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Investing with artificial intelligence: the future of finance?

Investing with AI: the future of finance?

Investing in the stock market using artificial intelligence is a trend worth monitoring. What are its applications? Is it the future of finance?

Increasingly, financial players are leveraging artificial intelligence to invest in the stock market. The integration of AI-based systems and algorithms in portfolio management and trading is a trend worth exploring. In this article, you will find all the details about the implementation of artificial intelligence in investments. Happy reading!

Why invest in artificial intelligence? 

As psychologists and economists, Herbert Simon demonstrated that individuals never make entirely rational decisions because several factors limit their rationality. These factors include the amount of information available, the cognitive limitations of the mind, and the time constraints that prevent entirely rational and impartial decision-making. In the world of finance, where individual decisions significantly impact outcomes, haste and emotions often influence buying and selling transactions. Have you ever purchased out of fear of missing out (FOMO) or sold your holdings because the market was crashing? In this context, artificial intelligence can help mitigate the influence of human factors, as it does not face the same structural limitations that Simon identified in our thinking.

As we shall see, artificial intelligence can be a fundamental aid to financial traders in various ways, from processing vast amounts of data to risk management, as well as in portfolio composition and trading automation. Of course, not all that glitters is gold: as we will see later in the article, an investment strategy cannot be based on AI. But let us go step by step.

How to use artificial intelligence to invest in the stock market?

Integrating artificial intelligence into investments involves using technology that merges financial analysis and data science with machine learning. This approach utilises systems that can examine vast amounts of economic data to identify recurring patterns and correlations. Artificial intelligence is capable of analysing and processing both quantitative data, such as balance sheets, price movements, and trading volumes, as well as qualitative data, including images, text, and sentiment from social media.

Artificial intelligence (AI) can provide a broader perspective and offer a more comprehensive overview of financial data. It enables the real-time analysis of hundreds of publicly traded companies using specialised financial software, such as AlphaSense, Kensho, or IBM Watson. Initially, this innovation was primarily leveraged by financial giants, such as hedge funds and asset management firms. However, investing in the stock market with AI tools is no longer exclusive to these large players, and we will explore how that has changed. So, how is AI applied in the finance sector?

Artificial intelligence and investment: use cases

As we anticipated, artificial intelligence significantly impacts financial strategies by streamlining and optimising processes that would otherwise be time-consuming. It also helps to mitigate the effects of haste and emotions in decision-making. Now, let’s explore specific functionalities that highlight the attractive synergy between artificial intelligence and investments:

Predictive analysis and price forecasting

Investing with artificial intelligence (AI) has become one of the most sought-after functions in the financial world. AI systems are capable of analysing vast amounts of both quantitative and qualitative data, ranging from fundamental company analysis to social media posts. They can identify complex patterns that may elude human analysts or traditional statistical algorithms. The goal is to discover correlations that could indicate potential future price movements. While academic research has shown that these systems can accurately predict economic scenarios, it’s essential to remember that market unpredictability is an inherent variable that must be considered in both analysis and decision-making.

Algorithmic and High-Frequency Trading (HFT)

Artificial intelligence (AI) can process vast amounts of information in fractions of a second, making it valuable for developing and executing algorithmic trading strategies. Algorithmic trading involves using algorithms to conduct trades automatically based on predefined rules. AI algorithms can be trained to perform financial transactions efficiently and at high speeds.

High-Frequency Trading (HFT) is a specialised​​ type of algorithmic trading that leverages AI’s computational power to execute trades in less than a millisecond. This method capitalises on market micro-inefficiencies, such as arbitrage opportunities. Due to the requirement for significant liquidity and advanced, costly systems, HFT is predominantly utilised by major financial institutions, including hedge funds and investment banks.

Sentiment analysis

The emotional nature of the markets is well-known, and artificial intelligence can be a valuable tool for investing. It can summarise investor sentiment through textual analysis. Unlike traditional news classification algorithms, which usually provide a binary assessment—simply labelling sentiments as ‘Yes/No’ or ‘Positive/Negative’—artificial intelligence conducts a more in-depth analysis of the content. It examines contextual elements such as ‘why‘ or ‘when,’ resulting in more accurate insights.

Portfolio optimisation and risk management

Investing with artificial intelligence involves using AI systems for the construction and management of investment portfolios. AI algorithms can analyse historical data to identify assets that are likely to perform well under specific market conditions. After a portfolio is assembled, AI systems can monitor its performance and suggest adjustments or dynamically rebalance it based on investment objectives or changing market conditions.

Risk management, which involves measuring risk to develop strategies for containment or reduction, can also benefit from the application of artificial intelligence. AI systems can create sophisticated risk models that take into account adverse macroeconomic variables, such as potential international conflicts, as well as portfolio vulnerabilities, like excessive exposure to specific sectors. Once critical issues are identified, the AI can recommend strategies to mitigate and reduce these risk factors.

Extraction of synthetic data:

Thanks to advancements in computing speed and machine learning, artificial intelligence can create realistic market scenarios by combining historical data—such as the dot-com bubble and the 2008 financial crisis—with synthetic data. This allows AI to generate models or portfolios optimised for specific situations. For example, if we had asked an AI in 2021 to provide an overview of market reactions to a hypothetical Russian invasion of Ukraine (which occurred in 2022), it would likely have predicted a rise in commodity and energy prices, enabling the development of a tailored strategy.

