovation

Innovative elements convert start-ups into unicorns to bring a disruption in the domain they belong to. For example, some online delivery services changed the way consumers commuted. To stay ahead of competitors, they prepare to keep innovating their services and products.

Customer-friendly

Since unicorns are B2C companies, their simple goal is to provide user-friendly products or services.  They focus on day to day life with the support of innovative disruption. Moreover, providing affordable service or product is another key highlight of unicorns.

Sectors of Future Unicorns

Unicorns keep evolving in various sectors. Investors should adopt result-driven strategies to discover thriving start-ups that will become successful unicorns in future. Let’s find out some of the most important sectors that will present more unicorns in the future.

Financial Services

Fintech service companies provide timely and fast financial services that range a wide-ranging impact individually and commercially.

Consumer-friendly technology

As more and more customers interact on digital devices, Fintech services are based on consumer-friendly that develops consumer engagement and building trust.

Digital payments

Digital payments create a convenient and speedy service for those who depend on reliable and quicker payment services.

One-stop services

Many Fintech brands offer multiple services across one-stop app. Users from all walks of lives can immediately use these services for various reasons.

Region-based services

As Fintech service providers offer region-based flexible options for consumers, Fintech services occupy every region all over the world.

Hardware

Evidently, hardware unicorns dominate in future. The new wave comes from various sectors. Some of them are:

  • Artificial Intelligence companies that use hardware like  Mobvoi and Anki
  • Production companies that manufacture 3D printers with high resolution and advanced materials
  • Advanced robotics start-ups such as  UBTech, Rethink Robotics, and Roobo

Many of these start-ups would achieve unicorn status sooner or later.

Healthcare

The upcoming healthcare unicorn will definitely be one of the companies that are related to seven healthcare sections.

Seven Healthcare Unicorns

  • Big Data & Analytics
  • Genomics
  • Imaging & Diagnostics
  • Insurance & Drug Pricing
  • Telehealth
  • Therapeutics
  • Wearables & Devices

Software

Software start-ups mushroom here and there. Discovering the potential start-ups that is capable to turn to unicorns is a really challenging. Here are some of the important elements to identify promising future software unicorns.

  • Adaptable to face new challenges in underlying market
  • Highly innovative infrastructure
  • Rapidly emerging and growing
  • A clear long vision
  • Providing services on multiple domains

Cloud computing

Based on cloud computing, unicorns will mushroom all over the world since cloud-centric companies can handle future challenges with integrated infrastructure. Here are some of the services that rely on cloud computing.

  • Cloud infrastructure supports variable workloads.
  • There are three types of storage options – public, private and hybrid.
  • Cloud-based applications and data can be accessible from anywhere in the world.
  • Hardware failures do not affect data storage on account of networked backups.
  • Users can collaborate from widespread locations.

Sustainable products

Keep in mind that sustainable products will protect our posterity. With recycled products, cleaning materials, solar panels, cloth napkins, cotton shopping bags, eco-friendly chair, biodegradable pots, reusable bulk food bags, eco-friendly-computer accessories and clothes made from recycled fabric, future unicorns will evolve to save the planet.

Industrial robotics

Industrial robotics-centric companies are emerging start-ups and have the capacity to join the club of unicorn. Delivery robots, surgery robots, service robots, multipurpose robotic platforms and material handling robots can change the world completely with multi-dimensional digital platforms. Investors can focus on these start-ups based on industrial robotics to be part of robots-centred world and digital platform-friendly lifestyle.

Blockchain

Blockchain technology has established a new dimension of digital world. Start-ups that rely on this technology bring a new world of possibilities with disruptive opportunities. If investors are ready to be one of the best players in the sectors related to block technology, unicorns based on this technology will evolve to hit the future market.

Space technology

After the era of Elon Musk, space-related start-ups have become one of the best options of investors today. In the future, there will be huge business opportunities in space technology as it is a niche industry which can create potential products and services for forthcoming centuries. Space-centric unicorns will be the choices of investors since people from all over the world are interested to enjoy space-related lifestyle.

Compelling data to monitor

With the team of creative employees and the pool of tools, sources and data, companies do some innovative things to make our life magical. During this pandemic, these companies are redesigning consumer trends, reshaping company infrastructure and redefining business models. Hence, an investor comes across several inevitable factors to keep in mind.

