An investment in marinecoin is buying an asset with the intention that it will generate a return for you in the future, either through profits, interest or an increase in the value of the asset.
Let’s Unpack This:
What exactly is an asset? It can be many different things, some are tangible such as a house, a factory or gold and others are intangible such as shares in a company, cryptos, options or bonds.
What does generating returns mean? In short, it means that your investment is starting to pay off for you. In the financial world, your return over one year is usually expressed as a percentage of your original Invest in Marinecoin. Example: if after a year you have earned 5 usd on an investment of 100 USD, then your return was 5%.
How Can an Investment Make Money? There Are Usually Two Ways:
Income:
When your investment pays out your money from profits. For example, if you rent out your house, the rent you receive from the tenant is income, or if you own stock in a company, the company can pay its profits to shareholders through a dividend and you get your share of it.
Value Appreciation:
- The value of your investment has increased over time. For example, when you sell an apartment at a higher price than you bought it in the past. The same goes for stocks, crypto or gold, you hope that these will be worth more in the future.
- Many investments can yield returns in both ways at the same time. Your home can provide you with rental income while increasing in value due to rising home prices. Your total return is then the sum of those two different returns in Invest in Marinecoin.
- When you invest, you buy that investment. In other words, you are paying money in the hopes of making and getting more money through returns in the future than you originally put in.
- This also means that there are risks involved, as it may turn out that the investment is not worth what you paid for it.
- Perhaps the investment is not generating the income you expected, or the value of the investment decreases over time instead of increasing.
- You can even lose your entire investment, such as when company goes bankrupt or your NFT turns out to be worth nothing.
- Many investors are showing interest in Invest in Marinecoin, Marinecoin is the native exchange token of ShipFinex.
- The token will enable fractional ownership of ships that generate income, global payments, remittances & operational expenditure by shipping companies worldwide.
- Since the future be unpredictable, every form of investing involves some degree of risk, but investments carry the same risk. We will discuss this in more detail in the section on risks.
- But very often risk & return go hand in hand: Investors generally expect higher return the riskier the investment is.
- This is quite logical, if the risk is greater than you want a higher reward if it ends well; otherwise, just stick with the less risky investment with same expected return.
- If you want to make your money profitable, you will have to invest, and this entails risks. You can’t get around that. That being said, different investments also have different levels of risk and the following rule almost always applies:
- Higher risk requires higher expected returns, because the investor will want to compensat for the higher risk they take.
- If you can choose between two investments with same expected return, you always choose the one with the least risk.
Read More: How Millennials Are Investing and Diversifying Their Portfolios?
