Investing for Beginners - What is Investing?
Investing for Beginners
You know, it’s pretty crazy when you think of it: so many people worldwide aren’t investing yet. In the United States of America, 50% of all households are investing. But in the Netherlands, this is only a mere 15% of all households (source: ABN Amro).
Why? Because investing is a bit scary if you don’t know too much about it.
But now that the savings interest rate dropped to nearly 0% simply saving your money in a bank account has become a lot less lucrative. Including inflation, your funds in the savings account will even drop in value over the years.
The average return on the AEX, on the other hand, has been approximately 10% over the past ten years. So each year you’ve invested your funds in the AEX, your money increases in value by a whopping 10%. It’s a lot more attractive than the 0% savings interest that you get from your bank.
So why aren’t we investing en masse?
Because prejudices taunt investing, most people still believe that you can only invest if you already have loads of money or that you can only invest when you wear a fancy suit. One of our BOTS app users had these same preconceptions in mind (read her story here)!
So in the coming weeks, we are taking you on tour through the world of investing. A world that is not as impenetrable as you might think. Because you, too, can start investing. And you don’t need loads of money or expensive suits to do so!
The definition of investing
First things first. Before we start with the rest of the tour for “Investing for Beginners”, it’s pretty handy to know what investing is.
A quick search on the internet immediately yields several clear definitions.
“An investment is a form of trading, in which money is committed for a longer or shorter period of time to gain financial benefit in the future.” Source: Wikipedia
So, in layman’s terms: you invest money to benefit from it ultimately. Sounds appealing, right? But how do you ensure that your investment will increase in value? Don’t you have to invest a lot of money to benefit from it? Which way of investing is the right one?
If you’re new to trading or new to investing, these are probably the first questions that come to mind. But instead of Googling your butt off, let us do the work for you. You can find all the answers you’re looking for in our “Investing for Beginners” series, and don’t forget to follow us on social media so that you can start investing with confidence and some knowledge!
BOTS is a tech company that has developed an app that makes it possible for anyone to start investing. You only need €50 to get started. BOTS uses automated trading strategies based on algorithms. We call these algorithms bots. These bots are tiny superheroes: they make automated investing accessible to everyone. With their help, you can invest in cryptocurrency within minutes — without any knowledge! And we’ll do you one better… In 2021, you’ll also be able to invest in stocks and other currencies through the BOTS app.
The app is free to download and quick and easy to install. BOTS currently operates in more than 15 countries, and by the end of the year, BOTS wants to be active in at least 60 countries and four continents.
Need any help with anything?
Even though automated investing is incredibly easy, you might need some time to find your way around the app and discover all the options. So if you still have questions wandering around your mind, or you just can’t seem to figure it out, please do not hesitate to contact the BOTS support department.
Don’t feel like calling our support team? Just head to the BOTS YouTube channel and browse through the dozens of instructional videos that may help you further. You are also royally invited to the BOTS Discord channel.
Ready to get started?
There is no such thing as risk-free trading. It is possible to lose (part of) your stake.