Lesson 1 of 21 · 3 min read
What is investing?
Putting money into something that can grow, or shrink. Where the return comes from, and what nobody can promise.
Putting money to work
Investing is buying something because you expect it to be worth more later, or to pay you while you hold it: a share of a company, a bond, a coin, a building.
Saving and investing are different things. Savings in a bank account keep their amount: $100 stays $100. An investment's value moves every day, up and down. That movement is the price of the chance to grow.
Where the return comes from
There are two sources. The first is the price: you sell for more, or less, than you paid. The second is income: some investments pay you along the way, like the dividends some companies pay their shareholders or the interest a bond pays.
Most crypto coins pay nothing while you hold them. Their whole return, good or bad, is the change in price.
Investing and trading
People use the two words for different time spans. Investing usually means holding something for years because of what it is. Trading means buying and selling over days or weeks because of where the price might go next.
The buttons are the same. What differs is how long the money stays put, and how often fees are paid.
What nobody can promise
Nobody knows what a price will do next. A price that rose last year can fall this year. Anyone who guarantees a return is mistaken or lying.
Money that is invested can be lost, in part or completely. That is true of every investment, on Viru and everywhere else.
Education only. Nothing here is a recommendation to buy or sell anything.