Nigerian Fintech Startup Shifts Focus to Small and Medium-sized Businesses
Vella Finance, a Nigerian fintech startup, has recently announced that it will no longer offer cryptocurrency-related services, opting instead to concentrate on providing banking services to small and medium-sized enterprises (SMEs). Co-founder Tolu Adedayo explained that this decision was driven by practical business considerations.
According to a report by Techcabal, Vella Finance notified its users and subscribers on October 23 that it would cease offering crypto-related services starting from October 30. Adedayo shed light on the reasoning behind the startup's shift away from crypto, stating:
"We are fully committing to SME banking. Banking operations require compliance with regulations. We have already been serving businesses since the beginning, supported by user and transactional data. It just makes sense for us to provide an end-to-end banking system to better serve them."
Adedayo further expressed his belief that offering both cryptocurrency and banking services simultaneously is not a practical approach.
However, Vella Finance's decision to discontinue crypto services comes at a time when interest in digital assets, such as Bitcoin and Tether, appears to be increasing. According to a recent Chainalysis report, Nigeria is one of the six countries in the top 50 globally whose crypto transaction volume has grown year-over-year. Additionally, the rapid depreciation of Nigeria's local currency is said to be fueling interest in crypto assets.
Despite the evident interest in cryptocurrency and related services, Adedayo stated in the report that his startup is already planning to introduce new features that will solidify Vella Finance's position in the business banking space.
What are your thoughts on Vella Finance's decision to drop crypto services? Share your opinions in the comments section below.
Frequently Asked Questions
Can I keep physical gold in an IRA?
Gold is money, not just paper currency or coinage. It's an asset that people have used for thousands of years as a store of value, a way to keep wealth safe from inflation and economic uncertainty. Gold is a part of a diversified portfolio that investors can use to protect their wealth from financial uncertainty.
Many Americans are now more inclined to invest in precious metals like gold and silver than stocks or bonds. Although owning gold does not guarantee that you will make money investing in it, there are many reasons to consider adding gold into your retirement portfolio.
Gold has historically performed better during financial panics than other assets. The S&P 500 declined 21 percent during the same period. Gold prices increased nearly 100 per cent between August 2011 – early 2013. During turbulent market conditions gold was one of few assets that outperformed stock prices.
One of the best things about investing in gold is its virtually zero counterparty risk. Your shares will still be yours even if your stock portfolio drops. But if you own gold, its value will increase even if the company you invested in defaults on its debt.
Finally, gold offers liquidity. This allows you to sell your gold whenever you want, unlike many other investments. Gold is liquid and therefore it makes sense to purchase small amounts. This allows one to take advantage short-term fluctuations within the gold price.
How much of your IRA should include precious metals?
It's important to understand that precious metals aren't only for wealthy people. They don't require you to be wealthy to invest in them. There are many ways that you can make money with gold and silver investments, even if you don't have much money.
You might consider purchasing physical coins, such as bullion bars and rounds. Shares in precious metals-producing companies could be an option. You may also be interested in an IRA transfer program offered by your retirement provider.
No matter what your preference, precious metals will still be of benefit to you. Although they aren’t stocks, they offer the possibility for long-term gains.
Their prices rise with time, which is a different to traditional investments. This means that if you decide on selling your investment later, you'll likely get more profit than you would with traditional investing.
How does a gold IRA work?
Individuals who want to invest with precious metals may use the Gold Ira accounts, which are tax-free.
You can buy physical gold bullion coins at any time. You don’t have to wait to begin investing in gold.
An IRA lets you keep your gold for life. Your gold holdings will not be subject to tax when you are gone.
Your heirs can inherit your gold and avoid capital gains taxes. Your gold is not part of your estate and you don't have to include it in the final estate report.
To open a gold IRA, you will first need to create an individual retirement account (IRA). Once you've done so, you'll be given an IRA custodian. This company acts like a middleman between the IRS and you.
Your gold IRA custodian is responsible for handling all paperwork and submitting the required forms to the IRS. This includes filing annual reports.