Understanding the infrastructure of company, identifying competitive advantages, and monitoring financial performance are crucial factors that investors, especially those who wish to invest in future unicorns, should focus on before investment.

To get projected revenue and growth, investors should observe these elements for finding out the best start-up to fund. And also, investors need to refer statistics for forecasting growth for the next five years or a decade. When it comes to monitoring data, some of the statistics and general data to examine are: Year established, founders, total funding, current valuation, headquarters, branches, revenues, board of directors, the latest company news and domination in digital world.

Understanding the infrastructure of company

Analyzing and understanding the infrastructure of a company is paramount since many start-ups lack of good infrastructure. The infrastructure of a company includes every fixed asset such as the building, machinery, equipment and tools, and all the employees and a management team. Investors should ensure whether the start-ups are with all fixed assets, skilled employees and an efficient management team.

Identifying competitive advantages

Savvy investors should meticulously analyse a start-up’s key competitive advantages to conclude whether it is a future unicorn.

Key competitive advantages

  • Future-based business concept
  • Financial and technological wealth to face any new competitor
  • Customer retention techniques

Monitoring financial performance

Investors should be more careful and in monitoring the financial performance of a company since this is the time of pandemic. The financial performance of any company is based on four key features such as:

  • Financial ratios compared to competitors
  • Financial statements
  • Industry benchmarks
  • Market value

Conclusion

Before investing in future unicorns, three major aspects – Recognizing future-centric components, discovering successful sectors of future unicorns and monitoring data on particular start-ups – should be a must-have action for investors. Focusing on these factors helps investors understand the most active start-ups that will turn into unicorns in future. As start-ups sprout everywhere, investors keep puzzled to identify future unicorns that will make the world technologically enriched Utopia. In this case, deep understanding with meticulous statistics is the best way of identifying and adopting future unicorns for investing.

What Every Foreign Investor Must Know Before Investing in India

India ranks as the 5th largest economy in the world. It globally ranked 6th largest by nominal GDP & 3rd largest by PPP in 2020. In 2021, the estimated nominal GDP of India is 2.8 trillion USD and its estimated GDP per capita (PPP) is 9.56 trillion USD.

India is preferred by foreign investors to invest in mainly due to its prospective market size. As per a report of The World Economic Forum, India would become the third-largest consumer market & its consumer spending would be about 6 trillion US dollars by the year 2030. India is the second populous country in the world with a population of about 1.39 billion and thus offers the advantage of cheap human resources. UNCTAD through its ‘World Investment Report 2020’ states that in the year 2019, India was the 9th largest receiver of FDI with an inflow of about 51 billion dollars. In 2020, while the global FDI collapsed due to the effect of the pandemic, but the FDI in India escalated by 13% in comparison to the previous year.

To boost the economic recovery in the post-covid times, India is reforming its foreign direct investment norms to attract more foreign investors in the diverse sectors. Hence there is an avalanche of opportunities for foreign investors in India.

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Foreign Investors must know a few things before investing in India. Let’s discuss them.

Ensure That the Chosen Sector for Investment is ‘Not FDI Prohibited’
Foreign investors investing in India must ensure that the sector they are wanting to invest in is FDI permitted.

Although India permits FDI in numerous sectors, there is an absolute FDI prohibition in certain sectors. The list of FDI prohibited sector in India includes:

  • Lottery business (includes government/ private lottery, online lotteries, etc)
  • Gambling & Betting Sector including casino (All the forms of Foreign technology collaboration in the Lottery Business, Gambling & Betting sector like licensing for franchise, trademark, brand name, management contract is also not permissible in India)
  • Chit Funds
  • Trading in Transferable Development Rights (TDR)
  • Manufacturing Cigars, cheroots, cigarillos, cigarettes, Tobacco, or tobacco substitute products
  • Nidhi Company (A type of Non-Banking Financial Company)
  • Activities/sectors not accessible to the private sector investment. E.g., Atomic Energy and Railway operations
  • Real Estate Business or Construction of Farm Houses (Real Estate Business does not incorporate the development of townships, construction of residential /commercial premises, roads or bridges, and Real Estate Investment Trusts (REITs) registered and regulated under the SEBI (REITs) Regulations 2014.)


