Lydia Biel


The name “cryptocurrency” is derived from “cryptography”, originally the science used to describe the encryption of information. Cryptocurrencies are Internet-based automated means of payment. Crypto money, in the form of banknotes or coins, is almost entirely a cryptographic currency with no physical counterpart. Protection tokens, also called asset-based tokens, on which the resulting values are deposited in dollars, euros or gold, are the only exception. These, however, represent only a small percentage of the various types of crypto currency, in turn, represent only a small proportion of the sum of the different tokens of the respective crypto currencies. Special software and complicated test procedures and encryption strategies produce virtual capital. Blockchains and digital signatures are important cryptographic methods.

List of the 10 most famous cryptocurrencies – Ranking:

  • Bitcoin (BTC)
  • Ether or Ethereum (ETH)
  • Ripple (XRP)
  • Bitcoin Cash (BCH / BCC)
  • Dash (DASH)
  • Litecoin (LTC)
  • Monero (XMR)
  • NEO (NEO)
  • Ether Classic (ETC)
  • Zcash (ZEC)

What is a blockchain?

A blockchain (English for blockchain) is a decentralized database in which so-called “blocks” of data records are linked to a continuously expandable list in the form of so-called “hashes”. This is intended to secure the integrity of the cryptocurrency against subsequent manipulation. All transactions taking place are recorded in chronological order in the form of so-called hash values ​​in the blockchain.

How does the encryption work?

Most cryptocurrencies like Bitcoin are based on cloud- and software-based peer-to-peer networks. All information within these networks is accessible to all other network participants. Special cryptographic encryption techniques ensure security . Each participant uses 2 associated cryptographic keys:

  • 1 public key (called Account Address in English), which is used like an account number,
  • 1 secret key with which transactions are cryptographically signed (similar to the TAN procedure for transfers)

What is a wallet for cryptocurrencies?

The cryptographic keys are stored in a file called a cyber wallet , online wallet or simply wallet . A wallet has roughly the function of a virtual account: This is where the credit and inputs and outputs of the respective cryptocurrency are recorded and transactions are made.

How do cryptocurrencies like Bitcoin and Co. work?

What is unique among non-governmental cryptocurrencies like the well-known Bitcoin is the other users’ decentralized power over all processes: Each transaction is released on the P2P network and must now be reviewed using the previous entries in the blockchain by other participants to decide whether the public is The sender’s key is valid and if the account will not be overdrawn by the transfer. This should exclude overdrafts from deposits. It is recorded in the blockchain whether the transaction is verified as valid.

Proof of work is rewarded so that users invest enough time and, above all, computing power in the blockchain: the more computing power and work that is invested in the blockchain, the better the probability of taking advantage of new challenges and processing costs. This method, analogous to gold mining, is called “mining” in English.

What are bitcoins?

Bitcoin (BTC) means something like “digital coin” and is the best-known crypto currency to date.

The tempting profits from mining mean that ever higher computing power has to be applied. The increasing requirements and the increasingly specialized hardware have created huge data centers, so-called mining farms, around the world. If they want to engage in the mining of crypto coins, ordinary PC users now have to extend their machines with especially strong global processing units and graphics cards.


When were bitcoins invented?

2008: A description of the Bitcoin payment system is published under the pseudonym Satoshi Nakamoto.

When did the first Bitcoin hit the market?

2009: Publication of an open source reference software – the 1st Bitcoin is created.

Who is the inventor of Bitcoin?

In 2016, Australian entrepreneur Craig Steven Wright claims to be the inventor of Bitcoin. The late Dave Kleiman was probably also involved. In 2018, Dave Kleiman’s heir sued Craig Wright for $ 10 billion.

How much is a bitcoin worth?

The value of bitcoin is constantly changing. On October 9, 2010, the maximum value was 0.1 US dollars, on April 1, 2013 it was 100 US dollars. On December 22nd, 2017, the Bitcoin price reached a high of almost $ 20,000.

Are there alternatives to mining through proof-of-work?

There are now numerous cryptocurrencies such as EOS, Cardano (ADA) or BitShares (BTS) that rely on proof-of-stake instead of proof-of-work: Here you have to invest primarily in shares. Similar to stock corporations, the size of the stake, i.e. the proportion of tokens, becomes a decisive factor.

The difference between coins and tokens?

Cryptocurrencies are mostly traded in coins or tokens. The name Coin is derived from Bitcoin. Therefore, the term mainly includes digital currencies such as Bitcoin. Tokens, in turn, are differentiated into utility tokens, equity tokens and security tokens. The latter are tokens in which a real monetary equivalent such as gold, dollars, euros or real estate is deposited. Equity tokens are investments in the respective company and often also contain a possible profit sharing in the future company success. These can best be equated with stocks and they are treated very similarly in regulatory terms. Utility tokens are in turn means of payment on the respective platform of the company and represent access to this platform. If the utility tokens only have these properties, then they are not subject to any regulatory obligations. Accordingly, many companies try to mark their cryptocurrency as utility tokens and issue them as such. Plus, cryptocurrencies attract with quick profits – but where there is money to be found, there are also dangers.

