During times of an economic crisis, people will likely look for profitable opportunities and ways to earn additional money by investing their own funds. As a result, a question arises regarding the safety of the invested capital, and its potential returns. How does one find a way to make profitable and safe investments? The abundance of the choices of investments available for a private investor these days is scary and disorienting. Everyone seems to want to invest a small amount with minimal risks and get maximum profits in return. Only in Wonderland.
If you wish to play the game of investments, you should understand what type of investment opportunities there are and what their peculiarities are. We can highlight four major types of investments that many modern private investors like to play around with, two of which are becoming increasingly unreliable and unprofitable in our opinion. These are: financial markets, real estate, bank deposits, and cryptocurrencies.
Investments into financial markets are arguably one of the most profitable types of additional sources of income, hence, why most investors prefer it. This involves trading on Forex, where you can trade currency pairs, the stock market, where you trade shares and securities, and, of course, commodities like gold, silver, oil, and many others.
With the right choice of a broker, these types of investment come with a nice number of advantages, which include:
Investing in real estate has lost its relevance and ceases to attract investors more and more with each passing day.
The reasons for this are:
Bank deposits make a profit based on the interest rates that the banks offer. If we were to talk about the shortcomings of this type of investment, they are as follows:
Revolutionizing our understanding of how money works, cryptocurrencies made a name for themselves with the introduction of Bitcoin by Satoshi Nakamoto in 2008.
Introducing the groundbreaking blockchain technology, cryptocurrencies have become incredibly attractive and profitable investments.
Here is why:
In 2009, after the publication of Satoshi Nakamoto’s white paper describing the creation of a digital and fully decentralized p2p system, Bitcoin (BTC) became the first cryptocurrency in the world. Today, bitcoin is a generally accepted alternative currency with a capitalization of over $68 billion, and is used in a multitude of fashions. However, with…