After you have established your gold IRA you will be able purchase gold bullion coin. The minimum deposit required for gold bullion coins purchase is $1,000 You'll get a higher rate of interest if you deposit more.
Taxes will be charged on gold you have withdrawn from an IRA. If you are withdrawing your entire balance, you will owe income tax plus a 10% penalty.
You may not be required to pay taxes if you take out only a small amount. There are some exceptions, though. For example, taking out 30% or more of your total IRA assets, you'll owe federal income taxes plus a 20 percent penalty.
It is best to not take out more than 50% annually of your total IRA assets. If you do, you could face severe financial consequences.
Can I buy gold with my self-directed IRA?
While you can purchase gold from your self-directed IRA (or any other brokerage firm), you must first open a brokerage account such as TD Ameritrade. You can also transfer funds from another retirement account if you already have one.
The IRS allows individuals contributing up to $5.500 each ($6,500 if married, filing jointly) into a traditional IRA. Individuals are allowed to contribute $1,000 each ($2,000 if married or filing jointly) to a Roth IRA.
If you do decide to invest in gold, you'll want to consider purchasing physical bullion rather than investing in futures contracts. Futures contracts are financial instruments based on the price of gold. They let you speculate on future price without having to own the metal. However, physical bullion is real gold or silver bars you can hold in your hands.
Is the government allowed to take your gold
Your gold is yours and the government cannot take it. You have earned it by working hard for it. It belongs exclusively to you. This rule may not apply to all cases. If you are convicted of fraud against the federal government, your gold can be forfeit. Your precious metals can also be lost if you owe tax to the IRS. You can keep your gold even if your taxes are not paid.
Is gold a good choice for an investment IRA?
If you are looking for a way to save money, gold is a great investment. You can also diversify your portfolio by investing in gold. But gold has more to it than meets the eyes.
It's been used as a form of payment throughout history. It is sometimes called the “oldest currency in the world”.
Gold is not created by governments, but it is extracted from the earth. That makes it very valuable because it's rare and hard to create.
The supply and demand for gold determine the price of gold. When the economy is strong, people tend to spend more money, which means fewer people mine gold. This results in gold prices rising.
On the flip side, people save cash for emergencies and don't spend it. This causes more gold to be produced, which lowers its value.
This is why gold investment makes sense for both individuals and businesses. If you have gold to invest, you will reap the rewards when the economy expands.
You'll also earn interest on your investments, which helps you grow your wealth. You won't lose your money if gold prices drop.
Should You Invest in gold for Retirement?
The answer depends on how much money you have saved and whether gold was an investment option available when you started saving. If you are unsure of which option to invest in, consider both.
Gold offers potential returns and is therefore a safe investment. This makes it a worthwhile choice for retirees.
While most investments offer fixed rates of return, gold tends to fluctuate. As a result, its value changes over time.
However, this does not mean that gold should be avoided. It just means that you need to factor in fluctuations to your overall portfolio.
Another advantage of gold is its tangible nature. Gold is much easier to store than bonds and stocks. It can also be carried.
You can always access gold as long your place it safe. Additionally, physical gold does not require storage fees.
Investing in gold can help protect against inflation. Because gold prices tend to rise along with other commodities, it's a good way to hedge against rising costs.
Additionally, it will be a benefit to have some of your savings invested into something that won't lose value. Gold usually rises when stocks fall.
Gold investment has another advantage: You can sell it anytime. Like stocks, you can sell your position anytime you need cash. You don't even have to wait until you retire.
If you do decide to invest in gold, make sure to diversify your holdings. You shouldn't try to put all of your eggs into one basket.
Don't buy too many at once. Start with a few ounces. Add more as you're able.
Keep in mind that the goal is not to quickly become wealthy. It's not to get rich quickly, but to accumulate enough wealth to no longer need Social Security benefits.
And while gold might not be the best investment for everyone, it could be a great supplement to any retirement plan.
Statistics
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- 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 take distributions before hitting 59.5, you'll owe a 10% penalty on the amount withdrawn. (lendedu.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