The biggest – so far known – dangers for everyone who trade with cryptocurrencies:

Clipboard Hacking – this is where hackers gain access to the clipboard and change the receiving address during transactions. Therefore, always check the transaction address before confirming a transaction.

Phishing – here fake websites that look identical to the original try to “fish” user data.


Private keys are a secret password and ensure that only you have access to your wallet and can carry out transactions. So never reveal your private key.

Secure your wallet: You can choose between different providers for wallets. Be sure to pay attention to safety! Can you protect the wallet with a personal password? 2-factor authentication (2FA) with an authenticator program (not via SMS – there is a risk of sim hijacking or sim swapping) is considered particularly secure.

Keep your eyes on the prices of the cryptocurrencies. Since the digital currencies are traded in a matter of seconds, forecasts about price gains or losses are much more difficult than with stocks and other investments.

And the most important tip if you want to buy crypto currencies: Only invest as much in crypto currencies as you can bear.

Value and rate are based on supply and demand. Like all commodities, investments and speculative objects, cryptocurrencies are therefore subject to price fluctuations. The peculiarity of global trading in cryptocurrencies is that digital transactions can lead to enormous changes in a matter of seconds and thus price gains or losses.

Getting started with cryptocurrencies – how do I get started?

If you want to trade in cryptocurrencies, the first question that arises is: How and where can I buy cryptocurrencies? If you want to buy cryptocurrency, you don’t have to go straight to the darknet. There are now numerous established providers on the Internet who trade in cryptocurrency. Here you can buy cryptocurrencies and usually get a wallet. Otherwise, you can use a wallet from other providers.

How are profits from cryptocurrencies taxed?

Since cryptocurrencies are not yet recognized as legal tender, profits are not taxed like capital income. There is also no withholding tax on profits from the sale. Profits from mining or trading must also be taxed, but the case law on the taxation of profits with cryptocurrency is not yet clear. Since crypto currencies are usually treated similarly to state foreign currencies when taxing.

NOTE: If you earn money privately or commercially with cryptocurrencies, it is advisable to consult a professional when filing your tax return.

IMPORTANT: Tax evasion can result in heavy fines and even imprisonment.


Could investors have known better? Risks cannot be completely ruled out when investing in stocks, but investors can reduce these risks to a calculable level. The most important tool for valuing stocks is fundamental analysis.

Basic key figures of fundamental analysis

The aim of fundamental analysis is to calculate the “fair value” of a company and its shares. In order to determine this, investment professionals like Winfried Walter check numerous key figures in their fundamental analysis. The basic key figures are included:

  • the price-earnings ratio, (P / E)
  • the profit yield,
  • the dividend yield.

What is the P / E ratio?

The price earnings ratio (PE) is the mother of all key figures. The PER is calculated as follows: price per share divided by earnings per share. An example: Share Y costs 80 dollars. The profit is 5 dollars.

The calculation is:

P / E share Y

80 dollars / 5 dollars = 16 dollars

The P / E ratio is not very meaningful in and of itself. Investors should be careful if the P / E ratio falls or rises sharply from one year to the next. In purely arithmetical terms, the key figure increases if the price picks up while the profit remains the same. Or if the profit collapses at the same rate. Possible causes are:

  • prospects for rising profits, which are already priced into the course,
  • one-time restructuring costs that are currently affecting profits,
  • exploding running costs that permanently weigh on profits.

The indicators also vary from industry to industry and from country to country. Consumer stocks with stable business and strong brand names, for example, are traditionally given a higher P / E ratio than the cyclical automotive industry. In a country comparison, the P / E ratio of US companies is usually higher than that of European companies. However, valuations can also rise because there are few or no investment alternatives. In the current low interest rates, for example, not only the prices of real estate but also stocks have risen on average. If you want to be aware from unpleasant surprises, you should ensure continuity in sales, earnings and cash flow. Outliers then have to be scrutinized very carefully before any judgment can be made about quality and perspectives. A look at the annual report also reveals important information.

When is the P / E ratio meaningful?

The P / E ratio is particularly meaningful in an industry comparison. If two companies in an industry are positioned similarly, the company with the more favorable P / E ratio is preferable. The problem with the ratio: It is based on forecasts.

Because the profit estimated for the calculation is estimated. At the end of 2018, for example, a price-earnings ratio for 2019 is shown, which is based on the average earnings estimates of numerous analysts. It remains to be seen whether the profits will really turn out that way or whether they will be affected by corporate or economic crises.

What is the earnings yield?

The so-called profit yield provides information about the return on capital employed – it is the inverse of the P / E ratio. For the calculation, the earnings per share are set in relation to the price and the result is multiplied by 100%. As in the example above, share Y is quoted at 80 dollars and the profit is 5 dollars. The calculation is then:

Return on earnings share Y:

(5 dollars / 80 dollars) x 100% = 0.0625 x 100% = 6.25%

The earnings yield can be used to compare stocks with one another. But it is also an important benchmark when comparing an equity investment with a bond investment. Earnings yields of 6.25%, as in the completely realistic example, have not been achievable for years with fixed-income securities with good credit ratings .