Retailers can also invest in the stock market with artificial intelligence

In recent years, several tools and platforms based on artificial intelligence have emerged, making this technology accessible to the retail market of individual investors. These include: 

AI-based Robo-Advisors

Automated investment platforms that use algorithms to create and manage portfolios structured on questionnaires that reflect the retail investor’s preferences (risk, time horizon, objectives). The advantages of these instruments primarily concern management costs and access to capital, which are typically lower than average. However, the excessive responsibility entrusted to algorithms could prove counterproductive in situations of high volatility. Specifically, significant price fluctuations could ‘throw off’ the criteria that manage the operations of robo-advisors and lead them into error.

Trading platforms with integrated AI

Many trading platforms have begun to incorporate AI-related features to enhance investment efficiency. TrendSpider is one of the most popular platforms, offering automated technical analysis and tools for designing and testing algorithmic strategies without the need for coding. Other tools are focused on generating real-time trading signals or implementing algorithmic trading.

AI-managed ETFs

These are exchange-traded funds (ETFs) that are constructed and managed by artificial intelligence (AI) algorithms. They incorporate functions such as portfolio optimisation and risk management, enabling individual investors to harness the potential of artificial intelligence for stock market investments. One example is the Amplify AI-Powered Equity ETF (AIEQ), which analyses millions of data points using IBM’s Watson.

Sentiment and market analysis with generative AI

Chatbots like ChatGPT, which we use daily, can serve as aggregators of financial news and also help us deepen our understanding of the topic. However, it’s essential to fact-check the information provided, as it may be out of context or outdated.

Not only traditional finance, but also artificial intelligence and cryptocurrencies

Artificial intelligence and cryptocurrencies are two fields that share many similarities and represent some of the most significant technological advancements of our time. Within the crypto space, there is a specific sector focused on integrating AI with blockchain technology, commonly referred to as Crypto AI. Cryptocurrencies like Render (RNDR), The Graph (GRT), and Near (NEAR) are designed to decentralise AI services, ensure the authenticity of information through blockchain transparency, and enhance data computing and storage capabilities.  

Using human intelligence to invest in the stock market with artificial intelligence 

The tools we’ve just explored have significant potential in both traditional and decentralised finance. However, it’s essential to stay informed and critically assess both the advantages and disadvantages of investing with artificial intelligence (AI). Often, when a disruptive technology like AI emerges into our lives, there’s a risk of becoming overly fascinated and falling into traps set by those who exploit the excitement surrounding these innovations.

A rise in AI-related fraud has unfortunately accompanied the growth of AI. According to the American Securities and Exchange Commission (SEC), there has been an increase in unregistered and illegal trading platforms, as well as scam platforms that utilise artificial intelligence (AI) to appear credible. These fraudsters may use AI to create deepfake videos or produce fake phone calls from authoritative figures, thereby manipulating potential victims. They also design convincing websites and generate promotional content to enhance the perceived legitimacy of their platforms.

It’s crucial to remain grounded and use our judgment to avoid unpleasant situations. Take the time to study the platforms and make informed decisions—don’t let the fear of missing out (FOMO) influence you. In the meantime, stay informed: at Young Platform, we continually publish relevant news updates. Subscribe below to stay updated!

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High fashion: Who was Charles Frederick Worth?

Haute couture: Who was Charles Frederick Worth?

Haute couture is an industry focused on creating unique, high-quality clothing. What is its origin and history?

Haute couture, a term meaning “high sewing” in French, originated in Paris through the vision of an English gentleman. With the assistance of his wife, he succeeded in capturing the hearts—and wallets—of the wealthiest ladies in the French aristocracy, upper middle class, and beyond. Today, this industry is worth billions and caters primarily to the wealthiest 1% of the world’s population. Let’s explore the history of the legendary Charles Frederick Worth and his wife!

High fashion: a very special niche 

Haute couture refers to high-quality garments that exemplify exceptional craftsmanship and represent the pinnacle of the fashion industry. Clothing in this category, designed by fashion house stylists, must meet specific standards set by the French Ministry of Industry and the Fédération Française de la Couture. These standards include four essential criteria that define haute couture.

A maison, which refers to a production company, must exclusively create made-to-measure clothing to hold the haute couture label. Each haute couture dress is unique and can be viewed as an actual non-fungible piece of art. Additionally, the maison must have an atelier in Paris with at least twenty full-time technical staff members. Lastly, it is required to present its collections twice a year, in January and July, showcasing a total of 50 original designs for both day and evening wear.

Rose Bertin was a French milliner who lived during the late 18th and early 19th centuries. She is regarded as the pioneer of haute couture for creating original custom-made dresses for Marie Antoinette, the wife of Louis XVI and Queen of France. However, the formal concept of haute couture is more accurately attributed to Charles Frederick Worth, who became prominent in Paris about thirty years later.

