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How to Invest Money Online?

By Jason | February 22, 2022

A penny saved is a penny earned, which is an adage that may have been true in the old times, but today you need to invest money online to build wealth. With several investment options available today, you need a clear plan of action to make the most out of them.

If you thought you need a large capital to make sound investments, you are not alone. But you aren’t right either! It all starts with taking the right first step so you can realize your wealth-building dreams. 

Why Should I Invest Money Online?

Keeping your money in a savings account may seem safe, but the interest you’ll get won’t be enough to keep pace with inflation. 

Investing plays a key role in growing your savings over time. Right investments can even help you to protect your money during inflation.

How to Invest Money Online?

You need to figure out for how long you want to keep your money invested before getting started. Based on the duration, your investment goals can be broadly divided into two categories:

Short-Term Goals

If your investment duration lasts for 5 years or less, it’ll be a short-term investment. You can sell your short-term investments within months, and even days, from the dates of your purchase.

Pros of Short-Term Investments

1. Short-term investments allow you to modify your investments according to market trends.

2. You can easily trade your assets for quick cash when needed.

3. The liquidity of short-term investments makes them a good source of income.

Cons of Short-Term Investments

1. Market volatility can affect even your best-performing short-term investments, making them go negative.

2. Because of low to no compounding interest, the returns on your investments may not be as high as you’d like them to be.

3. You’ll need to stay updated with market trends for active portfolio management.

Long-Term Goals

Investments made for periods longer than 5 years are known as long-term investments. They need more time to obtain profit but can adjust according to the fluctuating market conditions.

Pros of Long-Term Investments

1. The biggest advantage of long-term investments is their ability to deliver compound returns. This can be profitable, especially when the rate of interest is high.

2. Long-term investments are known to adjust and cover market fluctuations, causing less risk.

3. With investments made at regular intervals, you can plan them with more clarity.

Cons of Long-Term Investments

1. Since you need to invest the same amount of money in a particular investment, you’ll get lesser units as the stock prices rise.

2. Many long-term investments come with a lock-in period. So, you won’t be able to withdraw or sell them during an emergency.

3. You’ll need to wait for a very long time before your investments start showing promising results.

How do Short-term and Long-term Investments Differ?

The first difference between these two investments is the type of risk involved. Take short-term investments, and the name suggests that they are more prone to market fluctuations. 

Suppose you plan to invest money for 3 years, and at the time of maturity, if the market is in recession, your chances of getting a good return will be bleak. However, long-term investments can yield better results and greater returns.

Because of the risks involved, both these investments are used for different life goals. If you are planning to save money for a wedding, home improvement, or vacation, short-term investments are a viable option. Long-term investments are better suited when you want to buy a house, build wealth, plan retirement, or save funds for a child’s education.

Now that you have a clear idea of why it is important to invest money online and how to do so, it’s time to look at what online investment options are good for you.

Where to Invest Money Online?

In the current online investment landscape, the following four are the best options:

1. Stock Market

Investing in the stock market has been around for more than two centuries. You can choose both short-term and long-term investments in the stock market. 

The online stock market started in 1985 with Trade*Plus. Due to new technology, you now have the option to choose from Robo-advisors and stock brokerages.

Robo-advisors are technology-driven investment solutions that invest money online based on your goals and risk tolerance.

Stock brokerages are for experienced investors who know what they are looking for.

2. Cryptocurrency

People have polar opinions about cryptocurrency, but that doesn’t change the fact that it is the future. Cryptocurrency is more volatile than stocks, so experts recommend studying it before you start investing. There are options available such as Bitcoin, Ethereum, Solana, and a few others for you to choose from.

3. Mutual Funds

Mutual funds are one of the best and most trusted long-term investment options available today. They adjust to inflation and offer great returns on investments. They are not immune to market risks but have a proven track record of being safer than a few other investment options.

4. Microlending

Microlending came into existence in the 1980s and picked up quickly. Currently, microlending platforms like Lendee offer amazing investment options so you can get faster and greater returns. With Lendee, you don’t have to split earned interest as you would with other peer-to-peer (P2P) lending platforms.

Closing Words

Hopefully, the details shared above clarify why it is important to invest money online and how to go about it. 

If you’re still confused about where to start, consider looking at the last investment option, microlending with Lendee. Simply visit to join and access a network of investment opportunities and stay ahead of the curve.

Disclaimer: The content on Lendee is for informational and educational purposes only and should not be construed as professional financial advice. Please consult a licensed financial or tax advisor for such advice.