Financial Competence (1/3)


Make Money Work for You


How come so many people nowadays are under-financed, being marginalized from something so vitally important? Why are so many in debt or tied to financial services that seem to work against them? All these questions point towards the concept of financial literacy – the competence to earn, invest and manage money efficiently. Financial freedom, or the lack of it – one of the most important tenets of humankind.


What is Financial Competence?

Financial competence is the ability to understand and deal with money in such a way that one can benefit. Money is the exchange currency of pretty much everything on this planet, from groceries, to information and even time. It is plain obvious how financial literacy must be mastered and learned by everybody, as early in a person’s life as possible.


However, the current reality is rather far from the ideal scenario. The truth is nobody learns about real financial education in school. Many are progressing yet missing an essential part of the learning and are unaware of the long-term implications this has on their lives. By the time they realize it, most are already in debt. From there follows a chain of events that implies getting into more debt to pay the actual ongoing one. Remortgaging and new credit lines, spreading over longer and longer periods of time.


The lack of financial competence is creating a bleak economic landscape, where people struggle to make ends meet, instead of thriving and empowering others in the process. While we understand this vital education does not happen in school, we acknowledge its significance and make a pledge to leave nobody behind when it comes to being financially educated.



The Importance of Financial Education

Cryptocurrency and blockchain financial products are revealing a truth that is hard to ignore. It’s not only that some people don’t understand how crypto works. The truth is, a lot of people don’t understand how the traditional monetary system works either. And this has been around for a while. The universal laws of mathematics remain the same for both crypto and an 18th-century bank. But it’s thanks to our financial education and literacy that we can learn the difference and understand what to choose.


Getting no financial education in school is making us all responsible for educating ourselves. At Coinmetro, we are committed to this ongoing educational effort for making everybody aware and knowledgeable of a positive financial journey. Learning is a never-ending process!


Investor / Employee

Nobody learns in school how to become an investor. The framework seems to be instead funneled towards becoming an employee. This can, of course, be an amazing endeavor. But it’s important to understand that you can have a great job and also be an investor on your own! There may have never been a better time to invest than now. We have information and incredible tools at reach that people did not even dream about 50 years ago.


Yet a lot of people fail to understand how investment can build them a profitable income plan over time. Being an employee and having a fixed amount of money means you have a linear income stream. In addition to you working for money, you can also have money working for you. We must learn how investment can put us on an exponential income stream instead. For this, let’s proceed with a very special topic sitting at the core of what investment is.



Compounding Interest & The Exponential Power of Numbers

Do you know what compound interest is? You’ll be surprised to find out how many people do not. Compounding interest is one of the inherent mechanisms of world finance, since its inception and continues through today.

A wise man once said, “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it”. This sure sounds interesting, but what is this all about?


Finance and numbers have an innate relationship. While we believe we master numbers by the time we’re in middle school, some of their most elusive characteristics still escape a lot of people to this day.

The exponential power of numbers is indeed a wonder of this world. Numbers have this ability to grow exponentially if the right system is set up. The best example of this is the story of an ancient king who wanted to reward one of his soldiers who had saved his life.


Filled with gratitude, the ruler promised the loyal soldier he’ll be offered riches and wealth beyond his wildest dreams. The humble servant said just this: “All I want is grain”. Perplexed and lost for words, the king could not understand how somebody can choose plain, ordinary grain when offered the kingdom’s biggest treasures instead. However, he proceeded and asked the soldier how much grain he wanted. At which the soldier proposed the following measurement: take a chessboard and have grain placed upon each square such that one grain would be placed on the first square, two on the second, four on the third, and so on, doubling the amount on each subsequent square, until the end of the chessboard. Bursting in laughter, the king made fun of his servant for not being clever enough to ask for more. And then proceeded to fulfill what he thought would be a modest obligation.

But as smart and powerful as he thought he was, the king would soon learn the bitter lesson of compound interest himself. The exponential power of numbers was building in such a way, that by the time they reached the end of the chessboard, the amount of grain the king was now owing was not only more than what he had, it was more than all his kingdom’s worth!


The above example is just an elementary display of what the exponential power of numbers can achieve over time. Can you learn to integrate this yourself and benefit in the long run?



MARs – An Exponential Passive Income Plan

Are you familiar with Coinmetro’s MARs (Multi-Asset Rewards) staking plan? Recently, 6 new assets have been added to the program, offering you more opportunities to earn.

By joining the program, you can stake our native token XCM and then be rewarded with the other MARs assets as well: FLUX, THT, ADA, XTZ, DOT, KSM and LTO. A solid selection of projects that we selected in close dialogue with our community.

With MARs, you can embark on a unique financial journey built around your needs. You not only earn passive income, but you also diversify, holding a portfolio that can better mitigate market conditions. As most important crypto assets have been evolving over time, this mechanism can put you on an exponential growth, unlike a linear income that remains the same over time.


How are you planning to exponentially grow your investment in the future? We want to hear all about it on our Discord and Telegram channels. Let us know what you think about our financial products and how we could make them better.

Head to the Coinmetro exchange now if you are already a user, or sign-up today to experience a premium trading experience.