What is the dividend yield?

Investors also recognize truffles by their dividend yield. The dividend is the portion of the annual profit that shareholders receive by providing equity to the company. The dividend is paid quarterly in some countries. The dividend is similar to the interest paid on federal bonds. However, there is one major difference to fixed income: dividends are only paid if the company also makes a profit. The formula for the calculation: dividend yield divided by the current share price times 100%.

A distribution of 2 dollars for the above-mentioned share results in:

Dividend yield share Y:

(2 dollars / 80 dollars) x 100% = 0.025 x 100% = 2.5%

Many investors make sure that the distributions are constant over the long term and increase as much as possible. On the other hand, caution is advised if the dividend yield fluctuates sharply or shoots up one time. Here the investor may be at the expense of future investments. In contrast, if the share price rises sharply, the dividend yield will decrease. In return, investors are then in the plus thanks to the price gain.

What is a balance sheet?

The columns of numbers in company balance sheets put off many investors. However, they lose their horror if you understand the system. First of all, a balance sheet is nothing more than a comparison of assets and debts till the last day of the year. These two pillars of a balance sheet are always the same.

  • The assets side …

… shows the assets valued in money. It is divided into fixed assets and current assets. Fixed assets include intangible assets, tangible assets and financial assets. To current assets. For example, inventories, receivables, securities and cash on hand are counted.

  • The liabilities side

…… shows the liabilities. The term is initially misleading. Because the sources of finance from which the fortune was fed are listed. This includes equity and provisions as well as liabilities.

How much room for maneuver is there in balance sheets?

  • Basically, the balance sheet should provide as precise information as possible about a company’s assets. That is the duty of an accountant. But by no means all assets and obligations can be assigned a completely objective value. Accordingly, there is scope for management in the balance sheet, which can be used very differently depending on the interests involved. Specifically, this means that profits and losses are kept high or low as required, whereby the motives can be diverse:
  • When a public company is under pressure from critical shareholders to post high profits, assets tend to be valued higher.
  • If corporate taxes fall next year, profits should be kept rather low this year.

When a new CEO takes office, he wants to start on the lowest possible basis. Because then he can make improvements in results on his own behalf.

  • Scope 1: Intangible assets
  • Scope 2: R&D costs
  • Scope 3: provisions and liabilities

The second item is made up of provisions. Pension obligations are an important branch of provisions. For some companies, this position is highly explosive due to its size. This is especially true for industrial groups with a large number of older employees. In these companies, the pension provisions often make up more than 20% of the current stock market valuation. For shareholders, high pension obligations are a problem above all if they are not covered by corresponding pension assets. In the “other provisions” collection pool, company executives book;

  • for process costs,
  • for legal or contractual guarantee obligations,
  • for bills of exchange or guarantees,
  • for threatened loss-making deals.

If the “other provisions” are particularly high, the alarm bell should ring. Balance sheet professionals sense future business risks here. The third liability item is liabilities. Including: bonds, credits, down payments or liabilities from investments.

Outstanding tax debts, social security claims or existing claims for damages by third parties are booked under “other liabilities”. In contrast to provisions, liabilities involve only a few risks, as they are already precisely quantified.

  • Scope 4: company values ​​and goodwill

Warning signs for shareholders

It is difficult to see through whether and how companies use their creative leeway exactly. However, shareholders should follow the development of the most important balance sheet items. If the profit jumps up for no apparent reason, the result may have been embellished by one-off sales or neglected value adjustments. Caution is also advised if the assets side consists predominantly of intangible assets, group subsidiaries accumulate high debts or assets have been parked with minority interests. In case of doubt, only one thing helps: ask experts.

What should be considered for tax purposes?

A change of securities account may require different tax treatment. If the papers are transferred to a third party, the transfer is taxed like a sale of securities. If fictitious exchange gains are “realized”, these are subject to taxation and capital gains tax is levied. Here are four common scenarios for transferring securities accounts and the associated tax treatment:

Transfer of custody account by the same person from one bank to another: In this case, it is a so-called custody account transfer without a change of creditor. When changing custody accounts, all acquisition data, ie data on securities purchases and prices when buying securities, are transferred to the new securities account. This transfer is tax-neutral.

Transfer of securities accounts between spouses or due to a gift: If you transfer your securities account to your spouse’s securities account, this is a transfer of securities accounts with a change of creditor. The transfer does not correspond to a sale of securities, but the bill of exchange and the acquisition data transferred with it for the respective securities are transmitted to the tax office due to the possible gift tax.

Transfer of custody account to the heirs: If a custody account is transferred to the heirs, it is not a sale for tax purposes. Accordingly, no tax is due. However, a report is made to the tax office with regard to inheritance tax.

