The best way to have a better tomorrow is to make smarter and wiser decisions today. And if you wish to have a safe and happy financial future tomorrow you need to do so by starting to invest today. A few decades ago, we had only a handful of options to invest and plan our finances. So, most of us put our money into retirement funds hoping that we would have a safe and secure future and this money would be sufficient.
However, technology has changed the way we handle our money. Everything from the platforms we can invest into planning our future can be done with the touch of a button. The predictive technology only adds to the advantages as the bots can review your finances, evaluate your risk-taking ability, and suggest ideal investment plans. You don't have to hire a financial advisor or follow their advice blindly. So, what are the various investment options that you have online? Are there any tips and tricks that you could follow? Here’s what you could do!
When you explore the world of investments online, it could be tempting to jump into the big leagues instantly. However, to mitigate the risk and make sure you don't land in trouble, you need to start investing small. The best way to get started is by investing your fortune in something like P2P lending, as the return on peer-to-peer lending is significantly high in comparison to other forms of online investments.
In peer-to-peer lending, individuals post their requirements for money, and the platform assesses their profile, creditworthiness, and risk levels before suggesting them to lenders. The individuals can pick a lender based on the interest rate and payback duration. When you are a lender, you can choose to help individuals build their dreams by charging them interest on the amount you loan. You would get a monthly interest besides getting back the principal amount on maturity.
The best time to start planning your financial future, retirement savings, and investments is as soon as you start earning. That way, you would have saved a significant amount of money by the time you are in your 30s. When you start investing early, the returns or the interest will start adding to your wealth, and you would have more than just your income to support your needs and add to your investments. However, it is never too late to start, so do not worry. You can start investing online even if you have very little money on hand.
Stock market trading is an alluring option for most of us. And the fascination for them has surely increased since we all watched the movie The Wolf of Wall Street. However, in real life, things are different, and you might not make a fortune overnight. That is because the stock market is constantly fluctuating, and you might have to understand its nuances before buying or selling a stock. And every time you trade (buy or sell), you pay a commission to the platform or the stockbroker. If you are not making an informed decision, these commissions might amount to more than how much you make.
Does that mean that you should not invest in stock? Well, the answer is NO! You can always sign up for demo accounts that numerous trading platforms offer and start small. These demo accounts offer you guidance on the best stocks to invest in based on your risk-taking ability, creditworthiness, and asset profile. And the charges that they levy on your transactions are also relatively small. You could start by investing a small amount, watch the market, learn, and test the waters before you take the big leap.
Until a few years ago, all our investment advice came in from financial advisors. However, now technology is taking over that space. Welcome to the world of AI and robot advisors who would assess your portfolio and suggest investment options to build your wealth. AI, we can say, will be the future of investments and banking, so go by the advice of the machines.
The cookie jar approach is what works best here. If you are looking to build a strong investment portfolio, you should start small, and invest in multiple options. Just like in the olden days when our parents and grandparents put money in different jars to use for different purposes, you need to have your assets distributed across numerous platforms.
This way, you would not end up losing your entire wealth if the market crashes. Yes, that is possible and every year a lot of people go bankrupt because they put their entire savings in one place. So, here is what you could do. Have some money invested in stocks, some in mutual funds, some in cryptocurrency, some emergency funds, and some liquid cash.
The value of a single bitcoin has grown phenomenally since its launch in 2009. The worth of a single bitcoin in 2009 was $0. The same bitcoin could now be worth anywhere around $50,000.
So, if you had invested a hundred dollars in bitcoin in 2009, it would be worth over 50,47,110 dollars today. However, it is not too late to invest even now. If you were to invest today, you would still make a fortune because the cost of one bitcoin is expected to grow up to one million by 2025. If you're looking for a secure cryptocurrency exchange platform to buy, sell, or store your bitcoin or any other cryptocurrency, Coinbase is the most popular one by far. However, Coinbase is known to be expensive so you may want to look for Coinbase competitors and compare each of them to help you find the best platform for you.
As bitcoins are completely virtual currencies with end to end encryption, it is not affected by inflation and makes for a great online investment. However, if you noticed, the cryptocurrencies just like any other investments take time to grow in value, so do not invest in them if you are looking for short-term gains. Besides that, most countries do not consider bitcoin to be legal, so watch out for that before you invest!
Remember the lessons on the marginal utility curve that we learned in school, which apply to investments. You need to know when to stop and liquidate your investments. It could be tempting to see your cryptocurrencies or stocks sore sky high, but is there an assurance that it would stay the same or continue to grow? So, experts suggest that it is important to have a stopping point on your investments online.
Besides these points, it is also important to prepare yourself for a 100 percent loss as all the investments come with a risk factor. And that is why you need to be careful and not leave all your eggs in the same basket.