In any case, the high fashion industry, as you may have guessed, is based on the concept of scarcity—a principle that we at Young Platform adore, almost as much as the digital asset that best embodies it: Bitcoin. But back to us. The prices of the garments, which hover between tens and hundreds of thousands of euros, are justified precisely by their irreplicable nature, as well as by the infinite number of hours required for production – 150 for a simple dress, 1,000 (41 days) for a piece with delicate embroidery and finishing touches. Of course, the materials chosen also play a significant role in the final cost calculation. 

High fashion: how, when and where?

As we have already mentioned, the invention of haute couture is attributed to Rose Bertin, who, however, cannot yet be called a ‘designer’ since this profession was not yet established after the French Revolution. And this is where our Charles Frederick Worth comes in: born in 1825 in Lincolnshire, England, he moved to London at the age of 13 and began working in an extensive fabric warehouse on the famous Regent Street, where he came into contact with the world of silk and fabrics. At the age of 20, in 1845, he moved to Paris, already the European centre – and not only – of fashion, where he worked as an assistant at the fabric boutique Gagelin. It was here that his life changed: it was his acquaintance with Marie Augustine Vernet, his future wife and inspirational muse, that made his breakthrough. But we will get there.

Worth proves to be an excellent salesman as well as a great fabric expert and has all the makings of a career. In fact, after five years, he became head of the tailoring department of the Gagelin boutique and, in 1853, an equal partner with the other two owners. Things seemed to be going well, but after a few years, the moment of break came: Worth was ready to strike out on his own and in 1858 opened his atelier at 7 rue de la Paix.  

Charles Frederick Worth and Marie Augustine Vernet: Let the Revolution begin

Charles Frederick Worth and Marie Augustine Vernet, together, are the architects of a real revolution in the universe of fashion as it had been conceived until then. Charles was already a respected tailor in mid-nineteenth-century Paris, but the real turning point was the result of a move as shrewd as it was daring on the part of Marie Augustine. Aware of the power of word of mouth among high society women, the designer’s wife decides to sell two dresses to the Princess of Metternich at a ridiculous price – almost a gift. The princess chose to wear one of them to the ball at the Tuileries, the main venue of the Parisian elite. Her dress, beautiful and different from the usual, caught the attention of the most influential woman of the French jet set: Empress Eugénie de Montijo, wife of Napoleon III, Emperor of France from 1852 to 1870. Charles Worth, from then on, became the court tailor and official supplier to the Empress of France. 

Charles Frederick Worth became the most important and popular stylist among the ladies of the Parisian Gotha and, with him, there was a clear reversal of perspective: whereas before it was the women, aristocratic or upper-class, who commissioned the textile artisans, choosing the fabrics and creating the models, now it was the stylist who proposed the clothes and, therefore, dictated the fashion. 

Our Charles is also responsible for two of the most important innovations the fashion world has seen: the first concerns the division of collections according to season; the second refers to the use of ‘living models‘ rather than mannequins, as was traditional up to that time – his wife Marie is considered the first model in history. Charles Worth, in essence, invented fashion shows. 

In 1868, he was one of the founders of the Syndicale de la Haute Couture (Chambre Syndicale de la Couture), a collective fashion decision-making body, of which today some 100 of the world’s most important fashion houses, including Balenciaga, Balmain, Jean Paul Gaultier, and Versace, are members. This apparatus also has the power to decide who can use the term ‘haute couture‘ and who cannot, based on compliance with the requirements we have mentioned. 

Charles Frederick Worth died in 1895, and the administration of his maison, the House of Worth, passed into the hands of his wife Marie and son Gaston. The second son, Jean-Philippe, on the other hand, followed in his father’s artistic footsteps: in 1903, he created the famous Peacock Dress for Mary Victoria Curzon, wife of the Viceroy of India and therefore Viceress. The fashion house was officially sold to the French fashion house Paquin in 1953.

Haute couture on show: Charles Frederick Worth’s dresses at the Petit Palais in Paris

From 7 May to 7 September – we hypothesise that the choice of 7 is due to the street number where he opened his atelier, 7 rue de la Paix – in the splendid setting of the Petit Palais in Paris, the first exhibition dedicated to the inventor of haute couture and his House of Worth maison will take place. For the occasion, we are talking about more than 400 objects from the most important museums in the world, from the Palazzo Pitti in Florence to the Metropolitan in New York, passing through the Victoria and Albert in London: paintings, accessories and above all clothes designed and created by Charles Worth dating back to the historical period between the Second French Empire (1852-1870) and the first post-war period. 

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The ranking of the tallest skyscrapers in the world

Les plus hauts gratte-ciel du monde : classement 2025

The world’s tallest skyscrapers are primarily located in Asia and were constructed in the past 15 years. Here is the ranking.

Constructing the world’s tallest skyscraper has been a challenge for nearly 150 years, dating back to the Home Insurance Building, which was completed in Chicago in 1885. Since that time, skyscrapers have emerged in numerous cities, serving both urban planning needs and symbolic purposes related to power and status. Today, advancements in technology allow skyscrapers to achieve remarkable heights. Explore the current ranking of these towering structures!

The ranking of the 10 tallest skyscrapers in the world

Thanks to recent technological and construction innovations, engineers worldwide have designed skyscrapers that challenge the laws of physics in terms of height and grandeur. This top 10 list includes completed buildings only, excluding those that are under construction or in the planning stage. Let’s explore together the 10 tallest skyscrapers in the world.

