Wednesday, February 10, 2021

7 Alternative Investments To Stocks

 

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Got some money to invest, but looking for an alternative option to the stock market? Here are 7 alternative investment options to stocks.

Forex trading

Forex trading involves trading real-world currencies. By buying a currency that is rising in value and then converting it back, it’s possible to make a big return. When getting involved in forex trading, it’s important to use a reliable broker. Forex trading can come with its risks and involves a lot of research into currencies. 

Cryptocurrency

Crypto trading is similar to forex trading but with digital currencies such as Bitcoin, Ethereum and Ripple. These currencies similarly rise and fall in value - making it possible to buy a currency that is rising in value and make a profit. There are lots of different crypto exchanges online that you can use for trading crypto. Cryptocurrency is more volatile than forex - you have the potential to make much bigger returns, but also much bigger losses. 

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Precious metals

Precious metals such as gold and silver are a good investment for people that want the security of investing in something physical. You can buy precious metal in the form of coins, bullions, bars or even jewelry. You can find exchanges for trading precious metals at sites such as gsiexchange.com/. While prices can fluctuate from year to year, precious metals tend to be a secure long-term investment

Real estate

Real estate is a popular investment - although it tends to require investing a lot of cash upfront. It includes residential buildings such as houses and apartments and commercial buildings. A lot of people make a return from real estate by buying property and renting it out to tenants or businesses. Another option is to buy a cheap property, make improvements and then sell it for a higher value (such an investment strategy is often known as ‘property flipping’). Real estate is a very hands-on investment and it does come with its risks; however, it’s easier to make a larger return.

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Collectibles

Some items are able to increase in value over time as a result of becoming trendy and rare. These are known as collectibles - they include the likes of art, vinyl, classic cars, old coins and limited edition toys. To maintain their value, collectibles need to be kept in good condition. Like fixing up real estate, it’s possible to add value to some collectibles by restoring them (such as classic cars and art). Not all collectibles will increase in value, so there can be risks involved. 

Peer-to-peer lending

Peer-to-peer lending involves giving money to others as loans over the internet. The person borrowing the money then pays it back with interest. This is usually done through a secure peer-to-peer lending platform which takes a share of the profits while ensuring that the person borrowing pays back the full amount. Some of the best peer-to-peer lending sites are compared here at investopedia.com

Savers and bonds

Savings accounts and bonds are the most secure form of investment - but also likely to make you the lowest return. Banks offer savings accounts, while bonds are offered by the government or companies (these are loans that are similar to peer-to-peer lending, but with added security). By shopping around, you can find the best rates.

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