Investing is when you put money in a financial scheme with the intent of making a gain.
What Does Invest Mean?
Investing is the process of putting money into financial schemes, shares, properties or commercial ventures where you expect to achieve a profit. To invest is essentially the process of allocating money with the eventual expectation of getting a benefit in terms of a return in the future. You will essentially own an asset or an item with the goal of generating income from it, or where that specific asset appreciates in value, which will increase your returns when you inevitably sell it.
In the world of cryptocurrencies, investors tend to analyze the analytics and purchase specific types of cryptocurrencies. Some sell them quickly with incremental increases in value, while others hold onto them for prolonged periods of time with the eventual goal of them skyrocketing in value.
An investment can essentially refer to any mechanism that Is used for the generation of future income. Keep in mind that this can include the purchase of stocks, alongside bonds, real estate and as of the last decade, cryptocurrencies. Additionally, you can even purchase a property that can be used to produce goods, and this by itself will also be considered an investment.
You can essentially categorize any action that is taken in the hopes of raising future revenue to be considered as an investment.
For example, why do people go to college? They pay up-front, or take out loans, in order to increase their knowledge or improve a specific skill-set, with the eventual hopes and goals to gain more income as a result, and this by itself can also be considered a personal investment.
There are different types of investments, both economic investments as well as investment vehicles.
Let us look at this from a cryptocurrency perspective: if you purchased Bitcoin (BTC) today, with the eventual goal of selling it in the future at a higher cost, you are essentially making an investment in the currency.