  1. Burj Khalifa, Dubai: 828 m

The Burj Khalifa, situated in the capital of the United Arab Emirates, has held the title of the world’s tallest skyscraper since its completion in 2010. This engineering marvel features approximately 185,000 square meters of indoor living space and comprises 163 floors. It accommodates offices, hotels, and residential apartments.

  1. Merdeka 118, Kuala Lumpur: 679 m

This skyscraper, completed in 2023, is among the newest additions to its category. Known as PNB118 and KL118, it features offices, a hotel, and a five-story shopping centre. Construction began in 2014 and took approximately seven years, costing around USD 2.5 billion.

  1. Shanghai Tower, Shanghai: 632 m

Ranking third among the world’s tallest skyscrapers, this impressive building is renowned for its aesthetics. Its curved, spiralling façade symbolises China’s transformation from poverty to economic prosperity. The Shanghai Tower is also one of the most sustainable skyscrapers globally, thanks to its choice of materials, advanced ventilation systems, and the integration of renewable energy sources.

  1. Mecca Royal Clock Tower, Mecca: 601 m

The Mecca Royal Clock Tower is part of a building complex known as Abraj Al Bait and is situated above the Holy Mosque of Mecca and the Kaaba, which is considered Islam’s holiest site. The clock in this tower has a diameter of 43 meters, making it the largest in the world by area and also the tallest. The tower houses a hotel that can accommodate approximately 100,000 pilgrims. Completed in 2012, the construction of this skyscraper cost an estimated $15 billion, which may make it the most expensive building in the world.

  1. Ping An Finance Centre, Shenzhen: 599 m

Completed in 2017, it is the second-tallest skyscraper in China and, like the Shanghai Tower, carries significant symbolic meaning. Its impressive height reflects the remarkable growth of Shenzhen, a city whose population has surged from 60,000 to 13.5 million since 1980. Additionally, it is the second-largest skyscraper in the world by total area, boasting a floor space of approximately 500,000 m².

  1. Lotte World Tower, Seoul: 555 m

The Lotte World Tower is the only building from South Korea included in the ranking. Its design is inspired by the country’s culture: the tapered shape resembles brushes used in Korean calligraphy, while the clear glass exterior reflects the region’s traditional ceramics and porcelain. With 123 floors, the tower features a 7-star luxury hotel, office spaces, and residential apartments.

  1. One World Trade Centre, New York: 541 m

Also known as the Freedom Tower, One World Trade Centre is the tallest skyscraper in the Western Hemisphere. The building holds significant symbolism for several reasons: its height of 1,776 feet commemorates the year of the United States Declaration of Independence, and its construction, which was completed in 2014, symbolises rebirth following the tragedy of September 11, 2001. In fact, the soaring Freedom Tower represents a vision for the future, while the 9/11 Memorial, which is set lower to the ground, serves as a poignant reminder of the past.

  1. Guangzhou CTF Finance Centre, Guangzhou: 530 m

Known as the East Tower, this building is the third-tallest skyscraper in China. It was designed and engineered by the same firms that created the Ping An Finance Centre in Shenzhen, which is the fifth-tallest skyscraper in the world. The East Tower features 111 stories and includes office spaces, luxury apartments with inner courtyards, a five-star hotel, an indoor swimming pool, as well as various bars and restaurants.

  1. Tianjin CTF Finance Centre, Tianjin: 530 m

Although the Tianjin CTF Finance Centre and the Guangzhou skyscraper are the same height, the Tianjin CTF Finance Centre ranks ninth among the world’s tallest skyscrapers. This ranking is due to differences in measurement techniques. Factors such as architectural height, measured without including antennas, and other parameters like the height of the highest occupied floor and the total number of floors are considered. The Guangzhou CTF Finance Centre ranks slightly higher because it performs better in these two specific categories.

  1. CITIC Tower, Beijing: 528 m

The final skyscraper among the tallest in the world is located in the Chinese capital and is known as China Zun. This building, like many others in Asia, holds significant symbolic value: the “zun” is an ancient Chinese ceremonial vessel, and the architecture of this remarkable structure is inspired by its shape. An interesting fact about the skyscraper is that from its top three floors, one can see Zhongnanhai, the headquarters of the Chinese Communist Party. In 2018, the Hong Kong newspaper Ming Pao even proposed expropriating the building for national security reasons.

Now that you know the top 10 tallest skyscrapers in the world, you may be inspired to book a trip to see them in person. By joining one of our clubs, you can enjoy discounts on your travels, so take advantage of this opportunity!

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How to make money: beyond the promises of the gurus

How to make money: beyond the promises of the gurus

How can one make money? This question has been asked throughout history, and while many TikTok gurus offer dubious advice, this guide provides solid arguments. Let’s get started!

Sellers of miraculous amulets and infallible methods to become highly wealthy have always existed. Humans inherently desire to believe there are ways to achieve maximum results with minimal effort. With the rise of the internet, these merchants of false promises have multiplied, crafting increasingly absurd strategies. Today’s goal is to dismantle these ridiculous illusions and, more importantly, to provide you with serious (though more labour-intensive) alternatives for increasing your wealth. Enjoy the journey!

