Investing for beginners - The five best-known ways of investing
BOTS wants to ensure that everyone in the world has the opportunity to build up a second passive income through investment. Not everyone has experience with investing yet. That is why we are now sharing more information every week in our series "Investing for beginners.
Investing for beginners
Last week we kicked off our new series "Investing for beginners". In this series we dealt with the preconceptions that exist around investing and we told you what the definition of investing actually is:
"An investment is a form of investment in which money is committed for a longer or shorter period of time with the aim of obtaining a financial benefit in the future". Source: Wikipedia
You can read the whole article back here.
Today we'll take you on a journey through the five best-known ways to invest. From shares to real estate and everything in between.
Ways to invest
There are several ways to invest your money. And you really don't have to be a millionaire for this. All forms of investment have become accessible to all kinds of wallets. Including yours. Do you want to invest? You can do that with your change these days. We have listed the most common ways of investing for you.
Investing in shares
If you buy shares in a company, you become part owner of the company. If the company is doing well, your shares will become worth more and you will sometimes be rewarded for this in the form of a share of the profits. This is called dividend. You can also decide to sell your shares again. Have they become worth more? Then you have earned money. If the company is not doing well, you will not receive a profit distribution. So no dividend. Do you want to get rid of your shares? Then you'll get less in return than what you paid. Everything depends on the success of the company in which you bought your shares.
Investing in bonds
Instead of becoming a co-owner of a company, you can also choose to lend the company money. You then buy a bond. Or several. This bond is actually a debt certificate from the company to you. You will receive interest on the amount you have lent out. This is your return. Pay attention to whether the interest on your bond is a fixed percentage, or variable. This obviously has an influence on the amount of your return. A bond has a fixed term. The interest is only paid out after the term. However, it is possible to sell it in the meantime. And, of course, bought. In this case, the interest is settled between the buyer and the seller. Again, the success of the company determines your return.
Investing in real estate
Maybe you've heard someone say that he (or she) has invested in "stones". In fact, this always means a real estate investment. If you have a lot of money at your disposal, you can of course always buy an extra apartment or house yourself. You can then rent this out to someone else. The rental income is your return. Of course, this is not for everyone. You can also invest in existing buildings, such as office buildings. You will then have become a real estate investor. The rental income is divided among all the property investors of that property. The rent often rises every year. However, if tenants leave and there are no new tenants coming back, your return is obviously lower.
Investing in investment funds
An investment fund is a package of different shares (or bonds). This package is composed by a manager (a bank or an investment company) and they trade for you with your investment. This is done by the fund manager. Of course, you remain in control of your investments. You can withdraw money from your fund yourself. Or make a deposit. You can also buy other funds or sell existing ones. The investment company does charge a fee per transaction. And this can rise sharply. Of course, they also have costs that they have to pay.
Investing in crypt currency
Investing in crypt currency is the most young form of investing. Well known crypto currencies are Bitcoin, Ripple and Dash. The value of this crypto currency changes. Just like with shares. And actually, investing in this currency works the same way. You can invest in one kind of crypto currency. This is similar to investing in stocks. But you can also invest in a group of crypto currencies. And then it is comparable to investing in a fund. Again, there is often an intermediary who manages your investments and trades with them. A digital fund manager.
The BOTS app
Our investment focus for now is on crypto funds. And we do this in an automated way. With bots. In our BOTS app, you can choose a particular bot. This bot is developed by specialized developers and works through algorithms, artificial intelligence and machine learning. This eliminates the need to invest via a (digital) fund manager. So you don't pay for the costs they incur to be able to invest for you. In the long run, we do not only want to offer crypto investments, but also shares, bonds and investment funds.
The efficiency that a bot achieves, compared to a human being, is significantly higher. A bot does not sleep and can therefore react directly to changes in your cryptofound. Also, a bot has no emotion that partly determines how your investments are handled.
In this way, investing with higher returns becomes feasible for everyone. The best trading strategies were only available to the richest 3% in the world. Because of our bots now also for you. You can start within 2 minutes and from € 50,-.
Investing is for everyone
Everyone should be able to invest. And now they can. With BOTS. Together we are going to make the world of investment fairer and more transparent. Are you interested, but your question hasn't been answered yet? Take a look at the FAQs on our site. Or contact us, we will be happy to explain it to you in person.
The BOTS app is now live
There is no such thing as risk-free trading. It is possible to lose (part of) your stake.