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Should You Be Using Investor Trading Apps?

It’s becoming more and more common nowadays to see investor trading apps popping up. From smart, no-nonsense adverts for safe investments to bizarre endorsements from Alec Baldwin with a sock puppet, investor trading appears to be much more accessible to more people nowadays, offering almost anyone the opportunity to create an investment portfolio.

While movies like The Wolf of Wall Street can make stock trading a daunting prospect, investor trading apps makes stock trading something significantly easier to break into. Gone are the days where suit-clad businessmen smoking pipes in lounges were the only ones who understood the stock market, nowadays you can comfortably make wise investments from your sofa by using one of the many different investor trading apps.

But what investor trading apps are out there, and which one should you consider? Is it worth the time, effort and risk of losses for only a small amount of investments? And are there investments you can consider without risking too much? These are the questions that MyMulah will be answering today.

What are Micro-Investments?

The ideal starting place for first-time investors or those not looking to sink too much capital into any risky ventures, ‘micro-investments’ are considered small stock investments that are either controlled by specific apps or made with small amounts of cash. Considered a fantastic tool for millennials looking to make their money work for them a little more, micro-investments are usually controlled by investor trader apps that take a lot of the decision making out of stock trading.

A few great examples of this would be Acorns and Stash, which require either minuscule payments like pennies or a one-time investment of $5, that essentially makes a portfolio based on your lifestyle and your goals for investments. Conservative investors looking to make small but safe bets, aggressive investors aiming to take risks with larger investments and everything in-between is catered to by these apps, with the cost often being a tiny percentage of your profits or a monthly subscription fee that rarely breaks a $5 note.

Many specialist micro-investment apps offer would-be investors different benefits, such as the free to join WiseBanyan or the transaction fee-less Robinhood, yet these are generally considered to be the first steps that investors make towards serious stock trading. They’re not so much ‘training’ apps as they are lower stake apps, but they’re certainly worth considering if you’re on the fence about investor trading apps as a whole.

Should I Invest in Bitcoin & Intangible Currency?

When it comes to investments, many people consider looking into cryptocurrency; some seeing it as the new gold rush of quick profits to be made. While cryptocurrency isn’t entirely unlike the rising or plummeting stock markets, it’s a different kind of beast, one that requires a whole different mindset when investing in. Stocks directly correlate to market trends and perceived value for companies or items, whilst cryptocurrency can fluctuate wildly in value, often becoming worthless rather quickly.

The ‘science’ behind cryptocurrency is considerably different from stocks and compared to stocks, cryptocurrency is a relatively new creation. Cryptocurrency as a concept was created almost a decade ago in 2009 and was created by ‘Satoshi Nakamoto’, a name that’s never been tied to one person, and is widely considered to be a pseudonym for a group of people. It was designed as a way to prevent ‘double-spending’, which refers to when online transactions, are abused to essentially spend the same currency twice. 

Despite this original purpose, cryptocurrency has become almost synonymous with gigantic payouts, with pop culture often depicting it as something that can be generated via computers, stockpiled and then sold as a huge profit. While this isn’t a completely foreign result of dealing with cryptocurrency, it’s much less reliable of a result of dealing with cryptocurrency than handling stocks. 

However, some financial experts have seen that cryptocurrency like Bitcoin and Ethereum has been more or less completely unaffected by real-world complications like COVID, so cautious investments are considered a safe bet. This is particularly true for Bitcoin as the moment, as global recognition of the currency has made it transferable to Euros, granting an easy measure of how well your investment is performing.

What Safe Investments Should I Consider?

With COVID appearing to be a problem that’ll likely spill over into next year, 2021 is predicted to be a volatile year for investments. While taking risks should always be considered with due diligence, 2021 may require a few more safe bets when it comes to stocks, which is why investing in stocks that are largely unchanged and virtually unshakable may be beneficial to your portfolio. 

Though you won’t become an overnight millionaire with such safe investments, precious metals such as gold and silver rarely, if ever, fluctuate or decrease in value, which makes them brilliant hedge investments. As aforementioned though, you’ll never see worthwhile returns unless you take some risks with investments, so be careful not to stagnate your portfolio just with the likes of precious metals. Many experts say that approximately 10% of your portfolio should consist of metals, yet this 10% could make a difference in the long run during a turbulent year. 

Naturally, you’ll encounter many different types of ‘safe investments’ whilst exploring the stock market, ranging from successful businesses to essential goods, yet it’s worth noting that any serious investment returns from these ventures may require much more starting capital. For example, investing in Apple will more likely than not yield a profit, yet even buying one share could cost tens or hundreds as times as much as a lesser-known competitor.

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