Do you have savings in your account and you don’t really see this growing because of the current savings interest rate? An increasingly popular alternative is investing.
Before you start, it is good to learn a little more about it. So are you looking for information about investing for beginners? In this article and the accompanying video we tell you about the basics of investing. One of the most important factors is the research part, there are quite some options and websites were you can check all the different possibilities in countries like The Netherlands. The website has some interesting websites about stocks like Spaarbuidel.
What is investing?
Let’s start with the question: what is investing? Simply put, it is a form of investing. With investing you put your money to work with the aim of making it grow. This can be done, for example, by buying shares that you think will soon be worth more, so that you can sell them later at a profit.
How does investing work?
When you invest, you make an investment in the hope that it brings in money. The most popular way to invest is through the stock market. Previously you had to physically go to the stock exchange to trade, now you simply do so online.
- When you start investing, you can choose to actively invest yourself. You then decide which shares you buy and when you sell them again. But you can also choose to leave the investing to an expert. This can be interesting when you have little experience in investing, or do not have the time to follow the stock market yourself. Read more about the difference between investing your own shares and having them invested.
What can you invest in?
This can be done in many different ways. Of course, cryptocurrency is in the news these days, and investing via crowdfunding is also becoming increasingly popular. Within the investment world there are several categories in which you can invest. Below we will explain the most important ones for you.
Investing in shares
This is what most people think about when it comes to investing: investing in stocks. But what exactly are equities? Equities appeal to many people’s imagination: you buy a ‘piece’ of a company and are then co-owner. This means that you share in the profits of the company, which can be distributed to you as a dividend. The share price can also rise, making a profit on your investment like a lot of people in The Netherlands did on Tesla.
Investing in bonds
A lot less known but very interesting is investing in bonds. A bond is a type of loan. Both governments and companies can borrow money from investors via bonds. You receive interest for this. In investment language, this interest is called the coupon.
- Because, in principle, at the end of the term, unless the company has gone bankrupt, you recover the value of the bond, investing in bonds is less risky than investing in shares. But this also means that, in general, the return when investing in bonds is somewhat lower.