The Fuffa Guru, who tells you how to make money 

In 2024, the authoritative Treccani encyclopedia included the neologism “fuffa guru” in its vocabulary, defining it as “one who, exploiting marketing techniques, organises and manages courses, videos, and seminars on the internet for profit, while fraudulently promoting easy ways to make money.” This definition is perfect, elegant, and highly realistic. The fuffa guru is a merchant of illusions, presenting himself as a modern hero. 

Often emerging from the poorer segments of society, he may have experienced a childhood steeped in abject poverty, initially despised by those around him and later burdened with debt. He is an outcast who feels destined to remain among the marginalised. However, the fuffa guru refuses to accept this fate. Driven by an insatiable desire for wealth and an even stronger thirst for revenge, he ultimately realises, “This is not my destiny.” He believes that “a change of mindset is necessary because poverty is a state of mind, not merely a lack of money.”

The fuffa guru shares his story of sleepless nights devouring books and completely renouncing parties, birthdays, and weddings, stating, “While others were busy collecting gigs, I was busy collecting skills.” He uncovers secrets that the masses- the 99%—%-overlook, takes the red pill, and exits the Matrix. The fuffa guru is now prepared for the climb to success. Armed with a new mindset and the knowledge he has gained, which will form his ‘method’, he proudly claims to have achieved wealth rapidly and exponentially. Reflecting on his journey, he expresses gratitude to himself “for not being weak and for not giving up.”

In the final phase of his story, he enjoys a life of unrestrained luxury between Dubai and Manhattan, travels on private jets, and drives Lamborghinis. This lavish lifestyle serves as concrete proof that his method is effective and that anyone, by adopting the right mindset and following his advice, can attain similar success, though it comes at a cost. But what does this infallible method entail?

Making easy money, fast and effortlessly: the fuffa guru’s formula

Despite the absence of evidence of his work experience or how he amassed his supposed fortune, this self-proclaimed guru insists on teaching you how to make money quickly and effortlessly. His motive, he claims, is to share knowledge and help you achieve financial freedom. How does he propose to do this? He charges hundreds, if not thousands, of euros for access to his seminars and webinars, where you can listen to him speak.

The formula for wealth he promotes inevitably revolves around the same side hustles. He talks about dropshipping, explaining how to create a successful online store without the need to hold inventory, all while promising high profits with minimal effort. Alternatively, he may introduce you to “passive” affiliate marketing basics. This method automatically generates enormous passive income through affiliate links, allowing you to earn commissions on promoted products.

Another recurring theme is network marketing, often accompanied by the enticing phrase “become your entrepreneur!” In this model, making money hinges on selling products (such as cosmetics, supplements, or services) while primarily focusing on recruiting others to join your network. These recruits, in turn, would earn money by bringing in even more recruits. Does that sound familiar?

It’s important to highlight the concept of real estate flipping, which involves purchasing, renovating, and selling a property for a higher price. This method is often combined with real estate arbitrage, where an individual rents a property long-term and then sublets it to generate a return on their investment. 

Additionally, we can’t forget about online trading, which is often seen as the ultimate opportunity by those participating. Many enthusiasts claim that ​​dedicating just a few minutes a day, it’s possible to earn substantial amounts of money through supposedly foolproof signals and highly confidential techniques taught in expensive, exclusive courses. But are these methods as effective as they claim to be?

What the fuffa gurus don’t tell you 

When they ‘explain’ how to make a lot of money quickly and effortlessly, the so-called gurus conveniently forget to mention the downsides of these activities, which, let’s remember, are legal and legitimate. 

For example, dropshipping comes with various expenses related to advertising, shipping, and supplier management, along with the need for customer service. Additionally, the market is highly competitive, and the risk of losing large quantities of unsold inventory is significant.

Switching to affiliate marketing, it’s essential to understand that generating passive income requires high traffic. This means that many users must purchase a product through your specific link. You might achieve this if you are an influencer with tens of thousands of followers. Otherwise, you must build a large audience, create valuable content, and invest in SEO and advertising—hardly a passive endeavour.

Multi-level marketing is essentially a refined and professional term for a pyramid scheme or Ponzi scheme. The profits predominantly come from new participants recruiting additional newcomers, and like any Ponzi scheme, it is, by nature, doomed to collapse.

When it comes to side hustles in real estate, many successful figures fail to mention that you need collateral and substantial initial financial resources to start a business in this field. Additionally, online trading— especially intraday trading that involves significant (and often unintentional) leverage — can be hazardous. It’s no secret that most retail traders (over 90%) who engage in these trades lose money. While it is possible to make money trading, it requires thorough research, strong skills, and capital to invest. Often, claims of infallible signals and secret techniques are ineffective or even scams.

Now that we’ve addressed the illusions of success, let’s move on to more serious matters.

How to make serious money: Patience is the virtue of the strong

Generating passive income is possible but requires time, patience, and financial investment. One popular method is affiliate marketing, which can be effective but often stems from prior work. To earn significant commissions, you need traffic, which can only be achieved after creating a quality product.

Being a content creator is a legitimate career today, but demands dedication, effort, passion, and specific skills. Investing in real estate is also a time-honoured activity that many Italians are enthusiastic about; we are fond of bricks and mortar! However, initial financial capacity and support from specialists for market analysis and legal and commercial advice are required.

