HOW TO INVEST IN 2021: A BEGINNER’S GUIDE

Becoming an investor is a common dream that is shared by the vast majority of people, and there’s a good reason why.  

Investing is extremely enticing due to the freeing nature of the ordeal. You can invest from anywhere, at any time, and just live a much more relaxed lifestyle in general, knowing that you always have that security blanket with you.  

 

Although despite all of the amazing benefits investing can bring, few people who want to become an investor ever take steps to meet this goal. There are a variety of reasons why this is the case, with the main ones being a lack of confidence, lack of information, or holding a few of the misconceptions people commonly hold about investing. However, we aim to change that.  

In this article, we will be giving you a guide on how to start investing if you are a beginner, as well as giving you some useful tips to help you succeed in your venture. 

The way things stand at the minute, there has never been a better time for people to get into investing.  

With the capabilities of buying doge or bitcoin, people who are looking to invest right now have a unique opportunity of which the likes have never been seen before.  

Cryptocurrencies are a relativly new innovation, and they are only just starting to become mainstream. There is already a plethora of reputable websites that accept cryptocurrencies as a form of payment, and the rapid rate at which more businesses are beginning to join the roster and incorporate cryptocurrencies is truly staggering. 

It is more than likely that cryptocurrencies may become the main form of currency in the future, which gives an amazing opportunity to investors who are looking to get ahead of the herd. 

Cryptocurrencies can seem like a complex subject, but in reality, they are perfectly okay for beginner investors to delve into. For those that do opt to invest in cryptocurrencies, it is plausible that there is a potential for astronomical returns in just a few decades.  

 

If you are looking to invest, it’s important that you understand the fundamental differences between different types of investments. 

Of course, there is the classic day-trading route that everyone seems to associate with investing, but there is much more to investing than just that. 

A common misconception people make about investing is that it is all about buying a single stock, and hoping/praying that said stock goes up. However, this mode of investing is not the best way to make lasting wealth.  

Index funds are the recommended investment by almost all successful investors, and there’s a good reason why. 

Unlike individual stocks which take a more high-risk high-reward approach, index funds track a whole section of the stock market, allowing you to diversify your portfolio and drastically reduce risk.  

Index funds tend to give much slower returns than other types of investments, and it is likely that you will need 5-10 years in order to see a sizable return on investment. However, for those of you who want to truly become financially free, index funds are the way to go. 

The vast majority of people never take the venture of investing, and the cause of this is primarily due to one reason; people tend to think investing is a gamble, and it’s not a smart thing to do.

However, this is simply just not the truth, and this belief has a negative impact on a vast number of people who could have otherwise had a successful investment portfolio. 

People tend to believe that investing is, for the majority of people, akin to gambling and only fools would waste their hard-earned cash trying to make it in the stock market. 

This misconception is so harmful for a variety of reasons, but it’s just not true. Investing in the stock market is something that everyone is capable of, and it is definitely not on the same wavelength as gambling. 

Sure, investing can have some level of risk, but for people who are smart and take a logical approach, said risks can be minimized while at the same time maximizing returns and profit. 

In reality, investing can be an amazingly profitable idea, and the earlier people start, the better. 

There is also another harmful belief about investing that the majority of people hold, and that is that the only people who are able to make money through investing are financial geniuses or those who have dedicated their whole lives towards the venture. However, once again, this is not the case. 

You do not need to be an expert in financial studies or spend years looking at charts and graphs in order to be successful through investments. In reality, there is very little that one would need to learn when opting to go for investments akin to index funds. Rid yourself of the misconceptions that the vast number of people hold. You do not need to be an IQ  outlier in order to be successful in the stock market. 

In reality, investing isn’t such a scary task as some people may believe. With the right information, almost anyone can begin building their investment portfolio and turning their dreams into reality.  

Don’t be held back by certain fears you may have surrounding the topic. Investing really can be one of the most productive and security-bringing ventures you can partake in, and if you are responsible investing can be a great source of income.