As a novel and disruptive technology, cryptocurrency has prompted a new approach to how currencies work in the modern economy. As a 100% virtual currency, it’s seen by many as the most convenient era of exchange in history. 

To round out your understanding of cryptocurrency, here’s what you’ll find in this article: 

• Noteworthy cryptocurrency statistics  
• Cryptocurrency market statistics  
• Cryptocurrency user statistics and demographics 
• Cryptocurrency statistics by country
• Cryptocurrency tax statistics 
• Cryptocurrency environmental impact statistics 
• Cryptocurrency price statistics 
• FAQs about cryptocurrency statistics

Read along to learn the top cryptocurrency statistics of 2023.

Noteworthy cryptocurrency statistics  

Despite volatility over the last year, the statistics below make it clear that consumers are committed to crypto. Bitcoin is by and large the most popular cryptocurrency, with 75% of crypto owners reporting they own Bitcoin as of June 2022. 

In assessing the current state of the crypto market, it’s important to remember that it’s still a new and speculative investment. As informative as these statistics are, no one really knows what to expect in the future. As an investor, the best approach to crypto investing is allocating a small amount of your portfolio to crypto. When it comes to long-term investing goals, prioritizing more traditional assets like index funds or ETFs can keep your portfolio balanced and poised for success.

To that end, here are some noteworthy cryptocurrency facts to be aware of.

1. The global market capitalization for all cryptocurrencies is $1.22 trillion in July 2023. (CoinGecko x Statista)
2. There are over 420 million crypto users worldwide in 2023. (TripleA)
3. There are around 26,000 cryptocurrencies as of July 2023. (Coinmarketcap)
4. 268,971 Bitcoin transactions took place daily in September 2022. (YCharts)
5. Bitcoin’s total market capitalization is $568 billion as of July 2023. (YCharts)
6. The global blockchain technology market is expected to surpass $469.49 billion by 2030. (Grand View Research)
7. 68% of U.S. crypto owners own over $1,000 in crypto assets in 2022. (TripleA)
8. There were 264,360 daily transactions of Bitcoin as of July 2022. (Coin Metrics)
9. The average daily cryptocurrency trading volume was $103 billion in September 2022. (CoinGecko)
10. Bitcoin dominates 39.45% of the total cryptocurrency market capitalization. (CoinMarketCap)
11. Between 2012 and 2021, the price of Bitcoin increased by more than 540,000%. (TripleA)

Below, we outline some more specific facts about cryptocurrency. 

Cryptocurrency market statistics  

While consumer interest in the crypto market remains high, the market has suffered significant fluctuations over the last nine months. Amid surging inflation, a volatile stock market, and hiked interest rates, Bitcoin and Ethereum are still recouping their losses after falling from all-time highs in November 2021. 

While volatility is to be expected in a still-evolving industry like crypto, it’s impacted more by the state of the economy at large than by a declining interest in the crypto ecosystem. 

While current Bitcoin prices are far from the highs seen in November, Bitcoin has still steadily risen in value over the years. And with other leading virtual currencies like Tether, Ethereum, and Litecoin making a mark on the market, crypto ownership shows no signs of slowing down. 

Given the 15% rate of adoption among U.S. consumers has stayed the same since June 2021, we can see cryptocurrency ownership and purchasing intent have held steady. With 1 in 6 U.S. households owning cryptocurrency in June 2022, crypto is likely here to stay.

12. The size of the Bitcoin blockchain has steadily risen in the last decade, reaching 406 GB in size in July 2022. (Blockchain)
13. For the first time ever, the Ethereum market capitalization surpassed $250 billion in April 2021—half of what it was in August 2020. (CoinMarketCap x Statista)
14. Ethereum had a market capitalization of $224 billion in July 2023, the second highest after Bitcoin. (CoinGecko)
15. Ethereum had a global market capitalization dominance of 19.62% in July 2023 2023. (TradingView)
16. As of July 2023, the three largest cryptocurrency exchanges are Binance, Coinbase, and OKX. (CoinGecko)
17. The 711 crypto exchanges had a total daily trading volume of $36.3 billion in July 2023. (CoinGecko)
18. Decentralized finance (DeFi) had a market capitalization of roughly $49 billion in July 2023. (CoinGecko)
19. In Q2 2023, Bitcoin’s market dominance rose to 49.72%, an increase from its dominance of 42% at the beginning of 2023. (CoinGecko)
20. As of September 2022, Bitcoin’s market dominance has fallen slightly to 40.72%. (TradingView)
21. In Q2 2023, Ethereum’s market dominance maintained roughly the same dominance seen in Q1 2023. (CoinGecko)
22. As of July 2023, Ethereum’s market dominance has risen since Q2 to 20.24%. (TradingView)
23. Tether had a market dominance of 7.36% in July 2023. (TradingView)
24. The top 10 centralized crypto exchanges saw $1.42 trillion in trading volume in Q2 2023. (CoinGecko)
25. The market share for crypto exchange Binance shrank to 52% in Q2 2023, totaling $500 billion. (CoinGecko)
26. Bitcoin and Ethereum made up over half of the entire crypto market in 2021. (TradingView)
27. By the end of 2021, Ethereum was traded over 1.1 million times a day. (Coin Metrics)
28. The total market capitalization for all types of crypto excluding Bitcoin was $612 billion in July 2023. (CoinMarketCap)
29. The daily average trading volume for all types of crypto excluding Bitcoin was roughly $32.5 billion in September 2022. (CoinMarketCap)
30. Bitcoin reached roughly 89% of its maximum supply in April 2021. (Statista)
31. There were 19 million Bitcoin tokens in circulation in August 2022. (Messari x Statista)
32. The blockchain market value reached $11.14 billion in 2022. (Fortune Business Insight)
33. As of June 2023, 85 million unique Blockchain.com wallets (that is, the vehicle used to buy and store Bitcoin) have been created. (Blockchain)
34. There are 36,246 crypto ATMs in the world. (Coin ATM Radar)

Now that you have a grasp on the size of the crypto market, you might be wondering how many people use cryptocurrency and how many people are invested in crypto. We cover these cryptocurrency demographics and more in the section below. 

Cryptocurrency user statistics and demographics 

Data on cryptocurrency demographics shows that crypto is largely owned by younger Americans. To that end, you might’ve heard of the “crypto bro” stereotype, and while it’s true that crypto owners tend to be younger, white, and male, crypto owners come from all walks of life. In fact, they’re a more ethnically diverse group compared to the general population. 

35. In 2022, just 28% of crypto owners in the U.S. are women, while 72% are men. (Morning Consult)
36. The average crypto owner is most likely to be wealthier and younger than the average U.S. adult. (Morning Consult)
37. In 2022, 80% of all crypto investments are owned by millennials and Gen X. (Finder)
38. 44.3% of all crypto investors are millennials. (Finder)
39. 28.6% of all crypto investors are Gen X. (Finder)
40. 17.8% of all crypto investors are Gen Z. (Finder)
41. In May 2022, 44.4% of cryptocurrency owners said they expected their personal finances to improve over the next 12 months, compared with only 27.1% of all U.S. adults and 29.5% of high-income adults. (Morning Consult)
42. American crypto owners own $1,003 in crypto on average. (Finder)
43. The average crypto owner has an annual income of $25,000. (Finder)
44. 44% of U.S. cryptocurrency owners have an annual income of $100,000 or more. (TripleA)
45. Of Americans with an annual income of less than $50,000, just 18.6% own cryptocurrency. (TripleA)
46. 82% of U.S. cryptocurrency owners are between the ages of 18 and 44. (TripleA)
47. Just 9% of Americans age 55 and older own cryptocurrency, making them the least likely age group to own crypto. (Finder)
48. 66% of U.S. cryptocurrency owners hold a bachelor’s degree or higher. (TripleA)
49. 22% of U.S. cryptocurrency owners are still in high school. (TripleA)
50. 81% of U.S. adults report they’ve heard of cryptocurrencies in 2022, a significant increase from 69% who said the same in 2020. (TripleA)
51. In the United States, men are 2.8 times more likely to own crypto than women. (Finder)
52. 58% of crypto owners are white. (Morning Consult) 
53. 23% of crypto owners are Hispanic. (Morning Consult) 
54. 41% of crypto owners identify as nonwhite. (Morning Consult)

Now that we’ve covered who invests in cryptocurrency, let’s take a look at cryptocurrency volume by country. 

Cryptocurrency statistics by country

While the United States sees significantly more crypto activity than nearly every other country, more countries across the globe are diving into cryptocurrency or seeing existing adoption increase. For many developing countries, cryptocurrency is a chance to increase financial inclusion and accessibility among unbanked populations. 

For citizens in countries with limited access to financial services, cryptocurrency can be an important investing and payment tool in lieu of any other good options. Crypto is increasingly pushed as a way to give more people access to the financial system because participants don’t need bank accounts, just a digital wallet, to engage in transactions. 

While the widespread adoption of crypto in such countries is still in its infancy, as is the establishment of regulations required to make it possible, it represents a monumental opportunity. Along with fighting corrupt financial systems and strengthening social trust through a more transparent system, crypto offers the chance for unbanked populations to save money and conduct daily transactions—a basic right in the way of financial security and inclusion.

55. An estimated 46 million people currently own cryptocurrency in the U.S.—13.7% of America’s population. (TripleA)
56. El Salvador became the first country to make Bitcoin legal tender in September 2021. (NBER)
57. In April 2022, the Central African Republic became the second nation in the world to make Bitcoin legal tender. (CoinDesk) 
58. Roughly 27 million people in India currently own cryptocurrency. (TripleA)
59. Roughly 26 million people in Pakistan currently own cryptocurrency. (TripleA)
60. Roughly 22 million people in Nigeria currently own cryptocurrency. (TripleA)
61. Roughly 20 million people in Vietnam currently own cryptocurrency. (TripleA)
62. 60% of cryptocurrency owners in Australia own Bitcoin in 2022. (Finder)
63. Cryptocurrency owners in Australia are the most likely to own Ethereum in 2022. (Finder)
64. Bitcoin made up 27% of crypto transaction values in the United Kingdom in June 2021, while Ethereum and Wrapped Ether (WETH) made up 40%. (Chainalysis)
65. Bitcoin made up 28% of crypto transaction values in Germany in June 2021, while Ethereum and WETH made up 36%. (Chainalysis)
66. Bitcoin made up 20% of crypto transaction values in France in June 2021, while Ethereum and WETH made up 45%. (Chainalysis)

Cryptocurrency tax statistics 

A major characteristic of the cryptocurrency market is the widespread shift away from traditional financial institutions. This has given way to global tax transparency concerns that tax administrations must navigate as the crypto market continues to grow. With cryptocurrency tax regulations taking shape, it’s more important than ever that crypto investors understand just how their holdings are taxed.  

While understanding the tax implications of cryptocurrencies is still in its early stages, the IRS has made clear the need for a sound crypto tax policy. Much of this is seen in the new Infrastructure Investment and Jobs Act (IIJA) passed in the U.S. in November 2021, giving the IRS and U.S. Treasury power to establish tax reporting rules for cryptocurrency transactions starting in 2023. 

In 2014, the IRS declared that cryptocurrency is considered “property” for federal income tax purposes. That means crypto is taxed the same as other capital assets such as stocks, bonds, or property on their capital gains (for a deeper dive into cryptocurrency vs. stocks, read our guide here). Here’s an overview of what counts as a taxable event for cryptocurrencies: 

One consideration for crypto investors is the length of time you hold your assets. Your capital gains and losses will either be considered short term (the sale of assets held for less than a year) or long-term (the sale of assets held for over a year). Generally, tax rates for long-term capital gains are less than those of short-term gains. Because of this, investors can minimize crypto taxes by holding crypto for longer periods of time. 

