September 21, 2023 5:19 pm CDT
Looking to invest your money digitally?
Four tips to give you some ideas
The traditional way to invest your money is to buy real assets that you can measure and sell in the future for a good profit. On the other hand, the internet has opened up many more ways to invest. You would be putting yourself behind if you did not think about the many digital options you have now.
When you invest your money online, you do not even have to leave your couch to make money. But before you rush to your computer and start investing your money or feel pressured to do so, you should do your research and learn as much as you can about the type of investment you want to make.
Crypto (aka digital money)
You can invest your money in a number of online digital currencies these days. Most people have heard of Bitcoin. This is by far the most popular and profitable cryptocurrency right now. It is a digital asset that is used as a form of payment in digital transactions. With traditional currencies, the money is kept in a central bank. On the other hand, Bitcoin and other forms of cryptocurrency are decentralized. Records are kept online in “mines.” Many people decide to put their crypto into liquidity pools so they can get their money when they need it. Cryptocurrency can be bought and sold on platforms and sites called “crypto exchanges” that are accessible online. As you might expect from the stock market, the cryptocurrency market can be volatile. Make sure you know what you are doing before you trade or buy with digital currencies.Lending money between individuals
Peer-to-peer lending, also known as P2P, is the process of matching people and/or businesses with lenders. A traditional way to borrow money is like getting a loan from a bank. A peer-to-peer loan is different. In one of these, the money goes straight from the investor, the lender, to the person getting the loan. All of this is watched. Potential lenders can see information about who they are giving money to so they can make an informed choice and weigh the risks. There are risks with this type of lending, of course. The person or organization borrowing the money can always stop paying back the loan, just like they could with other loan methods. You could also lose your money. But the lender is always in charge of who they lend money to, how much interest they charge, and how often they get paid back. You can still lose more money than you put in, just like with any other investment. This path is not for everyone. If you are even the slightest bit unsure, you should do more research and wait until you are sure one way or the other.
