Going through a broad range of investment ideas and advice on social media can be exhausting and challenging. So, would it be better to look for financial information outside social media?
If you tend to go to social media to determine your next investment move, you need to proceed with caution.
The Risks of Relying on Social Media for Investment Advice
Social media platforms offer the public a place to spread information. However, not all information you see there is provided by reliable sources. Some are only created to manipulate and unfairly benefit from their customers' trusts.
Cryptocurrencies are popular investments today, although there are many risks associated with putting money into such digital assets. If you bet on them, you either make a quick profit or come out empty-handed.
So instead of jumping in and buying the crypto that's causing a buzz on social media, a better option is to look into the cryptocurrency yourself on reliable websites like brokerages and financial sites.
These days, many brokerage firms and online brokers provide investment education services that will help you learn the ropes of purchasing assets such as currency pairs, stocks, digital coins, and more. Plus, the financial information they provide tends to be better than what you may see on social media.
You can also check out some financial websites, where you can find a range of investment information, from market news to simple tips and guides. Another option is to have a trusted financial advisor assist you in adjusting your portfolio according to your needs, income, risk appetite, and goals.
Doing Your Own Research is Crucial
There is no harm in getting cooking tutorials or food recommendations on social media platforms. But when it comes to your investments, looking outside social media might be a better idea.
Still, this does not mean that you can't get reliable financial advice from social media. You just need to get a second opinion from other trusted resources before making any investment decisions.
If you're following a broker or financial advisor on social media, it is essential to check whether they are legit. Trusting your investment dollars with the wrong broker or advisor could create huge damage to your portfolio and returns.
You can verify the legitimacy of a broker and brokerage firm on the website of the Financial Industry Regulatory Authority (FINRA), while you can vet financial advisors on the Securities and Exchange Commission's website.
DIY with Money You're Willing to Lose
DIY investing is not necessarily a bad thing, as you can learn new things about investing that you don't know before and determine what you do and don't like.
Should you choose to use a do-it-yourself approach to your investing, even after getting ideas on social media and consulting qualified experts, make sure that you only invest the money that you're willing to lose. That means separating the money you plan to invest for growth and your long-term goals.
