Some major dips notwithstanding, the cryptocurrency rocket ship has been bursting through the exosphere in recent years. For people getting into investing, crypto has become the market du jour –– the exciting yet volatile asset class that can yield significant returns –– as Maria Palmer detailed in a previous post here. As much potential as crypto holds for savvy (and lucky) investors, however, it has almost become so trendy as to overshadow other perfectly reasonable investment options.
So what else is out there for those looking to grow their finances?
Stock Markets
Traditional stock markets are grabbing the most headlines outside of crypto of late, due in part to the wild bull runs of certain stocks and sectors. It’s also noteworthy that just as beginning investors don’t have to mine or purchase entire crypto tokens, fractional share platforms like eToro have revolutionised stock trading in recent years; now, those who want to dabble in stocks can make small trades right from their smartphones, even when shares of an asset in question are quite expensive.
Even with options like these out there though, U.S. News & World Report’s primer on stocks conveys that newcomers should take a careful approach with a specific strategy in mind. The process of investing in stocks has gotten easier, in other words, but to profit still requires hard work and diligence.
Forex
It may surprise some to read that the modern market for currency exchange is actually the biggest in the world by volume, with trillions in USD being traded each day. And while the currency trade is somewhat less visible than the stock market, and can thus seem more obscure, an explainer on opening forex accounts at FXCM conveys that getting started is a straightforward process that no one used to setting up online accounts should have trouble with. You simply need to find a reputable forex platform, set up an account and an initial deposit, and start buying and selling currencies against one another.
Of course, generating positive returns takes a good deal more than signing up with a trading platform. You’ll need to learn the terms, study up on the strategy, and perhaps more than in most markets, work out a trading strategy whereby you can take advantage of the market during optimal times. But in time, it’s ultimately another accessible investing option.
Real Estate
There’s no such thing as a risk-free investment, but if the heart-stopping spikes in crypto and stock market line graphs and the rapid pace of forex spook you, real estate is usually considered more stable.
This is due to the finite and generally steady nature of the assets. Business Insider’s overview of real estate options describes a variety of ways to invest, including some you may not have thought of –– from REITs (real estate investment trusts) to purchasing your own home. Take the time to find an option you’re comfortable with, see if you have the capital, and you may just have an investment you can more easily manage in your spare time. That said, bear in mind that real estate bubbles do occur, and the market –– while more stable than alternatives –– isn’t guaranteed to be favourable.
There are other markets to consider as well, such as commodities and securities. But all three of the above make sense for anyone who wants to invest in something that isn’t necessarily the red-hot headline grabber crypto is right now.
