Traditional Investment  Instruments vs Crowdfunding
  • Dec 11, 2018
  • By CrowdingLab Team
  • in Other

Traditional Investment Instruments vs Crowdfunding

Today we will examine how traditional investment compares to a modern way – CROWDFUNDING.
Traditional investment instruments have been seriously challenged by “crowdfunding” and not without a reason.
The “classic” offering, like stocks and bonds mainly, haven’t changed their shape and form ever since financial markets exist. Even though trading has been made easier by digitalization, the nature of the assets themselves and the way of trading are still the same.
Those instruments are managed by Fund Managers, professionals who work for investment firms.
The Funds Managers are the ones who monitor the financial markets, perform analysis and decide where to place investors’ money.
In exchange, certain fees are collected for the services they provide.
It is a good instrument, but keep in mind that the one who decides where to locate your finances, is the fund manager – not You, and minimum investment are high enough for most of the population. It might sound that investing through big firms are risk free, but its not.
On the other hand, investing through crowdfunding platforms, such as Crowding LAB, became increasingly popular and spreading across the world. Investment itself is performed trough the platforms’ website and gives full control to decide - where and when to invest.
With Crowding LAB, you control where and when to invest.
Also, diversification is in your hands. You have multiple options to choose from with each option having different interest rate, risk rating, payment plan, borrower profile, etc. and you can try it without breaking your bank account with minimum investment of 10 euro.

The value of the investment, through traditional investments instruments, more likely changing daily and depends on various factors. Some of them are unpredictable - changes in major market, potential market crashes, political instability, currency deprecation, etc.
By investing through crowdfunding platforms such as Crowding LAB, you will know exactly your ROI even before investing. Of course, there are risks involved as well, but mostly predictable ones and every investor will have an option to calculate their risk and reward ratio before placing the funds in to project they chose.
Traditional investment instruments can be part of bigger plan but shouldn’t be the only instrument in your strategy.
As convenient as it is to have the hard part done by someone else and collect your profit without moving a finger, it’s not wise to fully give up control.Especially considering highly volatile assets might be included in the fund portfolio.
There are many investment instruments out there. Some of them have been around for decades (even centuries) and haven’t changed in nature.
They are either not easily accessible and require a big starting capital for the profit to make any sense, or have unaddressed faults – like high volatility, low liquidity and risk to lose your savings altogether. Crowding LAB’s aim is to solve most of these problems and provide you with flawless investment experience.
Register at Crowding LAB and experience the advantages of controlling your investment!

Register, invest and relax while you earn money