For centuries now humankind has been obsessed with the idea of creating financial security and over the same period, they have created several vehicles of ensuring they stay comfortable with their earnings. However, times have changed since money was introduced and new ways have crept up providing those money conscious individuals to not only keep the money they make but also grow it.
Over the last decade or so, a new class of assets has been introduced to the world. Unless you live under a rock, you have probably heard of virtual currencies.
Bitcoin was the first successful cryptocurrency and since it was created it has risen in value several fold making earlier investors millionaires.
This has attracted the attention of most people and if you are one of them, here at Thecryptocurrencypost we have the right kind of resources to guide you on your journey to making the right investments in virtual assets. Take the time to comb through the website.
But first, we will discuss different ways to invest your money in light of the changing landscape of investments and where or not you should consider investing in Bitcoin and other virtual assets.
In this short guide, we will highlight some of the channels available for you if you want to invest your money. Most of these channels were available back in the day before even Bitcoin was introduced and they are still viable options. We are talking about stocks and bonds, gold and other commodities and properties.
With the introduction of technological innovations especially with regards to the internet and us of computers, several other investment vehicles have been created not unlike most of the age-old ways.
Where can I invest my money?
Despite the increasing use of technology when it comes to choosing and investing in assets, the investments themselves are sadly not changing with time. For decades, investors have more or less put their money in popular channels with a proven track record.
These include investing directly in companies through stocks, investing in company or treasury bonds, precious metals such as gold or silver and commodities. Let us dig deeper into these assets and see if they are still worthy investments in the age of crypto.
Stocks / Equity
Investing in stocks means that the investor has contributed capital to the company and is then entitled to a claim of the profits gotten from that capital implementation.
Despite their popularity, stocks are still risky investments and some investors over the years have lost their investments after giving their money to the wrong companies.
However, if an investor chooses the right kind of stocks to purchase, they can be rewarded handsomely, some for years and decades as the stocks rise in value. Stocks will always be available as long as companies are still being created.
Buying and selling properties has always been a staple of most investors as it offers low risks and relatively consistent high returns. It is believed that the value of a property will always rise and this may be true to an extent but not always.
The number of times that the value has gone down is significantly less than the number of times that the value has risen. Owning property is a safe option for investing your funds especially if you are investing in the long term.
Real estate is not just about owning a piece of land. You can also own a piece of property such as rental houses for private and commercial use.
Gold as a form of investment is considered to be one of the most secure assets to invest your money into and for good reason. The value of gold is often decoupled from the general stock market enabling a smart investor to hedge their bets with Gold.
Gold can be in the form of gold bars or gold ornaments such as rings, necklaces, and other jewelry. You can also invest in gold in terms of market derivatives such as investment funds that track the value of gold or gold prices. These are more speculative but more or less give investors exposure to the stability of the value of gold.
Silver and Platinum
Unlike gold, silver and platinum despite being precious metals are also useful as industrial metals used to make metal parts and used in industrial processes.
Their value appreciates and depreciates according to their demand for complementary goods such as vehicles and metal components.
Crowdlending is an interesting form of investment that has become popular with the advent of the internet. It involves investors loaning their funds to projects and getting their funds back with interest. Sometimes these funds can be turned into equity if the contract allows once the project has become successful.
Cryptocurrencies have been around for over a decade now and in this short period have posted crazy returns to investors.
For instance, Bitcoin has some of the largest gains in history. Back in March of 2010, the price of a single bitcoin was $0.003. At its highest value in December 2017, only eight years later, that figure ballooned to $19,700. That is a massive 6.6 million times.
It is worth noting that this is not an isolated case. Most cryptocurrencies have seen massive gains over the years.
Precautions and Advice before Investing
It is quite common for investors to lose their investments by making the wrong choices at the wrong time. Investing is equal part art as much as it is a science. Here at The cryptocurrency post, we advocate for responsible investing no matter what kind of investment vehicle you choose.
Despite the amazing returns we have highlighted above related to investing in cryptocurrencies, some investors actually lost their investments chasing the crypto hype train.
Investing in cryptocurrencies is not worlds apart from investing in the stock market or precious metals, you still have to do your research and only invest what you can afford to lose.