The world of investment, whether in traditional stocks or in material goods that acquire value over time, can seem intimidating and daunting to the first-time investor with little knowledge of how the system works. Images of frantic Wall Street financiers on the trading floor spring to mind, and especially after the 2008 crash, the concept of investing has acquired an air of risky gambling to it. If you’ve got enough capital sitting in your bank account, though, there are smart ways to invest your money that minimize the risk while maximizing potential returns; this list of quick tips provides some ideas on being ahead of the curve in the world of investment.
Stocks and Shares
There’s a burgeoning amount of information available online on investing that can be as useful as it is impenetrable. With so many different forecasting companies vying for your attention, it can be difficult to know who and what to trust. Thankfully, there are some tools and models that you can get under your belt to guide your investment in stocks and shares, such as the Ichimoku cloud settings that help you predict future stock movements, informing smarter investments.
The ‘in’ form of investment in this decade and perhaps the one to follow, cryptocurrencies, led by the likes of Bitcoin, are forever in the news. This is mainly due to their instability and non-conforming fluctuations that can make you rich quick or lose you a lot of money. Looking beyond Bitcoin to the new technologies and cryptocurrencies is where the smart money is being placed; do your research into up-and-coming cryptocurrencies, add some ‘coins’ to your online wallet, and watch as the currencies rocket into the mainstream.
For first-time investors and young people in general, investing in property can seem the most distant of dreams in a generation that’s likely to be renting well into their 30s. But it’s precisely because of this that getting a mortgage on a property under your belt is such a lucrative investment, saving you decades of rent payments and establishing a foothold on the property ladder. This will be all-important when it comes to making the next step to a comfortable family home. Ensure your credit rating and financial record is sparkling, save for your deposit, and invest in a property that remains one of the smartest forms of investment.
Art and Commodities
One of the creatives is looking into investment in paintings, sculptures, or any other form of art that you believe may one day increase in value by a degree of hundreds. It may take some astute knowledge of the world of art and its patterns, or a gut feeling that an artist is producing era-defining art. This can be one of the cheapest and most rewarding forms of investment for first-time investors. Art rarely depreciates in value, and at least you’ll possess a stunning painting for your troubles.
Invest smart with these handy tips, and you could see your wealth increase at a rate of knots that is impossible when your capital is languishing in your bank account.
While his background is mostly related to trading stocks, he recently gained interest in real estate crowdfunding with Fundrise.