That’s just one example of understanding how cryptocurrencies are taxed, but there are more considerations to be aware of. Review information and FAQs on the IRS website for a more thorough breakdown of what you need to know.

67. The IIJA passed in November 2021 defines “digital assets” for the first time in the Internal Revenue Code. (PwC)
68. The IIJA legislation related to digital asset gross proceeds reporting is effective for all crypto transactions occurring in 2023. (PwC)
69. The IIJA legislation amended the definition of digital assets to now include “cash,” requiring businesses to report any digital asset receipt that exceeds $10,000 in digital asset value. (Deloitte)
70. Closing the crypto tax reporting gap could result in an estimated $28 billion in tax revenues over the next decade. (The Joint Committee on Taxation x Deloitte)
71. Had they applied national tax rules to just one of the main cryptocurrencies, Bitcoin, the European Union (EU) could have captured tax revenues equivalent to $986 million in 2020. (European Commission, Joint Research Center)
72. Roughly 40 million Americans say the main reason they own crypto is to use it as a form of investment. (Finder)
73. Roughly 15.5 million Americans say using crypto as a form of payment is the main reason they own crypto, making it the second most common reason after investing. (Finder)
74. About 10.1 million Americans say the main reason they own crypto is to hedge against price volatility in traditional assets. (Finder)
75. In 2014, just seven countries had official cryptocurrency tax guidance in place, compared to 29 in 2022. (PwC)
76. 86% of countries included in a PwC analysis have tax guidance on the calculation of gains and losses on the buying and selling of crypto assets for individuals. (PwC)
77. As of 2021, no territories have issued formal guidance on the taxation of borrowing and lending in DeFi protocols. (PwC)
78.  While cryptocurrency was first launched in 2009, it wasn’t until 2014 that the Australian Taxation Office (ATO) published income tax guidance for investing and trading cryptocurrency. (PwC)

The deployment of crypto tax regulations might be in its early stages, but developments are expected to continue as the market continues to evolve. 

Cryptocurrency environmental impact statistics 

The technology that makes cryptocurrency possible requires a considerable amount of electricity—thus, the explosive growth of cryptocurrency has also led to an increasingly large environmental footprint. 

Nearly all cryptocurrency electricity usage is driven by crypto mining. This is foundational to how digital currencies are created—the blockchain relies on users to validate transactions and update the blockchain with new blocks of information. 

The more blocks of verified transactions that are processed or “hashed,” the more Bitcoin is mined. “Hash” or hashrate is the total computational power used each second to mine and process blockchains. To protect against bad actors from manipulating this information, these blockchains are purposely difficult and costly to verify.

While less energy-intensive blockchain validation methods are being explored, widespread solutions to the environmental impact of cryptocurrency are still largely absent. 

79. On March 9, 2022, President Biden signed Executive Order 14067 “Ensuring Responsible Development of Digital Assets,” in line with U.S. climate change objectives. (The White House)
80. In the United States, crypto-related activity produces an estimated 25 to 50 Mt C02 per year—comparable to emissions from diesel fuel used in U.S. railroads. (The White House)
81. The United States’ share of global Bitcoin mining rose from 3.5% in 2020 to 38% in 2022. (The White House)
82. The U.S. is home to the world’s largest Bitcoin mining industry, accounting for close to 38% of the global Bitcoin network hashrate in 2022. (Cambridge Bitcoin Electricity Consumption Index)
83. Annual crypto-related electricity usage across the globe grew by over 67% between July 2021 and July 2022. (The White House)
84. Bitcoin accounts for an estimated 60–77% of total global crypto-related electricity consumption as of August 2022. (The White House)
85. Ethereum accounts for an estimated 20–39% of total global crypto-related electricity consumption as of August 2022. (The White House)
86. In September 2022, the total Bitcoin hashrate (that is, the number of terahashes per second performed on the Bitcoin network) was 232 million TH/s. (Blockchain)
87. The top Bitcoin mining pools globally all come from China, five of which make up over half of cryptocurrency’s total hash. (Statista) 
88. As of September 2022, Bitcoin’s annual energy consumption stands at an estimated 129.08 TWh per year. (Bitcoin Energy Consumption x Digiconomist)
89. Bitcoin has an annual carbon footprint of 72.00 Mt C02—comparable to the carbon footprint of Greece. (Bitcoin Energy Consumption x Digiconomist)
90. Bitcoin has an annual electrical energy footprint of 129.08 TWh—comparable to the power consumption of Norway. (Bitcoin Energy Consumption x Digiconomist)
91. Bitcoin has an annual electronic waste footprint of 38.06 kt—comparable to the small IT equipment waste of the Netherlands. (Bitcoin Energy Consumption x Digiconomist)
92. As of September 2022, Ethereum’s annual energy consumption stands at an estimated 80.06 TWh per year. (Bitcoin Energy Consumption x Digiconomist)
93.  Ethereum has an annual carbon footprint of 44.65 Mt C02—comparable to the carbon footprint of Hong Kong. (Bitcoin Energy Consumption x Digiconomist)
94. Ethereum has an annual electrical energy footprint of 80.06 TWh—comparable to the power consumption of Chile. (Bitcoin Energy Consumption x Digiconomist)

Cryptocurrency price statistics 

Bitcoin began 2022 nearly twice as valuable as it was in 2021, following a year when cryptocurrency saw an explosion of mainstream interest. Those gains were short-lived, however—by July 2022, Bitcoin’s price plummeted from $47,780 to the $20,000 range. 

Even as Bitcoin’s price has struggled to say above $20,000 since late June, people’s interest in the crypto market remains high—51% of Americans who own cryptocurrency bought it in the last 12 months. As mainstream adoption of crypto continues to emerge, more everyday investors are wondering how cryptocurrency could fit into their portfolio. 

If you’re on the fence due to the price swings seen over the last year, keep in mind that price volatility is a trademark characteristic of crypto. It’s not uncommon for prices to drop by 15% or more in a single day—in fact, they often do. That’s why some advisors recommend allocating 5% or less of your portfolio to cryptocurrencies. 

If you’re considering investing in crypto, be sure to do so in a way that aligns with your long-term investments. That means ensuring you have a balanced portfolio that includes traditional assets like index funds or ETFs, and never investing more into crypto than you’re willing to lose. Overall, avoid fretting over short-term swings and instead employ a “set it and forget it” strategy—the best approach to any long-term investment goal. 

95. As of June 2022, Bitcoin had fallen to $22,123—67% below its all-time high of $67,510 reached in November 2021. (Morning Consult)
96. The average market price (that is, how much you can sell one Bitcoin for) across all major Bitcoin exchanges was $22,000 in September 2022.  (Blockchain)
97. As of July 2023, Bitcoin ranked as one of the most expensive cryptocurrencies across all types. (CoinGecko)
98. The average market price for Ethereum was $1,614.32 in September 2022. (CoinGecko)
99. The value of Ethereum has grown significantly over the years, from $0.03 when it launched in 2015 to its peak price of $4,800 in late 2021. (NextAdvisor x Time)
100. The average market price for Tether was $1,614.32 in September 2022. (CoinGecko)
101. The daily price of Bitcoin surpassed $65,000 in November 2021, reaching an all-time high. (CoinGecko)
102. As of September 2022, the daily price of Bitcoin sits at close to $20,700, a significant decline compared to November 2021. (CoinGecko)
103. The average Bitcoin transaction cost $79.78 in September 2022. (YCharts)

The explosion of popularity in cryptocurrency is impossible to ignore in 2023. Despite market volatility, environmental impact issues, and increasing regulatory oversight, consumers around the world are undoubtedly committed to crypto, and any doubts about the relevance and maturity of the industry no longer stand. That said, the industry is still in its early stages, and you’re not alone if you’re still on the fence about investing in it. 

Cryptocurrency is notoriously volatile, but it can be a worthwhile investment if approached with a long-term strategy. While there are no guarantees on returns, holding your investments for the long term is one of the best ways to safeguard them. If you want exposure to the crypto market, double-check your current financial standing and ensure your portfolio is properly diversified. 

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FAQs about cryptocurrency statistics 

Still have questions about cryptocurrency statistics? We have answers. 

How many people own cryptocurrency in 2023? 

There are over 420 million crypto users worldwide in 2023. 

What crypto has the most users?

Bitcoin is the cryptocurrency with the most users. At a market capitalization of $520 billion, Bitcoin dominates 40% of the crypto market share. 

Which country owns the most crypto? 

While the United States dominates the global crypto market in terms of market capitalization, United Arab Emirates is the country with the highest ownership—27% of the population owns cryptocurrency. 

The post 100+ Cryptocurrency Statistics Investors Should Know in 2023 appeared first on Stash Learn.

That computer in your pocket can come in handy when it’s time to make investment decisions, too. Investing isn’t just for high-net-worth individuals who meet face-to-face with financial advisors to put a lot of money in the market. Discount and online brokerages have opened the door to new investors looking to get their feet wet.

The smartphone offers the next chapter in this story: micro-investing apps are designed for investors who don’t have a ton of money to invest right away but want to add incrementally to their savings over time.

Before you take the plunge, it’s important to think clearly about why you’re investing and what you hope to get out of an investing app. Instead of diving into the detailed specifics of a specific app, start by thinking about the features and services that make the most sense for you. Then you’ll be able to narrow the field of apps.

Stay with us as we break down the 17 best investing apps for beginners, why we like them so much, and how they can benefit your financial future.

1. Stash
2. Fidelity Investments
3. Acorns
4. Robinhood
5. Betterment
6. Wealthfront
7. Charles Schwab
8. Ellevest
9. SoFi Invest
10. Public
11. TD Ameritrade
12. Ally Invest
13. Webull
14. Round
15. Greenlight Max
16. UNest
17. Invstr

1. Stash

Best for: beginner investors who want personalized investing advice and control of their investments

Stash is a comprehensive investing and personal finance app for new investors wanting to build wealth. We educate our users so they can make smart investment decisions, like investing regularly, diversifying their portfolio, and thinking long-term. Investors get out of Stash what they want, whether that’s making DIY or automated investments.

Our basic subscription—Stash Growth—offers personal, smart, and retirement portfolios, banking access, and $1,000 in life insurance through Avibra.¹ This plan is best for growing personal finances. The next plan—Stash+—offers everything within the basic plan, plus investing portfolios for kids (custodial accounts) and $10,000 in life insurance.

Cost: $3-$9/month

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2. Fidelity Investments

Best for: beginner and experienced traders wanting all their finances in one place

Fidelity offers a well-rounded brokerage app that features checking and savings accounts, credit card accounts, investment accounts, IRAs, bill paying, and more. Under one roof, you can essentially handle all of your finances if that’s what you’d like.

Cost: $0 per trades of mutual funds, ETFs, stock, or options plus $0.65 per contract with options trading

3. Acorns

Best for: people who know they should be investing but need someone to do it for them

Acorns is another easy-to-use investing and personal finance app great for beginners looking for an app to take care of all the work of investing. Their well-known “Invest spare change” function rounds up debit or credit card purchases to the nearest dollar and invests the difference into ETFs within a user’s portfolio. This system helps users build better saving habits.

If you’re looking for an app to set up once and let it run your investment portfolio, Acorns might be for you.