Transfer of securities account to third parties: If you transfer your securities account to third parties, it is a transfer of securities account with a chargeable change of creditor. From a tax point of view, this is a sale and you must expect the withholding tax to be paid if exchange rate gains and / or income have been achieved and the saver lump sum is exceeded. The amount of the withholding tax is 25 percent withholding tax, plus solidarity surcharge and, if applicable, church tax.

Loss offsetting pots can be taken along when changing securities accounts

In order to calculate the final withholding tax for securities, banks work with so-called “loss pots”. This is a virtual calculation of how much profit or loss an investor has made with his securities. Profits and losses from funds, warrants, stocks or bonds are offset against each other. The loss offsetting pots can be transferred to the new securities account when the securities are transferred in full. This is to be noted accordingly in the order. If only individual shares are transferred to a new custody account, the loss offsetting pots cannot be transferred.

Can I buy and sell securities while the securities account is being transferred?

Please note: you cannot dispose of your securities during the change. For this reason, you should definitely check before transferring the securities account whether you want to sell the securities to be transferred at short notice. Then the transfer is not worthwhile.

Should I close my previous depot after the depot transfer?

If you change your depot, you do not necessarily have to close your old depot. It depends on whether you “move” all securities. If, however, you transfer your entire securities portfolio to a new securities account, it can make sense to close the old securities account and cancel it in order to save costs. It also usually gives you a better overview of your overall financial situation.

What happens to my fund savings plan when I transfer my account?

If you use a securities savings plan, this is not automatically transferred. You can then set up a new savings plan with the new provider. When transferring the securities from this savings plan, you must ensure that only entire units (funds, stocks, ETFs) can be transferred. Any existing fragments cannot be transferred and must be sold in the course of the transfer of the deposit.

Is a deposit transfer worthwhile?

You can find out whether a deposit transfer is worthwhile for you with a deposit comparison. To do this, compare the order fees and the administrative costs of your previous securities account with the fees of your new provider. You should also check what additional services your new bank can offer after you have changed your account.

What are accumulation funds?

Investors have two options for mutual funds: accumulation funds and distribution funds. With accumulation, the income generated – i.e. dividends for an equity fund, interest for a bond fund and rental income for a real estate fund – is not distributed to the investor, but is automatically invested again and again. In the case of distributing funds, on the other hand, there is a distribution at the end of the economic period: Profits are paid out to the shareholders.

Which investment strategies are accumulation funds suitable for?

Good to know: With distributing funds, profits are paid out. In the case of accumulation funds, profits and income are not paid out, but are instead invested in the fund’s assets.

Accumulating funds are particularly suitable for investors with a long investment horizon. Put simply: The accumulation is particularly worthwhile if you want to continuously build up assets over a longer period of time and can do without regularly flowing payments. In order to earn profits from accumulating funds, you must either return or sell your fund units.

By the way, it doesn’t matter whether you pursue an active or passive investment strategy, i.e. whether you opt for actively managed investment funds or whether you favor an investment in index funds or ETFs.

How do you recognize accumulating funds?

Most actively managed funds or passive index funds are accumulating funds in which profits are automatically reinvested.

How are accumulation funds taxed?

For you as an investor, the taxation of fund shares has become fundamentally easier. The new rules stipulate that all funds and ETFs are taxed annually on the basis of a flat rate – even if no income has yet been generated. This so-called advance lump sum was therefore introduced primarily as a tax base for accumulating funds, since profits do not flow to the investor here, but are reinvested in the fund every year. In fact, with the investment tax reform, the tax authorities wanted to prevent investors from being able to postpone the taxation date by years or decades by choosing reinvesting funds. Of course, this also means that the annual partial tax amount to be paid reduces the income that is available for reinvestment.

In return, you as an investor only have to pay taxes on part of your fund income. This “partial exemption” varies depending on the fund’s investment focus: For pure equity funds which, according to their investment conditions, continuously invest at least 51 percent of the fund’s assets in shares, the exemption for private investors is, for example, 30 percent.

How is the advance flat rate calculated?

Good to know: As an investor, you do not have to calculate the advance flat rate yourself; It is determined by the custodian – i.e. your custodian bank.

To calculate the advance flat rate, the redemption price of the fund unit at the beginning of the previous year is multiplied by 70 percent of the base rate that calculates and publishes every year. The fund-specific partial exemption is granted on the calculated base value – with a pure equity fund, 30 percent would be tax-free for you as a private investor. Finally, the amount of the taxable advance lump sum is limited to the increase in value of the fund in the year. If this value is lower than the calculated advance lump sum, the actual increase in value is recognized as taxable income.

How are overseas accumulation funds taxed?

Since the investment tax reform came into force, domestic and foreign funds have been treated equally for tax purposes. Another aim of the legal reform was to rectify the unequal tax treatment. Accordingly, annual withholding tax can now also be paid for foreign accumulating funds if the fund is held in a domestic custody account. The automatic taxation means that you as an investor do not have to regularly state tax income in your tax return.

