What is a place where they make a lot of money, buy and sell shares in companies, lend money?
The stock market, of course. We’re going to talk all about the stock market, its participants, and how to make money with it.
What is the Stock Market?
The stock market is a place where stocks, bonds, currencies and other assets are traded.
The American stock exchanges NYSE and NASDAQ are the largest by capitalization and the most attractive for investors.
Americans are introduced to the stock market and exchange at school. Shares in the United States are owned not only by millionaires, but also by many ordinary citizens. By choosing to invest in stocks or other securities, the investor receives a number of advantages compared to earnings from a bank deposit or a private business. In wealth and investment management, you can be helped by a fintech software development company.
Stock Market Participants
Companies enter the stock exchanges to sell shares/bonds on the market and attract money for development;
States issue bonds to attract investment in the country’s economy;
Private investors choose investments in stocks or bonds as a way of earning money;
Brokers are mandatory intermediaries between investors and the exchange;
The exchange provides a trading mechanism through dealers, underwriters, there are also depositories and other participants;
Institutional investors are legal entities that trade large blocks of shares and provide most of the trading on the exchange. These include:
- investment funds
- pension funds
- financial and insurance organizations
- banks and credit unions
Platforms on the Stock Market: Coinbase and Binance
COINBASE is an American company that operates a cryptocurrency exchange platform.
Coinbase is now:
- Coinbase Pro (formerly GDAX) is a platform for professional trading, offering traders a terminal with advanced functionality.
- Coinbase Wallet is an online wallet for storing cryptocurrency, which allows you to maintain full control over your digital capital.
- Coinbase Custody is a service for large buyers and sellers (the minimum amount is 10 million US dollars)
During its existence on the market, Coinbase has achieved results:
- 30 million customers;
- 150 billion $ turnover;
- entering the TOP 100 exchanges by trading volume;
- serving users from 103 countries;
- work with 23 types of coins, including Bitcoin and other popular altcoins;
- work with the main currencies: dollar, pound, euro.
The Coinbase trading platform has many advantages that make it a great place to start trading:
- A serious reputation;
- Insurance of client accounts;
- An easy-to-use platform with extensive functionality;
- High level of security.
BINANCE is the largest cryptocurrency platform used by millions of traders around the world. Now everyone can become a client of Binance.
At Binance, you can:
- Buy / Sell cryptocurrency;
- Trading on the stock exchange with leverage (up to 125x);
- Keep assets for a long period of time;
- Put assets in a savings account with % per annum;
- Participate in free cryptocurrency sweepstakes and many more nice features.
Why should you choose Binance?
- Since this is the largest crypto exchange in the world, this ensures that your assets will be in integrity and will not be lost;
- High level of security;
- A convenient wallet system;
- a huge list of coins supported by the platform;
- Small commissions;
- Secure purchases and sales of cryptocurrency, Binance uses KYC to confirm its users and is an intermediary when making transactions on P2P.
9 Steps to Start Earning: Procedure and Investment Rules for Beginners
It is best for a novice investor to adhere to proven behavior algorithms. You can do this:
- The investor chooses an exchange;
- Then the investor chooses a broker. It is imperative to check the accreditation of the broker on the exchange, its licenses, ratings, range of services and the number of clients served. It is also worth getting information directly from a personally known client of this broker;
- The investor and the broker conclude an agreement, which prescribes the rights, obligations and all the key points of the relationship;
- The broker opens a brokerage account for the client;
- The investor replenishes this account;
- The investor then gives the broker instructions to buy certain assets;
- Information about the purchase is registered in a special depository in the name of the investor. He becomes the owner of these assets;
- When a client gives an order to sell shares (bonds), the broker checks the client’s availability, finds a buyer and conducts a transaction;
- The money from the sale is credited to the client’s brokerage account.
For beginners, it is best to choose a management company that will invest itself, but in favor of the client. This should be chosen carefully, because it determines the investment income of the client.