Know the FDI Restrictions for ‘The Border Countries’

According to the government’s ‘Consolidated FDI Policy circular of 2020’, a non-residential entity can invest in any FDI permitted sectors in India, in compliance with the country’s FDI policy. But an entity from any of the countries sharing the land border with India, which includes: China, Pakistan, Nepal, Myanmar, Bhutan, Afghanistan & Bangladesh can invest in India only via the Government route. This means that they must get approved by the Reserve Bank of India (RBI) or the government of India before investing in India. This regulation is applicable even if the beneficial owner of the investment is located in or is a citizen of any of these nations.

Particularly, the entity/citizen of Pakistan cannot invest in the sectors of defence, space, atomic energy as well as the FDI prohibited sectors.

 

Understand the Duties and Liabilities of The Director

According to the Companies Act, 2013 of the Ministry of Corporate Affairs, Government of India, a foreign national can be appointed as a Director of an Indian company. But the person must comply with the below-mentioned criteria:

  • The person must obtain Director Identification Number (DIN) prior to getting appointed as a director of an Indian company.
  • The person must furnish DIN & pronounce that he is ‘not disqualified’ from becoming a Director in acquiescence to this act.
  • The person must present his written consent to undertake as director in the Form DIR-2, which must be registered in 30 days from the date of his appointment.
  • The director is responsible for fulfilling the duties of Directors as well as statutory liabilities listed out by the Companies Act, 2013. In the instances of misconduct by the director, fines & penalties can be imposed.

 

Make Certain That the IP is Protected

In India, IP ownership differs under varied IP laws. If the IP is not validly assigned by the company then it is by default owned by the employee or the contractor. Hence, for a business whose value essentially depends on its patents & intangible assets, it must make certain that the IP is validly assigned as well as owned by the company. To validly assign the IP, a deed with stamp duty paid is mandatory.

Set Expectations Accordingly

Investing in any sector in India involves a regular compliance filing with the Reserve Bank of India. It is obligatory even if no approval is needed for the transaction. Hence it is usually a time-consuming process. Even if the negotiation & signing of the main transaction documents can be accomplished very promptly, the procedures for closing such as receiving the shares certificate, getting appointed to the BOD, tax identification information, etc. are usually slow-moving.

Be Aware of The Pricing Guidelines

Because India is an economy with exchange controls, the RBI (Reserve Bank of India) proposes the pricing guidelines for the Non-Residents for acquiring the capital instruments of Indian companies. For instance, the price of the capital instruments of an Indian company that is listed on the recognized stock exchange of India should not be less than the pricing in conformity to the pertinent guidelines of SEBI. If it is not listed on the recognized stock exchange of India, then the price of the capital instrument of the Indian company should not be less than the fair valuation of capital instruments made by a SEBI registered merchant banker or a chartered accountant.

PCPB is all about prosperities. We would like to invite you for a FREE videoconference by our experts. Let our experts reveal to you PCPB’s 9 powerful components focused on vigorous growth and success of your business. So, why wait? Book your date now!

To get further information & to know how Dhunicorn can help your company achieve all-round success, Contact us at inquiries@dhunicorn.com.

People Focus on Safe-Haven Assets; Trust in Cryptocurrency is on the Rise

“Cryptocurrency marks the era to the end of money counterfeiting.” ― Gun Gun Febrianza

The market of cryptocurrency has continuously evolved even when the global Covid-19 pandemic is destroying economic developments of most of the sectors in the world. And then, the current societal and economic situations make people to hold less cash because of swinging market. Hence, the financial world has started to focus on cryptocurrency since it is considered a safe-haven asset against market inflation and volatility. The key theme of this article is to tell you how cryptocurrency can become a safe-haven asset better than traditional assets.

 

Top Cryptocurrencies in the World
There are more than 4,000 cryptocurrencies in the world as of January 2021. Let’s see some of the top cryptocurrencies preferred among investors.

 

Bitcoin
Bitcoin, the first cryptocurrency, kick-started a new digital revolution in 2009. Bitcoin exchange is a marketplace which allows people to sell or buy Bitcoins for various currencies. The Bitcoin price surged because Tesla invested 1.5 billion USD in the cryptocurrency January of this year. Now this is the largest coin and digital currency by market cap value.