Gold has the reputation of being particularly crisis-proof and therefore a safe investment even in troubled times. In the eyes of many investors, this is a sufficient argument for investing. But is gold also worthwhile for building wealth? What are the advantages and disadvantages of gold for investors? And how can investors even invest in gold?


Even the ancient Romans regularly used gold as a means of payment. As such, the shiny precious metal has long since had its day, but has lost none of its fascination to this day. Because gold exudes great security – especially in times of political instability and unpredictable crises such as the 2008 financial crisis or the corona pandemic. When such global events are on the march, many investors withdraw their money from the exchanges and put it in gold instead. With the precious metal, they then receive a physical equivalent for their money.

Why investors act this way is simply related to the limited supply of gold. Because, unlike money that can simply be printed, the amount of gold is not inexhaustible. That is exactly what makes the precious metal so sought-after and supposedly crisis-proof. While cash and stocks can lose value in the event of a national bankruptcy or a company bankruptcy, the relative value of gold remains largely unaffected. In addition, gold is usually more stable in value when inflation threatens and is also accepted as a means of payment in an emergency.

GOOD TO KNOW: The price development of gold depends exclusively on the existing demand and the available supply. A well-known economic principle, but unlike many conventional commodities, gold cannot simply be reproduced when there is high demand. Since only supply and demand influence the performance, the gold price of an ounce is subject to strong fluctuations.


Anyone who fears a currency crash, wants to arm themselves against crises or just want to spread the personal investment risk can choose gold as an investmentthink. However, an investment in gold does not offer absolute security either. Because in addition to the advantages, gold as an investment also has some disadvantages. The main arguments against gold are the high costs, currency risks and price fluctuations and, last but not least, the lack of profitable interest and dividends. In addition, the new tax law presumably changes the taxation in gold trading. The draft of the federal government’s annual tax law provides that profits from the sale of gold papers are subject to the withholding tax in future. Even if they are kept for more than a year.

3 Advantages Of Gold As An Investment

  • Gold is stable in value
  • Gold is independent
  • Gold is (still) tax-free

3 disadvantages of gold as an investment

  • Gold does not provide interest and dividends
  • Gold price carries the risk of loss
  • Gold is expensive


Due to the lack of interest and dividends, gold is not necessarily worthwhile as an individual investment for long-term wealth accumulation or for private retirement provision. Many investors therefore only use gold investments to add to their portfolio, which consists mainly of shares . How much exactly that should be depends not least on your risk appetite.

GOOD TO KNOW: The value of gold often moves in the opposite direction to stocks. In times of crisis it usually collapses less or even increases in some cases while stocks decline. A small addition of gold can therefore make the portfolio more resistant to fluctuations, but it may also affect the prospects for returns.

How can I invest in gold?

Anyone who is convinced that they will invest part of their assets in gold has basically various options.

  • Physical gold investments: bars and coins
  • Investing in Exchange Traded Gold: Funds and Stocks

The most popular way to invest your money in gold is to buy bars or coins. They can be purchased either from the bank, from coin dealers or on the Internet. But keep in mind that investment gold in the form of coins is associated with a comparatively high risk of theft and loss. The same problems exist with gold bars. Their advantage, however, is that they are available in larger denominations and have lower minting costs.

Nowadays, investors can also get into the gold market with special funds. So-called gold funds invest primarily in commodity companies such as gold mines and gain in value as soon as gold prices rise. As is usual with exchange-traded funds, however, investors have to expect high price fluctuations and the associated risk of loss. Investors can also invest in gold stocks, but here too, strong price fluctuations and thus losses are possible. In addition to funds and stocks, there is also the option of investing in gold ETFs. Find the right securities offer for every target .

Good to know: Fraudsters often lure people with seductive bait offers. So be on your guard and buy your gold only from renowned precious metal dealers or banks.

Call money is an opportunity of flexible interest rates without a fixed term. This means that the bank can raise or lower the interest rate at any time.

When can it make sense for me to invest as overnight money?              

Overnight money is usually suitable for a rather short-term investment , for example if you want to “park money” but already know that you will soon need it for an investment. But you can also use it to build up your wealth . However, the interest rates are usually lower than for investments in the form of fixed deposits. However, they are usually significantly higher than, for example, with the classic savings account. The reason is that many call money accounts are only offered as online accounts, which means that there are lower administrative costs, from which the customer can benefit in the form of higher interest rates.

What are the risks?       

Price risk / business risk: This risk does not exist with an investment in the form of overnight money. Because losses cannot generally arise, your capital is preserved. However, the rate of return can change because the interest on overnight money is based on current developments and market rates.

Foreign currency risk: Those who opt for a call money investment in euros avoid this risk.

Availability: Funds on call money accounts are available at any time without prior notice, such as in a savings account. However, no payment transactions can be processed via the overnight money account. The credit balance or part of it must first be transferred to the relevant reference account, usually the agreed current account, and can only be forwarded from there. So take into account the duration of the transfer.

