Digibanks, Robo-Advisors, Cryptocurrencies, Crowdfunding: 4 Investment Tools For Young Adults

In today’s digital world, investing is more accessible than ever before. 

With just a few taps on your mobile phone, you can easily start investing and planning your financial future – from opening a savings account, to investing in stocks, as well as exploring cryptocurrencies. 

This ease of access is especially beneficial for tech-savvy young people who want to build their financial future.  

Whether you’re just starting or seeking modern tools that align with your lifestyle, here are four investment options you can consider to to help you achieve your financial goals. 

Digital bank savings accounts 

Digital banking has revolutionised the way we manage our finances. It offers a great way to accumulate savings while enjoying flexibility and ease of use. Compared to traditional bank accounts, digital banks typically offer higher interest rates with fewer fees. In addition, many digital banks do not require a minimum balance, making it accessible even if you are just starting out. 

Popular digital banks such as Revolut, GrabPay, and Wise allow you to easily monitor your transactions, transfer money, and even automate your savings plan through mobile apps. This flexibility and ease of access make digital accounts a great starting point for growing your emergency fund. 

By opting for a digital savings account, you not only get higher returns, but also reduce the risk of incurring unnecessary banking fees. For young adults who prefer flexible options that don’t put a strain on the pocket, this is a great starting point to invest your savings in a higher interest bank account. 

Robo-advisors 

Robo-advisors are an option for young adults who want to invest but don’t have the time or expertise to actively manage a portfolio. Robo-advisors use algorithms to automatically invest your money based on your goals, risk tolerance and financial situation. 

The great thing about robo-advisors is that they are accessible, easy to use, and cost less than traditional financial advisors.  

Services like StashAway, AutoWealth and Syfe provide a platform that guides you through the process of setting up an investment account. You will fill out an online questionnaire, and based on your answers, the robo-advisor will recommend a diversified portfolio that suits your needs. 

This option is perfect if you want to start investing but are not sure where to start. Also, since the fees are lower, more of your money is kept in the portfolio, helping you grow your investments more efficiently over time.

Cryptocurrencies 

If you’ve heard terms like Bitcoin or Ethereum, you’ve probably already had a glimpse of the crypto market. Cryptocurrencies are digital currencies that operate using blockchain technology and are increasingly popular as an alternative investment option due to their potential high profit margins. For young investors, cryptocurrencies are often considered attractive because they offer something new and different from conventional assets, plus they are virtual so you can “carry” and trade them wherever you go. 

However, investing in crypto comes with much higher risks due to its volatility. The crypto market can experience significant fluctuations, so this option is better for those with a high-risk tolerance who want to diversify beyond traditional investments. With high risks comes high returns, you can potentially earn 40% overnight or lose 80% of your funds if you made a bad decision, it goes both ways. 

For those willing to accept the risk, platforms like Coinbase and Coinhako make it easy to buy, sell, and trade popular cryptocurrencies. However, do check if the platform operator is regulated in your country first before opening an account to prevent exposing yourself to risks that include hackers, crypto exchange theft, and loss of virtual wallet. 

Remember to do thorough research before jumping in, crypto is exciting, but also unpredictable and highly risky. 

Crowdfunding 

Crowdfunding allows you to invest in startups, businesses, or even real estate projects by pooling small amounts of money with other investors. While crowdfunding comes with its own risks, especially in terms of the sustainability of the projects you support, it offers a unique opportunity for young people to get involved in the world of investment early on. 

What’s great about crowdfunding is its accessibility. You can start with a small investment and watch your money grow as the project you invest in succeeds. Depending on the platform, you may receive financial returns, equity in the company, or rewards.  

By participating in crowdfunding, you can also support ideas and innovations that are important to you, while building your investment portfolio. 

Platforms like Fundrise, Kickstarter, and Indiegogo allow anyone to become an investor in exciting ventures that match their interests. 

Start investing wisely 

By utilising modern technology, you can start your investment journey early.  

This initial step can have a significant impact on your financial future. The sooner you start, the more time you have to build a strong portfolio and benefit from long-term investment growth.  

When you take control of your finances now, you are on the path to creating a stable and secure future for yourself, as long as you make decisions backed by accurate, reliable information and use the right investment tools.