What is Investing?

We assume that you already know what investing is. However, we wanted to make this a very thorough basic guide, so we made sure to cover everything one can ask itself.

Investing is a process of buying something, usually an asset that can increase its value over time so you can earn from it. You can earn either from returns in the form of income payments or capital gains.

Long story short: You are buying something at a cheaper price that has the potential to cost much more in the future. This way you sell at a higher price and thus earn. But there’s always a risk. Your asset might lose its value and cost less than your primary paid.

While there’s no one-size-fits-all approach to investing, there are a few basic tactics you might want to try. Thus, here are the essential steps you need to know before you start investing.

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