What Kind of Investor Are You?
The year 2020 and the first quarter of 2021 has proved to be a challenge in nearly all sectors of our society, especially in health and the economy. As one columnist from the Manila Times aptly summarizes, the pandemic has highlighted how most Filipinos lacked savings for these rainy days, did not invest enough in their health, were forced to learn new skills during the vast labor force retrenchments, and did not have any form of passive income. These so-called gaps should be considered as we embark on the journey to economic and financial recovery, which can be slow and challenging. However, prospective and active investors alike have been given the time and opportunity to reconsider where they put their money and the risks and capacity for gains from various investment options, especially in the context of a global economic crisis.
Some degree of personal reflection always gives us a clear perspective when it comes to making decisions in our everyday lives. Have you thought about what kind of investor might be or already are? This question should guide you as you visualize what the rest of the year looks like for investing your money.
Choosing the Best Investment for You
Perhaps around a decade ago, investments sounded a lot like exclusive access to stock market trading, various offerings from banks and insurance agents that took time and effort to comprehend, educational and retirements plans, traditional business ventures—like a small sari-sari store, a stall at the mall, an Internet cafe, etc.—or even scams. Today, with the global digital revolution, both these traditional investments and newer innovations have become more accessible to the public, with a wealth of reliable information about investing readily available as well as convenient interfaces that cater to user’s needs and preferences.
If options and information about those options were the basis of whether or not you should invest at such a time as this, there is no lack of these thanks to fintech, a closer-knit global community, and the continual decentralization of financial and investment institutions. All this to say that you can now easily personalize your investment portfolio and diversify it across multiple platforms.
Take for example just one platform—GCash. You can receive payments for your goods and services, put some of the money towards GInvest—the native professional fund management service of GCash—and allocate another portion of your cash to fund your Binance account so you can start trading cryptocurrency. That’s just one application. With mobile banking, purely digital banks, online payment applications and trading platforms, forums, video tutorials, and research material all at your fingertips, you can easily start your venture and adventure into investing the way you would like to.
Investment Types Based on Risk
Investment and trading activities always come with some type of risk. Thus investing always involves understanding and managing risk, but personal choice factors in how much of that risk you are willing to take.
Investopedia proposes a risk pyramid that actually guides prospective investors on low-risk, medium-risk, and high-risk investments in relation to slow-but-sure and swift-but-high gains
Slowly But Surely
Most Filipinos could not afford to set aside more than ten to twenty percent of a consistent cash flow, like their monthly income, towards investments. We are also mostly part of a labor and employment sector or at least manage a traditional business venture.
In these cases, some investors prefer a slow-but-sure method of investing, mostly looking like putting a minimal amount of money towards funds, services, and assets that have a higher or stable assurance of consistent growth over a period of time. For these individuals, such consistency is key and the degree of safety that the type of investment provides corresponds to their other sources of cash flow and income. Furthermore, their investment options become classified as passive income, where, because of the time that it takes to see growth, one need not actively buy, sell, and trade assets on a constant, day-to-day basis.
High Gear Investments
Some people are willing to put just a little bit more time, effort, and money into investing, especially studying the market trends on almost a day-to-day and even an hourly basis and actively moving their assets—buying, selling, and trading. These assets could be less tangible, priced according to dynamic trends, or promising initial ventures, like initial coin offerings and crowdfunded products and projects. These individuals are passionate not just about the possibilities of fast and vast growth but are invested in each of these platforms, serving almost as a primary hobby or even a career option. If you are looking beyond just passive income and considering a higher cash flow while managing greater risks of loss, you might be the type to put your investments into high gear.
Again, because of the digital interface of several of these investment options, you are now able to diversify your investment portfolio and create your own combination of low, medium, and high-risk investments.
Since its launch in October 2019, Binance’s P2P platform has supported approximately 31 fiat currencies, including the Philippine Peso. It was also able to process trades of more than $1 billion. For their Global P2P Merchants Program, the company now actively searches for local merchants with reliable crypto and fiat access. Here, verified merchants enjoy a lot of benefits—exclusive support for customers, VIP discounts, ad transactions and postings, and security deposits without any fees.
With its zero transaction fees, Binance offers an escrow service—which aims to ensure that all of the cryptos will go to the users’ wallets. Its P2P platform also lets users gain more access to various financial services, likespot, margin, lending, and futures trading of Binance.com.