A more accessible option could be real estate crowdfunding, a collective financing method where multiple individuals invest together in real estate projects to share profits. This type of crowdfunding is divided into two categories: lending crowdfunding, which allows lenders to provide funds for real estate transactions in exchange for interest; and equity crowdfunding, in which investors purchase shares in a company, becoming partners who share in both profits and losses.

In conclusion, we cannot overlook stock market investments if asked how to make money and grow our capital. However, it’s important to clarify that we are not referring to speculative trading, but rather to the art of long-term investing. John Bogle, the founder of Vanguard, strongly advocated passive investing through low-cost index funds. His philosophy was built upon several key principles, including broad diversification, minimal costs, a long-term perspective, and a risk-adjusted asset allocation. This approach involves holding funds that reflect market trends, such as the Total Stock Market or Total Bond Market, over many years, typically in the form of Exchange-Traded Funds (ETFs).

Long-term investing pays off, the data says so

Many gurus promoting easy money strategies overlook the importance of investments when discussing ways to make money. They typically start with the obligatory disclaimer: “past returns are not indicative of future returns” because predicting the future is impossible. However, historically, long-term investing in the stock market has proven to be profitable. 

For instance, the S&P 500, one of the most well-known indices representing the 500 largest publicly traded companies in the U.S., has achieved an average annual real return of 6.5%, adjusted for inflation. Similarly, the MSCI World index, which includes the largest publicly listed companies worldwide, has reported average annual real returns of 5.6%. 

It’s important to factor in the power of compound interest, which Albert Einstein called “the eighth wonder of the world.” Practically, leveraging compound interest means reinvesting the returns earned to generate additional returns. This creates a “snowball” effect: as the snowball rolls down a slope, it accumulates more snow, increasing its size and accelerating its speed.

Let’s consider an example involving a TikTok guru who offers lessons on making money through dropshipping. They charge €50 for an introductory lesson, €500 for a comprehensive basic course, and €2,500 for an advanced course, totalling €3,050. The question is: Will this investment be successful? It’s impossible to know for sure.

Let’s compare that investment with putting the same amount into the S&P 500 for 20 years. Based on historical data and reinvesting profits, you could potentially end up with around €10,500 at the end of this period. 

While neither scenario can guarantee a specific outcome, nearly 70 years of historical data and academic research inform our decisions regarding the S&P 500. In contrast, when it comes to the TikTok guru, we can often only rely on an inflated online persona supported by fake followers and rented cars for show.

 An inflated online persona supported by fake followers and rented cars for show.

The road to making money is long and winding, and the gurus know it.

Understanding how to earn a substantial amount of money without enduring long waits or struggles is a human desire. Even those who sell false promises of happiness are often just looking for creative—and sometimes deceptive—ways to achieve this. Consider this: why would someone who travels in private jets, drives only Lamborghinis, and dines exclusively on Kobe beef tartare waste time attending lengthy seminars and engaging in one-on-one calls? Is it to “diversify”? Or to “help humanity”? Or perhaps because the real way to get rich effortlessly is for you to purchase their course? The answers are clear.

Instead of relying on dubious figures found online, it is wiser to roll up your sleeves, study, and explore more realistic and legitimate alternatives, such as long-term investments in the stock market. If you’re interested in this topic, we at Young Platform regularly publish content on subjects like why you should invest in Bitcoin for the long term. Subscribe below to stay updated!

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Emergency fund: what it is and why it is essential

Emergency Fund: what it is and why it is essential

The emergency fund serves as a personal treasury for unexpected events, and it can be a lifesaver. How is it created, and what is its significance?

Many people recognise the emergency fund as a well-known concept, but often postpone creating it. The reason for this is straightforward: an emergency is an unpredictable and distant event that tends to seem less urgent than immediate issues with tight deadlines. However, when an emergency does occur, it can lead to significant stress and anxiety. In this article, we will explore why building an emergency fund is essential and provide a step-by-step guide on how to do it.  

Have an emergency fund: Be the ant in a world of cicadas.

The importance of the emergency fund has been part of human culture since time immemorial, if we think that Aesop wrote the fable of ‘The Ant and the Cicada‘ more than two thousand years ago. Admittedly, the Greek author does not tell us about the emergency fund, but he makes us realise how important it is to arrive prepared for the challenges that life, sooner or later, presents us with. The cicada sings all summer and does not worry about winter. At the same time, the ant slowly accumulates the necessary supplies: the cold arrives, the cicada goes hungry, and the ant serenely enjoys the fruits of its labour. 

This moral, although simple and obvious at first glance, shoves reality in our faces. We know perfectly well that the future will come knocking sooner or later, but despite this, we are only willing to take the initiative when we feel the breath on our necks. The result? Total unpreparedness mixed with panic and stress. 

The emergency fund serves precisely to avoid these unpleasant situations and to continue living our lives in peace, regardless of accidents, surprises or sudden desires. It allows you to buy a new phone, repair your car, or even go see Green Day in Florence without having to – a random example – sell the Ethereum you staked on Young Platform. Now that its usefulness is obvious, let’s see how to build an emergency fund, step by step. 

Creating an emergency fund is challenging, but it can be done.

