“It’s never too late to learn.” When it comes to learning the art of investment these words from Malcolm Forbes could not be apter. Investment can be a mixed bag of opportunities and disappointments.
But this cannot be a deterrent factor from putting part of your savings to work. A golden rule for investing is to stay focused and keep your investment strategy simple and easy.
If you are still a novice and taking your first plunge into the complex yet exciting world of investing, this blog lists some of the best practices that you can adopt as a beginner and get at ease with the rules of the game.
Start Early: This is one thing that all investment pundits will give you first hand. There is no denying the power of compound interest but to see it in its full bloom there is one thing that you need by your side and that is ‘TIME’.
So start saving early to invest early.
The only secret for success in investment is to realize that there is no secret at all. Do not look for overnight success as well as there is no such thing as ‘Great Timing’. Remember the road to a successful investment portfolio will have its share of pitfalls and bumps. The only best friends that you can have is ‘Information Technology’.
Be Aggressive but Tactical: The first thing is to make an assessment of your risk tolerance limit. And the next must be to breaking the investment in smaller periodic portions which will better equip you to take advantage of the currency value averaging.
Guided Investing: Unlike the erstwhile ‘You For Yourself’ investment environment, today there a host of online and offline companies offering technology-driven solutions for ensuring a great investment portfolio for their clients. Al the help and options you want is just a phone call away. The only downside is that the services are not free.
Zero fees Investing: Today there are fintech apps like Robinhood which bring all your investment needs at the tip of fingers and that also free of cost. From listing special index funds to providing analytics tools and reports, there are apps which do all the math free of cost.
Diversify: As they say, never put all your eggs in the same basket, investment portfolio must reflect a rich palette of stocks and funds that are contrasting not only in principals but industry too.
Bird-Eye View: Assessment is the key to strategizing. A common practice is evaluating your returns with respect to an index like S&P 500 or Nasdaq. Benchmarks like this not only give a bird’s eye view of the larger picture but also help in better categorizing your hits and misses.
Zen-Like Calmness: Investment can be a bumpy ride for some. But instead of being overly elated or overly depressed by short-term gains and losses, one must keep one eye on the larger prize and work out a strategy accordingly.
And when we talk about the future, one can’t ignore but mention the pioneering blockchain solution that brings classical (stocks, funds, etc) and modern digital investment like crypto coins, tokens
When a token passes the Howey Test follow the security regulations it called security token.
Security Tokens are controlled to federal security regulations. In USA, it is compulsory to follow these regulations to be a security token:
This is the basic knowledge of security token but in this post, we will share with you a list of sites where you can submit and list your security token. This list is updated
|S.No||STO Sites List||DA|
ICOs have gained popularity and propagated so quickly as they utilized the loopholes of the uncontrolled market and the major utility tokens were generated, in reality, alike securities.
So, we can say that regulators will soon announce their guidelines and these loopholes are expected to be ended soon.
It also indicates that the uncontrolled way of ICO will become limited with real utility tokens.
Consequently, little controlled or uncontrolled ICOs will possibly retain their value to fund the social ventures, startups, and tech where the utility tokens will not be considered under the securities laws.
In upcoming time, STOs (Securities Token Offerings) will be known and used in raising the funds for proven and mature businesses.
As securities´ laws are applicable to such category of issuance of tokens, the mature businesses will be attracted due to decentralized, borderless and highly liquid market.
Further, the VC industry is also expected to attract with the STOs soon to liquefy and exit the many illiquid shareholdings acquired by them in a portfolio.
STOs are likely to impact the internal structure of the corporations. Tokens are also important as they permit the corporations to work in a decentralized business manner.
Here is the future of the utility and security tokens:
The problem with the ICOs is due to many avaricious founders, scammers, half-supported business models and cheeky advisors who fool others with making-rich-ride.
The sale of ICOs will be ended in around 6-12 months.
The other reason is the incorrect arrangement of founders’ and investors interests’ because purchasing utility tokens do not permit the rights to shareholders in a respective startup. Therefore, utility token worth is not associated with the founder’s performance and startup success.
It will establish the world of Blockchain including scalability, transparency, increased liquidity, security, easy and fast shares transactions, more inclusivity.
The race of token investors is expected to become very competitive just like the dotcom bubble in March 2000. The unavoidable token crash will be the start of the token economy. And as the dotcom bubble depleted, the mobile internet and social networks came into effect. So, we never know what is going to happen in the future.
After many years, the World of Blockchain and the World of Venture Capital may come together and unite the two worlds.
The second stream of ICOs will be due to equity tokens sales which will permit the rights to investors as a shareholder and comprise liquidation preferences, reporting rights, dividend participation, exit, voting rights, and Pro-rata investment rights.
The worth of many utility tokens is expected to reach zero in the future. We can think the utility token in term of pre-paid voucher considering a non-real service or product. It is also possible that the business models which are based on a decentralized network or protocols may survive.
When the tokenized equity will have regulated and stable technical framework, the break-down of the Venture Capital industry will start because LPs (limited partners) will not resist illiquidity gap of 10 years and when they have an option of liquid options.
It will also form a world of Venture capital consisting deal structuring, deal selection, due diligence by a veteran lead investor, active portfolio management, a legitimate framework to balance founders’ and investors’ interests.
It is clear that the ICO is not going to end in the future, although we can expect certain tweaks in a manner it will go on different paths as compared to what we are seeing today.