How are the daily allowance’s efficiency, profit and benefits structured?

You can receive an interest rate based, among other factors, on the respective market interest rate, i.e. the credit institutions’ refinancing rate. The interest rate ranges from one entity to another and can be changed at any time by the banks. Look out and compare the criteria for exclusive deals!

BUT BE CAREFUL: after the efforts to gain new clients are finished, following such a business offensive, favorable interest rates will initially deteriorate dramatically.

What obligations do I have towards the bank?

You need a so-called reference account for all deposits and withdrawals from your call money account. The reference account is usually your normal checking account.

When and how quickly can I dispose of the overnight money?

At any time, you can move part or all of your credit balance to your bank-agreed reference account . Usually the money is available within one working day. When you have to reach a payment date yourself, you should take into consideration the delay caused by the length of the move.

Where can I invest overnight money?  

Day money you can with a credit institution to create. You can get information and advice in the branches, online or by telephone from the respective provider . Think in advance how long and, above all, for what purpose you want to invest money. Due to the many different offers, it is not always easy to find the right call money account with the best return. So check the conditions carefully.

Who is the overnight allowance suitable for?    Call money is suitable for customers who are looking for a more conservative, secure investment to preserve their assets with more attractive interest rates than with traditional savings accounts. Under certain circumstances, the overnight money can even offer a higher interest rate than the fixed-term deposit for a short time. For a longer-term investment, for example one year, the fixed-term deposit usually earns a higher intere


Economic development is usually cyclical. Phases of economic upswing and boom are often followed by a phase of economic weakness – the downturn. This can lead to a recession and in the worst case to a depression, which at some point turns into an upswing again. A new business cycle begins. The downturn is also known as a recession (from Latin: recedere = to go back, to recede). There are different definitions of recessions. A common one is: A recession is when an economy shrinks for two consecutive quarters. The shrinkage is usually preceded by a longer period with lower economic growth. If the recession is limited to a short phase with negative growth rates, it is referred to as a “technical recession”. It is usually caused by temporary economic disruptions. Often times, recessions in an economy extend over long periods of time. If they lead to a protracted economic stagnation, this condition is called depression. Recession and depression are not the same, but there is a smooth transition.


What is a recession in business?

In a recession, the business outlook for companies deteriorates. The order books are less full and the demand for goods is weaker. Sentiment barometers such as the well-known ifo business climate index or purchasing manager indices are falling. Consequently, the poor order situation and demand, production overcapacities and full stocks arise.

The companies react to this with production restrictions, short-time working or redundancies for operational reasons. Investments are being deferred. The number of corporate bankruptcies is increasing. As a result of increased short-time work and unemployment, consumers suffer income losses, and uncertainty grows. Private consumption is falling. This exacerbates the downturn. In a recession there is often a slowdown in inflation, and in extreme cases even deflation. Deflation can plunge an economy into a deep depression. Central banks are trying to combat this situation with a loose monetary policy in order to avoid a deflationary spiral.

What does a recession mean for stocks?

In the stock market, a recession shows itself in falling prices, but not necessarily in a crash. Many investors then switch to safer investments, such as bonds. The bear market is a typical phenomenon in times of recession. However, the price development of stocks does not have to run parallel to the economic cycle. If one anticipates an imminent economic recovery on the stock market, prices can rise even if the current economic data is still bad. A prolonged bear market is possible if a prolonged downturn or even a depression is expected. The greater uncertainty in the recession usually results in higher price volatility. The stock market fluctuates between fear and hope – depending on the news.

What does a recession mean for investors?

For owners of shares or equity funds, a recession is usually associated with price losses. The recession has less of an affectt on other investments. That depends on the design of the financial products, but also on the respective framework conditions. Bonds or precious metals are often sought as a “safe haven” in times of crisis. This can then be seen in higher bond prices or a rising gold price . But this is not a “law of nature” – there are also counterexamples to be found. Experience on the stock market confirms that every bear market is followed by a bull market at some point. In earlier recessions, losses were more than offset later. Falling into fear and panic is rarely good advice. Often times, staying power has proven to be a superior strategy for stocks.

GOOD TO KNOW: If existing equity, fund and ETF savings plans are simply saved further with passive investing , the shares can then be acquired particularly cheaply at low prices. You can benefit from the cost-average effect.

How do I actively invest in a recession?

A recession-induced bear market naturally also contains signs of speculation – through countercyclical behavior. Getting in when the prices are particularly low and later selling at a profit – this requires ongoing market observation, in-depth market knowledge and a portion of luck in finding the right time.

Shifts in the equity portfolio can also be worth considering. In the recession, stocks are often sought that do above average on the stock market or are even particularly successful:

Defensive values: This is the name given to shares in companies whose business is not very cyclical. These include, for example, energy suppliers, telecommunications providers or many consumer goods (food industry, manufacturers of basic everyday products);

“Crisis profiteers”: This means values ​​that perform particularly well in the recession. Reason: the crisis is helping the companies concerned to do more business. This could be pharmaceutical and biotech companies in a pandemic-triggered recession. If sharply rising raw material prices are the cause of the crisis, mining companies, raw material traders or mining companies may benefit greatly.

