There are numerous ways in which you can invest your money in 2017, with the Fintech revolution having created brand new opportunities for individuals during the last decade. Remember, the value of global Fintech investments is set to more than double between 2015 and 2020, eventually peaking at $46 billion.
Aside from underpinning accessible, online trading platforms like Oanda, the great thing about Fintech is that it has raised awareness about the investment options that are available in the modern age. This has made it far easier for people to open their minds and appraise their options in greater detail.
The key, of course, is to choose which one is right for you? Here are some of the key considerations that you should keep in mind:
- Your Personality Traits
Before you even begin to consider the conditions of a particular market, you should appraise your own unique personality traits. This is because every marketplace and asset class is truly unique, meaning that each has a distinct risk profile and typical rate of return.
Now, if you’re a cautious individual who is a little risk averse, you’ll probably prefer investment options that provide you with a secure store of wealth (such as gold and company shares). Not only do these markets boast relatively low levels of volatility, but they also offer tangible assets that can be held for as long as is necessary to generate a profit.
Conversely, those with a greater appetite for risk will favour trading derivatives such as currency. Assets of this type are typically traded in volatile markets with high liquidity, while the fact that they enable traders to operate without the burden of ownership creates the potential to profit even in a depreciating marketplace.
- Your Lifestyle
Lifestyle is also an important consideration, even in an age where it’s possible to trade multiple assets through your mobile phone. After all, each market has its own unique trading hours, while many also have an optimal set of times for executing orders.
Depending on your working hours, personal life and sleeping cycle, this means that some investment options may be unsuitable. This does not apply to entities such as the forex market, of course, as this is open for 24 hours, six days a week and enables traders to operate over three distinct sessions.
Most other markets are far less accessible, however, so you’ll need to ensure that can create an effective trading schedule that affords you the time to analyse the market and execute orders without compromising on your everyday lifestyle.
- Your Unique Skill-sets and Expertise
Finally, you also need to pay attention to your unique skill-sets and areas of expertise, as these may naturally lend themselves to specific investment vehicles and assets outside of traditional financial markets.
If you understand the housing market or have previously worked in this sector, for example, buying and selling property could represent an excellent investment opportunity.
Similarly, those with existing financial or economic knowledge and numerical ability may want to consider investing in stocks, shares or currencies.