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Token YNG: Q3 2025 Report

Token Young (YNG): updates and news Q3 2025

 What happened? What are the next steps?

The third quarter of 2025 marked an unprecedented growth chapter for the Young Platform ecosystem, solidifying the strategic breakthrough initiated with the listing of the YNG token on Uniswap. What was still a starting point in Q2 has now become a powerful accelerator, propelling our token toward new horizons of value and visibility.

This report analyses the results of an exciting period—characterised by strong market validation and intense work on multiple fronts: from consolidating our presence in DeFi, to enhancing community‑engagement initiatives such as The Unbox, to making important regulatory progress in the lead‑up to MiCA, and participating in key industry events.

As with earlier editions (except the special Q2 2025 issue celebrating the Uniswap launch), the report is offered in two versions:

  • A public version, providing a clear overview of the milestones reached, events, and new developments of the quarter.
  • An exclusive, in‑depth version, reserved for Club members, with detailed analyses of market data, strategy, tokenomics and a sneak peek at our roadmap.

Are you ready to dive into the details of a pivotal phase in our future?

2025 to date: the market validates our vision

The July listing on Uniswap was not just a technical milestone—it marked the beginning of a new era for YNG. Entering the decentralised market triggered an extraordinary reaction, resulting in the most significant price performance in our history.

Listing on Uniswap and price action: beyond expectations

The enthusiasm generated by the listing translated into exceptional price action. From the announcement in early July, YNG’s price surged by over 300%, moving from approximately €0.20 to a new all‑time high of €0.95.

This result is not accidental, but the first tangible confirmation that our long‑term strategy is paying off. The decision to pursue organic and sustainable growth has so far proven successful. We protected the community and enabled the real value of our ecosystem to emerge healthily.

Despite this milestone, we believe that YNG’s potential remains largely untapped. A market capitalisation below €30 million still does not fully reflect the value of a domestic-market-leading company with clear ambitions for European expansion.

Ecosystem adoption is a lengthy process, grounded in daily work and user trust. Each day we strive to maximise the value we offer in return for that trust—and the results of this quarter tell us we are on the right path.

The Unbox

In Q3, we completed The Unbox, our most ambitious prize contest ever, which served as a strategic bridge to the launch of our payment account and debit card. Building on the success of the first edition, we raised the stakes in both prize value and game mechanics—and the results surpassed every expectation.

The impact on engagement was extraordinary: platform activity rose sharply, registering participation peaks comparable to the most euphoric market periods.
A key role in this success was played by the Boost Holder mechanism, which rewards those holding YNG in their wallets. By offering weekly bonus gems based on token holdings, we created a virtuous cycle that tied contest participation directly to token utility—catalysing community interest and strengthening YNG demand.

Q3 posted a highly significant economic performance, driven by effective marketing campaigns and the “The Unbox” and “The Box” contests. These results demonstrate YNG’s concrete ability to create value for the ecosystem. Specifically:

  • Trading volume on the YNG/EUR pair exceeded €17 million, with an additional €2.7 million on decentralised pools.
  • This marks an increase of approximately 8,000% compared to the total trading volume of €250,000 in Q3 2024.

Roadmap: the Young Platform Account and Card are almost here

The Unbox contest was the event that led us to launch the account. With this in mind, we are excited to announce that the next big step in our evolution is imminent: the Young Platform payment account and debit card are about to become a reality.

At this stage, the feature is in its “Family and Friends” phase — a final testing period during which our team and a group of selected users are already using it daily. This phase will end in November, after which the gradual public rollout will begin, with priority access granted to Club members and to the winners of the 2025 prize contests (The Box and The Unbox).

This project fully reflects our philosophy, which places customer satisfaction and protection at the forefront. We chose a different path from the more speculative approaches seen in our industry. Recent events—liquidations totalling $19 billion—demonstrate the risks of a system based on extreme leverage.
Our goal is not to offer tools that promise rapid riches, but to guide users toward mindful, sustainable investment. We believe investing should be a “near‑zero effort” activity, integrated into everyday life. The account and card are instruments through which we turn that vision into reality.

MiCA: our path toward full compliance

Q3 was also pivotal from a regulatory standpoint, with significant advances in our alignment with the new European crypto‑asset regulatory framework (MiCA). We reaffirm our full commitment to operate in full compliance—this regulation represents a fundamental step toward transparency and investor protection across Europe.

Although we had long since initiated all the necessary activities to comply, with the goal of submitting the final application by the deadline of June 31st, 2025, an extension of the previous term made it impossible for us to meet that date.

In any case, we are ready to obtain authorization from the Supervisory Authority by the new deadline: December 30th, 2025. Thanks to a transitional regime under Italian law, we are authorised to continue providing our services without interruption, ensuring an orderly transition into the new system. For our users, this means there will be no immediate impact—you can continue using the platform just as you always have, without any action required on your part. Functionality, services and contract terms will remain unchanged during this period.

Our legal and compliance team is already working to ensure every aspect of our operations meets the highest standards demanded by MiCA. We will maintain an open and transparent dialogue and commit to regular updates on our progress. This path is not just a regulatory obligation—it’s a reaffirmation of our responsibility to build a crypto ecosystem that is ever more secure and trustworthy.

Strategic events and the future of Young Group

Last but not least, Q3 saw the official launch of Young Group—a strategic evolution celebrated at an exclusive event on 19 September in the prestigious Palazzo Mezzanotte (home of Borsa Italiana). On this occasion, we unveiled our transition from an exchange to a financial Super App: an integrated ecosystem that will offer trading on decentralised exchanges (DEX), collateralised loans, a debit card and payment account, and the integration of perpetual futures, stocks, and ETFs. A pillar of this strategy is Fleap S.p.A., a platform authorised by CONSOB for real‑asset tokenisation, positioning us at the centre of the European digital finance arena. Our co‑CEO, Andrea Ferrero, emphasised how this evolution represents the next step in our mission. After making Bitcoin safe and accessible five years ago, our current objective is to integrate the entire on‑chain economy into our app.

Our presence has not stopped there. We were key participants in Italian Tech Week—Italy’s premier tech event—where we organised the “Crypto Night” and presented our vision to more than 1,500 innovators and tech‑enthusiasts. We have also taken our strategy global: in late October, our Chairman, Nicolas Bertrand, will bring the Young Group model to the stage at Blockchain Life 2025 in Dubai—one of the world’s leading crypto events. His philosophy, at the heart of our strategy, is clear: success in fintech comes not just from technology, but from a perfect balance of regulation, accessibility and trust. While others obsess over hash‑rate optimisation, our obsession is optimising “trust‑flow”—that stream of trust which allows millions of people to approach this world safely, translating the complexity of blockchain into a human experience.

The third quarter of 2025 has demonstrated the strength of our vision and the exponential capacity of our ecosystem. Market validation, the launch of Young Group and a more concrete product roadmap are outcomes of a strategic journey built on solid foundations and a strong community.

But what you have read so far is only the visible part of this acceleration.

We have chosen to reserve the most strategic analyses and sensitive data exclusively for our Club members—they are the true protagonists of our ecosystem and deserve an unprecedented level of transparency regarding the decisions that will shape its future.

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Berachain: a new era for DeFi?

Berachain: Is this the future of DeFi?

