Traditional advisors suggest you keep all your savings in banks, mutual funds or bonds, however, that does not mean everyone is doing that, nowadays. We have people investing in unusual ways such as cryptocurrency, forex, and startups.
Most people think that the only way to invest is to wait until they are wealth to so. But they are wrong, you don’t even need to be an expert to invest, and all you need is to have that willingness to do so to secure your future.
However, currently, new ways of investing have come up that even target individuals with less capital. You don’t need to have millions of cash to make your first investment that can bring lots of riches.
Here are three Unusual ways to invest.
3 Unusual Ways To Invest
In the past several months we have seen blockchain technology heating up at a volatile rate. For instance, Bitcoin rose from about $1000 in March to reach about $8500 in Mid-November, and at the time of writing this article, it had risen to $11,126 (29th Nov 2017).
Investing in cryptocurrency when the value is low and waiting until it’s the highest, you can make lots of profits. Similarly, the bitcoin value is not stable, and if not studied well you can lose everything in investments
Everybody wants to enter the Bitcoin marketplace, and this makes me thinks maybe that’s why the currency is very unstable due to high demands. There are also other cryptocurrencies to consider such as Ethereum, Ripple, Litecoin, Monera, Bitcoin cash, Zcash, etc.
How can you invest in cryptocurrency? You can look into blockchain startups, crowdfunding platforms, and invest in ICOs (Initial Coin Offerings).
Forex means buying as well as the selling of currencies. And when you predict the correct direction the pattern will follow you’ll make a considerable profit. These profits solely depend on how much money you have staked. For Instance, when you see EURUSD is trading at 1:540, it means 1 Euro costs 540 USD.
Here are some tips to consider if you want to engage in the forex industry.
- Transaction cost – In forex you only require catering for one transaction alone, which is the spread.
- No ownership of the physical –The currencies order is recorded by your broker, with losses as well as profits being echoed according to the market prices.
- Carry trade – Where the currency you long gradually pay a higher interest in a positive carry trade. You can also lose all your equity during a negative or unfavorable carry trade.
- Not exchange recorded – There no transfers in forex trade, but the deal takes place at the counter.
Startups are young companies or new businesses that are beginning to develop. You don’t need to be accredited investor for you to invest in that group, nowadays, everyone is eligible to do so. It has been made more accessible because of the crowdfunding regulation where you can buy company shares online or buy a specific percentage of the equity.
- Here I’ll state some tips to consider before investing in a startup.
- Scrutinize the legal documents.
- Know the risks involved.
- Do your own valuation.
- Meet the founders.
- Lend more than invest.
Before considering to invest, make sure you don’t have any overdrafts or debts, which can take up more of your money paying interests and charges instead of investing that amount elsewhere.