Cost: $3–$5/month

4. Robinhood

Best for: active, short-term investors who don’t need much support

The Robinhood trading app allows trades of stocks, ETFs, cryptocurrency, and other securities at an affordable price. This app works best for active investors and traders.

Robinhood appeals to beginner investors with its intuitive platform, low cost, and basic features. However, users have total control of their investments but have little access to education and customer service within the app. With limited support, it’s easy for novice investors to enter trades they don’t understand.

Cost: $0 to $5/month

5. Betterment

Best for: new investors with lower balances looking for an app to do the heavy lifting

Betterment is a popular robo-advisor app that lets users select their risk tolerance and return goals. It makes investments so the users don’t have to think about it—which can be enticing for those who’ve never invested.

Cost: $4/month or 0.25% annual fee for investing, 1% plus trading expenses for crypto trading

6. Wealthfront

Best for: novice investors looking for advice and planning in regards to saving money

Another robo-advisor, Wealthfront is well known for its goal planning tool. For beginner investors, Wealthfront has fallen behind its competitor Betterment since it’s a digital-only service with no human advisors and requires a high minimum balance.

But Wealthfront is picking up the pace in other areas—users can now invest in stocks and crypto (through Grayscale Bitcoin Trust and the Grayscale Ethereum Trust) easily on the app.

Wealthfront’s crypto trading opportunities come with limits, though. Users only have access to crypto indirectly, and crypto trades are not available in Wealthfront’s daily tax-loss harvesting—a strategy investors use to cut capital gains taxes by selling other investments.

Cost: 0.25% advisory fee

7. Charles Schwab

Best for: all investors—from beginner investors to stock trading experts

As a full-service broker, Charles Schwab attracts all levels of investors with its established reputation, three different platforms, and a wide array of tools and research. Investors can access stocks, ETFs, indirect crypto trading, and more.

Cost: $0 per trade of mutual funds, ETFs, stock, or options plus $0.65 per contract

8. Ellevest

Best for: women looking for socially responsible investing options

Ellevest is a women-founded financial organization made for other women, though anyone can invest on the app. The goal is to help women feel confident in investing by providing education and support. Ellevest also offers socially responsible investing (SRI), an investment strategy that results in financial returns and positive social change.

Beyond investing, users can also access financial planning, wealth management, and 401(k) rollover services.

Cost: $5–$9/month

9. SoFi Invest

Best for: beginners looking for an affordable, easy-to-use platform

It costs just $1 to get started with SoFi Invest, regardless of whether you’re investing that dollar yourself or utilizing SoFi’s automated investing service. The personal finance app is organized and straightforward, landing it on our list of best investing apps for beginners. Users have access to stocks, ETFs, crypto, and more.

Cost: $0 except 1.25% for crypto trading

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10. Public

Best for: new investors looking to chat with other traders in the same boat

Public makes investing social—it’s a social network meets brokerage. While users trade stocks and ETFs, they can also engage with one another on the Public feed to learn more about investing. One of the biggest downsides of Public’s app is the markup on crypto trades.

Cost: $0-$10 (depending on the plan)

11. TD Ameritrade

Best for: beginner and experienced investors

Charles Schwab acquired TD Ameritrade in 2020. The two brokerages have very similar features and platforms, but the biggest differences are TD Ameritrade is available only in the U.S. and Canada and doesn’t offer fractional shares.

Cost: $0 per trade of mutual funds, ETFs, stock, or options plus $0.65 per contract with options trading

12. Ally Invest

Best for: novice investors wanting a fresh, all-encompassing experience

Ally Invest offers both self-directed and automated investing. In addition to investing, Ally also offers checking and savings accounts, credit cards, retirement accounts, loans for homes, auto, and personal. The all-in-one financial management makes Ally a good investing app for beginners.

In February 2023, Ally cut their $9.95 mutual funds trading fee, but their features favor those with deeper pockets. Ally’s robo portfolios have a $100 investment minimum, and they offer wealth management for high-value accounts of $100,000 or more.

Cost: $0 per trade of mutual funds, ETFs, stocks, or options plus $0.50 per options trade contract

13. Webull

Best for: a younger generation of investors with some knowledge

Webull is a high-quality trading platform built with a mobile-first generation in mind. It offers extensive data visualization tools like charts and a stock screener to aid investment decisions. However, the educational content is sparse and secondhand, so beginners who do best with Webull come to the table with some prior knowledge on investing terms.

Unlike some apps, Webull offers zero commission fees on all trade types and amounts.

Cost: $0, with $0.55 per contract for some index option trades

14. Round

Best for: new investors needing guidance or investors with large investment capital

Round is another investing app that provides the advice of human, financial advisors instead of relying on an algorithm. Having human help appeals to investors who can’t manage their investments for themselves, whether that’s because of time constraints or inexperience. Round offers a private manager on accounts with large balances of over $100,000.

Cost: 0.5% annual fee

15. Greenlight Max

Best for: children interested in investing and parents who want to teach their children about money

This one is for the parents in the crowd—Greenlight. At its core, Greenlight is a debit card for kids. The aim is to build good financial habits and set savings goals. Parents can direct deposit allowance money into their child’s account and set up investments to build long-term wealth for their child’s future. The app offers parental controls where parents approve of trades of stocks and ETFs. Investing is not available on Greenlight’s lower tiers.

Cost: $7.98/month

16. UNest

Best for: parents who want to invest in their children’s future but don’t have the time or knowledge to manage portfolios themselves

The UNest app allows parents and guardians to open custodial investment accounts for their children. UNest offers the two most common types of custodial accounts: Uniform Transfers to Minors Act (UTMA) accounts and Uniform Gift to Minors Act (UGMA) accounts. Unlike Greenlight, UNest doesn’t offer cash management accounts.

As a robo-advisor, UNest offers pre-built portfolios for parents based on risk tolerance and financial goals. It’s a good option for parents looking for an easy way to invest for their children without usage restrictions. When the child reaches adulthood, they can use the funds for education, reinvest it, or just as a nest egg to start their adult life with (unlike 529 Plans which are strictly for education).

Cost: $4.99/month for UNest Core and $5.98/month for UNest Plus, plus $25 monthly minimum contributions

17. Invstr

Best for: beginners who want to practice before spending money on investing

Invstr is a unique app with several appealing features, but they come at a cost. The free Invstr+ version offers basic investing and personal banking capabilities. The paid Invstr Pro version opens up access to the Portfolio Builder tool, which provides personalized investment recommendations, and Fantasy Finance, Invstr’s gaming product.

Invstr is one of the only well-known investing apps with real-life and investing games. In Fantasy Finance, each player receives $1,000,000 in virtual funds to play against friends, pick stocks, and trade crypto in simulation.

Winners still receive prizes, but prizes are typically Amazon gift cards. Users can play for fun or play for practice and education.

Invstr also has an app for kids and teens called Invstr JR. It’s most similar to Greenlight.

Cost: $0 for Invstr+, $3.99/month for Invstr Pro, plus 1.5% for crypto trading. $5 minimum investment.

What to look for in an investing app

Beginner-friendly micro-investing apps tend to focus on two areas: education and access to the markets. Education guides investors through the process of building and managing their portfolios. For most apps, the education component provides information and background on how the markets work.

Many apps offer lower fees or investment minimums to start an account. This allows beginners to invest on a scale that works for limited budgets.

These apps aim to provide a mix of comfort and convenience. If you wind up tossing and turning all night, worrying about how your money is doing, the app is not doing its job. Here are some features that could help you sleep better at night.

Low minimum investment

These days, you should have no problem finding a reliable app with a required minimum investment in the single digits. Every great investor has to start somewhere, and you should be able to find a way to begin investing with as little as $1.

Fees and commissions

Historically, Wall Street has charged clients fees each time they buy or sell stock. Some of today’s micro-investing apps do the opposite, typically offering trades without any fee at all.

While free trades may look attractive, you often get what you pay for. So read the fine print: low fees often involve a tradeoff in the level of service an investor receives. For example, a small monthly fee could pay off in the form of useful guidance and flexibility.

In many cases, your fees will decrease as your account balance grows. One note of caution: for investors starting small, flat fees can outweigh percentage-based fees that mutual funds typically charge, so it pays to calculate the fees you’ll actually pay.

Fractional shares and dividend reinvestment

Maybe you want to make a play on Amazon stock but don’t want to fork over more than $2,000 for a single share. Many apps will allow you to purchase a fraction of a share. This is a great way to dip your toes in the market before you jump into it.

Some companies pay out dividends—a distribution of the company’s earnings.

If you buy a stock that pays periodic dividends on your shares, you can use those dividends to automatically purchase more shares of the stock. This feature is known as a dividend reinvestment plan, or DRIP, and was once traditionally available only through the company offering the stock. Many apps allow you to reinvest dividends automatically.

Links to banking services

New apps may offer a wide range of financial services associated with investing in the stock or bond market. Some will allow you to directly link your external bank or credit card accounts with your trading account, while other services allow you to do your banking through the app.

The app might include attractive options such as branded debit cards, individual retirement accounts (IRAs), or custodial accounts that adults can open on behalf of a minor. When considering these perks, think about how attached you are to your current bank and whether moving to app-based banking fits your day-to-day, real-world life.

If you like looking a teller in the eye, or if using an ATM will require an additional fee, you may be better off sticking with your existing bank accounts.

Periodic savings

Many apps offer ways to set up regular transfers from users’ bank accounts to their savings or investment accounts held through the app. These incoming transfers can be automatically applied to a specific investment or set aside to earn interest until the user decides on an investment.

Education and advice

This is a huge part of the value of many apps. Beginning investors can benefit greatly from educational resources ranging from a glossary that explains basic stock market terms, to daily market commentary, to more sophisticated research on specific companies and industries.

Some allow users to read up on the importance of U.S. Treasury bonds’ yield curve or to listen to a podcast on emerging markets. Some apps have developed their own versions of investing games to acquaint novice investors with the ups and downs of the markets. These tools allow users to compete in investing competitions with friends, using virtual money, before getting into the real thing.

Robo-advising

Robo-advising provides the sort of financial guidance that a broker would give. Robo-advisors use an algorithm to offer investing advice based on certain parameters. Since there’s no human interaction involved, they tend to provide that advice for a lower fee than a financial advisor would charge.

Micro-investing apps tend to use the term “robo-advising” to refer to the bundling of stocks or investments to fit a specific theme. The possibilities are endless and often structure around your own personal interests. For example, themes can include food, travel, or socially responsible investing.

Investing made easy.

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Best investing apps for beginners FAQ

Have more questions about finding the best investing apps for beginners? Let us help.

What are good investments for beginners to invest $1,000?

Exchange-traded funds (ETFs) make good first investments for beginners with smaller sums of money, like $1,000. ETFs carry built-in diversification, making them an affordable investment. IRAs also make good investments for beginners since they build wealth for retirement.

What investments can you trade through an app?

Online broker apps allow trading of the standard investment types—ETFs, stocks, bonds, cryptocurrency, and mutual funds.

How much money do you need to start investing?

It’s possible to start investing on an app for as little as $1. Many investing apps have no balance requirements after the first investment.

What is the easiest trading app for beginners?

When looking for an easy investing app for beginners, you want an intuitive interface, educational resources, and customer support. Stash, Acorns, and SoFi are three of the best trading apps for beginners, as they tick each of those requirements.

What is the best investing app for beginners?

However you take that first step into the world of investing, you’ll probably get better results if your investment is part of a broader, integrated approach to your financial well-being. Your smartphone can be the central place for that approach, with the right apps for each component of your plan, including your micro-investing platform.

