June 23rd, 2021 | Updated on June 28th, 2022
Nowadays more and more people are starting to invest rather than spending the money or putting the money in their savings account. By investing money, there is a high probability that it makes you wealthier over time.
The main objective should be to create a financial safety backup instead of getting rich. Think about it: when you are going to retire, what if you are not dependent on the need for a paycheck, because you have earned money by investing? Or another example, would it not be nice to choose for yourself when you retire instead of when you need to? Investing can help you create this financial independence.
How Does Investing Work?
Investing can help you increase the money that you have. The idea is that you buy a financial product and you hope to sell the product at a higher price than initially paid.
These financial products can be stocks, bonds, cryptocurrencies, and others. The products can be bought via investment accounts, like brokerages.
Saving Versus Investing
Compared to saving your money where the growth opportunity is lower, investing can ensure via earned interests that the increase of money is higher than the inflation.
Therefore, saving is known to be useful for short and intermediate-term goals, whereas investing is useful for long-term goals.
Ways to make money via investments are through selling it for more than paid or receiving money in the form of dividends (distribution of profits by a company to shareholders) and interests (part of the bond return for loaning funds).
Three Useful Investment Strategies
When you are going to start investing, try to keep in mind the following three strategies:
- Recommended is to start as soon as possible. This way the money has more time to work and therefore there is a higher opportunity for the money to grow.
- Try to keep investing instead of moving in and out of the market all the time, since there is a possibility to earn extra money on top of your investment, which is known as compounding returns. Instead of paying out the interest, you keep reinvesting the amount, which results in extra interest in the next period.
- Diversify your investment to manage the risks, because investing all the money in one place could result in losing money if the value declines. Therefore, when you spread out the money, there is a lower chance of losing it.
To have an overview of your investments, a stock tracker is recommended. Such a tracker can combine all holdings you have across platforms, and provide you with a holistic view of your wealth. Delta is such an application that can help you take control of your investments.
What Is Delta?
Delta is not an exchange or trading platform, it is an application that can be used for tracking stocks, cryptocurrencies, and other assets you may hold.
The stock tracker uses an API to collect the latest stock and crypto coin prices, as well as historical data. Based on this information, they can develop market charts in your local currency.
The main goal of Delta is to help you with consolidating your portfolio in one overview. It can collect the information from the multiple brokerages or exchange accounts where you invested and show a dashboard of what you have.
If you want to take action when a certain price is reached, you can set up notifications in the app to inform you. All in all, Delta provides you a user interface, which allows you to manage various portfolio(s) and track performances.