Berachain is a blockchain implementing a consensus mechanism that could well revolutionise the world of DeFi: the Proof-of-Liquidity (PoL).

What’s all the fuss about?

Berachain is a Layer 1 blockchain that has garnered significant attention from many investors, both institutional and retail. This is primarily thanks to the consensus mechanism it’s built upon—the network’s own invention, Proof-of-Liquidity.

The fundamental idea, simplified to its bare bones, is to transform liquidity from a passive resource into an active engine for network security, thereby re-aligning security with the interests of the end-users.

What’s more, Berachain distinguishes itself through its extreme flexibility, being perfectly capable of hosting decentralised applications (dApps) developed initially on Ethereum.

Berachain: proof-of-liquidity and EVM identical

To embark on our journey to understand the Proof-of-Liquidity (PoL) consensus mechanism, we can start by defining it as an evolution of the more widely known Proof-of-Stake (PoS).

In a network utilising PoS, the security and integrity of the chain are upheld by validators, or nodes. They lock up tokens—or stake them—and in return, receive rewards when they successfully validate blocks. These rewards act as a powerful incentive for staking, fostering a virtuous cycle that secures the network.

However, this mechanism has a slight “flaw”: it isolates the validators—and their economic clout—from the broader ecosystem, meaning the Dapps and the users.

To simplify, we could (with a poetic licence) compare a PoS blockchain to a coal-powered train: just as validators secure the network by staking their tokens, the engineers ensure the train’s movement by shovelling coal into the furnace. However, the energy released “only” serves to make the train run.

The Proof-of-Liquidity consensus mechanism, by contrast, lays the groundwork for a system where the energy generated from the burning coal not only moves the train but simultaneously lights up the carriages, heats the water in the bathrooms, operates the window mechanisms, and so forth. It’s a game-changer.

How is this achieved? Through a two-token model that involves validators, dApps, and the community:

The latter has a particular feature: it is soulbound—similar to items in World of Warcraft—and cannot be bought, sold, or traded.

The virtuous cycle of PoL

  1. On one side, validators stake $BERA to ensure the chain’s security and receive $BGT in return.
  2. On the other side, users, via dApps like DEXs (Decentralised Exchanges), provide liquidity to pools and in exchange earn LP-tokens (Liquidity Provider Tokens). These “receipt tokens” certify the action and allow for the future redemption of the liquidity.
  3. These LP-tokens have a utility: they can be staked in Reward Vaults—smart contracts that then reward the user with $BGT for staking.
  4. Where do these $BGT tokens originate? They come from the validators. Validators receive them as a reward for staking $BERA and, thanks to PoL, are obliged to distribute the lion’s share to users who staked their LP tokens in the reward vaults.
  5. Validators are also motivated to direct $BGT to the Reward Vaults by the dApps themselves. This is done through a market of incentives (other tokens, stablecoins, etc.) offered by the protocols to increase the portion of $BGT for their end-users (liquidity providers).
  6. Users then delegate the $BGT tokens they obtained from locking LP-tokens in the Reward Vaults to validators, effectively “boosting” them. In return, users receive a share of the aforementioned incentives. A validator is ‘boosted’ when it receives more $BGT from users, increasing the amount of $BGT that can be directed to the Reward Vaults.

The circle is complete: validators, dApps, and users all collaborate in a self-sustaining ecosystem that rewards every component for its work. Though $BGT generates implicit value, it can always be exchanged for $BERA at a 1:1 ratio—jolly good stuff.

EVM identical

EVM stands for the Ethereum Virtual Machine. If we were to compare Ethereum to a global supercomputer, the EVM would be its operating system—the decentralised technological architecture necessary for executing smart contracts and transactions.

With its EVM Identical design, Berachain has reproduced an exact copy of the EVM on its own chain. This means Berachain is a blockchain that is 100% compatible with Ethereum’s EVM. The consequences are pretty obvious: the enormous number of developers working on Ethereum could easily “move” to Berachain without noticing any difference whatsoever.

The strategy is certainly intriguing: Berachain develops a potentially revolutionary consensus mechanism and says to programmers across the globe, “Look here, you code on Ethereum, but you’re curious about our PoL? No bother, we’ve created an execution environment that is totally identical to what you’re accustomed to, and it updates in sync with Ethereum“. In fact, by March 2025, just one month after its launch, Berachain had already amassed nearly $3 billion in Total Value Locked (TVL).

Berachain: team and funding

Not much is known about the team, as its members have opted to remain anonymous. The three co-founders have always presented themselves to the public under the pseudonyms Smokey the Bear, Homme the Bear, and Papa Bear.

This public anonymity, however, stands in stark contrast to the solid trust the project has earned in the institutional world. This is evidenced by the $100 million raised in a Series B funding round in April 2024.

Some of the world’s most prominent investment funds, which are also active in traditional finance, participated in this fundraising. The most noteworthy names include Brevan Howard Digital, the crypto arm of a behemoth with over $20 billion in assets under management. They were joined by Web3-specialised Venture Capital firms such as Framework Ventures, whose portfolio boasts projects like Aave (AAVE) and Chainlink (LINK), and Polychain Capital.

A dash of Italy in Berachain

We’ll conclude by sharing a piece of information that makes us rather proud: there’s a good bit of Italy in Berachain! Its European headquarters are in Milan, with a team that collaborates on research and development operations.

Perhaps this is what facilitated the recent partnership with Napoli—yes, the SSC Napoli coached by Antonio Conte. The collaboration isn’t directly with Berachain, but with KDA3, a platform that “develops innovative digital sports solutions”. KDA3 is built on Berachain, which invested directly in the platform in 2025. Furthermore, KDA3 is also in partnership with the Canadian Basketball Federation and will be launching other partnerships with international clubs in the coming months.

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Travel the world with WeRoad thanks to exclusive discounts for Young Platform Club members

WeRoad: up to €450 off on trips

If you love to travel, meet new people, and save money, the partnership between Young Platform and WeRoad could be a perfect fit. Members of our Clubs can redeem up to €450 in promotional coupons for the famous group trips organised by WeRoad. Let’s take a quick look at what this is all about.

What is WeRoad?

More than just one of the most important Italian tour operators, also active in France, the UK, Germany, and Spain, WeRoad is Italy’s largest community of travellers. Their mission is as simple as it is effective: to connect people, cultures, and stories through travel.

To achieve this, WeRoad creates groups of up to 15 people and organises trips to more than 125 different destinations, thematically divided into categories like Active Trips (centred around activities like skiing or surfing), On the Road Trips, and Safaris—plus much more.

Thanks to this winning format, WeRoad has gathered a community of more than 200,000 WeRoaders and 2,000 trip coordinators.

How does the benefit work?

