When it comes to investments, diversification is crucial to realizing profits. Unfortunately, many investors focus primarily on traditional stock trading and may overlook other potentially lucrative opportunities. While all investments involve some level of volatility, relatively safe choices can act as an inflation hedge during specific economic cycles. Discover five alternative investment options beyond the stock market that boost your possible returns.
One is Silver and the Other Gold
Precious metals have been an alternative investment tool for generations because they are liquid assets. Also, gold typically has a minimal correlation to the stock market, making it a viable option during times of financial turmoil. Historically, gold has held or increased in value when the S&P declined. Sites such as insights.masterworks.io offer the latest insights about alternative investments to help investors make wise decisions.
Another option is cryptocurrencies, which use blockchain technology to handle transactions without a go-between. While there are hundreds of choices, with the best know being Bitcoin, with the most significant representation of the current crypto market. In fact, many institutional investors are holding Bitcoin as an investment. Since it attracted public attention in 2017, the price of Bitcoin increased more than seventeen times over. However, recent volatility has everyone wondering about the future of cryptocurrencies.
Own a Business
Owning a business is another timeless way to produce ongoing revenue beyond traditional income and investments. However, many business ventures are risky and could result in a total capital loss. As a result, many investors choose a well-established franchise to realize a return on investment. Popular franchises, such as Taco Bell and The UPS Store, often require an initial investment of $5 million or more, putting them out of reach for certain investors.
Explore Equity Crowdfunding
Investors with less available capital can own a small part of a business owned by someone else. Equity crowdfunding websites are another alternative to investing in the stock market. If a business succeeds, the investor owns part of it and realizes gains. Like any other investment, there is also a risk of loss if the company goes out of business. Sites to explore include Fundable and AngelList. Another option is real estate crowdfunding at sites such as CrowdStress, which can start with a minimal investment of about $500.
Check Out Peer-to-Peer Lending
With crowdfunding in mind, another option is peer-to-peer lending (P2P) platforms that offer loans to individuals and businesses around the world. These platforms operate much like crowdfunding, with investors pooling their money to lend to the borrower based on due diligence. Monthly payments include principal and interest, with potentially larger returns that other investments based on risk. Sites to explore for P2P opportunities include Prosper and Kiva.
People work hard for their money and want to realize returns for investing. While all investments are potentially volatile, a diversified portfolio tends to yield the highest and most reliable returns. Exploring alternative investment opportunities helps investors remain profitable during global economic crises. Explore opportunities such as crowdfunding, cryptocurrencies, and P2P lending to keep earning solid returns on your investments.