With so much available information today, along with the latest tools for all of your investing needs, many investors neglect the fact of where the thought of investing came from. Not only that, but also the specific ways that technology has shaped the way investing is conducted today. Everything from the very first trade to implementing artificial intelligence, the push forward with technology has led to many efficient ways to conduct business. It has also shown support toward a common objective, and that is to ensure that capital gets allocated in an efficient way to have an increased amount of value-added.
Today, there are a few technologies that have begun to make an impact on the way investing is conducted. Although much of the financial headlines have been taken over by the newer technological methods, others can still dominate alongside them. Below, we have listed six ways technology is helping the investors of the world.
1. Integrating AI Technology
If we have learned anything from TV shows and movies, it should be the fact that AI was envisioned long ago. Today, it has become a reality within the stock market world and even within individual businesses to get the upper hand against their competition, such as monitoring a stock price target. The use of AI also assists with distinguishing different patterns of speech, detect fraud, and remember certain sequences concerning trades. In fact, there are actually more computers and programs doing most of the investing for investors. On the NASDAQ alone, 75% of the trades conducted are not performed by a human.
2. Analyzing Datasets
The analysis of datasets, or “big data”, has moved to the forefront of managing and regulating the markets. With the SEC being the head authority, they use the data to help keep an eye on all activity and investigate the smallest discrepancy. Concurrently, every financial institution or trader also utilizes it for many purposes.
3. Crowdfunding for Funds
By collecting funds through crowdfunding, you can obtain a large amount of cash in a short amount of time. Plus, the recent addition of a law known as JOBS has helped create more ways for crowdfunding to occur. It also permits investors to obtain company shares if they meet specific requirements first. The best part about crowdfunding is that it has now become accessible to all types of investors.
4. A New Lineup of Brokers
Due to the increased amount of technology within the investment sector, a new lineup of brokers has appeared in the form of tools that investors can easily utilize. Many of these tools allow the investor to spend very little money, avoid fees, or invest in certain stock categories without having to develop an entire portfolio.
5. Implementing Various Cryptocurrency
From the moment that cryptocurrency appeared, it has continued to expand the way financial markets work. When it comes to cryptocurrency, they work by implementing cryptography that can produce a secure and incognito payment system.
The technology responsible for all of the cryptocurrency is referred to as a blockchain. The blockchain then uses many digitally shared ledges and can demonstrate that all transactions remain true as they block fraud from occurring in any manipulating of financials.
A great example of cryptocurrency is Bitcoin. This type continues to grow in value ever since it made its presence known. It has been able to exceed well over $9,000 for each coin. Besides Bitcoin, others exist, such as Litecoin and Ethereum, which have also achieved profits since their introduction.
6. Apps Specifically for Personal Finances
Many apps and tools exist today which can easily simplify the way you handle finances. A few include Mint, LearnVest, and Quicken. These have shown how easy it is to monitor money and other important finances. Ultimately, this will be able to supply more management that has active participation that investors will see.
Because of these apps, each consumer is now able to control their money easily in order to stay on top of budgets and bills.