This is a coupon that can be used for 3 different trips, with a value that varies based on your Club tier:

  • Bronze Club: €50 discount on 3 trips – Total discount €150
  • Silver Club: €70 discount on 3 trips – Total discount €210
  • Gold Club: €100 discount on 3 trips – Total discount €300
  • Platinum Club: €150 discount on 3 trips – Total discount €450

How to use your coupon

If you haven’t already, join a Club or upgrade to the one that offers the best benefits for you. Next, select the WeRoad benefit and click “Get Code.” You will receive an email from Young Platform. At this point:

  1. Read the email, which contains the coupon, the link to book your trip, and the expiration date of the promotional code. You can save the email to easily find it for your next trip.
  2. Visit the WeRoad website by clicking the button in the email. To ensure the coupon is accepted, use the website for the country you registered in on Young Platform.
    • If you listed Italy as your country of residence during identity verification on Young Platform, use the coupon on weroad.it.
    • If you listed an EU country other than Italy as your country of residence, use the coupon on weroad.com.
  3. Choose your preferred WeRoad trip using the search bar or the menu. Once you’ve found a destination, select your dates and click “Book.”
  4. At checkout, enter your coupon under “Do you have a discount code?”. Make sure the discount has been applied, and you’re all set!

Pay attention to the details!

Remember that the total discount must be used for 3 different trips and:

  • It is not valid for WeRoad X, WeRoad Express, or WeRoad Adventure trips.
  • If the trip costs less than the discount value, WeRoad will issue a new coupon for the remaining credit.
  • If the discount doesn’t cover the entire trip cost, you will only have to pay the difference.
  • It cannot be combined with other discount codes or vouchers.

Additionally, in case of withdrawal or cancellation, the refund policy depends on the code’s expiration date. In any case, if you encounter any problems, contact support at [email protected].

The WeRoad discount is just one of many benefits included in Young Platform Clubs. If you’d like to discover the others, visit the Club page. 

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Young Platform Pro gets an upgrade: here’s what’s new

Young Platform Pro gets an upgrade: here's what's new

Young Platform Pro is now even more “Pro”: with this latest update, we’ve introduced features explicitly tailored for professional traders. Discover what’s new.

At Young Platform, we’re committed to supporting the needs of advanced traders. That’s why we’ve redesigned the architecture of Young Platform Pro, introducing new features aimed at providing a complete and efficient trading experience. This isn’t just a cosmetic update—it’s a fundamental reimagining of the platform, placing the priorities of professional crypto traders at the very centre.

The importance of high-performance tools

Just as a surgeon achieves better precision and reduces risk with cutting-edge instruments, a trader operates more effectively and nimbly with a modern, high-performance platform. Maximum responsiveness, granular control, and uninterrupted operation are the cornerstones of the latest Young Platform Pro update. Let’s dive into the new features.

An interface designed for performance

The interface isn’t just an accessory—it’s a critical part of any trading strategy. It must be functional, easy to read, and optimised for all kinds of sessions, especially high-intensity ones. With the latest update:

  • Enhanced accessibility: Major improvements have been made in keyboard navigation and screen reader compatibility, making the platform more inclusive and professional.
  • Improved visual comfort: The colour palette has been redesigned to ensure high contrast and adhere to WCAG standards, based on the four POUR principles (Perceivable, Operable, Understandable, Robust). This helps reduce visual fatigue, especially during night sessions.
  • Optimised desktop design: The interface now makes better use of modern monitor form factors, increasing information density and minimising wasted space.

Customizable and synced setup across all devices

Experienced traders need to be able to switch between devices without skipping a beat. Consistency, fluidity, and coherence in the work environment are essential. With Young Platform Pro, you can now:

  • Build a fully customizable layout: Thanks to the new modular tab system, you can create your ideal setup tailored to your specific trading style. Every configuration is saved to your user profile and remains consistent across devices.
  • Sync chart studies to the cloud: Your TradingView analyses—indicators, trend lines, annotations—are no longer locked to a local device. They’re saved and synced in the cloud.
  • Set advanced options for each tab: Every section of your layout can be configured independently, allowing for detailed and precise control of your workspace.
  • View any tab in full screen: Each tab can be expanded to full screen, letting you focus entirely on charts or the order book when needed.

Total control over execution and trading operations

As we mentioned earlier, high-performance tools are essential for a professional trading experience. That’s why the core features of the order panel have been reengineered to deliver greater transparency, speed, and operational safety. Specifically:

  • Operational details always visible: You can now view detailed information on open and closed orders directly within the trading interface.
  • The Order Form has been enhanced:
    • Quick percentage selectors for capital allocation (25%, 50%, etc.).
    • Clearer information on fee calculation and alerts for Limit orders that may execute as Market orders.
    • A detailed order preview, which can be turned off for those who prefer a faster workflow.
  • Improved protection against user errors: A confirmation step has been added when cancelling open orders, helping to prevent accidental actions during high-pressure moments.
  • More flexibility in Market Buy: You can now place market orders using the base currency of the pair (e.g., 0.1 BTC on BTC/EUR), aligning with international platform standards.
  • Advanced tooltips: Every feature is now accompanied by contextual explanations, supporting both experienced traders and those exploring new functionalities.

API v4: optimised performance and speed

We know that automating strategies or building integrations requires instant, reliable data channels. As of March 2025, we’ve rolled out API v4, which reduces latency, enhances stability, and makes everything run more smoothly.

A professional trading experience: even on mobile

We understand that high-level traders keep a constant eye on the market and can’t afford operational interruptions.

With the introduction of mobile responsiveness, you can now enjoy a smooth, consistent, and high-performance experience from your smartphone or tablet. Monitoring, execution, and analysis are always at your fingertips—with no compromises compared to the desktop version.

Lastly—but by no means least—remember that we’ll continue to list new cryptocurrencies on a regular basis: the Young Platform team is constantly working to diversify and expand the range of tradable assets, so we can meet the needs of everyone who has chosen us. All of this is, of course, closely tied to our ongoing work to strengthen and optimise order-book liquidity.

Young Platform Pro has evolved.
 It’s now a more mature, high-performance trading environment than ever before.

Discover it today and take your trading to the next level.

Discover Young Platform PRO!
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MiCA: Our Path Toward Full Regulatory Compliance 

With the entry into force of Regulation (EU) 2023/1114 on Markets in Crypto-Assets (MiCA), the European Union has introduced a harmonised regulatory framework governing the issuance, public offering, and trading of crypto-assets, as well as the services related to them. This marks a significant step forward for the entire sector, aimed at ensuring greater transparency, consumer protection, and market stability.

We are fully committed to aligning ourselves with this new regulatory framework in a responsible and diligent manner. The purpose of this article is to inform our users about the steps we are taking in accordance with Article 45, paragraph 5, of Legislative Decree 129/2024, which aligns national regulations with the MiCA framework. At the same time, we want to reassure users that there will be no immediate changes to their experience and that our services will remain uninterrupted.

What Article 45, Paragraph 5 of Legislative Decree 129/2024 Provides

Article 45, paragraph 1, of Legislative Decree 129/2024 establishes a transitional regime for entities legally operating in the EU prior to the MiCA application date, which is December 30, 2024.

In practice, this provision allows existing operators to continue offering their services without interruption until June 30, 2026, even if they haven’t yet obtained MiCA authorisation—provided they submit their authorisation request by December 30, 2025. This deadline was extended from the original date through the enactment of Decree Law No. 95/2025.

This transitional rule aims to ensure a smooth transition to the new framework, avoiding abrupt disruptions for operators and inconvenience for end-users.

Our Commitment to Compliance

In accordance with the MiCA Regulation and Article 45, paragraph 5, of Legislative Decree 129/2024, we would like to formally communicate our intention to fully comply with the new EU regulatory framework, and specifically with the MiCA Regulation.