A budgeting app can get your spending under control, while a debt management app can help you formulate a reliable and feasible plan for eliminating personal debt. Credit apps can track your credit rating and alert you of any red flags that you might otherwise miss.

Countless apps fit those descriptions, so it could take some looking to find the right one for you. Keep in mind that everybody’s circumstances are different, so there may not be one app that perfectly fits your needs.

With a bit of research, discipline, and self-awareness, you can find the mix that works best for you. Stick with it, find out what works, and you’ll be on your way before you know it.

As you do your research, consider Stash, which includes education to help you start investing, fractional shares to help you start small, Portfolio Builder to help you create a customized portfolio, and many of the other features mentioned above.

With Stash, you can start investing with any dollar amount today.

To compile this list of investing apps for you, Stash evaluated brokers and robo-advisors based on features that matter most to beginner investors, such as:

• Low fees and balance requirements,
• Available education,
• Ease of use,
• Variety of trading options, and
• Customer support.

Get Started

The post 17 Best Investing Apps for Beginners in 2023 appeared first on Stash Learn.

If you’re ready to start investing but unsure where to begin, Stash and Acorns are two popular platforms in the world of investing apps. Both are suitable choices if you’re dipping your toes into investing for the first time, but how do they compare? 

Both Stash and Acorns let you invest in stocks, exchange-traded funds (ETFs), and fractional shares, and you can start investing on either platform with just $5. They have a similar monthly fee structure, and each basic plan starts at $3 per month. 

One of the biggest differences between Stash and Acorns may be the level of flexibility you have over your portfolio investments. Given that investing with Acorns is completely automated—their portfolios are preset and tailored to your age and risk tolerance—Acorns tends to appeal to those who want a more hands-off investing experience. If you want both personalized support in building your portfolio and the freedom to choose your own investments, Stash may be the best fit for you. 

So, is Stash better than Acorns, or is Acorns better than Stash? The answer depends on what you’re looking for. Here’s what to know about Acorns vs. Stash. 

How Stash works 

Best for: 

• New investors who want to learn about, manage and grow wealth over time 
• Investors who want personalized portfolio recommendations 
• Investors who want more control over their investments

Stash is a holistic investing and personal finance app that aims to help beginner investors build wealth. Our focus is taking the guesswork out of choosing investments by providing education on investing regularly, thinking long-term, and diversification.

We offer a variety of tools for investing, banking¹, and saving for retirement and cater to new investors seeking support with long-term financial goals. 

As a subscription-based platform, we offer two monthly plans costing between $3 and $9. Every Stash plan comes with personalized advice and ongoing financial education, along with the option for an automated, managed portfolio based on your unique goals and risk tolerance. 

Even if you don’t use the managed portfolio, Stash offers an array of investments to choose from yourself. This includes thousands of ETFs and stocks, cryptocurrency investing with eight coins available, and fractional shares, which is a helpful option if you want to start investing but don’t have a ton of funds to invest upfront. 

While Stash is primarily an investment app, we go beyond investing with services like mobile banking that features debit card reward options and early direct deposit², as well as custodial and retirement accounts.

Top features: 

• Recurring Transactions for regular, automated investing 
• Portfolio diversification analysis tool helps keep your portfolio balanced and aligned with your goals 
• Stock-Back debit card lets you earn up to 3% back in stock rewards on all purchases³  

How Acorns works 

Best for: 

• New investors looking for a simple, hands-off way to start investing
• Building better saving habits 
• Earning cash-back rewards

Acorns offers the following two service tiers: 

• Personal ($3/month): Includes an individual brokerage account, IRA (Roth, Traditional, or SEP), and checking account
• Family ($5/month): Includes all of the above, as well as an unlimited number of custodial accounts for kids

The only difference between the Personal plan and Family plan is the Family plan includes Acorns Early, which gives access to custodial accounts for kids. If you don’t yet have children and just want a personal investment account, retirement account, and banking perks, Acorns Personal is likely the best fit for you. 

If you open an investing brokerage account with Acorns, you’ll be able to invest with one of five pre-set portfolios containing low-cost ETFs. Each portfolio is adjusted based on different risk tolerances based on information about your age, time horizon, and goals, which you specify in a questionnaire upon opening your account. 

Investing with Acorns also allows you to allot up to 5% of your portfolio to a Bitcoin-linked ETF, which may appeal to investors interested in cryptocurrency exposure (although the expense ratio is rather high at 0.95%). 

Acorns also offers sustainable portfolios made up of Environmental, Social, and Governance (ESG) funds, giving users access to investments that meet these three categories of ESG criteria. That said, there is no conservative portfolio option available if you opt for an ESG portfolio.  

The Acorns Personal checking account also offers a slew of banking and savings perks, such as their Round-Ups feature that rounds up purchases to the nearest dollar and invests it automatically in your investment account. Checking account access comes with both Acorns Personal and Acorns Family and includes a debit card, mobile check deposits, direct deposit. 

Top features: 

• Round-Ups to round up purchases made with a linked bank account to the nearest dollar and deposit it into your investment account 
• Acorns Earn earns you bonus investments when you shop with associated brands
• Acorns Later offers automated retirement account investing 

Stash vs. Acorns: 5 factors to consider

Choosing between Stash vs. Acorns boils down to what features matter most to you in an investing app. For a thorough comparison, we weighed both across five important factors to consider when deciding between Stash or Acorns. 

Stash vs. Acorns: Accounts supported

Stash and Acorns both offer individual brokerage accounts, retirement accounts, custodial accounts, and a personal banking account that comes with a debit card. However, the biggest difference between the two lies in the structure of their investment portfolios. 

For investors seeking support building their portfolio from scratch, Stash offers Smart Portfolio, a robo-advisor built by Stash and Stash’s Smart Investment Team who have experience executing successful trade strategies for users. If you prefer a more DIY approach to building your portfolio, you can select your own individual stocks and ETFs. 

On the other hand, Acorns takes a more hands-off approach to investment portfolios. Contrary to Stash, you won’t be able to choose the specific investments in your portfolio. Instead, Acorns assigns you one of five preset portfolios based on data like age, income, time horizon, and goals. The portfolios are adjusted to different risk tolerances ranging from conservative to aggressive. 

While you can accept or reject your portfolio assignment in favor of one with more or less risk, you can’t change or select the specific funds in your portfolio. This could be an advantage or a disadvantage depending on how experienced you are with investing. 

For brand-new investors who aren’t comfortable making investment selections, a preset portfolio might be more appealing.  On the other hand, worth considering is that as you grow and gain confidence as an investor, Acorns’ pre-set portfolios leave little room to grow if you eventually want to try your hand at choosing your own investments. 

Stash vs. Acorns: Fees

Both Stash and Acorns use a subscription-based fee structure with two tiers of plans to choose from.  Acorns’ plans go for $3 per month and $5 per month, while Stash’s plans go for $3 and $9 per month. 

Stash’s $3/month plan, Stash Growth, includes financial advice, a taxable investing account and automated taxable investing account through Smart Portfolio, a retirement portfolio (Roth or traditional IRA), an online banking account and Stock-Back debit card,¹ and $1,000 in life insurance.⁴ 

For $9 per month, Stash+ includes everything Stash Growth offers, as well as family financial planning advice, market insights, two custodial accounts, a Stock-Back debit card that earns more in rewards (up to 3% back),³ and $10,000 in life insurance.⁴

As for Acorns’ $3/month plan, Acorns Personal, users get access to a taxable automated investing account, a checking account, and a retirement account (Roth or traditional IRA, or SEP for small businesses). Their second-tier Acorns Family plan for $5 per month, includes the option of custodial accounts for children in addition to everything Acorns Personal includes. 

While Stash and Acorns have similar account management fees, the same isn’t true about their transfer fees—that is, the cost to transfer your investments to another brokerage if you ever decide to do so. Stash has a one-time full transfer fee of $75 if you want to move your investments elsewhere, similar to what most companies charge. By contrast, Acorns charges $50 per ETF, which could add up fast. 

Stash vs. Acorns: Services and features

Investment Types	Stash	Acorns
Stocks		(not individual)
Fractional shares
ETFs
Cryptocurrencies		(Bitcoin-linked ETF only, capped at 5% of your investments)
Bonds
REITs
IRAs	(Roth and traditional)	(Roth, traditional or SEP)
Custodial accounts
Options	✘	✘
Socially responsible investing

Both Stash and Acorns offer taxable brokerage accounts for investing. With Stash, you can pick individual stocks and ETFs, but only those listed on the Stash platform. You’ll find many big company names to choose from if you’re after specific individual stocks. 

If you just want to put some money into a basic, low-cost index fund ETF like Vanguard Total VTI, you can do that as well. It’s easy to browse investment options on Stash, where you can filter stocks by sector and ETFs by category. 

Acorns portfolios consist of ETFs that cover four to six asset classes, including small to large company stocks, international company stocks, bonds, and real estate assets in the form of REITs. Unlike Stash, you can’t choose individual stocks or other investments. Acorns also has a sustainable portfolio containing ESG-approved ETFs, as well as the option to invest in a Bitcoin-linked ETF (up to 5% of investments). 

If you want preselected investments, you may favor the preset ETF portfolios offered by Acorns. If you’d rather have the option of control and flexibility in specific investments, Stash could be the better option. 

Beyond these broad portfolio differences, many of the differences between Stash vs. Acorns come down to the features they offer. Here’s an overview of Stash’s features: 

• Smart Portfolios for a managed, automated portfolio with automatic rebalancing 
• Automatic portfolio rebalancing: Automatic rebalancing once a year; Stash also reviews your portfolio quarterly to see if it needs to be rebalanced
• Socially responsible investing (SRI) options that let you invest in companies that align with your values
• Stock Round-Ups ⁵ automatically rounds up debit card purchases to the nearest dollar and invests the spare change in your Stash account
• Fractional shares at any amount (as little as $0.01)
• StockParties where users can claim bonus stock at party.stash.com weekly 
• Stock-Back rewards debit card rewards you with fractional shares of stock every time you spend with your debit card¹
• Recurring Transactions automatically transfers money to your investment accounts 
• Banking perks like instant transfers, early direct deposit (up to two days),² mobile check deposits, and no overdraft fees⁶

In comparison, here’s an overview of Acorns’ features:

• Automated investing tool allows you to automate recurring investments 
• Automatic portfolio rebalancing is free on all accounts 
• Automatic dividend reinvesting automatically reinvests any dividends
• Sustainable ESG portfolios let you invest in companies rated for their impact on environment, social, and governance issues
• Round-Ups round up your spare change from purchases and deposits it into your investment account 
• Acorns Earn earns you bonus investments when you shop with 350 retailer partners  
• Acorns Later offers automated retirement account investing 
• Banking perks like mobile check deposits, no minimum balance or overdraft fees, access to 55,000 fee-free ATMs, and early direct deposit (up to two days)

Both Stash and Acorns offer an array of automation tools to help users consistently save and invest. They share many mobile banking perks like roundups, cash- or stock-back rewards, and automatic savings tools, and both Stash and Acorns banking accounts are FDIC insured. They also both offer socially responsible investing options. Only Stash offers fractional shares, which you can purchase at any amount (as low as $0.01).

Stash vs. Acorns: Mobile experience 

The Stash and Acorns mobile apps are available for both iOS and Android devices. While you can also access each via desktop, both platforms feature mobile-first functionality.  In comparing the Stash app vs. Acorns’ app, we found the main dashboards are fairly similar across both platforms. 

