Technology evolves along with the industries it affects. Whether it’s commerce, education, entertainment, or the realm of investments, there are breakthroughs and changes provided in these fields by developments in technology. Moving from physical to digital spaces, expanding international reach, or the availability in several platforms, industries such as investing holds a promising future ahead with limitless possibilities.
David Ebrahimzadeh, a real estate and private equity investor understands how certain technological trends affect the investment industry. In this post, he will be sharing insights on the changes we are to expect in investing for 2021 and beyond.
Increased popularity of robot-investing
If you’ve heard of programs such as Webull, Betterment, or Acorns, chances are the popularity of these apps is just going to increase. The initial problem of investing in the previous decades was the lack of access to the average American.
Now, many individuals can access these robot-investing apps to create passive income by:
- Automatically link bank accounts: People can now use the programs and link their bank accounts to add finances for investment.
- Use spare change for investments: Individuals also have the ability to use spare change from purchases placed and automatically transfer them to an investment account. This is a great beginner step to get into the world of investing.
- Automated portfolios: Conventional investing always meant looking for a broker or creating your own investment portfolios through research. However, these methods can sometimes be tedious or risky. Robot-investing apps can lessen the damages for those who have an aversion to high-risk investments.
According to Mr. Ebrahimzadeh, the variations of investing programs will increase in 2021, and their accessibility will expand as well.
Demographic changes for the typical investor
Along with the increased availability of investing programs, the demographics of the average investor will also change. The ‘old world’ idea of the typical investor is older businessmen who have established steps in life. Now, even the average passerby you see in your daily commute can be an investor anytime and anywhere.
Diversity in the investing world such as millennials, stay-at-home parents, and even small business owners can place aside a part of their income to strategic portfolios.
Gamification in investing
Investors in the previous generations never really thought that the industry can turn into a ‘game’. Now more than ever, there are several platforms where investors have the freedom to participate in digital trading. Programs such as Robinhood make it possible for investors to have increased activity levels in trading, making the experience rewarding like a game.
The gamification of investing is a great way to:
- Increase active participation: It helps increase interest in the world of investing, add more participation for areas such as day trading or foreign exchange, and for current investors to optimize their portfolios.
- Entice potential investors: Many think that investing is a complicated endeavor that only those who are highly interested can learn. Through framing investing as like a game, more beginners will be attracted to dipping their foot within the industry.
- Retain interest: Investing can be a slow-developing income generation for some. By using investing apps like games through their interface, people can have sustained interest to reap future rewards.
Use of blockchain technology
Blockchain is more than just investing in Bitcoin and other digital currencies. The introduction of blockchain in investing means that there is a higher level of accountability and fewer out-of-pocket expenses in trading.
Many middle-men companies in trading or investment programs charge a fee to handle transactions. Through blockchain, direct trading with a high level of accountability can happen. This helps in minimizing the risks while having the most possible amount of returns.
Some areas that investors can watch out for blockchain are:
- Stockpiling digital currencies: Although volatile, investors who have an inclination toward digital investments should stockpile on popular currencies such as Bitcoin. The value and popularity of these currencies increase over time.
- Penny stocks: There are companies that blockchain companies that offer penny stocks. Investors also interested in the blockchain boom can also look into these opportunities.
- Digital funding: Crowdfunding, angel investments, and startup shares within the blockchain industry are also opportunities that offer great potential.
Sustainable investing
Investors of the present and future are not only interested in personal gains. They would also like to place their hard-earned income on causes they believe in. This is why David Ebrahimzadeh sees sustainable investing becoming more popular in the years to come.
These include stocks and shares of companies in the following industries:
- Sustainable energy: Hydroelectric energy plants, solar energy manufacturing companies, windmill companies, etc.
- Sustainable merchandise: There exist companies that adhere to Corporate Social Responsibility (CSR) in sustainability through their product creation.
- Agriculture: There are also companies that have sustainable practices in the production of agricultural items.
The Future Of Investing: A Gold Mine Of Possibilities
The trends mentioned above are only a glimpse of what’s to come in the future of investing. One who is passionate and determined to succeed in this industry should keep their eyes over the horizon on opportunities that hold much promise.