We have already initiated all the necessary steps to prepare our authorisation request, which will be submitted by December 30, 2025, as required under Legislative Decree 129/2024 and Decree Law No. 95/2025. This includes updating our internal processes, organisational requirements, and risk management policies as mandated by the new framework.

Our legal and regulatory team is working diligently to ensure full compliance with MiCA, enabling us to continue providing secure, reliable, and transparent services to our clients.

Authorisation Process Underway

We can confirm that our company is actively working to submit the required MiCA authorisation request.

In the coming weeks, we will file the necessary documentation with the competent authority. This marks a key milestone in our compliance journey, reflecting our commitment to operate not only lawfully but also responsibly, in the best interest of our users.

It is important to note that, pending the issuance of our MiCA license, our services will continue to be governed by the current regulations applicable to virtual asset service providers (VASPs) and digital wallet service providers. These services are not yet subject to MiCA provisions during the transition.

Continuity of Service for Our Clients

We want to reassure all our users that our services will remain fully operational throughout the entire transition period set out in Article 45.

There will be no disruptions to the services you are accustomed to, nor any unilateral changes to your current contractual terms. Operational continuity is a top priority for us, and we will continue to uphold the quality, reliability, and security you expect.

We emphasise that, in accordance with current regulations, there will be no immediate impact on your user experience, and all services will remain accessible as usual.

No Immediate Impact on User Experience

As of now—and until further notice—no major changes are planned regarding how you interact with our platform. The available features, services, and terms of use will remain unchanged.

This means you can continue using our tools as usual, without needing to take any action on your part. Any future updates will be communicated clearly, in advance, and with full transparency.

Our Commitment to Transparency and Ongoing Updates

We believe it is essential to maintain open and transparent communication with you. That’s why we are committed to keeping you informed on the progress of our authorisation process and any regulatory developments that may affect our services.

Should any important updates arise, you will be the first to know through our official communication channels. If you have any questions or concerns, our customer support team is available to assist you.

Our ongoing commitment is to guarantee transparency, continuity, and security—today and in the future.

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Mercosur: The EU Gives the Green Light to the Agreement

Mercosur agreement: a new era for global trade?

After 25 years of negotiations, Mercosur and the European Union are closer than ever to finalising a strategic partnership. So, what does this actually mean?

Mercosur and the European Union may be on the verge of signing a trade agreement that the European Commission itself has called “the biggest free trade deal ever signed”. The EU-Mercosur agreement involves countries that account for approximately $20 trillion in GDP and 700 million consumers.

What Exactly Is Mercosur?

The Mercosur—or Mercado Común del Sur (Common Market of the South)—is an organisation established in 1991 by the Treaty of Asunción. Its purpose is to “promote a common space that generates business and investment opportunities through the competitive integration of national economies into the international market”. The full members are Brazil, Argentina, Paraguay, and Uruguay. Venezuela was also a full member but was suspended in 2016 due to anti-democratic practices. Bolivia is currently in the process of joining as the fifth full member.

Additionally, there are several associate members, who enjoy privileged status but are not part of the main bloc. These include Chile, Colombia, Ecuador, and Peru.

Mercosur is a common market with the goal of increasing the exchange of goods and services, as well as the free movement of people. This applies both regionally among South American countries and internationally through agreements with other blocs, such as the one with the European Union. To achieve this, member countries are working to mutually reduce customs barriers, thereby promoting economic integration.

In 2023, the Mercosur bloc generated $447 billion in exports and $357 billion in imports, which is equivalent to 10.9% of international trade. These figures include both internal trade among members and external trade with other countries.

What Does the EU-Mercosur Agreement Entail?

Negotiations between the EU and Mercosur have been ongoing for approximately 25 years, marked by periods of tension and détente. A breakthrough finally occurred on 6 December 2024 in Montevideo, Uruguay, when EU leaders reached an understanding with the South American bloc countries. This past Wednesday, the European Commission presented the treaties that will define the commercial agreement, representing another significant step towards its officialisation.

The agreement is a result of a shared desire to remove trade barriers, ensure a responsible and eco-friendly supply of raw materials—with a particular focus on addressing Amazon deforestation—and send a clear message in favour of regulated international trade and against all forms of protectionism.

Specifically, the agreement is based on a principle of reciprocity. European industries, primarily those in automotives, machinery, and spirits, will gain greater access to the Mercosur market. In return, Mercosur will be able to more easily export its agri-food products to Europe, including meat, sugar, coffee, and soy.

This latter point, in particular, has caused some concern among agri-food companies in France, Poland, and, to a certain extent, Italy. The primary fear is related to unfair competition. South American countries have less restrictive environmental and food regulations than the EU, allowing the use of antibiotics, pesticides, and hormones that are banned in Europe.

In any case, the agreement provides for a gradual easing of customs tariffs on 90% of goods traded between the two blocs. It also establishes preferential channels for both European and South American companies, giving them greater access to public tenders and investment opportunities.

According to the European Commission, the final result will be a 39% increase in EU exports to Mercosur and an estimated 440,000 new jobs created across Europe.

The Road Ahead

As anticipated, the EU-Mercosur agreement is not yet official. However, it represents a crucial phase in bringing the two blocs closer, especially as they seek protection from costly Trump-era tariffs.

This is an interim trade agreement, meaning it is provisional. As such, it does not require the approval of all 27 member states, but rather only the ratification of the qualified majority of the EU Council. This means at least 15 out of 27 countries (55%) that represent at least 65% of the population must vote in favour.

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Russia-Ukraine war: updates

Russia–Ukraine war: any updates?

It was a busy weekend for Donald Trump, who met with Putin, Zelensky, European leaders, and NATO representatives. What happened – and how did markets react?

It was an eventful and politically charged weekend: over the course of four days, a bold and unpredictable Donald Trump hosted Russian President Vladimir Putin, Ukrainian President Volodymyr Zelensky, six European heads of state, including Giorgia Meloni, and NATO Secretary General Mark Rutte in the United States. The aim? To seek a potential solution to a war that has now entered its fourth year, following Russia’s invasion of Ukraine.
Here’s a brief recap of what took place – and a final look at how the markets responded.

Trump and Putin: meeting in Alaska – 15 August

On 15 August, at a US military base near Anchorage, Alaska, US President Donald Trump met face-to-face with Russian President Vladimir Putin to discuss the ongoing war in Ukraine. The lead-up to the meeting attracted global attention, mainly due to Trump’s surprisingly warm demeanour towards Putin: red carpets, handshakes, pats on the back, and broad smiles.

But one detail, in particular, made headlines: the US President spontaneously offered his Russian counterpart a ride in the iconic, armoured presidential limousine – known as “The Beast” – away from cameras and microphones. What was said during that ten-minute ride remains unknown. What is certain, however, is that the two men were seen laughing and chatting amicably, like old friends.

As for the press conference that followed – the quotation marks are deliberate – very little of substance was shared. The two leaders answered virtually no questions, instead offering vague and formulaic statements.

Putin opened with praise for the atmosphere of “mutual respect”, going so far as to remind attendees that Alaska was once a Russian territory. He then shifted to the main topic: the war in Ukraine. Once again, the Russian leader insisted that peace talks could only begin if certain preconditions were met – namely, international recognition of Russia’s claims over disputed regions, Ukraine’s demilitarisation and neutrality, a ban on foreign military presence, and new Ukrainian elections.

