Managing your personal finance in a way such that you can save and invest money is difficult, but the radical evolution in fintech is making it easier.
Various wealth building avenues, that were earlier off-limits for smaller retail investors because of their capital-intensive nature and complex working, are now within reach. It’s imperative that you consider leveraging these wealth creation avenues to make money and whilst being aware of the risks.
Think of technology as being potentially a great enabler that can help you build your wealth.
So, let’s take a look at ways you can make money:
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Forex Trading
Forex or FX trading is currency trading and it has been around for a long time. However, the lack of transparency and the sheer complexity of FX trading kept small retail investors away. But, the implementation of blockchain technology in FX is changing all that. It is making FX trading more cost-efficient, decreasing complexity and reducing risks for investors like you by adding an extra layer of transparency to the proceedings. Trading platforms such as Lykke, Serenity and many others are making it simpler for smaller investors to use FX as a viable wealth creation alternative.
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Cryptocurrency
It’s anybody’s guess whether crypto currency like Bitcoin will replace traditional currency any time soon. But what is not in doubt is that you can make money by buying and selling cryptocurrency. Here again, it’s technology like blockchain that is mainstreaming cryptocurrency trading amongst retail investors. Most cryptocurrencies are based on blockchain based technologies, but the advantage you now have is there is a move from legacy blockchain models to more advanced technologies that inspire more trust, increase security and drive hassle free trading. Yes, trading in cryptocurrencies is risky, but the huge fluctuations in the market, make it rewarding at the same time. Trading exchanges such as Huobi, Binance, etc. are making crypto currency trading more accessible to small traders. It’s time that you use this accessibility to diversify your personal finance portfolio. The key here is invest but, not to risk too much.
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New Fangled Share Trading
Share trading has been around for ages, and trading in shares can be a good way to grow your personal wealth. However, the question is – are you still using the traditional approaches to share trading or moved on to new, cost efficient and less risky share trading practices. The idea is to use technology to maximize your profits. Take the case of social trading, which is an example of third platform technologies acting as new age drivers of wealth creation. As a small investor, you can join a social trading platform to follow expert traders and copy their trades. You can also get key market insights and interact with these experts to make better trading decisions. Social trading platforms like eToro, help you reduce trading risks and make trading a more easy, seamless and profitable process. There are other platforms such as Revolut that are launching a commission-free trading service. Using such platforms can reduce your trading costs and thus decrease your risks.
Tech Empowered Personal Finance
Wealth creation is risky business, but tech is making it easier to take some calculated risks especially for small investors who want to slowly build their personal wealth. If you are managing your personal finance well and want to make it work for you, using these three avenues will help you on your way to success.
Good luck!
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