how does investing works?

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how do you invest? what exactly is investing? why do people invest? is it risky? does it need bitcoins or crypto? (lol i also have no idea on what is crypto or bitcoins i’m just trying to guess lol)

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Anonymous 0 Comments

Investing means to put in something hoping to get more out. So if you put in $100, you hope to get more than $100 back.

More popular form of investing (in terms of buying it in hopes to get profit) is stocks. If a share of Apple is $150 (which is somewhat negotiable), you buy a share and hopes it can be sold in the future for more than $150. Some companies, like Apple, even give you a tiny reward (called a dividend) every so often for everyone who ones a share of their company. You can just download ETrade or Fidelity, set up an account, transfer money from your bank account, and start trading. Historically, investing into an index fund that tracks the S&P 500 or similar give returns of about 10% each year (I have some money in VTI & VOO for instance).

Vintage cars could be an investment. You can watch a car auction on TV and an old Mustang will sell more than a new one.

Homes/properties can be an investment. Usually, real estate prices go up an up. A home worth $400,000 could be worth $600,000 after a few year, especially in areas that are getting urbanized.

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