Invest Money: A Guide to Grow Your Wealth in 2020

Figuring out how to invest money in order to effectively set yourself up for future success can sometimes be a real challenge.

There’s certainly no shortage of information on investing available in the digital age, however, this glut of information can often be as overwhelming as it is helpful.

Investing is not a get-rich-quick scheme, but rather a way to consistently grow the wealth you already have. The good news is that even though investing is a way to grow your wealth, you don’t have to have a lot of money to get started.

Compounding interest dictates that even small sums of money can be turned into fortunes over time, providing you select the right investments.

1. Block Chain

2020 has been an exciting one so far for the cryptocurrency space and the financial markets in general. The coronavirus (COVID-19) outbreak has been the primary topic of discussion so far this year, and it has affected several economies around the world.
Cryptocurrency is a potentially great digital asset for investment. Some cryptocurrencies have better options for investment in 2020.
Recently, the Indian Supreme Court overturned the ban on cryptocurrencies put in place by the Reserve Bank of India (RBI) in 2018. This means cryptocurrencies can now be available to millions of people in India.
Also, the central bank-issued digital currencies (CBDCs) have been highly discussed in the mainstream media. The US Federal Reserve is already researching the use of blockchain technology and is being advised to explore the possibility of developing a digital dollar. Other countries looking to develop their CBDCs include Japan, Russia, England, China, Sweden, Ukraine, the Marshall Islands, and others.

ICX : The ICON blockchain is powered by loopchain, a blockchain engine designed by ICONLOOP. ICONLOOP is responsible for loopchain’s government and enterprise adoption in South Korea. Loopchain is the Seoul Metropolitan Government’s standard blockchain platform.

XRP : XRP offers financial institutions the fastest, lowest cost option for sourcing liquidity in cross-border payments.

VET : VeChain is an enterprise-focused blockchain ecosystem that aims to enhance supply chain management by connecting blockchain technology with the real world through 'a comprehensive governance structure, a robust economic model, and advanced IoT integration'. VeChain enables manufacturers to assign products with unique identifiers on the platform, thereby allowing participants to track the movement and provenance of products in a supply chain.

2. Physical Commodities

Physical commodities are investments that you physically own, such as gold or silver. These physical commodities often serve as a safeguard against hard economic times.

3. The Stock Market

The most common and arguably most beneficial place for an investor to put their money is into the stock market.
When you buy a stock, you will then own a small portion of the company you bought into.
When the company profits, they may pay you a portion of those profits in dividends based on how many shares of stock you own.
When the value of the company grows over time, so do the price of the shares you own, meaning that you can sell them at a later date for a profit.

4. Investment Bonds

When you purchase a bond, you are essentially loaning money to either a company or the government (for US investors, this is typically the US government, though you can buy foreign bonds as well).
The government or company selling you the bond will then pay you interest on the “loan” over the duration of the bond’s lifecycle.
Bonds are typically considered ‘less risky’ than stocks, however, their potential for returns is much lower as well.

5. Mutual Funds

Rather than buying a single stock, mutual funds enable you to buy a basket of stocks in one purchase. The stocks in a mutual fund are typically chosen and managed by a mutual fund manager.
But here’s the kicker:
These mutual fund managers charge a percentage based fee when you invest in their mutual fund.
Most of the time, this fee makes it difficult for investors to beat the market when they invest in mutual funds. Also, most mutual fund investors don’t actually ever beat the stock market.

6. Savings Accounts

By far, the least risky way (and probably the worst way) to invest your money is to put it in a savings account and allow it to collect interest.
However, as is usually the case, low risk means low returns. The risk when putting your money into a savings account is negligible, and typically, there are little to no returns.
Still, savings accounts play a role in investing as they allow you to stockpile a risk-free sum of cash that you can use to purchase other investments or use in emergencies so you don’t touch your other investments.

7. Social Trading

Social Trading enables You to Replicate another Successful Professional Trader’s Portfolio and trading activity Automatically. The social trading platform enables you to become a leader and a follower, and even if you simply want to trade on your own – we will still make sure you have the best trading experience possible.

  • Simplicity: Using social features for trading assets online is intuitive, and easily accessible for both new and experienced users.
  • Diversity: Diversity is key for lowering risk when trading. You can spread out your invested capital across various markets by copying different traders.
  • Profitability: Since the launch of copy trading in 2010, around 78% of all copied trades were closed in profit (data was taken in August 2017).
  • Reliability: Since it operates under strict regulations, social trading network is trusted by more than 6 million users worldwide.
  • Transparency: Exposing each trader’s portfolio, risk score, and track record, helps all clients to make smarter decisions when choosing who to copy.

8. Best Social Trading Networks 2019

#1 ETORO

  • Regulations: CySec, FCA, AFS
  • Minimum deposit: $200
  • Platforms: Proprietary
  • Review: 4.5/5

#2 ZULUTRADE

  • Regulations: HCMC
  • Minimum deposit: depends on the broker
  • Platforms: Proprietary
  • Review: 4.5/5

#3 NAGA TRADERS

  • Regulations: CySEC
  • Minimum deposit: $1
  • Platforms: Proprietary
  • Review: 4/5

#4 TRADEO

  • Regulations: CySec
  • Minimum deposit: $250
  • Platforms: Tradeo Web
  • Review: 4/5

#5 DARWINEX

  • Regulations: FCA
  • Minimum deposit: $500
  • Platforms: MT4/MT5 for desktop, iOS, Android
  • Review: 4.5/5

Copy a top-performing trader today