GOOD TO KNOW: If you find yourself facing financial bottlenecks, you should always talk to your bank as early as possible. Very often amicable solutions can be found – through debt rescheduling, rate adjustments or other options.

How do I prepare financially for a recession?

Many employees face short-time working or unemployment in a recession. In any case, one’s own job is no longer as secure as it was during an upswing or a boom phase. How do you best prepare financially if you are affected?

Liquidity reserve: create a liquidity buffer that you can fall back on in an emergency. For this you should choose investments that are available at any time without loss – for example overnight money.

Debt Reduction: Reduce Debt and Forego New Loans. A quick debt discharge is always a good decision; it gives yourself additional financial leeway – good if you expect a loss of income or if your income falls away.

Invest flexibly and safely: Put more emphasis on security for your systems and avoid long-term stipulations. Risk diversification is even more important than usual. Returns remain a selection criterion, but are not now top priority.

The global economy is developing faster and more diverse. So-called industry ETFs also benefit from this development. With just one industry ETF purchase, investors can add the performance of an entire industry to their portfolio and thus ensure additional diversity and diversity. However, sector ETFs are also not without risk, as strong fluctuations in the economic cycle or unforeseen economic crashes can also have a targeted effect on individual sectors.

What are industry ETFs and how do they work?

As diverse as the global economy is, it can ultimately be divided into different industries (also called sectors). Regardless of whether they are in the automotive or healthcare sector, companies in the same economic sector are usually subject to the same fluctuations, e.g. B. through changes in the law, political developments or rising raw material prices. Industry ETFs build on exactly this. As with conventional ETFs , industry ETFs are exchange-traded mutual funds – with the difference that an industry ETF only records the development of securities within a specific industry. The underlying index of the industry ETFs thus reflects the performance of an industry.

Which industry ETFs are there and which are useful?

Basically, the global economy can be divided into the following large sectors :

  • Construction
  • Financial services
  • Healthcare
  • Raw materials
  • Household items
  • Industrial goods
  • media
  • Telecommunications
  • Supplier
  • Consumer goods

The various industries are only roughly summarized and also differ depending on the classification scheme of the industry ETF. For example, sector ETFs in the real estate sector are classified under the ICB classification under the financial services category, while the GICS classification defines real estate as a separate sector.

Depending on the respective business cycle, each industry shows different value developments and trends. All industries develop differently and the development of each individual industry is so dynamic and dependent on external influences that no general recommendations can be made. Which industry ETFs make sense also depends on the prior knowledge and personal motives of the investors. However, especially with industry ETFs, many investors pursue certain industries out of personal interest.

What role does industry rotation play in investing in industry ETFs?

Anyone who deals with the topic of industry ETFs will quickly come across the terms industry rotation (also known as sector rotation) and industry rotation strategy. The economic phases that the economy goes through over time are decisive for this.

The four different phases of the economic cycle are called economic phases:

  • Upswing (expansion)
  • Boom
  • Downturn ( recession )
  • Low phase (depression)

The various industries develop either rising or falling trends due to the economic phases. It is precisely this that investors take advantage of in the sector rotation by investing only temporarily in certain sectors and then reallocating their portfolio accordingly in the event of an economic downturn. If, on the other hand, an industry promises increasing performance and profits, the portfolio is adjusted accordingly.

For advantage of the industry rotation strategy, you should factor in the risk that this strategy entails. Because how individual industries will develop cannot be said with certainty. Anyone who simply invests blindly in an industry and hopes for an economic upturn may have to record high losses. The industry rotation strategy is therefore only suitable for more experienced investors who have a feel for the economic developments in the market.

What are the pros and cons of industry ETFs?

Like all ETFs, industry ETFs are also subject to normal market fluctuations and, in addition to profits, can also record heavy losses. Anyone who wants to invest in industry ETFs should know the advantages and disadvantages and the associated risk.


  • Investments in an entire industry can be more stable than investments in a single compa 
  • Flexibility in buying and selling        
  • Lower cost compared to buying blocks of shares   


  • “Cluster risk” by focusing on an entire industry
  • Investment in the entire industry and thus also in companies with falling prices
  • Rather unsuitable for beginners, as industry and financial knowledge is required

Benefits of industry ETFs

Anyone who buys an industry ETF invests in an entire industry. As a result, high losses in value of an individual company within the industry may not be so significant. Investors who, on the other hand, buy individual blocks of shares within the industry, will feel a sharp loss in value of a share in the portfolio more clearly. In addition, investors who invest in a single industry ETF are more flexible, as a single industry ETF can be bought or sold faster than several individual stocks of companies within the industry. With industry ETFs, you can track economic trends more quickly and easily than with different stocks in one industry. The costs are correspondingly lower as you invest in the stocks of an entire industry with just one purchase.

