Investing has always been a traditional affair that usually older adults or the wealthy dive into. Not to mention, it is a risky way of spending your hard-earned money. That said, the way we invest our money is constantly changing, whether purchasing stocks or buying a new house. And one of the most prominent factors is the incorporation of technology into your investment decisions.
While most modern investors have access to tons of information and advanced investing tools, they often forget the humble origins of investing and the numerous technological trends that have molded the financial market we know of today.
From apps that allow individuals to make different investment types to fintech solutions such as blockchain, you can confidently navigate the investment market and come out with a fuller wallet. So without further ado, let us look at a few tech innovations that can make an investor’s life easier while helping them make sound investment decisions.
Online investment monitoring services.
Actively monitoring your investments is the backbone of wealth planning. That said, the market will always be unpredictable and fluctuate without prior notice, all the more reason to monitor your investments.
In addition, technology instills a better sense of awareness in the investors while shifting their mindset to one that revolves around benchmarking. So, whether you’re a large-scale investor or a small one, you need to acquire online investment monitoring services to ensure that all of your physical and digital investments remain as safe as possible.
Suppose you’ve acquired business-related equipment or precious metals such as gold or silver and kept them inside a self-storage unit. In that case, you will need to monitor your assets via a self storage access control, an asset monitoring service to ensure they remain as secure as possible.
These services provide the user with round-the-clock 24 seven real-time monitoring features through a companion app installed on their smartphones.
Financial planning software.
When it comes to investing your hard-earned money, nothing is more vital than comprehensive knowledge of your cash-flow situation and portfolio. If you don’t have the necessary expertise or knowledge, you will find it extremely challenging to monitor your investments. Doing so will lead to wrong investment decisions that might harm your overall portfolio in the end.
Fortunately, with the help of various financial planning software, you can maximize your profitability while making more informed decisions as all the information you need will be available at your fingertips.
Furthermore, with such software, you will have access to tons of tools to conduct volatility analysis, market analysis, budgeting, etc. What’s more is that you can access these tools through your computer, mobile phone, or tablet. Thus, it is an on-the-go solution for tech-savvy investors.
Cryptocurrency.
Cryptocurrency is slowly emerging as one of the most successful stories of the current century. It is a form of digital currency that provides the user with a secure and anonymous online payment system. that said, the standard technology that cryptocurrency utilizes is blockchain. Blockchain uses a distributed network of digital ledgers to verify and post transactions while avoiding fraudulent record manipulation in the process.
The most famous example of cryptocurrency is bitcoin. It has seen incredible growth in recent times, with one bitcoin going as high as 9,500 dollars from 2016 to 2017, representing a 1,300 percent increase in one year. Other cryptocurrency types such as Likecoin and Ethereum have also seen similar growth.
That said, these cryptocurrencies provide investors with an alternative payment method while giving them much-needed security to protect their hard-earned money, whether you’re a major institutional investor or a casual one.
Real estate portals.
For most American citizens, purchasing a new house is the most significant investment they will make in their lives. That said, websites such as Realtor.com Redfin, Trulia, and Zillow provide individuals with information and easy access to the real estate market.
Before the internet came into existence, real estate investors solely relied upon newspapers, realtors, and drive-bys to search for their dream property. However, today, around 44 percent of potential home buyers go online to compare real estate sales, access property photos, look at market trends, and much more to augment their property purchase decisions.
Robotic advisors.
Robotic advisors are influential, algorithm-based financial planning tools that need no human intervention to work efficiently. Such a thing removes the need to hire a financial planner and avoid commission and management fees in the process. Robotic advisors came into existence back in 2009, and companies such as Betterment and Wealthfront have become defacto market leaders in today’s computer-driven financial planning and investment world.
Nowadays, more than 100 robotic advisors provide investors with sound financial planning and investment advice while managing more than 224 billion dollars in assets. Such an investment option is now democratizing financial planning for large and small investors alike.
Online equity crowdfunding.
Crowdfunding came into existence back in the 1990s to raise money for people who lacked the funds to turn their business ideas into a reality. Furthermore, the government signed the JOBS(Jumpstart Our Business Startups) Act in 2012, opening up crowdfunding channels and allowing accredited investors to purchase shares of concept companies early on.
Moreover, in 2015, this facility expanded to all investors of all types. For instance, equity crowdfunding platforms such as CircleUp, AngelList, and Indiegogo provide individuals with tons of investment opportunities.
Online brokers.
As technology constantly makes investing more manageable and accessible for the average investor, more and more brokerage tools have been coming out to address the problems of small-scale investors. Only a few dollars to invest? No problem! For example, to avoid extra fees on your stock trades, all you need to do is set up a Robinhood account, and you’ll be good to go.
Are you searching for a low-touch investment strategy? No sweat because services such as Acorns and Stash allow individuals to invest fractional shares in stocks or spare change in EFTs. Are you looking to invest while avoiding the nitty-gritty of a custom portfolio? In that case, a tool such as a Motif will allow investing your money in concept companies through various industries.
Conclusion.
Whether you’re looking to invest in precious metals, property, or stocks, there will always be some risks. While there is no one-size-fits-all solution to guarantee the safety of any investment, recent technological advancements ensure that investors, wealth managers, and brokers make the best possible, low-risk investment decisions for themselves and their clients.
That said, most of these technologies are in their early stages. However, the potential advantages they bring to the table will be highly beneficial for individuals looking to secure their hard-earned money.
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