Then it was Trump’s turn. Notably restrained, the US President – usually known for his long-winded statements – kept things brief. “There were many points on which we agreed”, “great progress”, and “an extremely productive meeting” were among the few phrases he offered. In essence, a lot of diplomatic smoke and mirrors, followed by the admission that no concrete agreement had been reached – but that “we have a very good chance of getting there”.

Trump, Zelensky, Europe and NATO meet in Washington, D.C.

Between Sunday and Monday, Donald Trump held talks with Ukrainian President Volodymyr Zelensky, before extending invitations to six European leaders – France’s Macron, Germany’s Mertz, Italy’s Meloni, Britain’s Starmer, Finland’s Stubb, and EU Commission President Ursula von der Leyen – as well as NATO Secretary General Mark Rutte.

The main topic on the agenda was clear: the security and territorial integrity of Ukraine. For months, Zelensky, alongside European and NATO officials, has been urging President Trump to provide firm guarantees that any peace deal must respect Ukraine’s sovereignty, and that future agreements must act as a deterrent against further Russian aggression. The proposal? To allow Kyiv to build a modern, specialised and well-equipped army that would discourage any future invasions.

The problem? As we saw earlier, Vladimir Putin is wholly opposed to this and has made very different demands.

What’s Next?

It’s difficult to predict, given Putin’s elusive nature and Trump’s unpredictability. That said, on August 19, Trump confirmed that Putin had agreed to a direct meeting with Zelensky, which would be followed by a trilateral summit involving the US, Russia, and Ukraine.

In a post on his Truth Social account, Trump wrote:
“At the end of the meetings, I called President Putin and began organising a meeting, at a location to be determined, between President Putin and President Zelensky. After this meeting takes place, we will have a trilateral meeting, which will include the two presidents and Mme”

UK Prime Minister Keir Starmer and German Chancellor Mertz also confirmed this announcement.

How did the markets react? 

The reaction from traditional financial markets was largely positive. The three major US indices – the Nasdaq, Dow Jones, and S&P 500 – initially rallied on news of the Trump–Putin summit in Alaska, before easing back slightly. Analysts suggest investors were hoping for more concrete results, rather than vague diplomatic gestures.

A similar trend was observed across European markets, particularly in Paris, Frankfurt, and London, which have all been performing strongly since early August.

The crypto market, however, told a slightly different story.

Between August 13 and 14, Bitcoin surged to a new all-time high of $124,000, before pulling back to around $115,600 after again failing to break through the resistance zone between $121,000 and $123,000.

Ethereum also came close to surpassing its own all-time high, missing it by just $100. It’s currently trading at around £4,300, with a renewed breakout attempt looking likely – especially now that the previous resistance at £4,100 seems to have become support.

As for the Total Market Cap, since the announcement on Thursday, 7 August, it has risen from $3.7 trillion to approximately $3.85 trillion – a gain of around 3.8% (roughly $150 billion).

Lastly, Bitcoin dominance continues to slide. Over the past 12 days, BTC’s market share has decreased by more than three percentage points, currently standing at 59.7% at the time of writing.

Is there a glimmer of hope?

So, can Donald Trump really bring Vladimir Putin and Volodymyr Zelensky to the same negotiating table? Are we genuinely moving towards peace, or is this just political theatre?

And what role will Europe play in the outcome?

Subscribe to our Telegram channel or sign up directly to the Young Platform below to stay up to date with all the latest developments.

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How the Stock Exchange works, explained simply

How does the stock market work?

NYSE, Nasdaq, LSE – what do these names mean? They refer to some of the world’s leading stock exchanges. But what exactly is a stock exchange, and how does it work?

The stock exchange, more commonly known as the stock market, is a financial marketplace where shares, bonds, and other securities are bought and sold. Once considered the domain of financial insiders, the stock market has now entered popular culture, thanks in part to numerous cult films that have graced cinema screens since the 1970s.

But what is the history of the stock exchange? What are its key components? And who are the leading players involved? Let’s take a closer look.

How and when was the stock exchange created?

The earliest recorded evidence of trading, lending, and deposit activities dates back to the second millennium BC, inscribed in the Babylonian Code of Hammurabi. Similar financial practices were also found among the ancient Greeks, Etruscans, and Romans.

However, these early forms of financial exchange cannot truly be considered a ‘stock market’ as we understand it today. The first genuine stock exchange was established in Amsterdam, in the Netherlands, around the 17th century.

The Middle Ages

In the late Middle Ages, the world of finance began to take on a more structured form with the emergence of the first banking institutions. Italy – particularly the cities of Genoa, Venice, and Siena – was, for many years, the central financial hub of Europe.

Around the 14th century, a new trading centre emerged that attracted merchants from across the continent, helping to shape a financial system that was still quite rudimentary. This was in Bruges, Belgium, specifically in the Ter Buerse Palace, built by the aristocratic Van der Bourse family. It was here, where merchants gathered to exchange goods and currencies, that the name ‘Borsa’ (stock exchange) originated.

Later, essential exchanges were established in Antwerp, Lyon, and Frankfurt, marking a shift from private to public management, with increasingly clear and stricter regulations.

The Modern Age

In the 17th century, the Amsterdam Stock Exchange became the most important in Europe – and likely in the world. This period also saw the creation of the first joint-stock companies, which significantly boosted the trading of securities, including government bonds and commodities.

The 18th century witnessed the rise of international trade, as well as the emergence of speculative bubbles. The most famous was the South Sea Bubble in England (1710–1720), when share prices soared before collapsing, causing heavy losses. It led to the Bubble Act, a law aimed at curbing speculation by limiting the formation of new companies.

Meanwhile, in New York, a group of merchants began meeting under a plane tree on Wall Street to trade securities – a humble beginning for what would become a future global financial centre.

The Industrial Revolution and the modern stock market

During this period, the stock market became crucial not only for company growth but also for the economic development of entire nations. London and Paris became key financial markets, funding industrial projects, infrastructure, and even colonial and military ventures.

In 1817, the New York Stock Exchange (NYSE) was officially established. Over time, it would grow to become the world’s largest stock exchange by market capitalisation.

The 20th century: successes and severe financial crises 

By 1900, the stock market had become the beating heart of the capitalist system. Economics and finance were now deeply interconnected. It was a century marked by sharp contrasts, alternating between periods of remarkable economic growth – such as the Roaring Twenties and the post-World War II boom – and severe financial crises, including the Great Depression of 1929 and Black Monday in 1987.

This volatility highlighted the need for regulation. Supervisory authorities such as the SEC (Securities and Exchange Commission) in the United States and Consob (National Commission for Companies and the Stock Exchange) in Italy were established to oversee financial markets, which were now dealing with enormous capital flows.

In 1971, the Nasdaq was founded, marking the beginning of the stock market’s transition from a physical trading floor, filled with shouting and hand signals, to an electronic system driven by computers and algorithms.

The digital age

Fast forward to today: the rise of the Internet has transformed how the stock market functions. It has brought greater accessibility, instantaneous transactions, unprecedented capital mobility, and the emergence of entirely new markets.