Stash’s main dashboard has two different sections—one for investing and one for banking—giving an at-a-glance view of your accounts and current balances, rewards activity, and your next milestone according to the goals you specify when creating an account. 

The invest section displays the combined value of your personal and retirement portfolios, but you’ll also find the current balances broken out for each portfolio right below. The dashboard also has a quick-navigation button for Recurring Transactions (formerly known as Auto-Stash), where you can adjust your automatic investments and view how much you’ve earned in Round-Ups. 

Similarly, Acorns’ main dashboard also has different sections—invest, later and spend—giving a quick view of your investment, retirement, and checking accounts and balances. If you have a custodial account, you’ll see a section for this on your main dashboard as well. 

One helpful feature of the Acorns app is the three quick-navigation buttons perched at the top of the main dashboard—Round-Ups, One-Time, and Withdraw. This allows you to seamlessly make a one-time investment deposit, initiate a withdrawal, or see how much you’ve saved in Round-Ups.  

Overall, both apps are similar in form and function and offer a simple and intuitive mobile experience that even the most novice investors can confidently navigate. 

Stash vs. Acorns: Customer Support 

Stash offers live human support via phone and email. You can also find answers and information on their FAQ page, or through their chatbot functionality for broader questions. Users can also submit questions on the FAQ page if it hasn’t already been covered. 

As for Acorns, customer support is available seven days a week between 5 a.m. and 7 p.m. PT via phone and email. You can also contact support via chat, which is available 24 hours a day, seven days a week. Additionally, users can visit the Acorns Help Center to find answers to common questions. 

Choosing between Stash or Acorns comes down to your preferred investing approach. Stash may be best for beginner investors who want to learn how to invest and build investing confidence through ‘learning by doing’. With both automated investment accounts as well as DIY investment accounts, the platform grows with the investor as they progress in their investing journey.

Acorns offers many of the same features as Stash, but aims to simplify the investing process for beginners with preset portfolios. If you’d rather delegate your investments to someone else, Acorns may be the best choice for you. 

Still can’t decide? Here’s a high-level look at  Stash vs. Acorns. 

The post Stash vs. Acorns: A Comparison Guide for 2023 appeared first on Stash Learn.

Many people associate blockchain with cryptocurrency, but they’re not the same thing. Blockchain technology is the foundation of digital currency, like Bitcoin, but it also has applications in many other recordkeeping systems, from health information to inventory management and beyond.

In this article, we’ll cover:

• The history of blockchain
• Features of blockchain technology
• How blockchain technology works
• Types of blockchain
• Benefits of blockchain
• Industries that use blockchain technology

The history of blockchain

The protocols underlying blockchain have been around since the 1980s, sparked by computer scientist David Chaum’s 1982 dissertation “Computer Systems Established, Maintained, and Trusted by Mutually Suspicious Groups.” Other scientists built on Chaum’s principles over the next two decades, expanding on technologies involving cryptography, unalterable document timestamps, distributed computer systems, and systems for verifying digital records. 

But blockchain technology as we know it today came about in 2008, with “Bitcoin: A Peer-to-Peer Electronic Cash System,” a paper published under the pseudonym Satoshi Nakamoto; no one knows the actual person or people who wrote the paper. This was the beginning of Bitcoin, the first modern digital currency.

Bitcoin and Blockchain

The basic idea of Bitcoin is a currency unregulated by a central authority like a bank or government. Instead, it relies on blockchain technology to create a secure, distributed ledger of transactions, validated using a blockchain network. One year after Nakamoto’s paper was published, the first bitcoin was minted.

Features of blockchain technology

Blockchain technology relies on a peer-to-peer network of computers, all working together to run the blockchain’s algorithm in order to record and validate transactions, create blocks of data, and add them to the chain. Three key aspects of this technology are the ledger itself, the nodes in the blockchain network, and hashes that secure blocks. And when blockchain is used in cryptocurrency, there’s another crucial feature: each user’s digital wallet.  

Ledger

A blockchain’s ledger is the entire database of information: every block of data representing each transaction. This distributed ledger is the foundation of blockchain technology; traditional databases structure data into tables, while blockchain strings together data blocks. In doing so, it creates an irreversible timeline of data that cannot be altered. 

Node

Each blockchain network operates on a decentralized peer-to-peer network of computers; every computer in that network is a node. Each node downloads and stores the entire blockchain, and can also validate new transactions as they happen. In the world of cryptocurrency, the person running a node earns coins for validating transactions; investors can support this process by cryptostaking in order to earn passive income without operating a node themselves. 

Hash

A hash is a sort of cryptographic fingerprint that’s added to each block in the blockchain. Hashing is a mathematical function in which input of any length is run through an algorithm that produces a fixed-length output. That output is the hash, and it provides security because it cannot be reverse-engineered and the same data will always produce the same hashed value.

Digital wallet

A digital wallet is an application that stores an individual’s financial transactions. In the world of cryptocurrency, you need one to store your coins and make transactions, like making purchases or transferring coins to people. When you make a transaction, it’s verified by a node and added to the ledger; your digital wallet is then updated to reflect your transaction.

How blockchain technology works step-by-step

Let’s look at how blockchain works in practice by using the example of a Bitcoin transaction:

1. First, you request a transaction. For this example, say you want to send bitcoins to another user, so you log in to your digital wallet and enter the user’s digital wallet address to send the coins 
2. The transaction request is broadcast to the nodes in the blockchain network
3. The nodes compete to be the fastest to verify the transaction using the Bitcoin Core, which is the software used by Bitcoin’s blockchain. The fastest node verifies the transaction and earns bitcoins for doing so
4. Your transaction is gathered up with several other transactions and put into a block with a hash; this is done by a node that functions as a miner in the blockchain
5. This new block containing your transaction is added to Bitcoin’s distributed ledger
6. The transaction is complete, so the coins you sent are deducted from your digital wallet and added to the other user’s wallet 

Types of blockchain

As blockchain technology has evolved, four primary types have emerged. The original blockchain that powers Bitcoin is permissionless, meaning anyone can be part of the network; permissionless public blockchains are the basis of most other forms of cryptocurrency. There are also permissioned blockchains, which only allow certain users to join the blockchain network. 

Public blockchain

Also known as permissionless blockchain, a public blockchain is open to anyone who wants to join the network. Many popular cryptocurrencies rely on this type of blockchain, including Bitcoin and Ether. Proponents of decentralized finance praise public blockchains because they’re transparent, immutable, and open to anyone with a computer and internet access. That said, there are drawbacks: the size of the network can slow processing time for validation, and their anonymous nature can make them attractive to criminals who want to perpetrate fraud or sell illegal commodities.

Private blockchain

A private blockchain is just that: private to a select group of users. These permissioned blockchains are managed by a centralized system, and users must obtain permission from a network administrator to join. Private blockchains are often used by individual organizations that want to leverage the benefits of the technology while also maintaining strict compliance protocols. Private blockchains tend to offer more speed, scalability, and stability than public ones. 

Consortium blockchain

Consortion blockchains, also called Federated blockchains, are a bit like private blockchains, but they’re managed by multiple organizations instead of just one, making them semi-decentralized. They require permission to join, are considered highly secure, and have relatively few nodes. This type of blockchain technology is commonly used by a group of companies in the same industry, such as insurance and healthcare, in order to more efficiently exchange information and process transactions. The downside is that a network structure governed by multiple entities can slow down development and create logistical obstacles if all parties can’t come to an agreement on protocols and processes.   

Hybrid blockchain

A hybrid blockchain is like a blend of public and private blockchains, attempting to leverage the best of both worlds. While they can be structured in different ways, in most cases the ledger is accessible and transparent to everyone, just like a public blockchain, while modifications made to the ledger are controlled by a central organization, as they are in a private blockchain. This approach is used in many industries; for example, the IBM food trust uses a hybrid blockchain to improve efficiency in the food supply chain. 

The benefits of blockchain

Blockchain enthusiasts cite many advantages of this technology, both for cryptocurrency and beyond. It’s intended to solve many of the issues that have long been associated with digital record-keeping, such as security, transparency, data integrity, and efficiency.  

• Security: Every transaction is recorded, verified by a node, hashed with a unique identifier, and added to the blockchain. This makes it very difficult for hackers to tamper with data; any attempt to edit information in one block would require a hacker to edit every single block in the chain, all while publicly visible to the thousands of nodes in the blockchain. And hashing ensures that if a transaction is altered later, the tampering is evident.  

• Immutability: Once a transaction is verified, it cannot be erased from the ledger. That permanence increases security and the reliability of the record-keeping.  

• Transparency: With a public blockchain, the ledger is visible to anyone who wishes to view it. Records can be reviewed for security and accuracy at any time, by any party, reducing the potential for fraud to go undetected.
  
• Privacy: While the ledger is viewable by everyone, personal information about individuals is not. Each user has a unique code called a public key; when they make a transaction, that’s the only identifiable info recorded in the ledger.
  
• Efficiency: The decentralized nature of blockchain technology enables rapid processing of transactions, with thousands of nodes operating 24/7. For example, if you were to deposit a check into your traditional bank account on Friday night, you might not see the funds in your account until the following week. If someone sent bitcoins to your digital wallet, on the other hand, they’d likely be verified and secure in a couple hours or less. 

• Reduced costs: Management by a central authority usually comes at a price, such as fees for processing credit card transactions or making purchases in foreign currency. With blockchain, there’s no third-party verification costs. When using cryptocurrency, transaction fees are often minimal. 

• Banking accessibility: A central tenant of most cryptocurrencies is making it possible for anyone with an internet connection to store and use money without a central authority gatekeeping who can access financial tools. Blockchain enables systems in which the “unbanked” can do just that, which has an especially notable impact in developing countries, where access to banking can be limited and security concerns about cash abound. There are over 18,000 types of cryptocurrency available, including stablecoins, whose value is pegged to a fiat currency like the US dollar.

Other industries that use blockchain technology

If you’re asking “What is blockchain?” you may be one of the many people who first heard of this technology in the context of Bitcoin and other cryptocurrencies. While enabling the rise of various types of digital currency, blockchain technology has an incredibly wide variety of applications. 

One reason blockchain can be useful in so many industries is that it enables smart contracts. These digital contracts are recorded securely on the blockchain and automatically executed when certain terms and conditions are met. Automation makes it possible for all parties to instantly know the outcome without the time and cost of third-party validation.  

Finance services

Blockchain has applications for traditional financial services as well as cryptocurrency, including asset management, payment processing, insurance, banking, and lending. One example is mortgage lending: blockchain can make a process that usually takes up to two months faster and less risky. Lenders can quickly and accurately verify financial documents, predict and collect credit score information, automate processes like underwriting, and manage transactions throughout the life of the loan. Liquid Mortgage, for example, is one platform using blockchain to support every part of the mortgage lifecycle.  

Healthcare 

A tremendous amount of data must be securely recorded, stored, and shared in the healthcare industry, and privacy is paramount. There’s a vast number of entities involved in the data, including healthcare providers, hospitals, insurance companies, and pharmaceutical companies. All that complexity can be streamlined with blockchain. Enterprise Ethereum is one blockchain being used in the healthcare industry to keep protected health information private when managing medical records, enable better traceability in the pharmaceutical supply chain, minimize fraud in clinical trials, and more. 

