Crypto currency

The Best Investment Options that Aren’t Cryptocurrencies

The Best Investment Options that Aren’t Cryptocurrencies

Cryptocurrencies have become one of the hottest topics in trading. Indeed, ever since the Bitcoin boom of 2017, the price of cryptos has been a talking point not just for financial experts but the general public at large. With mainstream media outlets reporting on the latest surges and Elon Musk tweeting about Dogecoin, people without any knowledge of investing have suddenly become interested in the topic.

That’s great news for the industry. However, what many novices fail to realize is that investing doesn’t start and end with Bitcoin et al. In fact, to some seasoned investors, cryptos are low on the list of attractive investment options. Of course, everyone has their own opinions about what’s worth investing in and what isn’t. We know Bitcoin’s price has increased significantly since it launched in 2009. However, it’s also fair to say that it’s a volatile asset.

There are, however, other ways to invest your money. Every investment carries some level of risk and no positive returns are guaranteed. But there are so-called low-risk options and medium risk options. The definition of what’s a low, medium, and high-risk investment can vary, depending on who you ask. The point here is that you don’t always have to invest in high-risk assets such as cryptocurrencies.

Investment options in 2021

With this in mind, let’s take a look at the most popular investment opportunities in 2021:

Stocks

Like all investments, stocks are never guaranteed to increase in value. However, the right stocks typically have a positive long-term EV. For example, blue chip stocks are companies that have little or no debt, and, generally, a stable debt-to-equity ratio. Moreover, blue chip companies also have large market capitalizations (their total dollar value of outstanding shares of stock).

These things often run in tandem with a reputation for quality and excellence established over many years of trading. Some companies that fall into the category of blue chip stocks are Apple, Coca-Cola, Berkshire Hathaway, and Johnson & Johnson. To demonstrate why Apple is regarded as a potentially profitable long-term investment, you only have to look at its 10-year growth.

Its share price was $11.64 in December 2011. In December 2020, it was $73.41. That’s an increase of 530%. More significantly, the annual closing price for Apple shares has been higher than the previous year for all but two of the last ten years. That shows it’s not only a profitable stock, but a consistent performer, which is what you want from a blue chip company.

The Best Investment Options that Aren’t Cryptocurrencies

ETFs

The Vanguard S&P 500 and INVESCO NASDAQ 100 were two of the most popular Freetrade ETFs in 2021. That means they attracted more investment activity than any other ETF. That’s not necessarily a measure of success or a reason to invest in them. However, market sentiment is a powerful thing and savvy investors often follow the trends. If you subscribe to this way of thinking, those two ETFs could be worth investing in.

Again, like stocks, ETFs aren’t guaranteed to provide a positive return. However, these financial instruments are designed to cover a variety of securities (i.e. stocks, commodities, and other financial instruments). Covering a variety of securities is a way of offsetting losses in one area with gains in another. For example, the S&P 500 covers the 500 largest companies in the US. If a few lose money, the index’s overall price won’t be affected too much if other companies have grown. That’s why ETFs are a popular investment option.

Real estate

The final investment option that many Americans are turning to is real estate. Property can be a volatile market but, historically, it presents a potentially positive investment opportunity. Data from the National Association of Real Estate Investment Trusts (NAREIT) shows that the average 25-year return for property is 10.3%. That’s actually a better return than the S&P 500 over a 25-year average (9.6%).

Again, this doesn’t mean buying property is going to make you money in the long run. However, it’s another established investment option that might be better than Bitcoin et al. Diversity is important when it comes to investing, which is why it can be useful to look at all of your options and not limit yourself to one type of product.

 

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