In today’s market investors don’t have limitations on what they can invest in. This is what alternative investment means. They have a very large range of investments. Stamps, art, equity, cryptocurrencies, and NFTs are just of them.
Alternate investment options – The best ones in 2022
The stock market is probably the most used for investing. But this is not the only way if you want to invest. Many investors are looking for new alternative ways for increasing their portfolios.
Research showed that over 60% of Americans are looking to invest their money in alternative investments. One of the main reasons for this is the diversification of their portfolio. You should never put all of your eggs in the same basket.
Alternate investment options were only for the rich and wealthy investors. But this is not the case anymore. These kinds of investment options are now available even for small investors. Here are some of the best alternate options for 2022.
This is probably the best alternate investment option in the last couple of years. Some of the investors that we’re one of the first ones to invest in crypto had some great return incomes over the last couple of years.
It is not too late even now to jump on the crypto train. Currently, the crypto market had a little bump but we are sure that it will bounce back. There is plenty of room for cryptocurrencies to continue their growth.
Before investing always make sure to understand the market and make deep research about the cryptocurrency you want to buy. Investing in cryptocurrency can be very risky, but also very rewarding and it can be worth considering.
Investing in real estate is also a great idea. You can buy your own house, flat, or apartment and rent it to tenants. You can collect a nice income by collecting rent. Another possibility is buying a cheaper property, renovating it, and then flipping it for a higher price.
Before buying a property, you should ask yourself if you want to be a landlord. Being a landlord comes with a lot of responsibilities. Your tenants can break something at your property, or they can be late on their payments.
If you want to be a landlord without all these headaches you have the option to hire a company for property management. They will handle all the responsibilities that come with it for a certain amount of money. This is something you may want to consider.
Your other option is to find a partner to invest in and manage a property together. This way you will split the risk and the responsibilities. Another option is to use some of the online investment platforms for real estate, but these types of investments can be very risky and we don’t recommend you to dive into them.
Gold and other precious metals
Gold, silver, platinum, copper, and palladium are the safest bets when we are in a time of an economic crisis. They are not your typical alternate investment, but still, they live out of the main marketplace. Gold and other precious metals are a safe bet because of their long-term value.
Another advantage of buying precious metals is that they are easy to buy and easy to sell. Also, even in times of a recession or inflation they still store the value. Gold is the number one competitor to stocks.
There are different ways for investors to get gold. You can buy physical gold, such as coins, bars, or any type of form, ETFs, gold accounts, or even directly invest in gold stocks. If you are a small-time investor probably the first way is the one for you.
This type of alternate investing is a relatively new concept and it is growing over time. Over 20% of Americans are using this kind of service. It is called P2P lending because you basically lend money to borrowers, like a bank. These services offer loans for personal use and for small businesses.
Lender set and interest rate for their services. Depending on the risk, higher risk comes with a higher interest rate. The P2P market is quickly accelerating and if you want to come aboard and loan money to others you better join quickly.
With P2P lending the middle man is cut off, which means there is no bank involved. The returns that you can make from P2P lending can be high.
The main risk here is that you don’t know the people you are lending money to and they probably don’t have the best credit score. You have the risk to lose all your money, so be careful which clients you will decide to lend money.
Start your own business
If you have a great idea you can use it and start your own business. You can start your own business with just a couple of hundreds of dollars. If proven to be successful you have the possibility to earn the highest income. But also there is a risk if the company doesn’t succeed you will lose all of your money.
Another thing you can do is a side business. That way you will invest only a part of your time and money. You will have less risk involved and a steady income that can grow over time.
A survey showed that over 80% of successful investors recommend investing in art. If you have a good eye for art you can make a lot of money.
Art investments were only for the rich and wealthy but since the pandemic that has been changed. Because of the COVID-19 art galleries started to sell their art and rare collectible online. Now even if you are a small-time investor you can buy artwork as a part of your alternative investment.
This market grow by over 15% in the last two years. Investors are embracing this trend and they are strongly recommending investing in art.
Also read: Top Mistakes to Avoid During a Recession