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Top investments to take advantage of

Cryptocurrency, index funds and real estate are underdog investments making waves in the market. Here are some reasons why they make the headlines today.

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It’s been said that there are essentially only two ways for you to make money. You can trade your time for money, and you can make your money earn for you. If you want to make as much money as possible, it’s a good idea to use both methods. Starting to invest is a wise decision, but if you don’t know what you’re doing, you’ll end up with mixed results. Here are a few of the top investments that you may want to take advantage of.

Cryptocurrency

One of the hottest investment trends you should look into is cryptocurrency. Cryptocurrency is a type of electronic currency that is created by private groups and individuals, as opposed to government central banks. One of best-known cryptocurrencies on the market today is Bitcoin. It has been around the longest and has the best track record in the market. Ethereum is another digital currency that has grown rapidly popular in the last year. Ethereum is attractive as it provides a mechanism for applications and smart contracts to be executed on the network. The token, known as “ether,” is what makes the applications on the network work. This means that as more applications get created and go into use on the Ethereum network, the more valuable the ether tokens will become.

In the last year alone, the value of one Bitcoin went from around $1,000 to as high as $20,000. Ethereum has undergone faster growth. Within the last year, it has gone from trading under $50 to being worth as much as $1,400. The great thing about cryptocurrency is that it’s still relatively early on in its development. Less than 1 percent of the world currently owns any cryptocurrency. As that number increases to 5 and 10 percent and higher, the value of Bitcoin and other currencies will likely increase exponentially.

Index funds

Index funds are one of the more tried and tested methods of investing. An index fund is a mutual fund that is designed to track the stock market as a whole, instead of trying to track individual securities. Historically, the value of the stock market has always increased higher over time. Individual companies go bankrupt. Individual stocks perform poorly. Stock prices can be affected by many different things like news reports, earnings reports, and rumors. The market as a whole is not as shaky as individual stocks and has always gone up over time.

Stocks

Top fees are of utmost consideration when investing in index funds. (Source)

There have been sustained periods of downturn in the stock market. You might have several months or a year where the performance of the market is not great. However, if you keep a long-term approach in mind and don’t try to beat the market, you’ll be making money. When choosing an index fund, it’s important to look out for high fees. Typically, the fees you pay have a drastic impact on your return overall.

Real estate

Investing in real estate is another effective way to make a return on investment. As the economy keeps improving, the value of real estate traditionally increases. Some investors like to go after investment properties like commercial real estate or apartments. Others prefer owning smaller residential rental houses. Real estate can provide you with appreciation in value over time, and it can provide you with a regular stream of income. Many investors like real estate because it allows you to use other people’s money when you buy the asset. Getting a mortgage on the property makes it possible for you to just make the down payment, while the bank pays for the rest.

The way that you hold the real estate can have an impact on your financial status as well. For example, using trust deeds may be to your advantage compared to simply owning it in your name.

Regardless of what you decide to invest in, you should start now rather than later. Giving your investment plenty of time to earn you money is what is critical.

DISCLAIMER: This article expresses my own ideas and opinions. Any information I have shared are from sources that I believe to be reliable and accurate. I did not receive any financial compensation in writing this post, nor do I own any shares in any company I’ve mentioned. I encourage any reader to do their own diligent research first before making any investment decisions.

Robert Cordray is a former business consultant and entrepreneur with over 20 years of experience and a wide variety of knowledge in multiple areas of the industry. He currently resides in the Southern California area and spends his time helping consumers and business owners alike try to be successful. When he’s not reading or writing, he’s most likely with his beautiful wife and three children.

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