Before proceeding to set aside finances, one must understand one’s savings goal because it is uninspiring and unwise to hoard money to the bitter end. To do this, you need to track and analyse your monthly expenses, fixed and extra, such as rent, petrol, food, subscriptions and so on. You can write them down in pen, use Excel or make your life easier with a budget management app. Now, multiply the figure by three or six, depending on your needs: the result of this complex mathematical operation equals your savings target, because the primary purpose of the emergency fund is to allow you to live without a fixed income. Once you have worked out how much you need to save, creating a strategy to make it a reality is time.

Putting money aside is a test of great discipline: the art of saving has to come to terms with the human soul and its irrepressible and impulsive desire for gratification. Moreover, it is exhausting when the goal is a large sum of money because it seems so far away. To reduce this cognitive load, specific strategies allow you to reach your goal by taking advantage of time, i.e., by installing the set amount in periodic instalments. Of these, the famous 52-week challenge would take you a year to build up your emergency fund. If, on the other hand, you want to speed things up, the advice is to make a kind of accumulation plan and withdraw a fixed amount of money. In this case, remember the teaching of the well-known book ‘The Richest Man in Babylon‘: if you receive a fixed monthly income, take it out and then live on the rest, never the other way around. This means that if you earn €1,300 a month, you first take out €100 and then recalibrate your life based on the €1,200 that remains, as if the €100 had never existed. 

Let us give a practical example to avoid any doubt. Our example is Mario, a 28-year-old boy living in Milan who works as an office clerk. Mario writes down everything for a month and discovers that his essential expenses amount to about €1,185, divided as follows: 

  • 750€ rent per month for a two-room apartment (he was fortunate)
  • 100€ bills
  • 45€ internet (Wi-Fi and mobile)
  • 40€ vehicle subscription 
  • 250€ supermarket shopping 

Mario decides it is time to start thinking about an emergency fund. He is 28 years old, young and knows that if he loses his job, he will be able to find another one in a relatively short time. His fund, therefore, should correspond to four months’ expenses: 1185 x 4 = 4740€. He rounds up and opts for the 5,000€. At this point, he will just have to figure out how to accumulate it. 

Perfect. You know how much you have to save, and you also know how to do it. The time has come to work on self-control. Of course, being rigorous and consistent in saving does not imply embracing asceticism: nobody is asking you to be the new Mahatma Gandhi. It just means concentrating and understanding what you really need. An interesting technique is to wait until the next day and ask yourself, “Do I still need that limited edition poster with Walter White and Gus Fring having lunch in Los Pollos Hermanos?” Yes, you will still need it. But you have been practising, and this exercise might save you a little extra next time. 

Nice but… the emergency fund has a big problem.

Your emergency fund now exists and is no longer just a good New Year’s resolution. However, it doesn’t end there, there is still one hurdle to overcome, the number one enemy of savings, the final boss: inflation. Indeed, in theory, this liquid treasure you have built up with so much effort, like a bit of ant, is destined to stay put for quite a while – knock on wood – because it is meant for emergencies. The problem is that time passes, inflation rises, and your emergency fund loses value.

You thought you had the solution ready to face the final boss, huh? Super Mario had to cross eight worlds to defeat Bowser and retrieve Peach. All you have to do is sign up below and read the articles we post about it, like this one. Until next time!

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BTCFi: What is Defi on Bitcoin and how it works

BTCFi: qu’est-ce que la DeFi sur Bitcoin et comment ça fonctionne

Taproot has enhanced Bitcoin’s competitiveness by introducing new features like smart contracts and decentralised finance (DeFi). This gave rise to BTCFi. What is it all about?

The Taproot update in 2021 enhanced Bitcoin’s competitiveness by improving its efficiency and privacy while enabling features previously outside its protocol, such as smart contracts and decentralised finance (DeFi). Since then, significant progress has been made, leading us to the concept of BTCFi (Bitcoin + DeFi). What does this entail?

DeFi: Finance for all

DeFi, the synthesis of Decentralised finance and Finance, is a universe of financial services that aims to exclude traditional intermediaries—typical of centralised finance—and their associated costs. This is possible because DeFi is built on blockchain and works thanks to smart contracts, self-executing digital agreements written in code and registered on a blockchain. These contracts are automatically activated without intermediaries when predefined conditions occur. 

We have been discussing decentralised finance since 2015, when Ethereum launched smart contracts, which are fundamental to its functioning. This article provides everything you need to learn more about this topic.

Today, the total TVL (Total Value Locked, an indicator that measures the total value of assets deposited in a decentralised finance protocol) in DeFi is around $90 billion, and more than 50 per cent of it is locked up in Ethereum. However, something has changed in recent months.

Taproot: Let the DeFi on BTC begin!

The Taproot update is considered a significant upgrade for the Bitcoin network. It increases its efficiency and privacy and, above all, extends the capabilities of smart contracts. Two main functions, the MAST and Schnorr signatures and Tapscript, Bitcoin’s programming language update, make this possible. We have discussed this in detail here.

Taproot has enabled new possibilities for programmability and privacy within the protocol. These changes naturally also affect Bitcoin, which is gaining use cases. 

Bitcoin dominates the market but is little exploited in DeFi.

