Your Options When Investing Money as a Beginner

If you’ve never invested money beyond putting it in a high-interest savings account, the idea can be daunting. Here are some of the options available to you, with a brief description of each one.

Cryptocurrency

You may have heard of bitcoin, even if you’re unsure exactly what it is. However, lesser-known cryptocurrency includes Ethereum and Litecoin. These are all forms of digital currency, which can be used to trade and make purchases online.

Cryptocurrency is considered an investment when bought for the sole purpose of waiting for the market price to rise before selling and making a profit. As with other investments, there’s no guarantee if or when this will happen, so it’s worth speaking to someone or learning as much as you can before investing your money in cryptocurrency or anything else.

Using a credit card can be the simplest and best way to buy cryptocurrency.

Stocks and shares

Stocks are shares in multiple companies, while shares are usually referred to when talking about just one company. As a beginner, it’s best to start with buying shares in just one company, until you learn more about the best stocks and shares to invest in. As with most things where money is involved, stocks and shares can be used in scams. So, you’ll need to learn how to find reputable companies to invest in to avoid being scammed, no matter how you choose to invest.

Kickstarter

Investing in Kickstarter campaigns doesn’t have the same potential to make money as stocks and shares or cryptocurrency. Instead, this can give you or your business advertising opportunities. For example, you might be mentioned in a book you invest in or have an advert featured on their website. If you’re looking for paid advertising, this might work out cheaper but can be more of a risk because you can’t guarantee how many people will see your ad, or respond to it.

Real estate

As a beginner, investing in real estate can be risky. Although it’s possible to research by looking at the prices of nearby properties of the same size before you buy. If the property you purchase needs a lot of renovation, you should try to come up with a realistic budget for the work and materials needed, and how much work you’ll need to do. Then you’ll see if the potential gains are worth it. If you still want to go ahead, it might be worth starting with a smaller property that needs less work. You could still make a smaller profit and use it as a test to see if investing in and working on a bigger property would be right for you.

Crowdfunding

Investing in loan-based or equity-based crowdfunding is another option. This lets you either loan money and recuperate it with interest, or invest directly in a start-up or new project and share in the rewards if this is successful.

Being a newcomer to investing doesn’t mean you shouldn’t try it. There are lots of options and it’s always best to start small and learn as much as you can.

 

 

 

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