Trading for beginners — Investing in funds
BOTS wants to ensure that everyone in the world has the opportunity to build up a second passive income through trading. Nowhere near everyone has experience with trading. That’s why we are now sharing more information every week in our “Trading for beginners” series.
Trading for beginners
Last time in our “Trading for beginners” series, we provided further information on investing in real estate. What it involves and in what ways you can earn extra money by doing so.
You can read the full article here.
Today in Trading for beginners, we are focusing on investing in funds. What is involved, what kind of funds are there and how do you make a profit by investing in funds?
Investing in funds
Besides investing in shares or bonds, this is one of the most popular and common forms of investment. Whereas you invest in a single company when you invest in shares or bonds, you invest in multiple companies in an investment fund.
An investment fund is actually a kind of basket in which different types of shares and bonds can be held.
This automatically results in a greater spread of risk. This is why investing in funds is so popular.
Types of investment fund
There are three main types of investment fund: share funds, bond funds and mixed funds.
As the name suggests, a share fund consists of shares in listed companies. For example, you can choose to invest in a fund that only includes national companies or one that only includes sustainable companies. You can make this choice yourself.
In this case too, the name says it all. It is a collection of bonds from companies and governments. As we already explained in our piece on investing in bonds, this form of investment is seen as one with limited risk. With a bond fund, the risks are spread even more widely.
A mixed fund can contain various types of investment. The most logical ones are, of course, shares and bonds. But a mixed fund can also include real estate and currencies.
The BOTS app and funds
In terms of trading, we currently focus on the cryptocurrency funds. And we do this automatically. With bots. In our BOTS app, you can choose a particular bot. This bot is developed by specialised developers and works using algorithms, artificial intelligence and machine learning. As a result, it is no longer necessary to invest via a (digital) fund manager. So, you don’t have to pay the costs they charge for trading on your behalf. In the long term, we would like to offer not only crypto investments, but also shares, bonds and investment funds.
A bot can achieve significantly higher returns than a human being. After all, a bot does not need to sleep and can therefore react immediately to changes in your cryptofund. A bot also has no emotions that might affect the way your investments are handled.
This is how investment with higher returns becomes feasible for everyone. The best trading strategies were once only available to the richest 3% of people in the world. Through our bots, they are now also available to you. You can start within 2 minutes and for as little as € 50.
Trading is for everyone
Everyone must be able to trade. And now they can. With BOTS. Together, we are committed to making the world of trading fairer and more transparent. Interested, but your question hasn’t been answered yet? Then please have a look at the FAQs on our site. Or contact us, we will be happy to explain it to you in person.
The BOTS app is now live
There is no such thing as risk-free trading. It is possible to lose (part of) your stake.