As is well known, BTC represents about 63% of the crypto world’s total market cap, with a value of about USD 1.6 trillion. However, due to the incompatibility between its blockchain and Ethereum, it is tricky for holders to find a secure solution to profit from the asset held. Of course, some ways, such as wrapping and bridging, allow Bitcoin to be ‘transferred’ from its native blockchain to other chains, such as Ethereum.

Wrapping and bridging: risky solutions

The main problem is the security of the transactions, as one is exposed to the risks of the entities involved in these processes: merchants, custody services, and bridges could be subject to attacks and exploits, in addition to the inherent risk of the individual platforms operating in DeFi. However, the main deterrent is only one: Usually, those who hold Bitcoin do not want to part with it for any reason, and these transactions necessarily go through custodial wallets. 

Hence, there is a need to implement something that meets these demands: DeFi on Bitcoin or BTCFi.

What is Bitcoin DeFi?

BTCFi is an ecosystem of decentralised applications (DApps) of a financial nature built on Bitcoin. As simple as this may seem to be a definition, it carries complex consequences, especially if one relates it to the ‘old’ ways of using BTC in DeFi. The main differences:

  • Network: In Ethereum’s DeFi ecosystem, one has to use WBTC to trade, exposing oneself to the risks we saw earlier. On BTCFi, transactions are processed directly with BTC.
  • Security: Unlike wrapping BTC, which requires trusting the custodian, merchant, bridge, DeFi platforms, and underlying infrastructure, BTCFi is based on Bitcoin’s blockchain, which is unique regarding security and decentralisation.
  • Usage: While WBTC on Ethereum (or other chains) is mainly used as collateral or a medium of exchange in DEX, BTCFi potentially opens up all the use cases of traditional DeFi, as we will see below.
  • Custodianship: While wrapped, Bitcoin is held by a custodian such as BitGo, a centralised entity. BTCFi is natively non-custodial, as it is managed exclusively by decentralised protocols.

The advantages of a native DeFi on Bitcoin are apparent, and Bitcoiners seem to have understood this well. Defillama’s graphs speak for themselves: since April 2024, the TVL on the Bitcoin chain has increased from $490 million to $5 billion, equivalent to 63,000 Bitcoins. 

At the moment, the protocols that have catalysed the most BTC are Babylon, Lombard, and Solv Protocol. The first of the three dominates the ranking, with almost 4 billion (out of 5) Bitcoins on the chain. Lombard and Solv Protocol follow.

BTCFi: How to use it?

As we mentioned, Toot Bitcoin has use cases similar to traditional Bitcoin. The difference is that it is built and developed on the native blockchain without wrapping or bridging. Look at some practical use cases introduced by BTC’s native blockchain protocols.

Staking with Babylon

Babylon, for instance, allows BTC to be put on lockdown on the Bitcoin network to guarantee and actively participate in the security of other Proof-of-Stake networks. This mechanism, which has long been popular on the Ethereum mainnet, is called restaking. In this case, it uses the computing power dedicated to mining BTC by indirectly transferring it onto proof-of-stake networks. All this happens without the user being aware of it, since it is as if he receives rewards by staking his BTC, while on the opposite side, Proof-of-Stake blockchains can exploit locked Bitcoins to improve their systemic security. 

Liquid staking with Lombard and LBTC

Lombard also offers a similar service with an extra feature: liquid staking. Once one’s BTC is locked up, one can mine LBTC, an asset collateralised 1:1 with Bitcoin, to generate additional income. Due to its cross-chain nature, it is possible to use LBTC ‘around’ DeFi, as collateral for lending and borrowing, or even to provide liquidity to DEX. In short, LBTC is the equivalent of stETH for BTCFi.

Solv Protocol: towards unified liquidity

Finally, Solv Protocol, which offers restaking services, issues a version of BTC called SolvBTC. This represents an interesting attempt at BTC wrapping because it aims to solve the problem of Bitcoin’s fragmented liquidity: the various wrapped versions of BTC – WBTC, BTCB, BTC.b, etc. – are chain-specific and have little cross-chain interoperability, resulting in de facto ‘siloed’ Bitcoin. – The various wrapped versions of BTC – WBTC, BTCB, BTC.b, etc. – are chain-specific and have little cross-chain interoperability, being in fact ‘siloed. ‘ 

SolvBTC aims to unify Bitcoin’s liquidity across multiple chains as a universal BTC pool for DeFi’s users. This will allow for more agile asset use across different protocols. 

Advanced liquid staking: SolvBTC.LSTs

In addition, Solv Protocol, like Lombard, also has liquid staking functionality since you get SolvBTC by blocking SolvBTC.LSTs (SolvBTC Liquid Staking Tokens) in return. These, in turn, are divided into Pegged LSTs, which are pegged 1:1 to the value of Bitcoin, and Yield-Bearing LSTs, which grow in value over time because the revenue gained from the stake is automatically reinvested in the token.

We are only at the beginning of BTCFi

As you may have guessed, this is a newly developing world with infinite return opportunities: using your Bitcoins in DeFi while maintaining custody, without necessarily having to use WBTC, was a long-overdue possibility. If you want to be part of the change affecting BTC and DeFi on BTC, click below!