Investing Commentary

3 Investments that Require Professional Advice in 2021

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Financial independence is a dream for most people but one that many won’t achieve. That being said, many wealthy people made their money by carefully investing and reaping the rewards of good returns. Even with the current economic climate being extremely uncertain because of the pandemic, you might have some capital ready for investment, but just because you have it, doesn’t mean you should throw it around at anything.

Traditional investment opportunities are an excellent way of making money from long-term investments by such things as futures, options, or even franchises, but the past few years have seen some new investment strategies that have the potential to make huge returns.

Some of these include:

  • Cryptocurrency
  • Startups and Ventures
  • Real Estate

Currently, at an extremely high value, cryptocurrency is worth a lot of money but will cost you a lot to invest, despite its volatility, while startups that seem like a good idea can take a nosedive pretty quickly and although it’s not a new opportunity, real estate is currently an uncertain venture because of the unpredictable market.

Cryptocurrency

You’ve probably heard of cryptocurrency since it seems to be on the news (financial news at least) every single day. However, you may not know exactly what it is. Essentially, crypto is a digital form of money that can be used as an exchange asset instead of money but is encrypted with technology so it cannot be counterfeited.

It’s true that many people have made a lot of money investing in cryptocurrency but the market is extremely unpredictable and can go from extreme highs to extreme lows very quickly. At the moment, 1 Bitcoin is valued at $38,960 after achieving a record high of $60,000 in April 2021, so before investing in crypto make sure you seek advice from a  Bitcoin Investment Plan professional in order to mitigate and minimize any of the unpredictable risk associated with these digital currencies.

Startups and Ventures

There are many stories of startups becoming successful and going on to become major players in their sectors. Airbnb is now one of the world’s foremost holiday home booking systems, AngryBirds is played by more than 200 million people each month and Uber generates roughly $6 billion per year from its 22,000 employees all over the world.

But for all the amazing success stories, there are just as many failures, with even some of the best ideas turning to salt before they have even made a penny. Streaming service Quibi was shut down only 6 months in for lack of innovation, Singulex faced multiple lawsuits for paying kickbacks to doctors for referrals, and do we even need to mention Elizabeth Holmes and Theranos?

Real Estate

While this isn’t a modern venture, real estate investment is actually one of the best investment opportunities that you can engage in. However, the trouble lies in the extreme market fluctuations and its dependence on local, national, and sometimes global economies that can dictate the value of a property. At the moment, and quite shockingly, the Covid-19 pandemic has actually driven up the price of real estate in many countries as residents look to secure larger homes for working at home and homeschooling during lock down restrictions.

In a cruel twist, prices have risen so high in the United States that first-time buyers are becoming priced-locked out of the property market. You might think that now would be a good time to buy then, but recent history has shown that when the housing market (or any other for that matter) expands like this, it ultimately falls spectacularly, which could leave you out of pocket and holding the bag.

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