A businessman who makes investments in the virtual world can become a successful entrepreneur in the real world.
The first thing to know for a person who has decided to invest in an online business: the basic rules for investing in the virtual space and in real life largely coincide. For example, before investing, it is essential to find out as much information as possible about the object of your investment: you have to read books, watch video lectures and take courses. It is necessary to calculate the risks of investing in a particular business, and to get some clarity about the profits, and when they could be expected. Of course, it is important to evaluate your level of knowledge before investing and then decide whether you need an assistant, for example, a stockbroker.
The laws of the real world and the virtual one are almost mirrored
For investing in the internet, again, the same rules apply as with investing money in the real world. For example, you can’t invest the only money you have, hoping that suddenly gold will rain down from the “virtual world”. You can invest only spare money (and, of course, your own – not borrowed “from a friend” or taken as a loan), after creating a safety cushion against the possibility of unforeseen expenses. It will be wise to write out an investment plan and draw up a strategy. Finally, and this is especially vital for investing on the internet, where instant profit is promised from every side, – follow the rule: if you decide to become an investor, keep your head cool and don’t give free rein to emotions.
Entrepreneurs have long been working to master the internet space. Of course, new investors can earn very decent money there. And we are talking about passive income: when, within a certain period after investment, a person simply receives money, spending a minimum amount of time on the “work-earning” process. It’s all about a competent approach to investment. However, you need to understand: if you want your passive earnings to become big in the future, you need to make every effort to do this in the present.
Furthermore, the first successes, i.e. profit, will not pick up any earlier than in a few months, or even a year. Indeed, investing in the virtual world is subject to the same rule as in the real one: when investments are made for a longer period, the profit from them is higher.
And it’s also important to be aware that although many experts are now putting maximum effort and money toward improving security systems against hackers, these attacks, alas, happen.
The world of currencies and its risky players
When experts talk about investing on the internet, they put Forex investing in first position, where income is generated due to changes in the exchange rates of currency pairs. Yes, everything related to currencies is risky, but can be profitable. Some are of the opinion that beginners can jump in, but participation in the Forex system requires a lot of knowledge; without experience, you won’t go far.
Other professional entrepreneurs talk about successes in investing in the PAMM-account system. There, investments are transferred to a manager and then used in operations on stock exchanges. An investor entrusts money to an experienced trader, pays a certain sum for it – and eventually makes a profit. Again, these investments are often used in the Forex system, although not only there.
Cryptocurrency systems and digital currencies, the most popular of which is bitcoin, are becoming more and more popular. Not so long ago people were afraid to engage with cryptocurrencies, but with every year they believe in virtual money more and more and are ready to work with them. Of course, before buying cryptocurrency, it is important to carefully study the system of the virtual money world: where the funds come from, how they are bought and sold, where they can be exchanged and for what, how the electronic wallets are protected, and so on. So, figure it out – and good luck! Bitcoin is the most famous in the cryptocurrency system, but if you decide to try your luck in the world of virtual money, experts recommend starting out with other cryptocurrencies.
Instagram and YouTube are outpacing stocks and exchanges
Another way of making money online is investing in websites and creating online stores. Nowadays, investments in opening various internet projects – websites and online services – already bring significant profit. This business requires serious preparation. It is important to have a “gut feeling”, you should feel: what will become popular after a while and make a profit.
And one more thing: this type of business is already akin to real work. It can only partially be considered to belong to the category of passive profit, for example, when your internet resource is built up enough that it will bring in money automatically. Or you invest in creating a good internet resource, develop it until a certain point, and when it grows in price – you sell it. However, this is another type of business.
A more complex system of earnings which requires considerable investment is investment in traffic arbitrage. To put it very simply: an entrepreneur buys cheaper traffic and sells it for a higher price when it already has, for example, popular online stores. Investing in opening groups in social networks and instant messengers brings more and more profit. The more popular the group you’ve invested in, the more subscribers it has – and therefore the more valuable the advertising. If you invest in promoting the group, you will earn much more.
The same principle applies to buying and selling domains. Profit from such investments can be very substantial. Those who recently bought the addresses of Russian sites for about 500 rubles ($8), today easily sell them for 20,000 rubles ($300). Often, the profit from such transactions exceeds 250% annually. For example, a two-letter domain can cost $10,000, and the so-called “semantic names” of internet sites cost hundreds of thousands or more.
Many businessmen invest in developing networks and Instagram accounts and, of course, YouTube channels. In fact, YouTube is a “new TV”, which means that considerable advertising money is circulating there.
And if your investment in a channel or domain promotion turns out to be a success, the profit can be so large that earnings from trading on the stock exchange will no longer be of interest to you. So, good luck – and don’t be afraid to take the first step!