Media and Entertainment

One of the central concerns of the media industry is protecting against copyright infringement, which has grown increasingly challenging in the digital age. The music industry encountered its first major headache with the launch of the music-sharing software Napster in 1999, and the difficulties have only compounded as file sharing and streaming services have blossomed. With a centralized blockchain ledger, identifying and shutting down infringement is far more effective. There’s an upside for artists, too: blockchain can remove intermediaries that eat into their royalties and make it easier for them to get paid for their content thanks to smart contracts. 

Retail fashion industry

The complexity of the supply chain creates a tremendous amount of data management issues in the fashion industry. Blockchain can make it easier for producers and consumers to track the origin and journey of every component of their products. This allows people to understand the sustainability impact of goods and authenticate luxury items with tokens to guard against counterfeiting. Businesses can also reduce the operational costs associated with tracking production and inventory.   

The promise of blockchain technology

The answer to “What is blockchain?” is deceptively simple: a decentralized digital ledger of transactions. But what the technology enables is vast and complex. While it all started with Bitcoin, and is most often associated with digital currency, the possible applications of blockchain technology are changing the landscape of many industries. 

The post What is Blockchain? appeared first on Stash Learn.

In today’s world, it’s hard to imagine getting through the day without smartphones, computers, and even smartwatches or speakers that talk back to you. These products are all part of one of the most innovative sectors in the economy: Technology.

But the tech sector is much more than just a bunch of gadgets. It’s a vital part of the economy, employing more than 12 million people and producing almost $2 trillion worth of products, accounting for 10.5% of the U.S. GDP. Companies in this sector also produce parts such as semiconductors and microchips for new technologies, build electronic devices, develop software, and provide telecommunication and information technology (IT) services. Social media companies, which provide digital platforms for communication and commerce, are also a new and ever-evolving segment.

Many consider the tech sector to consist of two different sectors—information technology (IT) and communication services. The IT sector includes companies that provide networking infrastructure, make software, provide software services, produce hardware such as desktops and laptops, routers and other computer networking equipment. They also  manufacture semiconductors and semiconductor parts, not to mention security systems that keep networks safe. Media and entertainment businesses, as well as telecommunication operations, are part of the communication services sector. In this guide, we’ll explore IT and communication services as components of one sector: technology.

The tech sector continues to grow. In fact, as of 2020, there are 585,000 tech businesses in the U.S., up from 525,000 in 2018, according to the Computing Technology Information Association. And new and innovative products and services are expected from tech companies as consumers become increasingly dependent on technology.

About three-quarters  of Americans own either a desktop or laptop computer. Similarly, 85% of Americans own a smartphone, which was up from 35% in 2011, according to Pew Research Center. Meanwhile, 72% of Americans use some sort of social media outlet, compared to only 5% in 2005. 

Companies in the tech sector frequently respond to consumers’ expectations. Cisco makes new internet routers with faster service and better security to power home and business networks. Apple introduced an iPhone with a choice of two or three cameras. Instagram is toying with the idea of removing likes and has innovated with its new dark mode. And as semiconductors find their way into more products, processes, and services, companies like NXP and Toshiba search for faster and more resilient materials to make their products.

The tech sector also intersects with just about every other industry in the economy, including education, healthcare, utilities, manufacturing, and more.

Why invest in the tech sector?

Investors looking for innovation and growth may want to consider investing in the tech sector, which has a wide range of companies.

Companies in the tech sector vary in size and influence. You can invest in big technology companies such as Facebook (now known as Meta), Amazon, Apple, Netflix, and Google, known by the acronym FAANG. Other large companies involved more exclusively in the IT sector include Cisco, which manufactures routers, Hewlett-Packard, which makes laptops and cloud data centers , and IBM, primarily involved in the manufacture of software. Or if you’re interested in tech companies that are relatively new to the sector, you can invest in smaller start-ups that are working to disrupt their industries.

You can have your pick of companies that are building everything from computers, games, and websites, to networks, artificial intelligence, and apps that increasingly run the economy.

Volatility in the Tech Sector

The tech sector, with its constant innovation and evolution, is generally thought to be volatile, meaning there’s greater potential for risk, as stock prices can change frequently. 

One reason is that tech stocks have historically been cyclical, meaning they move up and down based on the economy and consumer demand. But that may be changing, as business models for tech companies change to include subscription models and services, according to experts. 

Companies in the tech sector may also face an overvaluation problem, or the possibility that their stocks trade far above their actual value. That can add to volatility, as the stocks may be likely to move up and down with greater speed.

U.S. tech companies are also facing more competition from countries such as China, South Korea, and Taiwan, among others. Competition can add to volatility. 

Regulations and the tech sector

FAANG stocks including Facebook, Amazon, and Google are dealing with increasing scrutiny from lawmakers in Washington over issues about consumer privacy, security, as well as fears that they may be monopolizing entire industries.

Conservative politicians have also accused tech companies such as Facebook and Google of having a liberal bias, which the companies themselves contest. Former President Trump also sued social media companies for banning him for his role in inciting the January 6, 2021 riot on the U.S. Capitol.

Technology is also becoming more politicized as concern grows over political advertising on social media. Mark Zuckerberg, Facebook’s founder and chief executive officer, has testified on more than one occasion before Congress about the information Facebook collects about its customers. For example, he testified in 2016 about Facebook allowing the data firm Cambridge Analytica to access and use information of 50 million Facebook users to advertise to them politically.  

Numerous politicians from both sides of the political spectrum as well as regulators, are grappling with the extent to which social media companies may be monopolies. Some have called for increased oversight, including breaking up some of the biggest tech companies such as Google, Amazon, and Facebook.

What companies can I invest in? 

In 2021, more than 130 technology companies had initial public offerings, or IPOs, raising approximately $60 billion by offering their stock to the public for the first time. These include food delivery app DoorDash, home-sharing  site Airbnb, intelligence software company Palantir, and more. 

Investors in the U.S. can buy shares of these companies and any other public company in the tech sector individually, or through funds—such as exchange-traded funds, or ETFs—that invest in baskets of those companies.

Investing in the tech industry: single technology stocks

A single stock is just that, a share of ownership of a company. For example, investors can purchase shares of stock in companies like Alphabet, Apple, IBM, Netflix, and Microsoft.ª

Investing in tech ETFs (exchange-traded funds)

Exchange-traded funds (ETFs) are a basket of investments bundled into a fund that’s traded on an exchange like the Nasdaq or NYSE.

When you invest in an ETF, you are effectively buying small fractions of the companies within that ETF. The fraction depends on the weights of stocks held in that fund. That fund owns the stocks within it and generally tracks an index–or group of investments that represent part of an industry or investment theme.

Tech ETFs vs tech stocks

ETFs have become popular in recent years as they give investors the opportunity to invest in the performance of a group of stocks without having to buy every single stock in the fund or handpicking single stocks.

Not only can this save time and research, ETFs can offer diversification, which many consider being an essential investing strategy.

Want to invest in the tech sector? You can check out the themed investments offered on Stash, as well as single technology stocks.

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The Walt Disney Co., best known for animated classics and family-friendly entertainment, launched a new streaming service called Disney+ on Tuesday, that will give potentially millions of cord-cutting consumers access to its trove of content.

By offering its streaming service, Disney, one of the biggest and oldest entertainment companies in the U.S., is entering the streaming wars, currently dominated by relatively young and innovative companies, such as Netflix and HBO.

While Disney+ is going up against new and existing streaming services, it is offering its content at $6.99 per month, roughly half the cost of a Netflix subscription. For that price, streamers can watch Disney, Pixar, Marvel, and National Geographic content. The platform will ultimately hold a library of 7,500 TV episodes and 500 Disney movies, plus movie franchises including Star Wars and Marvel Comics, in addition to popular TV shows such as The Simpsons.

Like other direct-to-consumer streaming platforms, Disney+ plans to make original content in 2020. With the new service, Disney is set to develop a revival of Lizzie McGuire (among others) and several new FX series, which will be found on Hulu, which it jointly owns.

A big market for streaming

Total revenue for the streaming industry was $22.6 billion in 2018, and is projected to increase to $30.6 billion by 2022, according to PricewaterhouseCoopers.

Meanwhile, Americans spend roughly $44 monthly on subscription to streaming services, according to a new Wall Street Journal-Harris Poll survey. Although Netflix is the market leader, 30% of subscribers surveyed said that they would consider leaving the service for a new one. Additionally, 47% of respondents said that they are likely to sign up for Disney+. That percentage climbed to 70% for people with children.

Source: Wall Street Journal-Harris

By the numbers

Netflix leads the pack with more than 158 million customers globally. Disney could have 130 million customers in five years, according to research from Morgan Stanley. Here’s how the rest stack up, according to Forbes:

Source: Forbes

How monthly pricing stacks up

• Netflix at $12.99
• Amazon Prime at $8.99
• Apple TV+ at $4.99
• Hulu at $5.99

Consumer deals abound

To make sure they don’t get lost in the shuffle, Disney is offering a few deals for potential customers, including an offer for Verizon customers, a bundle package with Hulu, and a free trial with Amazon Fire TV. Disney will certainly not be the last company to enter the streaming wars. In 2020, new streaming platforms from NBC and HBO are expected to further complicate the question of which streaming services are consumer must-haves. NBC’s Peacock is set to arrive in April 2020. By 2021, Netflix stand-bys The Office and Parks and Recreation will be moved to Peacock. Meanwhile, HBO’s streaming service HBO Max, which will also drop in 2020, will reclaim Friends from Netflix when it launches.

More about the competition

• HBO, owned by AT&T, spends billions of dollars annually on original content, and it has its own streaming blockbusters such as the recently concluded “Game of Thrones” series.
• Amazon Prime Video has produced 80 original TV shows, and has nearly 100 more in the pipeline, according to reports.
• Hulu currently has nearly 100 original TV shows either available now or in the works. Hulu’s other owners include Disney and Comcast. (AT&T was also an owner, but Hulu recently bought out its shares from AT&T in a deal that values the streaming service at $15 billion.)
• Apple recently launched Apple TV+, and is planning to spend $1 billion on original content, according to reports.
• Cable companies Viacom and Comcast have both launched streaming services. Even Walmart is getting in on the act with its recently acquired video platform Vudu. Facebook is also experimenting with its own on-demand video service, called Watch.

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iOS and Android, of course, are the world’s most widely-used smartphone operating systems—99.6% of all new smartphones run one of the two systems.

Apple’s iOS, which runs on iPhones, is the most popular in the U.S., with roughly 65% of Americans’ smartphones running some version of the system as of 2018, according to industry data. The remaining 35% run Android, which is a Google product, and is installed on roughly 85% of smartphones around the world.

And because Stash runs on both platforms, we can get an inside look at the differences between how iOS and Android users invest their money.

To conduct the analysis*, Stash’s data team looked at the percentage of users that hold certain investments on both iOS and Android, and compared the two to identify the investments (stocks and ETFs) with the greatest disparity.

Here’s what we found out:

Key takeaways from the Stash data team:

• iOS users tend to have higher incomes, and identify themselves as more experienced investors.
• iOS users’ portfolios tend to be more vested in the tech sector.
• Android users’ portfolios skew toward the food and beverage industries.
• Android users tend to prefer individual stocks over ETFs.

