The comprehensive understanding of this topic requires the knowledge of how transactions of stocks or money work and how it benefits you– even when you’re sleeping – through investing in profitable zones like the stock or money market.
To understand the systematic method of the stock market, it’s important to know some of the common financial literacy principles such as banking, saving and investing.
The Difference Between Saving in a Bank Account and Investing
Banking is generally an industry that handles cash, credit, and other financial negotiations and transactions. Saving your money into an interest-paying savings bank account helps it progress gradually.
It is typically used for short-term goals in the nearer future that allows you to access cash when you need it. However, most savings accounts limit how frequently and how much money you can withdraw.
Investing, on the other hand, is using money with the goal of gaining profit by buying assets that might help increase your shares, stocks, and property values. Investing always has higher risks, since it does not guarantee you a return.
It is possible that you might, unfortunately, lose some or all the funds you have invested. However, investing usually has the prospect of higher returns than in the savings account.
The digital economy is the wide domain of economic activities that utilizes digitized information and knowledge from the way we buy or sell almost all products including stocks, shares, bitcoins, and experience services. This digital connectivity is beneficial as it allows and operates innovation and provides job opportunities and economic growth that permeate the socioeconomy.
market profitability, all industries are equally created. However, in the digital market, cryptocurrency integrates the blockchain technology — a “decentralized” system that exists only between all authorized or permitted parties and is almost impossible to breach.
One of the most preeminent qualities of this system is its unique shared ledger that helps you track your transactions. A public ledger will provide every piece of information about a transaction of a single trade and the information of both buyers and sellers. It’s all out in the open, and impossible to hide. When the case is federated or made private, it is quite different. Nevertheless, in those situations, many people can view what the status quo is.
The use of a third party or middleman in the market ensures that the distribution channel between the seller and the consumer is complete. This third party makes money through trading products by putting “mark-up” or charges that the buyer ends up paying.
For example, you wanted to buy a share of a certain company. To have the assurance of getting the share, you are then directed to platforms X and Y. You choose platform Y since it is connected to credible companies so this platform will then serve as the third-party or middleman. It will then proceed to process your transaction that requires a series of legitimate procedures. For this process, platform Y charges you fees as part of your deal. This is the current system that is going on in the market in a traditional transaction chain setting.
Using blockchain technology, transactions are made possible without paying intermediaries or middlemen that saves your time and lessens the possibility of having conflicts. The users of this technology can verify their transactions through the network, where they know what services or products they are getting and are paying for, they have the ability to oppose to unauthenticated payments. These make the technology a safer and more secure way of trading or transacting.
Also, Smart contracts generate and promote their benefits with the processing of transactions by also providing loyalty and rewards systems. These benefits are manufactured to encourage and attract more traders, professionals and even influential people to trust and put off their money into the banks that adopted the blockchain technology.
(*A Smart contract is a protocol that is intended to digitally accelerate, facilitate and give verification of the negotiation of a contract to both buyer and seller.)
Undeniably and inevitably, blockchains have their problems, but they demonstrated more secure than traditional systems and are rated faster and cheaper, which is why lots of banks and even governments are turning to them.
Since most banks around the globe work within multiple service providers and technology, you must remember blockchains has been adopted more and more because it speeds up cross-border payments, improving the accuracy and reliability of trading.
Generally, blockchain technology simplifies and shortens settlement processes with service advantages.
When you are investing, prioritizing and focusing on your potential market is an important and critical part. You may not be increasing your market share for the meantime — you are ensuring the future of your market share.
A recent survey from Optimind Technology Solutions showed that 5.7 out of 10 people worldwide are online and paid marketing boost awareness by 64%. You may be one of the people that even walking down the street, staring and checking your phone rather than looking at billboards or checking the newspaper.
Online is where most people spend most of their time. And you must remember that the digital world is the most effective way to reach your customers. While you are going to concentrate on the largest groups, you must still try to catch the smaller ones.
It is said that digital marketing will cap and complete the comprehensive marketing campaign of the digital economy. Its gradually developing nature requires people to continually upgrade our understanding as business owners or traders.
If you want to protect and secure your transactions from selling, buying and especially saving, you should know the features and qualities of banks that are adopting and integrating the blockchain technology in their system.
No matter what your goal is, investing or saving in a digital economy, gaining further insights is necessary for you to succeed.