Now that we’ve explored its history, let’s take a closer look at how the stock market works today.

How does the stock market work?

To understand how the stock market works, it’s first essential to understand what it is. The stock market can be described as the financial engine that links the world of businesses with that of savers and investors. On one side, companies seek capital to fund their growth – whether by opening new branches, developing new products, or hiring staff. On the other hand, individuals look for opportunities to grow their savings. This is where the concepts of primary and secondary markets come into play.

The primary market is where shares are created. When a company lists on the stock exchange for the first time, it sells its shares directly to investors – a process known as an IPO (Initial Public Offering). Investors, by purchasing these shares, provide the company with the necessary funds to grow.

The secondary market, on the other hand, is the market in which existing shares are bought and sold between investors on a daily basis. Companies do not earn money from these transactions, but the market allows investors to profit from rising prices.

But shares are not the only financial instruments traded on the market. A large portion of investments also involves bonds. Understanding the difference between the two is fundamental.

What are shares?

As mentioned earlier, shares represent small units of ownership in a company. Investors buy them with the hope of selling them later at a higher price. Even by purchasing a single share, an investor becomes a partial owner of the company.

This ownership grants specific rights, such as receiving dividends (a portion of the company’s profits, although not always guaranteed) and participating in shareholder meetings.

However, buying shares comes with risks. Share prices are closely tied to the company’s performance. If the business thrives, the price typically increases. If it struggles, the cost can fall – sometimes dramatically. In extreme cases, shares can become worthless.

This is because share prices are determined by the balance of supply and demand. The more people want to buy a share – perhaps because the company has released a revolutionary product or reported record profits – the more its price rises. If demand drops, the price falls.

A helpful analogy: how much would you pay for a bottle of water in a city? Probably not much – it’s easy to find. But how much would you pay for that same bottle in the middle of the desert?

What are bonds?

Bonds differ fundamentally from shares. When an investor buys a bond, they do not become a shareholder; instead, they become a creditor. What does that mean in practice?

Put simply, a company issues bonds to raise capital, just as it does when issuing shares, but the mechanism is different. Buying a bond is similar to lending money to the company. The investor agrees to lend a specific amount, understanding that it will be repaid after a set period (e.g., five or ten years). In return, the company pays the investor regular interest payments, commonly referred to as coupons.

These coupons function like an interest rate, and the amount paid often reflects the company’s financial stability and trustworthiness. A well-established, transparent, and profitable company will typically offer a lower interest rate than a riskier, less stable one.

The same principle applies to government bonds, which a national government issues to finance public spending. For example, Italian government bonds tend to offer lower interest rates than Moldovan bonds, because Italy is generally considered more creditworthy and therefore less risky for investors.

Compared to shares, bonds are considered safer and more stable. However, this usually means they offer lower potential returns. As always, the general rule applies: higher risk, higher reward – lower risk, lower return.

What are indices?

This bonus section ties together both shares and bonds. So, what exactly is an index?

An index is simply a group or “basket” of listed companies (in the case of shares) or debt instruments (in the case of bonds), grouped according to specific criteria.

What kind of criteria? For example:

  • The S&P 500 includes the 500 largest publicly traded companies in the United States.
  • The NASDAQ-100 tracks the 100 largest non-financial companies listed on the NASDAQ.
  • The S&P Global Clean Energy Transition Index includes 100 companies worldwide that are involved in the clean energy sector.

For bonds, indices might group securities by maturity date, such as all government bonds with a 10-year or 30-year term.

These indices are useful benchmarks. They help investors assess overall market performance, track sectors, and compare their portfolios against broader trends.

Who operates on the market? The main players

Now that we’ve explored the tools and rules of the stock market, it’s time to understand who actually takes part.

Listed Companies

First of all, there are the listed companies themselves – without them, the stock market wouldn’t exist. As we’ve seen, these companies launch themselves into the financial markets to raise capital for expansion, innovation, or operations.

Investors: institutional and retail

Next, we have the investors, who buy shares and bonds in the hope of growing their capital. Investors can be categorised into two main groups: institutional investors and retail investors.

  • Institutional investors are the heavyweights of the financial system. They manage enormous sums of money and can influence the price trends of individual companies. This group includes mutual funds, pension funds, and insurance companies, which invest their clients’ money to generate returns and earn management fees in the process.
  • Retail investors, on the other hand, are individual savers who invest their own capital in the hope of earning a return on investment. If you’re reading this, chances are you already are – or soon will be – a retail investor. If so, we recommend checking out our blog for helpful content on avoiding common mistakes, understanding diversification, and overcoming cognitive biases in finance.

Financial intermediaries

Let’s now turn to the players who make investing possible: the financial intermediaries.

These operators form the essential bridge between those who issue shares and bonds and those who buy them. For various technical, legal, and security reasons, it’s not possible to trade directly on the stock exchange without going through these entities. In practical terms, we’re talking about banks and online brokers, which provide access to financial markets in exchange for commissions.

You might wonder, perhaps with mild irritation, “Why am I forced to go through an intermediary just to buy a share in Coca-Cola?” The answer is simple: for the same reason you need a driving licence to operate a car. You can’t just jump behind the wheel and press the pedals at random.

You might rightly argue that once you’ve got your licence, you can drive yourself. True – but can you build the car?

That’s the point. Building the “car” in this case means having ultra-secure IT systems, legal authorisations, direct exchange connections, and regulatory compliance. It’s a complex, expensive, and highly regulated activity – which is why supervisory authorities require only authorised intermediaries to operate in this space.

Supervisory authorities

Speaking of oversight, let’s talk about the supervisory authorities – the referees of the financial world. If the stock market were a football match, these are the officials ensuring that the game is played fairly and in accordance with the rules.

These authorities may be national, such as the SEC in the United States, CONSOB in Italy, or the FCA in the UK, or supranational, like ESMA (European Securities and Markets Authority) in the EU.

Their key responsibilities include:

  • Investor protection – ensuring that intermediaries act reasonably and responsibly towards consumers;
  • Market transparency – requiring listed companies to publish relevant information such as financial reports, quarterly results, and even executive changes;
  • Fair trading – monitoring markets to detect and sanction unfair practices like insider trading, where individuals trade using confidential or privileged information.

But you never stop learning.

In this article, we aim to provide an overview of the stock market, outlining its key components and how it operates. That said, what you’ve just read is likely just the tip of the iceberg.

Suppose you’ve landed here fresh from watching The Wolf of Wall Street, dreaming of sipping Martinis on a sun lounger in a luxury resort in the middle of the Pacific within a year, just like the next self-proclaimed guru. In that case, our advice is this: stay grounded and start learning seriously.

In the meantime, why not subscribe to our Telegram channel or even sign up directly to the Young Platform by clicking below? We regularly share guides, tips, and financial updates to help you stay informed and avoid being caught off guard.

See you next time!

Posted on

How the Stock Exchange works, explained simply

How does the stock market work?

NYSE, Nasdaq, LSE – what do these names mean? They refer to some of the world’s leading stock exchanges. But what exactly is a stock exchange, and how does it work?

The stock exchange, more commonly known as the stock market, is a financial marketplace where shares, bonds, and other securities are bought and sold. Once considered the domain of financial insiders, the stock market has now entered popular culture, thanks in part to numerous cult films that have graced cinema screens since the 1970s.

