Take control of your stocks and crypto portfolio
There is major growth happening in the stock and crypto markets. People are researching how to invest money since it became significantly more accessible. In the past, investing was reserved for professionals who have know-how in the field and wealthy people that go to brokerages who requested high deposits.
Investing to combat inflation
Nowadays, you can already start investing with only 5 euros. By investing your money instead of saving it, the growth rate is expected to be much higher than inflation. Especially with the current interest rates, investing makes sense. Taking into account the interest rate and the inflation, your wealth declines as it remains in your savings account. The yield of your investments depends on the risks you take and your financial goals. For example, with compounding your investments over time you are more likely to have a higher yield. When you focus on a short-term strategy, you do need to focus on different types of stocks and investment products.
How to start your portfolio?
The benefit of a well-planned investment portfolio is that it can last generations. You not only safeguard your initial investment, but you also try to grow the capital to an amount that you would not have attained if you only worked and saved your money. However, only having a portfolio is not beneficial. It is important to know where to allocate your investment to gain the right exposure to the financial markets.
Diversification is desired
Therefore, diversification is recommended to spread your capital to multiple investment categories. There are periods when your investment might go down, then you would want to offset the decline with other investments. By diversifying your stock portfolio, you avoid creating unwanted risks since they perform differently in case there are different market conditions.
Consider trackers based on indexes
For beginners, Exchange Traded Funds (ETFs) are recommended since they focus on many stocks for low fees. This can be complemented with shares from overseas companies, small growth companies, bonds, or shares in real estate investment trusts (REITs). For the latter one, more knowledge is recommended, since it easily loses value in case the interest rate rises.
Tracking your portfolio
When your portfolio is set up, you want to be aware of the latest changes. We recommend you use a stock tracker app called Delta for your portfolio management. The benefits of a stock tracker are that:
- You can track all the global markets like Nasdaq, Euronext, NYSE, and more in one place.
- It can provide a clear overview of your total portfolio from the moment you started investing.
- Transactions can be automatically tracked by connecting to a broker.
- Many stock trackers also send alerts on the latest market changes and development of the stock, so you can immediately take action.
