Traditionally, stocks were considered as the go-to investment option for anyone who wanted to make some passive income, however, everything changed last year when Bitcoin reached its new high. Soon, the terms like cryptocurrency, the blockchain technology, and token became household names, even amongst those who aren’t exactly considered tech-savvy.
Moreover, the number of resources and learning material on this topic grew, as well. This made some people streamline their investment plans towards cryptocurrencies while failing to even consider some of the traditional options. For those who managed to avoid this trap, here are six investment alternative to cryptocurrencies that are still more than valid.
The first thing you should probably consider investing in is real estate. The reason behind this is the fact that real-estate investments are incredibly simple even for layman investors to understand. Namely, if you’re in the renting business, you need a property that returns about 1 percent of the total value each month (the so-called 1 percent rule). Once again, it’s incredibly simple to understand conditions of success here. Same goes for buying properties, restoring them and selling them, as well as constructing buildings that you’ll sell or rent later on. In every single one of these scenarios, the situation you’re in is incredibly easy to understand, even if success isn’t as successful to achieve.
The second great investment option that you might encounter is the prospect of investing in the stock market. In fact, this is such a popular choice with a tradition so long that it just feels wrong to even call it an alternative to investing in cryptocurrencies. If anything, a cryptocurrency investment should be considered an alternative to investing in the stock market. For this to work, however, you should probably start with mutual funds and ETFs, until you have enough experience and technical prowess to head out on your own. Either way, there’s a lot of learning material and online tools to help you out with making your baby steps.
In the introduction, we mentioned the term traditional, next to the word investment. When it comes to this, keeping your assets in the form of gold or silver, or even investing in palladium, might still be a great idea. The market of these precious metals abides by different rules than the stock or forex market, which means that if the latter starts going down in value, these commodities may still preserve their value. In fact, this is usually what goes hand in hand, seeing as how people start turning towards commodities once they start losing trust in organizations, governments, and companies. As for whether it’s the right time to invest in precious metals right now, the only way you can know that is by consistently tracking the prices online and drawing your own conclusions.
The reason why trading on the forex market is such a great investment opportunity is due to the fact that features like the forex margin and forex leverage allow you to earn a disproportionately large profit, compared to the money invested. Moreover, it provides the user with so many different opportunities due to the fact that the number of currencies out there is simply amazing. Beginners are, nonetheless, advised to stick to the four major pairs – EUR/USD, USD/JPY, GBP/USD, USD/CHF.
When it comes to the idea of investing in art, most people assume buying a painting of a relatively unknown artist and waiting for them to become famous. In theory, this could bring ROI that returns money in thousands (even tens of thousands) of percent, yet, this is incredibly unreliable and inefficient. Instead, you should look at it just as one more investment plan. This means looking for art funds or joining private investment partnerships that specialize in art.
This last part is what the idea of investment was probably originally like. You find a person with a good business idea and a lack of funds and give them what they need in order to bring it to life. Nowadays, this can take place in various forms, from direct investments to peer-to-peer lending. Either way, you stand to make a sizable return and the other party gets their shot in the business world.
At the end of the day, you need to understand that, even though we’ve tried to cover as many different types of investments, we simply couldn’t encompass it all. For instance, diamonds are just as viable a commodity investment as gold or silver, while investing in commercial property creates a whole different scenario when compared to a residential property investment. At very least, you now know what your options are.