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Crowdfunding vs. Investment Platforms: What Sets Them Apart

At first glance, both allow internet users to deploy capital. However:

• Crowdfunding Platforms (e.g., Kickstarter):

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    Focus on creative or charitable ventures

  • Backers receive non-financial rewards or early products

  • Projects often have finite durations and specific goals

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  Online Investment Platforms (e.g., Robinhood, eToro):

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    Offer access to stocks, ETFs, crypto, and other financial assets

  • Aim for financial returns (capital appreciation, dividends)

  • Provide ongoing trading, portfolio management, and analytics

Crowdfunding is about supporting a cause or product in exchange for perks, while investment platforms center on building wealth through tradable securities.