Ripple
Ripple plays a major role for regulated financial institutions with a payment and settlement network. It partners with some global universities with the purpose of stimulating blockchain-related research and innovation. Ripple’s native currency XRP, which eliminates unlock trapped capital and pre-funding, provides the best digital asset for global payments.

Ethereum
Ethereum, a software platform, makes way for developers to come up with apps on top of it and for users to invest on. It was launched in 2015, has a general programming platform to support blockchain-focused mobile developers. Its native currency ether is used as an approach to exchange value and pay for computing power, and work much faster than Bitcoin. Ethereum has partnership with Microsoft for the project of ConsenSys.

Tether
Tether, a blockchain-based cryptocurrency and a stable coin, tries to keep the value of cryptocurrency stable. Sometimes traders use this cryptocurrency to escape the massive volatility. When it comes to Tether, transparency is the vital factor because the value of their reserves is published every day. Its blockchain-enabled technology offers world-class security with international standards and regulations.

Cardano
Cardano, a blockchain platform for trendsetters, leads a positive global change with a team of engineers, mathematicians, and cryptography experts who basically did the research and extensive experimentation. It is aiming to support financial institutions with features of KYC/AML and add features of side chains and atomic swaps for interoperability with other blockchains. Cardano combines technologies to provide services with unparalleled sustainability and security.

Litecoin
Litecoin, founded in 2011, is one of the earliest cryptocurrencies in the world and is also known as “silver to Bitcoin’s gold”. We can store Litecoin in specialist hardware device, our digital wallet or online crypto bank. And also, we can store and send fractions of a coin to anyone in the world at any time. As of this year, Litecoin is the sixth-largest cryptocurrency in the world.

Uniswap
Instead of holding funds with a third party, Uniswap, a decentralized finance, allows customers to trade directly through their wallet and it operates on the Ethereum blockchain. UNI, the native token of the Uniswap, entitles that its holders can vote on changes to the protocol. This platform is a perfect example of what decentralized applications are capable of.

USD Coin
USD Coin which works like a digital content, a stable coin created by Coin base and Circle, is programmed to be a more legally-compliant stable coin in favour of US laws and regulations. Initially, USDC was an Ethereum token, later started running on multiple blockchains and is the world’s leading digital dollar stable coin.

Celsius Token
Celsius Network, a cryptocurrency-centred financial service, allows customers to earn interest related to crypto assets and offers interest-bearing savings account, borrowing, and payments with digital assets. Celsius offers a platform of curated services, abandoned by largest banks, like zero fees, fair interest and lightning quick transactions.

 

What Are Safe-Haven Assets?
If investments or assets increase in value or retain their value during any economic crisis, they are considered safe-havens. The key objective of the stand of looking for safe-haven asset is to avoid losses and decrease their risks if markets dive and preserve wealth which is highly-sought by investors. Generally, a role of a safe-haven asset is to diversify an investment portfolio.

Some of the investments considered safe-haven assets don’t perform well during economic difficulties. Hence, the investors who look for safe-haven assents need to perform a kind of diligence research before purchasing any asset. Traditionally, the most popular safe-haven assets are: stocks and bonds, commodities, real estate, US treasury bills, oil, foreign currencies and precious metals like silver and gold.

 

Characteristics of a Safe-haven Asset

  • Because of high liquidity, we can convert it into cash easily.
  • The supply of safe-haven asset is less than its demand.
  • The safe-haven asset maintains high demand continuously.
  • It continues to offer good use for the long term to sustain demand.
  • This type of asset does not turn down in quality.

 

Cryptocurrency A New Safe-Haven Asset?
Several financial experts from reputed universities consider that cryptocurrency has gradually become a safe-haven asset for an investment portfolio since it can offer security during any economic crises. For example, the price of Bitcoin has been rapidly increasing during COVID-19 lockdowns that have resulted in massive unemployment.

Bitcoin has achieved the status of the best-performing asset in the decade in spite of its sometimes-extreme volatility. Compared to other safe-haven assets such as stocks and bonds, commodities, US treasury bills, oil, foreign currencies and precious metals like silver and gold, Bitcoin outperformed all the traditional assets.

