Digital Investments: What Are They & the Benefits
Have you ever wanted to try your hand at investing, but didn’t do so due to a lack of investment expertise, limited time, or financial constraints? If so, we have the solution — digital investment.
Digital investments may seem complicated at first glance, yet the opposite is true. They are simple enough for true beginners. All you need is this short guide to digital investments. Here, you will learn what digital investing means, what the different types of digital investments are, and how they can benefit you.
Understanding Digital Investments
A digital investment is a financial investment made online, using digital tools.
This is typically done through a digital investment platform, a digital solution that allows people to access digital investing online. It is a fusion of automated financial management tools with human expertise. Here, investors can easily buy, sell, and manage their financial assets.
This cuts out unnecessary ‘middlemen’ and puts the power back into the hands of investors.
Digital Investment in the Modern Business Landscape
The modern business landscape demands efficiency, and digital investment fits the bill.
Digital investments allow investors to stay ahead of market trends, and stay in control of their investing schedules, by leveraging technology. They are ideal for everyone from the novice to the expert investor.
Benefits of Digital Investments and Digital Investment Platforms
The first step in digital investing is finding a digital investment platform, where you can choose an investment option and start investing at your own pace. You will quickly realise the following benefits:
User-Friendliness
Digital investment platforms simplify investing.
Learning about investments as a true beginner can be daunting. Digital investment platforms give investors a simple and convenient way to invest. Many also offer investment advice and/or expert insights into investing.
Accessibility & Affordability
Digital investment makes investing accessible to everyone.
Some would-be investors are reluctant to get started, afraid that it will be too complex and time-consuming. Others worry that they simply cannot afford it. Digital investment platforms not only offer the public increased accessibility to investing, but they are also incredibly cost-effective.
Convenience & Efficiency
Digital investment platforms allow you to invest when, where, and how you want.
If you think you don’t have the time to invest, digital investments are for you. Many digital investment platforms can be just as easily accessed on mobile devices. This means that a digital investment is a convenient and efficient way to invest.
Automation & Innovation
Digital investment has brought investing into the technological age.
Many digital investment platforms offer automated recurring investments, so you can ‘set it and forget it’. When you use a digital investment platform, you also have access to the latest technology.
Artificial intelligence, machine learning algorithms, and advanced analytics offer value across many industries, and often beyond that of other traditional analytical methods. They provide you with deeper insights into investing trends, based on real data, so you can make more informed choices.
Types of Digital Investments
There are different types of digital investments, and you may be unsure where to start. Let’s examine them more closely so you find the right one for you.
Peer-to-Peer Lending/Crowdlending
Peer-to-peer (P2P) lending, also known as crowdlending, is a type of crowdfunding. It involves collective funding of loans by multiple individuals, outside the banking system. These loans are repaid, with interest, to a fixed schedule.
When using a reputable P2P lending platform like Maclear, the businesses you lend to are vetted for your security and peace of mind. P2P lending is a safe and reliable investment offering a moderate but consistent return on your investment.
Stock Market
Stocks are securities that represent ownership of a fraction of the issuing corporation. You can invest in stocks through an online brokerage. Such investments are tied to performance on the stock market. Such investing is often profitable, but always risky.
Investing in stocks is not ideal for beginners. It is best for people with experience in the stock market.
Cryptocurrencies
Cryptocurrencies are a form of digital currency that can be used to pay for goods and services, and they are also traded for profit. People often invest in these cryptocurrencies hoping to profit from price fluctuations.
It is cryptocurrency’s price volatility that makes it profitable, but also risky as an investment choice. As such, it is especially unsuitable for beginners.
Equity-Based Crowdfunding
Crowdfunding is a means of raising capital through collective effort, outside of traditional financial institutions like banks. This is often done to raise capital for projects or business ventures. In equity-based crowdfunding, investors are offered business equity in return for contributions.
Although the crowdfunded business may prove profitable, there is always the risk that it might not. And investors must wait until the business starts making a profit to reap the rewards.
Conclusion
Digital investment is the key to simple, affordable, convenient investing in the modern age. With the right digital investment platform and the right digital investment choices, you can join countless others who have earned a reliable side income stream.
Maclear is a Swiss-regulated peer-to-peer lending platform. Our innovative platform allows investors to invest in P2P lending safely and securely, generate passive income, and manage their investments with ease. Register an account today to start investing.