Here’s how things break down by investment choice:

Investments that skew toward Android users (compared to iOS users):

• Twitter (twice as likely to hold than iOS users)
• Monster (twice as likely)
• Hershey (70% more likely)
• Hewlett Packard
• YUM! Brands
• Activision Blizzard
• Mondelez
• Royal Caribbean Cruises
• Tractor Supply Co.
• Deere & Co. (John Deere)

Investments that skew toward iOS users (compared to Android users):

• Apple (Twice as likely to hold than Android users)
• Modern Meds (60% more likely)—an ETF that focuses on biotechnology and pharmaceuticals (XBI)
• Copy the Experts (41% more likely)—an ETF that focuses on the companies that top hedge funds are excited about (GURU)
• AT&T
• Colossal China—an ETF that focuses on China’s top companies (GXL)
• Starbucks
• Salesforce
• Aggressive Mix—an ETF that’s balanced specifically for investors with a moderate risk profile (AOR)
• Nike
• Facebook
• Destination Recreation—an ETF that focuses on entertainment and leisure (PEJ)
• Snap
• Target
• Social Media Mania—an ETF that focuses on social media companies (SOCL)

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The purchase price ranks among the most expensive technology deals in history and is the highest IBM has ever paid for a company.

Red Hat is the biggest distributor of the Linux operating system, an open-source platform developed by Linus Torvalds in the 1990s.

What’s open source?

Open source platforms allow software developers to make their own additions to code and use it for their own projects, free of charge. That’s in contrast to platforms like the Apple OS and Microsoft Windows, which are developed primarily by the companies, available by license only, and generally not open to outside developers.

Linux is perhaps the best-known open-source platform and is the basis for the Android operating system, among others. Other open-source platforms include Drupal, Mozilla, and WordPress.

Shifting to the cloud

Other large tech companies have recently bought open-source companies, in a bid to stay relevant as more operations shift to the cloud, according to experts.

In June 2018, Microsoft announced it will buy software sharing company Github for $7.5 billion. In March 2018, Salesforce announced a $6.5 billion purchase of MuleSoft,  which allows companies to combine a variety of software platforms through the cloud.

What’s the cloud?

The cloud is a distributed network for computers that allows companies and consumers to store their data and conduct other operations remotely.

Amazon, Google, and Microsoft, which operate large data network centers, are three of the largest cloud services providers.

IBM, which offers both computer hardware and software, is trying to position itself as something of a hybrid, that will let companies develop their own clouds without relying on a large data center from one of the Internet giants, according to reports.

Investing in cloud technology

You can invest in companies that are leading the way in cloud computing. Check out the ETFs and selected single stocks on Stash.

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He follows the lead of numerous other technology multi-billionaires who have purchased important publications in the last few years, including Jeff Bezos, who bought the Washington Post, and Laurene Powell Jobs, wife of Steve Jobs, who purchased The Atlantic magazine.

Salesforce is one of the most successful technology companies in the U.S., and the largest employer in San Francisco, with annual revenue of $11 billion, and a market cap of $118 billion.

Salesforce successfully commercialized a cloud computing service called Software as a Service, or SaaS, for its primary product offering, which helps businesses manage sales cycles with their customers.

More about Benioff and Salesforce

Benioff, a San Francisco native, reportedly conceived the idea for Salesforce while floating off the Big Island in Hawaii more than 20 years ago. He launched his company from his apartment in 1999.

He was something of a child genius, designing apps from an early age, and launching a programming business as a teenager that earned him $1,500 a month—reportedly enough to pay for his own tuition by the time he went to the University of Southern California. He briefly wrote code for Apple in the 1980s before becoming one of the youngest vice presidents at Oracle, where he focused on sales and strategy.

Salesforce and the cloud

Salesforce was an early pioneer of using SaaS for commercial enterprises. SaaS is one way that consumers and businesses use the cloud, accessing software from distant servers via the Internet.

Want to learn more about the cloud computing industry? Read here.

Salesforce is active in an industry called customer relationship management, or CRM. It’s an industry, largely developed by Salesforce, devoted to using data to manage relationships with current and potential customers.

Rather than sell CDs with the company’s software, or otherwise installing its software on customer networks, Salesforce gives its customers access to Salesforce’s products from the company’s own network, on a subscription basis.

In so doing, Salesforce has lowered the costs of its software product, enabling customers to tap into the most recent version of the software, without having to license the product themselves and monitor for the latest updates.

More about the cloud

The cloud computing industry has three different components. In addition to SaaS, there is Infrastructure as a Service, which allows businesses to host their offerings on servers in the cloud; and Platform as a Service, which enables customers to run multiple software applications from a distant computer network.

Salesforce competes directly with Oracle, SAP, and Microsoft, which have similar CRM products.

Some other large cloud computing companies include:

• Amazon (Amazon Web Services)
• Microsoft (Azure)
• Google (Google Cloud Platform)
• Oracle
• SAP
• IBM

Amazon and Google provide cloud infrastructure services. That means they host the servers that store information for other companies that use the cloud to deliver services. Salesforce, for example, uses Amazon Web Services for its offering.

Tech titans that own publications

• Time magazine was one of the most famous magazines in the print news world in the 20th century, owned by Time Inc. Founded nearly 100 years ago as a news journal tackling some of the toughest stories of the times, the magazine has since fallen on hard times as its readership has shrunk and advertising for print media has dried up. In 2017, Time Inc. sold itself to Meredith Corp. for $2 billion.
• Jeff Bezos purchased the Washington Post for $250 million in 2013.
• Laurene Powell Jobs, the widow of Steve Jobs, purchased a controlling stake in the Atlantic magazine in 2017 for an undisclosed sum.
• Marc Benioff has an estimated personal fortune of $6.7 billion.

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At its annual fall event devoted to hardware innovations, Apple showcased its highly anticipated next-generation iPhones and other devices in order to generate buzz before the holiday shopping season and to counteract slowing smartphone sales.

Apple, which will release several new iPhone models later in September, is trying to get to the core of two top customer concerns: Price and screen size.

Meet the new Apple iPhone models

Here’s what we know about the new iPhones that will begin shipping to stores within the next few weeks:

The three new phones update the iPhone lineup, including two upgraded versions of last year’s iPhone X, and a new “budget” option.

iPhone Xs

iPhone Xs Max

iPhone Xr

Watches, Health, and HomePods

The iPhone is Apple’s cash cow, pulling in 56% of the company’s revenue in the third quarter of 2018. But the company unveiled a number of other updated and upgraded products.

Most notably, a new Apple Watch (Series 4) is in the pipeline, sporting a redesign with a bigger screen, and a slew of new health features. These include a detector for atrial fibrillation, or heart arrhythmia, that lets users conduct electrocardiograms, which they can store and share with medical professionals.

Apple also upgraded its HomePod (a home device that competes with Amazon’s Alexa and Google Home), allowing users to search for music based on lyrics, among other things.

Trouble with tariffs?

Apple has pushed back against $267 billion of new tariffs on Chinese goods, proposed by the Trump administration. The company manufactures many of its components in China, and industry experts say the tariffs could increase the price of Apple products in the U.S. by as much as 20%.

You can invest in technology companies on Stash.

The post Apple Debuts New iPhones, Plus More Watches and Gadgets appeared first on Stash Learn.

These days, Wu-Tang Clan could alter the lyrics to say the “cloud rules everything around me,” and probably make just as much sense.

What is the cloud?

The cloud lets you save your homework without a USB thumb drive, to binge-watch “Ozark” on Netflix, and even allows President Trump to fire off his famous early morning tweets.

But what is it? Despite calling it the cloud, it’s not actually a wall of cumulus clouds in the sky.

Cloud computing is a method of storing, accessing, and syncing data and software through the internet, rather than on the hard drive of a local computer. So, the “cloud” refers to a global network of computers, or servers, that store information, and that we access remotely from devices such as laptops, desktop computers, and smartphones.

For example, if you want to watch a movie on-demand through Netflix, you’re using the cloud to access it—the movie isn’t stored in or on your TV or laptop. You have to request it from Netflix’s servers to watch it. Similarly, every time you log in to a free email service such as Google or Yahoo, you’re accessing it in the cloud.

How the cloud is used

With cloud services becoming more universal, increasing numbers of businesses and industries are jumping on board. Companies that previously lacked IT resources can now purchase them affordably, and can even test and market new products and services without hiring armies of software developers and engineers, or by purchasing huge numbers of new servers themselves.

They can do this either through the public or private cloud. The public cloud is network space any business or individual can use from a cloud provider. A private cloud is a dedicated space that companies can purchase from providers, for their own exclusive use.

In addition to using the cloud to stream on-demand TV and movies, we use it to log into our social media networks, and see what’s happening with our friends and families. Many people also use it for work, by creating, saving, and sharing documents through Google Docs, for example, or storing a customer’s information in a Salesforce database.

The cloud is at work all around us, and in ways most people never actually see. Cloud computing has allowed us to become untethered, thanks to ubiquitous wireless internet networks, small devices like smartphones and tablets, and a smattering of digital products and services.

The cloud computing industry is typically broken down into sub-industries, including:

• Infrastructure-as-a-service (IaaS), which is the hosting of server networks (example: Amazon Web Services)
• Software-as-a-service (SaaS), offering software over the web (example: Salesforce)
• Platform-as-a-service (PaaS), creating a platform available over the web (example: Facebook)

All of these services are expected to continue growing in coming years, and become increasingly profitable for the companies working in the industry, according to industry data:

We can now work, shop, order meals, send messages to our friends, schedule a yoga class, and listen to music on Spotify, and even play video games all because of the cloud.

Cloud computing’s biggest players

The idea of cloud computing may seem new, but it’s actually been around for some time. In the 1950s, computer scientists first developed the technology, which predated the modern internet.

The cloud didn’t develop into a commercial enterprise until the early 2000s when cloud computing company Salesforce became the first major cloud-based company, and also the first to market it as an advantage.

Other companies followed suit, and today, many products and services that we use every day are available only through the internet.

Some of the biggest and most important companies in the cloud computing industry include:

• Amazon (Amazon Web Services)
• Microsoft (Azure)
• Google (Google Cloud Platform)
• Oracle
• SAP
• IBM

And in terms of cloud infrastructure services—that is, the companies that actually host the servers that store information that we all request from our devices—just five companies including Amazon and Microsoft have cornered the market, according to industry data.

And as the cloud becomes bigger and consumers rely on it more, the potential profits for cloud computing companies continues to grow, too.

Companies providing cloud infrastructure services like Amazon and IBM make money by selling server space and computing power to other companies that use it to provide a product or service, such as Netflix, cloud storage company Dropbox, or social media networks Twitter and Facebook.

Cloudy, with a chance of…

The future of the cloud computing industry actually seems pretty sunny.

In 2018, the worldwide public cloud services market is expected to grow more than 21% from 2017 to become a roughly $186 billion market, according to the business consultancy Gartner. And by 2020, the market for cloud services could increase to $411 billion.

But while cloud computing seems set for growth, for those looking to invest in the industry, there are still reasons for caution.

Security is one factor. As the volume of personal details about consumers continues to flood online, the industry has experienced multiple large-scale data breaches over the past few years. One of the most infamous was the 2014 iCloud hacking scandal, in which numerous celebrities’ Apple accounts were accessed and their personal photos were stolen and leaked.

Consumer confidence is another potential hurdle. For example, more than two-thirds of U.S. consumers are afraid companies aren’t doing enough to protect their personal data in the cloud, according to survey data.

And there’s also the possibility that governments could introduce new regulatory standards, particularly when it comes to companies using the cloud to conduct financial services, which could create roadblocks for the industry.

Despite these issues, the future of the industry seems anything but cloudy.

You can invest in companies working with and in the cloud computing industry on Stash.

The post Cloud Computing Runs the World appeared first on Stash Learn.

