Investment
Investment is a process in which a person puts his money in assets in order to generate income from it . There are various forms of investments such as mutual funds, stocks, bonds etc.
How does investment work?
Investing helps to grow the money which can be saved and used later in the future. After a fixed period of investing money one can expect a return . This return amount is fixed at the beginning of the investment. The time period for which you invest your money is directly proportional to the return you get.In today’s world , there are many frauds going on in the world . In today’s world it is not very easy to find safe methods of investment. In such a case , Robo advisors help you to find a safe and secure method of investment.
Robo advisors
Robo advisors are not robots or something like that . In actual they are the platforms which manage your investment account and profiles. This tool works on artificial intelligence and is very useful for the newcomers in this industry . They provide the right guidance to the people so that they do not have to face any kind of losses. Also one additional benefit of Robo advisors is that they are much cheaper than what is called the traditional advisors.
Best Robo advisors
1.Betterment: It was the first Robo advisor developed. But it took some time to get recognized as top Robo advisor. With this Robo advisor you don’t have to pay the fees again and again after a certain period of time, that is it is only a one time investment.
2. Wealth Front: Wealth front like betterment is also one of the biggest Robo advisors. To open an account in this you need to have some amount of money in your account.The account couldn’t be opened with an initial zero balance . Along with this , it has a very good ranking.
3. Sofi: This is also a Robo advisor which handles loans very well. But nowadays it is very well known for investments as well. Unlike the wealth front , you don’t need to have some initial capital in order to access this platform. They give you all time access to the platform and the financial experts.
4. Ellevest: This was formed by the female community . Earlier it was free to use but now the customer has to pay a fixed amount in order to get the membership. Along with the basic plans which give you access to investment and other banking tools, it also provides plus plans which include other benefits such as account planning according to the customer’s needs. It is very beneficial especially for women as women become self independent.
5. Axos managed portfolios and self direct trading : This platform is owned by the Axos bank . It allows you to manage the portfolios according to you and earn a good amount of commission fee.
6.Vanguard digital advisor: This platform provides you with the lowest cost plans and you do not have to pay more than $2 for the services used. After you have signed in on the platform,your money will be invested in four different funds.
7. Acorns: This platform is really very helpful for those who don’t have a sufficient amount of money. They can register on this platform with a minimum amount of money also.This Robo advisor has nothing called as minimum fee or balance required for trading.
Who should use a Robo advisor?
Many people who want to invest and increase their money use this platform. Some people use this platform to fulfill their aspirations such as buying a new house or a luxury car. People also use Robo Advisors to decrease the burden of taxes and manage their portfolios.These Robo advisers are good as human advisors, so a person can choose any of these to get the right information on trading and investments. This has many advantages, one of them being that this platform does not guide you wrong in order to earn commissions from you , making it a reliable platform.
How to choose a Robo advisor?
Most of the Robo advisors are very easy to use. There are many apps that help you to keep an eye on your portfolios on a regular basis.Most of the Robo Advisors charge a nominal amount of fees whereas some are free of cost. So you can compare them and choose a Robo Advisor which fits your requirements. Robo Advisors also provide tier plans that if you want to upgrade yourself to a higher level you need to pay some extra amount and enjoy the benefits of the higher tier. Generally, Robo Advisors are not too expensive. They are designed in such a way that almost everyone can afford it and take the benefits of the platform.Selecting a Robo advisor also depends on the type of investment you want to invest your money in . Either you want to invest your money in ETFs ,mutual funds , Index funds, bonds or cryptocurrency. Don’t forget to compare the cost for all these different doffer types of investments and choose wisely among them.
How to register with a Robo Advisor?
To register with a Robo advisor is not a difficult task . Registering on this platform is not a difficult task.They just need access to your basic information such as your name etc. and also the information about your investment goals. After that, you need to link your bank account for all kinds of transactions.After you’ve successfully registered on the platform, the Robo advisor goes through your investment goals and according to that provides you a customized portfolio or you may also select from the various portfolios based on your needs.
Can you lose money with Robo investing?
There is no such investment which guarantees you 100% results. All investments have the potential to lose some amount of money . If the stock market value drops down , so will be your portfolio. Your portfolio could lose value and you may face a loss or a decline in your income. Most of the professionals suggest a policy called buy and hold. You don’t have to sell your shares immediately but have to wait until its value increases in the market. By holding the investments for a longer period and waiting for the right time to arrive when the value increases will help you to earn more in your investments.
Risks of Robo advisors
There is no such investment where there is no risk of losing. You can always minimize the risk of losing with a Robo advisor by being honest about the financial situation and what exactly your needs are. In order to get the best results, you need to make right choices while building your portfolio so that you will get the desired outcomes.
Crypto Wallet
A crypto wallet also known as cryptocurrency wallet is how you store and access your digital information. Both online and offline wallets are available. The offline wallets are known as cold wallets and the online wallets are known as hot wallets.
Hot wallets are of 3 types:
● Mobile app wallets
● Desktop wallets
● Online wallets
Mobile app wallets can be accessed on the phone whereas desktop wallets are the software that are installed on the computer. The online wallets are owned by different companies. In Spite, of the type of wallet used , you can always store your coins safely.Both the types of wallets that are hot and cold wallets have their specific drawbacks. A physical walle can be misplaced and you will lose access to all your coins and in case of online wallets they can be hacked by the hackers causing you a serious loss.
Best Bitcoin and crypto wallets:
After purchasing your cryptocurrency, you need somewhere to hold it . Crypto wallets perform this function of holding your cryptocurrency. Crypto wallets can be both online in computer softwares or offline or in the form of hardwares.Their main function is to keep your cryptocurrency safe and allow you to make safe trading .
Some best crypto wallets:
1.Coinbase wallet: Coinbase wallet is the best for cryptocurrency exchange in the US. It is very easy to trade with different well known cryptocurrencies such as Bitcoin, dogecoin etc . It is a very good place for newcomers. It is an app which can be downloaded on android as well as IOS.
2. Trezor Model T: It came in the market from a long period of time since 2011. Its new user interface called Trezor Suite came in the market a year ago and it replaced the company’s wallet web app.
3. Ledger nano X: It is a second generation offline storage wallet. This wallet can be connected to a computer with the help of USB cable and to a phone either android or IOS via Bluetooth. This platform suffered a breach in July 2020 which resulted in the theft of some information of the clients.
4. Exodus: It is a hot wallet which means it is an online software that runs with the help of the internet. It runs on all types of devices including Mac, windows and Linux computers. Along with this, some companion apps are also available for both types of devices either android or IOS.
5. Mycelium: It is a very old platform since the beginning of the time of cryptocurrency came into use. This is the best wallet for storing bitcoins. But they have a limitation that it can only be used on phones and no desktop version of this wallet is available.
Crypto Exchange
It is a platform with the help of which the customers can sell and buy cryptocurrency like bitcoins and dogecoins etc.Binance and Binance US:Binance is the largest and leading cryptocurrency company in the whole world . It was first launched in China in 2017 and later expanded to Japan .In 2019 Binance got banned in the US. Now the new company named Binance US is in operation in more than 45 states. It provides exchange at very nominal fees.
Where else can you buy bitcoin and other cryptocurrencies?
Cryptocurrency can also be bought from some apps which are different from the above mentioned platforms. These are Cash app, venmo , paypal . All these let the users buy cryptocurrency via their payment apps. You can only buy and sell using the cash app and you can also withdraw the crypto currency to your own crypto wallets .
Both venmo and PayPal support bitcoin, bitcoin cash and lite coin. Using these apps you can send crypto currency to others but cannot withdraw it into your own wallets.