But what is the history of the stock exchange? What are its key components? And who are the leading players involved? Let’s take a closer look.

How and when was the stock exchange created?

The earliest recorded evidence of trading, lending, and deposit activities dates back to the second millennium BC, inscribed in the Babylonian Code of Hammurabi. Similar financial practices were also found among the ancient Greeks, Etruscans, and Romans.

However, these early forms of financial exchange cannot truly be considered a ‘stock market’ as we understand it today. The first genuine stock exchange was established in Amsterdam, in the Netherlands, around the 17th century.

The Middle Ages

In the late Middle Ages, the world of finance began to take on a more structured form with the emergence of the first banking institutions. Italy – particularly the cities of Genoa, Venice, and Siena – was, for many years, the central financial hub of Europe.

Around the 14th century, a new trading centre emerged that attracted merchants from across the continent, helping to shape a financial system that was still quite rudimentary. This was in Bruges, Belgium, specifically in the Ter Buerse Palace, built by the aristocratic Van der Bourse family. It was here, where merchants gathered to exchange goods and currencies, that the name ‘Borsa’ (stock exchange) originated.

Later, essential exchanges were established in Antwerp, Lyon, and Frankfurt, marking a shift from private to public management, with increasingly clear and stricter regulations.

The Modern Age

In the 17th century, the Amsterdam Stock Exchange became the most important in Europe – and likely in the world. This period also saw the creation of the first joint-stock companies, which significantly boosted the trading of securities, including government bonds and commodities.

The 18th century witnessed the rise of international trade, as well as the emergence of speculative bubbles. The most famous was the South Sea Bubble in England (1710–1720), when share prices soared before collapsing, causing heavy losses. It led to the Bubble Act, a law aimed at curbing speculation by limiting the formation of new companies.

Meanwhile, in New York, a group of merchants began meeting under a plane tree on Wall Street to trade securities – a humble beginning for what would become a future global financial centre.

The Industrial Revolution and the modern stock market

During this period, the stock market became crucial not only for company growth but also for the economic development of entire nations. London and Paris became key financial markets, funding industrial projects, infrastructure, and even colonial and military ventures.

In 1817, the New York Stock Exchange (NYSE) was officially established. Over time, it would grow to become the world’s largest stock exchange by market capitalisation.

The 20th century: successes and severe financial crises 

By 1900, the stock market had become the beating heart of the capitalist system. Economics and finance were now deeply interconnected. It was a century marked by sharp contrasts, alternating between periods of remarkable economic growth – such as the Roaring Twenties and the post-World War II boom – and severe financial crises, including the Great Depression of 1929 and Black Monday in 1987.

This volatility highlighted the need for regulation. Supervisory authorities such as the SEC (Securities and Exchange Commission) in the United States and Consob (National Commission for Companies and the Stock Exchange) in Italy were established to oversee financial markets, which were now dealing with enormous capital flows.

In 1971, the Nasdaq was founded, marking the beginning of the stock market’s transition from a physical trading floor, filled with shouting and hand signals, to an electronic system driven by computers and algorithms.

The digital age

Fast forward to today: the rise of the Internet has transformed how the stock market functions. It has brought greater accessibility, instantaneous transactions, unprecedented capital mobility, and the emergence of entirely new markets.

Now that we’ve explored its history, let’s take a closer look at how the stock market works today.

How does the stock market work?

To understand how the stock market works, it’s first essential to understand what it is. The stock market can be described as the financial engine that links the world of businesses with that of savers and investors. On one side, companies seek capital to fund their growth – whether by opening new branches, developing new products, or hiring staff. On the other hand, individuals look for opportunities to grow their savings. This is where the concepts of primary and secondary markets come into play.

The primary market is where shares are created. When a company lists on the stock exchange for the first time, it sells its shares directly to investors – a process known as an IPO (Initial Public Offering). Investors, by purchasing these shares, provide the company with the necessary funds to grow.

The secondary market, on the other hand, is the market in which existing shares are bought and sold between investors on a daily basis. Companies do not earn money from these transactions, but the market allows investors to profit from rising prices.

But shares are not the only financial instruments traded on the market. A large portion of investments also involves bonds. Understanding the difference between the two is fundamental.

What are shares?

As mentioned earlier, shares represent small units of ownership in a company. Investors buy them with the hope of selling them later at a higher price. Even by purchasing a single share, an investor becomes a partial owner of the company.

This ownership grants specific rights, such as receiving dividends (a portion of the company’s profits, although not always guaranteed) and participating in shareholder meetings.

However, buying shares comes with risks. Share prices are closely tied to the company’s performance. If the business thrives, the price typically increases. If it struggles, the cost can fall – sometimes dramatically. In extreme cases, shares can become worthless.

This is because share prices are determined by the balance of supply and demand. The more people want to buy a share – perhaps because the company has released a revolutionary product or reported record profits – the more its price rises. If demand drops, the price falls.

A helpful analogy: how much would you pay for a bottle of water in a city? Probably not much – it’s easy to find. But how much would you pay for that same bottle in the middle of the desert?

What are bonds?

Bonds differ fundamentally from shares. When an investor buys a bond, they do not become a shareholder; instead, they become a creditor. What does that mean in practice?

Put simply, a company issues bonds to raise capital, just as it does when issuing shares, but the mechanism is different. Buying a bond is similar to lending money to the company. The investor agrees to lend a specific amount, understanding that it will be repaid after a set period (e.g., five or ten years). In return, the company pays the investor regular interest payments, commonly referred to as coupons.

These coupons function like an interest rate, and the amount paid often reflects the company’s financial stability and trustworthiness. A well-established, transparent, and profitable company will typically offer a lower interest rate than a riskier, less stable one.

The same principle applies to government bonds, which a national government issues to finance public spending. For example, Italian government bonds tend to offer lower interest rates than Moldovan bonds, because Italy is generally considered more creditworthy and therefore less risky for investors.

Compared to shares, bonds are considered safer and more stable. However, this usually means they offer lower potential returns. As always, the general rule applies: higher risk, higher reward – lower risk, lower return.

What are indices?

This bonus section ties together both shares and bonds. So, what exactly is an index?

An index is simply a group or “basket” of listed companies (in the case of shares) or debt instruments (in the case of bonds), grouped according to specific criteria.

What kind of criteria? For example:

  • The S&P 500 includes the 500 largest publicly traded companies in the United States.
  • The NASDAQ-100 tracks the 100 largest non-financial companies listed on the NASDAQ.
  • The S&P Global Clean Energy Transition Index includes 100 companies worldwide that are involved in the clean energy sector.

For bonds, indices might group securities by maturity date, such as all government bonds with a 10-year or 30-year term.

These indices are useful benchmarks. They help investors assess overall market performance, track sectors, and compare their portfolios against broader trends.

Who operates on the market? The main players

Now that we’ve explored the tools and rules of the stock market, it’s time to understand who actually takes part.

Listed Companies

First of all, there are the listed companies themselves – without them, the stock market wouldn’t exist. As we’ve seen, these companies launch themselves into the financial markets to raise capital for expansion, innovation, or operations.

