Take Advantage of the New World of Finance
New technologies and new products and services may be intimidating.
However, it is worth getting more familiar with them as they offer new and exciting investment opportunities.
Here, at 'New World of Finance', we believe that as long as you act responsibly and do not mortgage your house to invest everything in highly speculative assets, "new finance" (or Finance 3.0 as some call it) can actually help you achieve several goals:
- Take more control of your own finance: desintermediation and DeFi applications will grant you more in control of your funds and investment strategies;
- Allow better diversification of your investments and assets and hence reduce the overall risk;
- Produce different categories of passive income in addition to traditional ones.
Finance 3.0. being driven by information technology, it touches new categories of younger investors.
It is worth noting that some classical investors like Warren Buffet are still hesitating to fully embrace this new world of finance as it does not entirely follows the same logic of traditional finance.
In contrast, younger investors attracted by the geeky and IT focus feel of this new horizon heavily invest in it.
There is little doubt that the new world is coming fast and that these 'prime movers' will soon be joined by mom and pop investors, once major institutions and governments will have fully embraced DeFi, crypto currencies etc.
Yes crypto currency exchanges are like a casino, yes things tend to be irrational at times, yes there is a fair share of market manipulation and prices go up and down like a yoyo... but like on the stock market. Things just tend to be extreme and volatile as it is a younger market.
And certain fundamentals of finance still apply and should always be kept in mind while investing:
- High reward = high risk
- Diversify to limit risk
- Do not invest everything on a risky investment
- Don't buy at a high price and sell at a low price
While Finance and money are serious matters, try to educate yourself constanly and (as much as possible) have fun investing!
Beware: This blog expresses our personal views, the results of our research and experience. Bear in mind that we are not a financial, legal or tax advisors. Please refer to the relevant professionals before investing. Always act responsibly before investing or making financial decisions.
We do not endorse any products or services described on this article. This article is purely for educational and entertainment purpose.