Today, people want to receive stable wages and have the possibility of passive income. That is why micro-investing is becoming more popular in the world than ever. Moreover, this tool is available to everyone. Surprisingly, it is true that just a couple of years ago in the United States, about 49% of respondents said they were not familiar with investment applications. Such data are provided by the website of statistical data - Statista.
However, over the past couple of years, the world has changed a lot. And now, micro-investing apps are the latest trend in the world of investing. And more and more people are using this tool to manage their income.
Why is it popular?
First, investing applications are brilliant communication with finances. You can collect change from purchases on a particular account in the application, and this money will work for you and not just lie in the piggy bank. It's nice - you save money without even thinking about it! - but what impact will this little thing have in the long run?
What are micro-investment apps?
Applications for micro-investing are an opportunity for users to collect money in small amounts and invest it in various stocks and more. For the most part, these apps are designed to save you money. For example, an app can round up your purchase amounts and make money transfers for you.
What You Need to Know about Micro Investing Apps?
At the same time, you get the opportunity to invest free money in cryptocurrency or the stock exchange.
Why is micro-investment relevant?
Micro investment attracts with its ability to save small amounts of money and invest it "wisely." You don't even need to keep an eye on the accounts and the investment market especially. And you don't need to set aside money on purpose to keep the investment flowing. Thanks to this simplicity, many are beginning to enjoy micro-investment.
Forbes notes that micro-savings apps can save money and nudge people to make small but frequent purchases. Some apps can withdraw cash every time someone purchases using a "save and spend" approach.
What is the convenience of micro-investing applications?
By their very nature, Apps tend to be simple and easy to use, and micro-investing apps are no different. They are always at your fingertips - on your smartphone. You only need to open the app, and you are already looking at the account balance or can make transfers. Plus, most apps are easy to customize and get your investment options for a balanced investment portfolio.
What to invest in?
Not sure what to invest in? Most micro-investment apps invest in exchange-traded funds or index funds, and to get you started; most apps can bundle you with an investment portfolio based on your risk tolerance.
Who is micro-investing not suitable for?
Micro-investing apps are not suitable for all investors. If you are a confident investor who has visited the notorious investment block several times, you may be disappointed with the returns you receive from micro-investing apps. In addition, if you have an established portfolio, micro-investing cannot provide a different variety or access to any new or hard-to-find investment products.
If you want to start small and maybe make it easier to invest, micro-investing is for you. This way, you will get a good idea of investing without spending a lot of money. At the same time, making micro-investments through applications on your phone is easy and convenient. Most of the features in micro-investment apps are free or not expensive. When choosing a particular application for investment, study its functionality, risks, commissions for transactions, and the account's content.
You can also order mobile app development services to create your investment management application if the ones already on the market do not suit you.
Author’s bio: Anastasiia Lastovetska is a technology writer at MLSDev, a software development company that builds web & mobile app solutions from scratch. She researches the area of technology to create great content about app development, UX/UI design, tech & business consulting.