Knowing what to invest in at any given time is the hallmark of any good investor and/or entrepreneur. All over the world, thousands of opportunities lie glistening in the sun, but only a few can genuinely make money within a reasonable margin of risk.
Historically-speaking, two of the most popular investment directions have always been the real estate market and precious metals, particularly gold. But in recent years, cryptocurrencies such as Bitcoin and Ethereum have been too profitable to ignore. So let’s take a closer look at each item and see how they stack up moving forward:
1. Real Estate
Buying up property with your hard-earned money has been a time-honored investment option for people who prefer going the safest route. While real estate is not impervious to market crashes or bubbles, it does tend to create a sense of security and ownership that are priceless whenever things start spiraling out of focus. If you’re considering going in this direction, a good idea would be to start small and purchase a few one or two room apartments that you can easily rent out in order to test the market.
According to experts at LockedOn, the markets are recovering and it’s the right time to jump in. Of course, those with a penchant for home remodeling can also undertake bigger projects that they can then fix up and sell at a substantial profit.
Pros: reliable; creates a sense of security; generates a slow but steady growth.
Cons: profits might not be substantial for small-time investors, potential costs owing to climate hazards can wreck a once-good investment.
2. Gold and other Precious Metals
Investing in precious metals such as silver and gold was for years one of the smartest investment decisions a person could make. The latter alone has proven to be a veritable goldmine during times of crisis. That’s because gold and silver typically work to counteract the effects of a declining US dollar and rising inflation rates, since they are priced on an international scale.
That being said, in recent years the price of gold has stalled in comparison with other investment opportunities, leaving investors to wonder if the time for making money out of precious metals has passed. That being said, the reports of gold’s demise have been greatly exaggerated. While its cultural cachet has dimmed somewhat, gold still represents a safe haven for investors, particularly those who aren’t willing to risk their money in the virtual landscape of cryptocurrencies.
Pros: a still-good way of preserving wealth; universally accepted; can be pawned in emergencies instead of being sold.
Cons: profitability rates have dropped sharply with the rise of cryptocurrencies; less popular with the millennial crowd.
By some distance the most profitable investment category in recent years, cryptocurrencies have sprouted up like mushrooms since Bitcoin’s appearance in 2009. In the last half-decade alone the market has experienced wild swings in popularity, from the nadir of the Mt. Gox era to its current stratospheric levels of popularity. At this point, the crypto world is like a stock market on steroids, with hundreds of currencies trading at prices that can sometimes double overnight. Of course, the reverse is also true, and many overzealous traders have lost fortunes chasing the next big thing.
But even more conservative traders would agree that simply stashing some of your money in Bitcoin stands a substantial chance of increasing your portfolio over the coming years. If you are thinking about investing in this volatile market, keep in mind that virtual money is susceptible to all sorts of fraud and theft attempts. Instead of keeping all your money on an exchange, be sure to invest in a quality hardware wallet such as Trezor or Nano Ledger, and don’t put a penny in before you’re aware about the risks you’re exposing yourself to.
Pros: very profitable; many opportunities for generating passive income, including staking and mining various coins; stands to grow even more as it edges towards mainstream acceptance
Cons: incredibly volatile, can erase long-term investments in minutes; requires a basic knowledge of its underlining technology before one can start safely investing.
That concludes our overview of some of the most popular investment opportunities of today. As always, remember to do your own research before putting down money in any direction, and refrain from making quick judgement that you might regret later on. Keep in mind that that there will always be promising investment ventures as long as you keep an open mind about these things.