What is micro investing? You’ve heard of it, maybe have an inkling about it, but don’t know exactly how it works and if it’s worth it. In recent years and increasingly so with the galloping advances of fintech (that we are proudly a part of), the world of investing has become more accessible than ever. Gone are the days when investing was only achievable for the wealthy and well-connected. Micro investing is at the heart of this change. 

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Let’s see how come. Today, anyone with a smartphone and a few dollars to spare can become an investor. This democratization of investing is thanks to the rise of micro-investing, a financial strategy that allows individuals to invest small amounts of money in the stock market and other investment vehicles. 

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In today’s guide, we will delve into the world of micro-investing, exploring what it is, how it works, and how you can get started on your journey towards financial growth.

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What Is Micro Investing? Definition and Context

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Micro-investing refers to the practice of investing small amounts of money on a regular basis. Traditionally, investing required a significant amount of capital, making it inaccessible to many individuals. 

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However, with micro-investing, even the tiniest amounts can be put to work in the financial markets. This innovative approach allows individuals to make regular contributions towards their investment portfolio, creating a habit of saving and investing over time.

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What Is Micro Cap Investing?

A common question we get from our readers and people we meet at conferences is about micro cap investing, and whether it’s better or worse than regular micro investing.

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The two are very different things and pointless to compare. While we established that micro investing is a great way to start investing with micro funds (very little amounts of money), micro cap investing refers to the practice of investing in the so-called micro cap companies.

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Micro cap companies are valuated at between $50 million and $300 million, making them potential hidden gems of the stock market. Grand level investors may often overlook them, but brave and experienced investors will often look into how they can invest in micro cap companies to hit a jackpot. As these companies can sometimes be volatile, a great deal of experience (and money) is needed to proceed carefully with this type of investment. 

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Let’s return now to looking deeper into micro investing, the simple, safe and affordable way that anyone can invest. 

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Benefits of Micro-Investing:

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• Affordability: One of the main advantages of micro-investing is its affordability. Instead of needing large sums of money to start investing, micro-investing platforms allow you to begin with minimal amounts. Some platforms even allow investments as small as a few dollars. This opens up the world of investing to a wider audience, making it possible for anyone to get started.
• Ease of Use: Micro-investing platforms are designed to be user-friendly, often featuring intuitive interfaces and mobile apps that make investing simple and accessible. These platforms provide a hassle-free way to create an investment account, select your desired investment options, and track your progress.
• Diversification: Micro-investing allows you to diversify your investment portfolio with minimal effort. By contributing small amounts on a regular basis, you can gradually build a diverse portfolio consisting of real estate fractions, stocks, exchange-traded funds (ETFs), or other investment instruments. Diversification helps to mitigate risk by spreading your investments across different asset classes and sectors.
• Cost-Effective: Micro-investing platforms and apps typically offer low fees and expenses, making it an affordable way to invest. This makes it cost-effective for beginners or those with limited funds to get started with investing.

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Pro Tip: See our opinion on the best way to invest $5000 today.

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Getting Started with Micro-Investing:

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#1. Determine Your Investment Goals: 

Before diving into micro-investing, it's important to define your investment goals. Are you saving for a specific short-term expense or a long-term financial goal, such as retirement? Having a clear objective in mind will help guide your investment decisions and keep you motivated.

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#2. Research Micro-Investing Platforms: 

The platforms that allow you to micro invest are numerous, but not all of them can be trusted. Research different options to find one that aligns with your investment goals, offers a user-friendly experience, and has a solid reputation for security and customer support. 

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Nowadays, the most convenient way to micro invest is to use an app especially designed for it. 

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#2.1. What is a Micro Investing App?

A micro investing app is a mobile application that allows you to invest very small amounts from the ease and comfort of your phone, check your returns and portfolio and watch it all grow. 

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Some of them allow you to invest automatically or round up your credit card spends, adding a few spare change to your portfolio from every transaction you make, so you don’t feel it. Others allow you to invest in stocks, others in other currencies (including crypto-currencies) and so on. 

#2.2. What Is the Best Micro Investing App?

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Of course, we think MetaWealth is the best app for micro investing and we have the data to prove it, but we invite you to form your own opinion. 

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On the MetaWealth platform, we curate the best real estate assets we identify globally after a careful analysis of earning potential and risk factors. We only choose the best options that offer consistent returns with low risk. 

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Data shows that real estate is the best way to build wealth at a global scale, with over 68% of the world’s wealth being stored in real estate, according to a recent McKinsey study.

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We created MetaWealth because we want to offer anyone the opportunity to invest in real estate even if they don’t have all the funds, time, connections, patience or know-how involved in traditional real estate deals. 

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Every real estate asset we onboard on MetaWealth is fractionalized and tokenized so anyone can start micro investing with just $100 and earn rental income effortlessly. 

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Just download the app and check it out for yourself. 

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#3. Set Up an Account: 

Once you've chosen a platform, sign up and create an account. You may be required to provide some personal information and complete identity verification to comply with regulatory requirements. Ensure that you choose a strong password and enable two-factor authentication for added security.

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#4. Start Contributing Regularly: 

The key to micro-investing success lies in making regular contributions to your investment account. Set up recurring deposits from your bank account or allocate a portion of your income towards your investment goals. Consistency is more important than the size of your contributions, so start small if needed and increase your investments over time as your financial situation improves.

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#5. Choose Your Investments: 

Most micro-investing platforms offer a range of investment options, such as fractionalized real estate (the best choice in our opinion, of course), individual stocks, ETFs, or even fractional shares of companies. 

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Consider your risk tolerance, time horizon, and investment knowledge when selecting your investments. It's also wise to diversify your holdings by investing in different sectors and asset classes.

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#6. Monitor and Adjust: 

Regularly review your investment portfolio to ensure it aligns with your goals and risk tolerance. Keep an eye on market trends, news, and performance of your investments. 

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Remember that investing involves some degree of risk, and market conditions can fluctuate. Consider rebalancing your portfolio periodically to maintain your desired asset allocation.

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#7. Educate Yourself: 

As with any form of investing, it's crucial to continue learning and improving your financial knowledge. Read books, follow reputable financial blogs (such as this very one, of course), and consider taking online courses to deepen your understanding of investing. 

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On the MetaWealth app, we have a great Learning Center that anyone can access and use for free, and we update it regularly, so we can provide you with a good place to start. You will be able to become more knowledgeable about keeping your finances healthy and making better decisions about your money. Come check it out!

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This will empower you to make informed decisions and adapt to changing market conditions.

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What Is Micro investing in a Nutshell

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Micro-investing has revolutionized the way unaffiliated individuals participate in the financial markets. By making investing affordable, user-friendly, and accessible, it has opened doors for people from all walks of life to start building wealth. 

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Thanks to micro investing or fractional investing as we like to call it here at MetaWealth, you no longer have to be already wealthy or a professional broker or somebody calling the big shots in an institution in order to be able to make investments. 

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Whether you're saving for a specific goal or investing for long-term financial security, micro-investing provides a convenient and effective way to grow your wealth over time. By following the steps outlined in our guide and staying committed to your investment strategy, you can embark on a journey towards a brighter financial future. 

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We hope you now understand more about what is micro investing and the benefits of putting down small but regular amounts towards building a strong passive income stream. To this end, we think you’ll find this guide about starting investing early and the MetaWealth Investment Plans very helpful. 

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Remember, every small contribution counts, and with patience and consistency, your investments can yield substantial returns over the long run.

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