Investors: institutional and retail

Next, we have the investors, who buy shares and bonds in the hope of growing their capital. Investors can be categorised into two main groups: institutional investors and retail investors.

  • Institutional investors are the heavyweights of the financial system. They manage enormous sums of money and can influence the price trends of individual companies. This group includes mutual funds, pension funds, and insurance companies, which invest their clients’ money to generate returns and earn management fees in the process.
  • Retail investors, on the other hand, are individual savers who invest their own capital in the hope of earning a return on investment. If you’re reading this, chances are you already are – or soon will be – a retail investor. If so, we recommend checking out our blog for helpful content on avoiding common mistakes, understanding diversification, and overcoming cognitive biases in finance.

Financial intermediaries

Let’s now turn to the players who make investing possible: the financial intermediaries.

These operators form the essential bridge between those who issue shares and bonds and those who buy them. For various technical, legal, and security reasons, it’s not possible to trade directly on the stock exchange without going through these entities. In practical terms, we’re talking about banks and online brokers, which provide access to financial markets in exchange for commissions.

You might wonder, perhaps with mild irritation, “Why am I forced to go through an intermediary just to buy a share in Coca-Cola?” The answer is simple: for the same reason you need a driving licence to operate a car. You can’t just jump behind the wheel and press the pedals at random.

You might rightly argue that once you’ve got your licence, you can drive yourself. True – but can you build the car?

That’s the point. Building the “car” in this case means having ultra-secure IT systems, legal authorisations, direct exchange connections, and regulatory compliance. It’s a complex, expensive, and highly regulated activity – which is why supervisory authorities require only authorised intermediaries to operate in this space.

Supervisory authorities

Speaking of oversight, let’s talk about the supervisory authorities – the referees of the financial world. If the stock market were a football match, these are the officials ensuring that the game is played fairly and in accordance with the rules.

These authorities may be national, such as the SEC in the United States, CONSOB in Italy, or the FCA in the UK, or supranational, like ESMA (European Securities and Markets Authority) in the EU.

Their key responsibilities include:

  • Investor protection – ensuring that intermediaries act reasonably and responsibly towards consumers;
  • Market transparency – requiring listed companies to publish relevant information such as financial reports, quarterly results, and even executive changes;
  • Fair trading – monitoring markets to detect and sanction unfair practices like insider trading, where individuals trade using confidential or privileged information.

But you never stop learning.

In this article, we aim to provide an overview of the stock market, outlining its key components and how it operates. That said, what you’ve just read is likely just the tip of the iceberg.

Suppose you’ve landed here fresh from watching The Wolf of Wall Street, dreaming of sipping Martinis on a sun lounger in a luxury resort in the middle of the Pacific within a year, just like the next self-proclaimed guru. In that case, our advice is this: stay grounded and start learning seriously.

In the meantime, why not subscribe to our Telegram channel or even sign up directly to the Young Platform by clicking below? We regularly share guides, tips, and financial updates to help you stay informed and avoid being caught off guard.

See you next time!

Posted on

Diversification: what it is and why it is important 

Diversification

Diversification is one of the fundamental concepts of investing, even though too many people dismiss it. But what is it? And why is it so important? 

Diversification is a fundamental principle that should guide the investment strategy of anyone who wants to enter the world of crypto. It is a concept that belongs to traditional finance, but one that has accompanied humanity throughout the entire process of civilisation. In this article, we will try to answer two questions that are as simple as they are comprehensive: what is diversification? And why is it so important?

Diversification: what is it and what does it mean?

In finance, diversification is defined as a strategy or fundamental principle for minimising risk: in concrete terms, it means spreading financial resources across a diverse range of assets, rather than concentrating capital on a single investment. The prime example, the timeless classic used by those who want to explain this concept in a simple way, is that of eggs in a basket. More precisely, the phrase ‘don’t put all your eggs in one basket!‘, accompanied by an index that swings back and forth, solemn as an oracle. 

Joking aside, the comparison is apt: diversification means avoiding putting all your eggs in the same basket. The reason is simple: if all your eggs are in one basket and, unfortunately, it slips out of your hands, you’ll end up with an inedible omelette. In other words, you would have lost everything. But if the same number of eggs had been wisely distributed across several baskets, you would have lost the contents of one of them, preserving the rest. Similarly, as you can easily understand, spreading your investments across several different assets greatly reduces the risk of losing everything in one fell swoop. And your portfolio will thank you for it.

If you think about it, as we mentioned in the introduction, this rule has been around for centuries, since the dawn of civilisation. As early as the Neolithic period, communities raised several types of livestock at the same time – including cows, sheep and goats – in order to have different qualities of food and material resources available, but also to prevent, for example, a single disease from wiping out all their animals. Even during the Middle Ages, farmers understood the importance of growing several types of cereals using a three-year rotation system. The advantages were obvious: improved soil fertility, increased overall production and reduced risk of famine, as losses caused by a bad harvest were offset by the others. 

Among other things, diversification also determines our diet. Obviously, it would be wonderful to eat pizza every day, but it is essential to alternate with healthier, more boring foods to avoid digging our own graves. In short, if diversification guides every aspect of human life, why shouldn’t it do the same for our investments?

Diversification: Why is it important?  

Diversification, as previously explained, is an essential criterion from a conservative perspective, i.e. risk reduction. At this point, one might rightly object: ‘I don’t care about risk, I want to put all my money on that meme coin and become a millionaire in three days’. Fair enough, but this is not investing; it is gambling, and the chances of winning when gambling are extremely low. Returning to investing, diversification also makes sense from a profit perspective, as it allows you to avoid missing out on the asset or assets of the decade. 

Let’s take a concrete example from the internet megatrend of the early 2000s, just after the dot-com bubble burst. At that time, the main use case for the internet was search, and Google was the undisputed king. You could have legitimately thought that the Californian company was the only horse worth betting on, as it dominated almost non-existent competition. Today, that choice would have undoubtedly proven you right, as Google’s share price has grown by more than 6,000%, but you would have kicked yourself. Why? By viewing the internet as a tool designed exclusively for online search, you would have missed out on other companies such as Netflix and Amazon, which have outperformed Google by carving out their own slice of the market. 

Diversifying in the crypto world

Diversification in the world of cryptocurrencies follows the dynamics of the example just described: it depends on how you understand blockchain and its use cases. Bitcoin is, without a doubt, the dominant player in this world, as it alone accounts for more than 64% of the market. However, its usefulness is ‘limited’ – for now – to payments and being a store of value, although BTCFi could show promise. So, if you believe that blockchain will not go beyond Bitcoin, then it makes sense to invest everything in it, at your own risk. 

It is undeniable, however, that blockchain is slowly but surely making its way into other strategic sectors, and the future could hold surprises in this regard. The key point is to take a step back and look at the situation as a whole: don’t focus on the present so as not to be misled by heuristics and cognitive biases, but, as the philosopher Baruch Spinoza would say, consider things sub specie aeternitatis – in the light of eternity – in an absolute and universal sense. This is precisely what diversification means: avoiding overexposure to a single cryptocurrency, both to reduce risk and to avoid missing out on huge opportunities such as Ethereum, which rose by 1,880% between 1 January 2020 and 1 January 2025. 

Clearly, in order to invest wisely, you need to stay up-to-date and stay on top of what is happening in this constantly evolving world.