Getting Investment Advice on Social Media: A Good Idea?

Going through a broad
range of investment ideas and advice on social media can be exhausting and
challenging. So, would it be better to look for financial information outside
social media?

If you tend to go to
social media to determine your next investment move, you need to proceed with
caution.   

The Risks of Relying on
Social Media for Investment Advice

Social media platforms
offer the public a place to spread information. However, not all information
you see there is provided by reliable sources. Some are only created to
manipulate and unfairly benefit from their customers' trusts.

Cryptocurrencies are
popular investments today, although there are many risks associated with
putting money into such digital assets. If you bet on them, you either make a
quick profit or come out empty-handed.

So instead of jumping
in and buying the crypto that's causing a buzz on social media, a better option
is to look into the cryptocurrency yourself on reliable websites like
brokerages and financial sites.

These days, many
brokerage firms and online brokers provide investment education services that
will help you learn the ropes of purchasing assets such as currency pairs,
stocks, digital coins, and more. Plus, the financial information they provide
tends to be better than what you may see on social media.

You can also check out
some financial websites, where you can find a range of investment information,
from market news to simple tips and guides. Another option is to have a trusted
financial advisor assist you in adjusting your portfolio according to your
needs, income, risk appetite, and goals.

Doing Your Own Research
is Crucial

There is no harm in
getting cooking tutorials or food recommendations on social media platforms.
But when it comes to your investments, looking outside social media might be a
better idea.

Still, this does not
mean that you can't get reliable financial advice from social media. You just
need to get a second opinion from other trusted resources before making any
investment decisions.  

If you're following a
broker or financial advisor on social media, it is essential to check whether
they are legit. Trusting your investment dollars with the wrong broker or
advisor could create huge damage to your portfolio and returns. 

You can verify the
legitimacy of a broker and brokerage firm on the website of the Financial
Industry Regulatory Authority (FINRA), while you can vet financial advisors on
the Securities and Exchange Commission's website.

DIY with Money You're
Willing to Lose

DIY investing is not
necessarily a bad thing, as you can learn new things about investing that you don't
know before and determine what you do and don't like.

Should you choose to
use a do-it-yourself approach to your
investing, even after getting ideas on social media and consulting
qualified experts, make sure that you only invest the money that you're willing
to lose. That means separating the money you plan to invest for growth and your
long-term goals.