 

Why are cryptocurrencies so popular among investors?
We realize that cryptocurrency has left its footprint in world of finance. More and more investors focus on investing in it. Nowadays cryptocurrency is so popular for various reasons. Let’s see some of them. 

  • Rising inflation and swinging economy push people to prefer cryptocurrency.
  • Investors consider that cryptocurrencies are the potential currencies and they become more valuable in the future.
  • In the current pandemic situation, people are interested to hold less cash.
  • Nobody can alter the financial data of every transaction.
  • Every record of transaction is well structured with blocks.
  • Cryptocurrency supports every industry with more reliable approaches.
  • Cryptocurrency provides a great deal of transparent transaction.
  • We can store the data in a hack-proof centralized database.

 

Conclusion
In view of the above, we can conclude that traditional assets, gold or silver, are not competent enough to protect investors’ wealth during any economic or stock market crisis. A number of investors and financial analysts consider that cryptocurrency could be a safe-haven investment during the time of crises since the Covid-19 has made the worst financial panic all over the world. Cryptocurrency is a new digital gold as it can play a major role during an economic panic. Moreover, the digital money which cannot be duplicable in the digital world has enormous value, and can eliminate the need of approaching any bank, currency exchange fees, credit card fees, money transfer fees and more. As per the report of JP Morgan, the market of cryptocurrency keeps evolving and increasing numbers of investors. Hence, either institutional investors or individual investors can consider that the cryptocurrency is a safe-haven asset.

 

PCPB of Dhunicorn

PCPB is a comprehensive business solution that is powerfully designed to serve 40,000 public listed companies around the world to achieve BREAKTHROUGH, GROWTH, and PROSPERITY. The nine core components and 36 subcomponents help public listed companies to achieve multi-perspective and multi-facet improvements in businesses.

 

Component 1 – Growth, Public Companies Business Opportunities

Has five powerful resources to help the public listed companies connect with other companies internationally:

  • for business breakthrough & growth
  • for acquiring strategic business partnerships and new ventures
  • for vertical & horizontal expansion opportunities
  • for increasing market capitalization and enhancing market value

 

Component 2 – Growth, Sales & Marketing Improvement

Helps business development by improving sales via its global B2B portals, sales leads referral services, sales and marketing team training, the portal to find strategic business partners around the world, and etc.

 

Component 3 – Corporate Learning & Continuous Improvement

Offers professionally developed robust online training courses and business courses by international world-class speakers. Our courses play a vital part in strengthening and elevating the knowledge, skills, values and abilities of the companies’ workforce, thereby help companies improve performance and business growth!

 

Component 4 – CEO SuperThinkTank

Corporate officers experience a lot of challenges & issues in their business operations. This component helps them get business advice, solutions & consultations from a team of business experts, specialists, advisors, and consultants.

 

Component 5 – Global Business Network and Resources

Allows businesses to have an opportunity in becoming a member of one of the world’s most prestigious business clubs. It gives chance to connect, discuss, share knowledge, and build meaningful collaborations through a network of the world’s top business elites.

 

Component 6 – MarketSuccess

Provides comprehensive market exploration assistance in China, India, Asia, Australasia, Europe, North America and South America to find profitable opportunities in these regions. Through MarketSuccess, your business results and success in these countries will be enhanced.

 

Component 7 – D.H.Unicorn Discovery

Helps in discovering investment opportunities in the future Unicorns, Decacorns, and Hectocorns.

 

Component 8 – Business Excellence Summit, Conferences & Reports

Facilitates participation in some of the most inspirational & grandeur business events that gather top business leaders around the world.

 

Component 9 – Global Golden Business Awards Competition

Opportunity to join and win awards in the prestigious business competition held by the DHUNICORN & judged by a panel of business specialists.

 

These 9 components can benefit you in:

  • Discovering innovative business opportunities
  • Exploring investment opportunities
  • Enhancing business operations
  • Achieving competitive excellence
  • Improving overall business performance

 

PCPB is all about prosperities. We would like to invite you for a FREE videoconference by our experts. Let our experts reveal to you PCPB’s 9 powerful components focused on vigorous growth and success of your business. So, why wait? Book your date now!

Contact Us
For further information and to know how Dhunicorn can help your company achieve all-round success, contact us at inquiries@dhunicorn.com