But some attitudes have shifted. It’s becoming clear that just because some jobs can be automated or handed off to robots, we don’t necessarily mean that we want them to be. People need those jobs, and every robot assembling parts on an assembly line or managing a cash register means there’s one less paycheck for a human being.

Robotics, automation, and artificial intelligence are making us more efficient and lowering the costs to produce some goods and services. So, while there are clear benefits to incorporating robotics into the worldwide economy, many people are still worried that their jobs could be automated and their career, as a result, redundant.

So, are those fears baseless? Or should you actually be worried?

Will robots take your job? What the experts say

U.S. jobs will be lost to automation—there’s no getting around it. Here’s a look at some telling statistics.

Only 26% of employers think they will lay off workers in favor of digital or robotic replacements, according to recent research from consulting firm Deloitte. And there’s likely to be large political battles waged by labor unions to try and keep certain jobs around.

A labor union representing 50,000 culinary and food service workers in Las Vegas, for example, recently brought up concerns about automation in their most recent round of negotiations, voicing concerns about automation’s potential impact on job numbers, as well as worker safety.

Evidently, humans aren’t willing to let their jobs slip into the hands of robots easily.

The jobs that are in danger

While the numbers from Deloitte may offer a small degree of relief for some workers, not everyone can rest easy. There are some jobs that are in clear danger of being automated.

A total of 210 million jobs in 32 different countries are at risk of being automated over the next 10-20 years, according to research from the OECD.

Workers in developing economies, such as Eastern Europe, are more at risk than U.S. workers. That’s because jobs in the former are generally less advanced and more easily automated than jobs in the latter.

Nevertheless, research also found that of more than 700 different jobs in the U.S., roughly half of them could be automated. As for which jobs are the most at risk, here’s a breakdown:

So, when it comes to the question as to whether or not a robot will take your job? It’ll likely depend on two key factors: What you do, and where you do it.

Want to invest in the future robo-workforce? You can invest in companies working in and around the robotics industry on Stash.

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Despite much of it being less than a decade old, social media technology is now deeply embedded in our culture. These days, everyone from celebrities, athletes, and politicians use social media to make announcements to the wider world. President Trump famously uses Twitter to express his views and announce policy changes. Stars such as Kanye West and Kylie Jenner also regularly take to social media to raise awareness of their brands and to sound off on whatever they’re thinking that day.

In August, Tesla CEO Elon Musk caused a brief shutdown in trading of the company’s shares when he announced via Twitter that he was thinking of taking his company private.

It’s not just the rich and powerful, either. Today, thanks to sites like Facebook, Snapchat, Instagram and Twitter it seems like everyone has a bullhorn to express themselves in real time.

Although social media is still in its adolescence, it continues to reshape the world and how we relate to each other as humans.

Here’s a quick guide to help you understand the industry and where it’s going.

What is the social media industry?

Today, 70% of Americans use social media in one form or another, whereas in 2005, only 5% did, according to industry data. Worldwide, there are roughly 3.2 billion social media users–and that number is growing, according to research.

That’s pretty impressive, considering the industry barely existed 20 years ago.

In the early days, during the late 1990s and early 2000s, the industry consisted of companies such as LiveJournal, Friendster, and Myspace.  Those early social pioneers had struck gold when discovering this new market, though they didn’t quite have their mining techniques developed yet. While none of these companies is around today, they were onto something. Namely, people want to connect, share stories, and see their friends online.

LinkedIn launched in 2003 with a career-oriented spin to social networking. Facebook was founded in 2004, and as we all know, went on to conquer and shape the social networking space as it exists today.

While there have been dozens, if not hundreds of social media companies founded over the years, only a handful have survived; And even those have evolved beyond their original intentions.

Facebook, for example, started as little more than an online phone book for Harvard students. Today, it’s the third-biggest social media platform on the internet.

Which companies are dominating the social media industry?

In the last decade, social networks migrated to smartphones–and have gone international.

There are numerous competing social networks, largely unknown in the U.S., that have billions of users in China, Russia, and India. Examples include QQ, Weibo, and WeChat (China), VKontakte (Russia), and Taringa (South and Central America).

Here are the biggest social networking companies in the U.S. by the number of users, and the percentage of adults who use them, according to data from Pew Research Center:

Source: Pew Research Center

Numerous other popular platforms exist today that feature social networking to one degree or another, allowing users to interact broadcast, and develop followings. They run the gamut from Reddit to Quora, and Tumblr to popular kids’ social media video app HouseParty.

Turning “likes” into dollars

The biggest issue early social networking companies faced was how to make money from people’s desire to connect online.

Some companies figured out the magic recipe was largely based on advertising. Facebook has created an enormous digital advertising platform, allowing paid advertisements and sponsored content to pop up into users’ feeds. LinkedIn, on the other hand, earns revenue by offering a variety of paid, premium services to users, and by charging recruiters and HR teams looking for talent.

Advertising, though, is the primary way social media companies generate revenue. These companies have oceans of data about their users, which they can supply to companies looking to advertise. Companies are willing to pay for the data because it targets specific demographics and buying behavior.

How much does this earn a social media company? During the fourth-quarter of 2017, Facebook reportedly made $6.18 per user, mostly through advertising. Snapchat made $1.53 per user during the same time period.

What’s next for the social media industry?

The industry has grown and evolved rapidly, and it’s very likely here to stay. But there are several critical issues the sector grapples with.

First, there’s the specter of increased government regulation. Following the 2016 presidential election, in which social media played a pivotal role through political advertising and messaging, companies including Facebook and Twitter have come under intense scrutiny, as their platforms were used to disseminate often false or misleading misinformation.

Facebook, in particular, has faced investor and regulatory wrath for giving away data of nearly 90 million users to the political consulting firm Cambridge Analytica.

Calls for regulation

The U.S. government has yet to step in and lay down a new legal framework regarding social media and customer privacy, but lawmakers in Congress continue to discuss it. Meanwhile, new privacy legislation has passed swiftly in other countries, like those in the European Union.

Second, social media companies have started to morph into  media companies of their own, with the power to disseminate information and content to billions of people around the globe. Instagram and Snapchat Stories allow users to make mini-movies about their daily lives. In 2018, Facebook launched its own Netflix rival, Facebook Watch.  

And as talk about potential regulation heats up, so to have suggestions that platforms like Twitter or Facebook should follow the same rules as traditional media companies.

That could force them to adhere to regulations of the Federal Communications Commission (FCC),  similar to TV and radio broadcasters, among other things.

Finally, signs have emerged that industry growth may be experiencing a slowdown in demand for the traditional social media offering–networking.

Recent earnings reports by Facebook and Snap, for example revealed that user growth is decreasing after years of gains.

A changing business

In order to keep growing, some social networks have expanded beyond their traditional platforms. In some cases, that means that they’ve acquired rivals. For example, Yahoo bought Tumblr, Google gobbled up YouTube, and Facebook purchased Instagram as well as the multi-platform messaging app  WhatsApp. There have also been rumors about Facebook, Google, or even Amazon–a company that currently has very little presence in social networking–attempting to buy Twitter.

Some companies are growing beyond the social networking industry altogether in an effort to continue developing and engaging audiences. In 2014, Facebook purchased virtual reality company Oculus to expand into VR, for example, and in 2015, LinkedIn bought online learning company Lynda to offer its users online business and marketing classes, and software tutorials.

Twitter, too, branched out by acquiring a social media talent agency that finds and develops personalities that create content specifically tailored to the platform.

But even as the industry matures, it’s expected to continue growing and evolving. As with every industry, though, things can change.

When it comes to social media companies, you can make some acquisitions of your own. Check out social media single stocks and ETFs on Stash–all it takes is $5 to get started.

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The company, based in Palo Alto, California, has been publicly traded on an exchange called the Nasdaq since 2010.

Following the announcement, the Nasdaq halted trading of the company’s shares. (It then resumed trading less than two hours later.)

Musk has proposed making existing shareholders partial owners in the newly-private company by setting up a fund that would hold their shares. He has also floated the idea of buying shares at $420—about 20% higher than its current share price—which would value Tesla at $72 billion, according to the Wall Street Journal.

So what does all this mean?

What happens when a company goes private?

It’s the opposite of when a company goes public, or has an initial public offering. (That’s when a private company lists on a public exchange, such as the New York Stock Exchange or Nasdaq.)

Companies generally go private when another company makes a bid for the company’s shares. Executives of the company might also make a decision to take the company private, and buy the outstanding stock from shareholders.

When a company goes private, its shares are delisted from an exchange, which means the public can no longer buy and sell the stock. The company may offer existing investors a price for their shares that may be above the current level.

Why would Tesla go private?

Private companies don’t have the same level of scrutiny that public companies do.

When companies are public, they must file quarterly earnings reports with the Securities and Exchange Commission (SEC). These reports are filled with details about the company’s profit (or lack of it), revenue, debts, and changes to management, among many other details.

Private companies are not required to file these reports.

In recent years, for example, Tesla has been widely criticized for burning through hundreds of millions of dollars in cash and missing production deadlines, which has been widely broadcast following its earnings reports.

By going private, a company can often avoid regulatory scrutiny and the need to make public filings about its hits and misses. And that appears to be at least one motivation for Musk’s hope to go private. In a letter to shareholders Tuesday, Musk wrote:

“Being public also subjects us to the quarterly earnings cycle that puts enormous pressure on Tesla to make decisions that may be right for a given quarter, but not necessarily right for the long-term.”

Good to know

It’s important to realize that many executives who intend to take their companies private often don’t, according to Financial Industry Regulatory Authority (FINRA). Announcements about going private can often boost a company’s share price temporarily, according to FINRA.

Tesla’s stock increased about 10% following Musk’s announcement, when the stock resumed trading, according to reports.

Have other companies gone private?

Yes, recent examples include computer maker Dell, ketchup manufacturer H.J. Heinz, and the supermarket chain Safeway.

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What are FAANG stocks?

“FAANG” is an acronym involving five specific stocks, all of which are traded on the Nasdaq stock market:

• Facebook
• Amazon
• Apple
• Netflix
• Google (Alphabet)

These stocks are often grouped together for a couple of reasons. First, they are all tech companies, meaning that they all generally operate within the same market sector. For example, Netflix and Amazon both operate online streaming services, and Facebook and Google are both in the social media space.

Second, the stock performance of these companies has far exceeded almost any other over the past decade—more on that in a minute. And generally speaking, they tend to typify for investors so much of the promise and innovation in the technology world.

In fact, this handful of companies has grown so big that they account for more than a quarter of the Nasdaq’s total market capitalization.

Note: Don’t confuse FAANG stocks with the stock ticker for Diamondback Energy, FANG. They are unrelated.

Why is everyone talking about FAANG stocks?

Aside from a fun acronym, FAANG stocks are a hot topic of conversation mostly because of their explosive market performance over the past decade. While growth has slowed more recently due to increased market volatility—or market uncertainty—some FAANG stocks have hit record-high share prices.

For example, Netflix’s share price has soared in 2018 and has recently hit more than $400, as of July 2018. At the beginning of December 2017, the stock was still under $200. Likewise, Facebook shares have also hit record highs, as of July 2018, peaking at more than $200 after gaining 28% since the summer of 2017.

While performance is the primary reason FAANG stocks have been the talk of the town, some analysts are signaling concern—and in some cases, warning of a bubble. In the late 90s and early 2000s, a similar tech stock bubble manifested (commonly called the dotcom bubble”), and subsequently burst.

While the FAANG rally is more concentrated in a subset of stocks than the dotcom craze, there’s always a risk to consider.

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