Disadvantages of industry ETFs

Industry ETFs bring with them a “cluster risk”. Anyone who relies solely on one industry also bears the risk that the entire industry will develop poorly and record losses. By investing in an entire industry, investments are also made in weak companies with falling prices. If you want to invest in industry ETFs, you should also have a basic knowledge of possible economic developments in the business cycle. Investors who invest “blindly” in an industry easily risk losses in their portfolio. It is also crucial to react quickly to negative trends in an industry and to realign the portfolio. Industry ETFs are therefore more suitable for more experienced investors.

Growth Stocks – Definition and Meaning

Individual companies sometimes develop better than the average. So-called growth companies often open up completely new markets and industries with their innovative business models or new products and services. Such a positive development is often felt by the shareholders as well, as higher income and profits often also increase the share price and thus the return

The shares of a company that has achieved above-average success over a longer period of time are therefore referred to as growth shares. The distinction between real growth and pure speculation is often not easy, since the expected profit plays a role in growth. As a rule, however, this cannot be reliably predicted. In order to better identify growth companies, the following features have proven themselves:

What is growth investing?

The investment strategy of growth investing is closely related to growth stocks. It goes back to Philip Fisher, who was not afraid of expensive stocks after the 1929 stock crash. On the contrary: his experience showed that with above-average successful company shares he could also sit out severe drops in the stock market and make profits.

With growth investment, it’s not about whether the company is already making profits. The price-earnings ratio (P / E) is also a minor matter in growth investing. Much more important are the profits expected for the future. This is why growth supporters rely on the so-called PEG ratio (price earnings to growth) when choosing the right stocks.

In the case of growth stocks, however, wrong decisions can also lead to high losses or even total loss. Anyone who has growth stocks in their portfolio must therefore react quickly if a previous winner loses momentum. To get the specific risks of growth investing under control, founder Philip Fisher has drawn up some rules of conduct for investors:

  • Do not exclude any security from the investment universe because of size or investment segment.
  • Don’t get emotionally carried away by an investment story.
  • Don’t be narrow-minded about the purchase price of growth stocks.
  • Don’t invest in start-ups without sufficient experience.

GOOD TO KNOW: A “contrary” investment strategy is so-called value investing . In doing so, investors rely on stocks that, in contrast to growth stocks, show only slight growth – in return, however, are more stable in value.

But even investors who observe these supposed winning rules are not protected from losses and price fluctuations. As with any other investment strategy, the same applies to growth investments: growth stocks with supposed profit promises can ultimately lead to losses in the portfolio. Because nobody can predict the economic and company-dependent developments very precisely.


As promising as the investment strategy for growth companies sounds, finding the growth stocks of the future can be difficult, as economic trends and developments in possible growth industries cannot always be foreseen. However, some areas have produced a particularly large number of companies with above-average growth in recent years. This included telephone companies in particular, but also media and logistics service providers.

However, a lot has changed since then. The best companies from these industries are now posting stable profits, but rather weak increases in sales. That’s why they are now more of a value stock. For some time now, stocks from the biotechnology, e-commerce and high-tech sectors have been on the buy lists of growth investors. Due to the rapid development of research and technology, companies in these areas have produced a particularly large number of growth stocks in recent years.


The rapid development of technology has caused a real boom in many areas. Some industries have particularly benefited from this, producing numerous growth stocks in recent years.

1. E-commerce

2. Streaming Services

3. Cloud provider


Growth stocks are now very popular with investors. But they have advantages and disadvantages.

Advantages of growth stocks

Compared to value stocks, growth stocks will rise faster in price. The reasons for this is that growth companies usually invest their profits exclusively in their own company. This often increases the share price. Compared to conventional stocks, the rapid and sustained growth can often generate above-average returns. In addition, growth stocks offer the benefit of being automatically reinvested. Since shareholders are usually not paid a dividend, but rather the amount is reinvested directly in the company, investors do not have to take any further action with growth stocks. In addition, dividends that are above the tax exemption must be taxed. This tax liability does not apply to growth stocks as no dividends are paid.

Disadvantages of growth stocks

Compared to value stocks, growth stocks have a particularly high P / E ratio. This value usually deters many investors. In addition, companies with above-average growth pay little or no dividends, as the profits are usually invested in their own company. Growth stocks with dividends are therefore rather a rarity.

In addition, the rapid development of the supposed growth industries, such as e-commerce, biotechnology and high technology, creates a greater risk. Because often growing companies can no longer meet their profit expectations for the coming years. If a supposed growth stock is in free fall, investors need to act particularly quickly to keep losses as low as possible.

To conclude, growth stocks offer great potential – but they also involve great risk. Because it is often not easy for investors to differentiate between real growth and pure speculation. In addition, the forecast growth often cannot be maintained. Unexpected management decisions can also cause growth stocks to slide. If you want to focus on growth companies with growth investing, you should therefore find out about the advantages and disadvantages and not ignore the risks.

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