Last Updated on Apr 14, 2020 by James W
What would you answer be if someone asked you where to put their money? With so many options out there it can be pretty hard to decide. Luckily, the cheat sheet below can help you pick the right choice. Read on to find out how.
Property remains a popular choice for investors all over the world. Primarily because it is a tangible asset that will remain, even if the market itself collapses. It is also usually seen as a low to medium risk investment, depending on the particular market of the place you are buying in at that time.
However, buying property as an investment isn’t that simple. First, you have to decide what type to buy, be it private or commercial? Then you have to decide what you will do with it. Some investors like to hold on to their purchase and then sell it later when the market is up. Others choose to lease out the building or land they have bought for a small monthly profit. Still, others make a choose to renovate the property or build on the land. Something that takes considerable additional investment, but can produce the fastest turnaround of profit.
Another choice that includes the benefit of being something concrete is investing in gold or silver bullion. This is different to trading these commodities on the stock market because that is always about the abstract tradable instrument rather than the asset itself. Put simply, if you buy silver coins or gold bullion it is something that you will actually own and be about to touch.
Many people prefer bullion and as an investment choice, because it protects against inflation, and also mean they still have something with value in their possession in the financial market collapses. Something that can give investors a much stronger sense of security in the long term.
Cryptocurrency is another option that investors should consider. It is one of the newer markets and as such get a lot of attention in the mainstream and financial press. It is based on the idea that banking doe does not have to be done through a centralized organization, but can be done virtually online.
The way this works is that customers buy cryptos which they can then use to pay for things in transactions. Transactions are carried out via a decentralized process of encryption, and validation using small amounts of power and memory from geographically dispersed computers. The people that supply this computer power are paid for this service too. Something that means it is possible to make money by investing in the hardware to do this and mining crypto in your own home.
Also, like any currency, the value of cryptos can also be leveraged to gain profit. This can be done by trading it as a currency between exchanges or trading it in the style of a forex asset. Both high-risk, high reward ventures, making them more suitable for an investor that is looking for a faster return and isn’t constrained by concerns of loss.