With the constant rise in the cost of living and inflation worldwide, people seek ways to protect their wealth's value. While there are many options to legitimately make money and increase wealth, investments are ideal for wealth protection. For instance, buying and holding cryptocurrency is a good way to begin your investing journey.
According to a survey by CNBC, about one in ten people invest in crypto currency. Also, according to Broker Chooser, India ranks second, with 47.5% of Indian investors considering crypto the most important asset. While stocks are preferred by 60.1 percent of Indian investors.
With a plethora of financial products to invest in, first-time investors are overwhelmed with options. From Forex to cryptocurrency to stocks, investing requires that you're knowledgeable before you dip your toes in its waters. Thankfully, this article discusses the popular and best financial products for first-time investors.
Stocks earn themselves the top position on the list of popular financial products. In terms of long-term profit, stocks are great for both experts and beginners in investing. Although purchasing stocks in companies is quite risky, it offers the most rewards. Therefore, you should take your time to weigh your options and scrutinize your budget.
Understand the company you're investing in and ask yourself how long you intend to invest in the stocks. For example, you can invest in stocks for about five years (long-term) rather than trade stocks short-term.
Also, it's important to remember that buying stock in a business means you partially own the business. Therefore, as the fortune of the business increases or reduces, your profit will equally increase or reduce. Therefore, don't be in a haste to invest in a particular business. Instead, check out how they have performed over the years before investing by buying individual stocks.
Taking the second position on our list is Forex. Forex is the world's largest financial market, with a daily global turnover of more than US $6.6 trillion in 2019. few years back, Forex's estimated global daily turnover was $5 trillion. Additionally, forex allows new investors to profit from different currency portfolios to mitigate interest rate risks.
The Forex markets are open daily round the clock (24 hours), making it one of the most easily accessible financial products. The interesting part about the Forex market is that it requires no specific exchange location or central marketplace. Also known as the OTC (Over The Counter) market. You can trade Forex on the go electronically on your phone, tablet, or PC.
Amassing wealth by investing in crypto is possible in 2022. Crypto assets are highly profitable but are equally highly volatile on the flip side. Also, if you're seeking exposure to digital currency demand, you can begin with a cryptocurrency investment. First, however, buy stocks from companies already exposed to cryptocurrency for a safer but less lucrative crypto investment option.
Other financial products for first-time investors are certificates of deposit (CDs), mutual funds, high yield saving accounts, Exchange Traded Funds (ETFs), or 401(k)s.