At its peak, Bitcoin's value was 83% higher this year than its opening value at the start of 2023! Having all of your wealth tied up in crypto is always a bad idea, but if you had a portion of your wealth in Bitcoin, then you would be seeing exceptional gains right now. This principle applies to all the different types of investments in your portfolio.
Cryptocurrencies and other alternative investments can set you up for marvelous short and medium-term gains. Why not look at our five alternative investment ideas and see if you could fit a few into your investment portfolio?
Peer-to-peer lending is a more efficient way for people with excess cash to lend to people who need money than using the financial system. Banks take a big chunk of your interest earnings, even if your money's in a long-term savings account. P2P lending services take less commission and offer higher returns for this investment strategy.
Like P2P lending, you'll give capital directly to people with great startup ideas. However, you're not lending money in exchange for interest; you're buying shares or part of the new business. You can manage the risks involved by choosing which business you'd like to back, so do plenty of research. You can also employ the help of investment managers with prime brokerage capabilities to get the best out of your investments.
Gold is the classic value-saving commodity, but many more are out there. Other precious metals, industrial metals, oil, and natural gas holdings are all superb investment decisions because these commodities will always be in demand and valuable. The considerable downside with commodities is that most have the highest entry price of any investment type in this article.
Real estate is arguably the best alternative investment because the land is indestructible. These investments are permanent, widely varied, and incredibly flexible, making them a staple of any sound investment strategy.
You and your friends can pool together to co-own property; you can get a loan to do it yourself, use cash if you have, or sometimes you're lucky enough to inherit it. Additionally, you benefit from a value-gaining asset and rental income in every scenario. You can also get these benefits in small increments by investing in REITs.
Rare coins, baseball cards, wines, whisky, and other collectibles with extensive lifespans also make decent investments. Rare alcohols even have indexes that track gains!
Collectibles owe most of their value to their rarity and uniqueness and can gain a lot quickly. However, for these items, you often have to invest in special wine or whisky storage services and a safe for your cards and coins.
Your personal investment portfolio is an integral part of your personal finance. Good portfolio management can make the difference between a life of stagnating estate value and a life of increasing wealth. By incorporating a few alternative investment ideas into your portfolio, you can profit from opportunities that a traditional investor would ignore.
P2P lending, equity crowdfunding, and collectibles are often considered fringe activities, but they make massive gains. Commodities and real estate are more traditional and still work well in the modern world. If you want to learn more about these investments and how to fund them, visit the rest of our blog today.