Investing Commentary

Alternative Investments To Consider In 2020

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The traditional way to invest your money is by purchasing tangible assets which you can quantify and sell them for a good profit in the years to come. The internet, however, has opened up many more investment routes, so you would be putting yourself on a backfoot if you did not take the many digital options available at this time into deliberation.

The good thing about investing your money digitally is that you do not even need to leave the comfort fo your couch to make your money. However, before you rush to your computer and start investing your cash or are pressured to do it, it is vital that you do your research and find out as much as you can about your chosen form of investment.

Cryptocurrency

There are various online digital currencies available these days to invest your money in, but most people have heard of Bitcoin. This is by far the most popular, and as it stands now, the most lucrative cryptocurrency. It is a digital asset, used as a form of payment in digital transactions. While with traditional forms of currency, money is held in a centralized bank, Bitcoin and other forms of cryptocurrency are decentralized, and records are stored online in mines. You can find out more about these at www.topdatacenters.com. There are no physical coin alternatives to cryptocurrency – it’s entire existence is digital.

Cryptocurrency is available through online platforms, and trading sites called a crypto exchange. The cryptocurrency is vulnerable to volatility on the market, as you would expect from the stock market. Before trading and transactions in digital currencies, make sure you know what you are doing.

Peer to Peer Lending

Peer to Peer lending, or P2P as it is otherwise known, is the practice of individuals and/or businesses being matched with lenders. While traditional methods of loaning money are like bank loans, a peer to peer loan is different. In one of these, the lender – who is the investor – transfers the capital straight to the person receiving the loan. Of course, this is all monitored and potential lenders can see the information about who it is that they are lending the money to so that they can make an informed decision and weigh up the risks.

Of course, there are risks with this particular type of lending – the person or organization borrowing the money can always default on repayments as they could via other loan methods, and you may lose your money. However, the lender is always in control of whom they loan money to and the interest rate and frequency of the repayment.

Like any investment, you are still at risk of losing more money than you initially invested. This path certainly is not for everyone, and if you are uncertain in the slightest, do some more research and hold off until you are sure one way or the other.

Become a digital landlord

We all know that becoming a physical landlord is lucrative and one of the most profitable forms of investment that there is, but have you thought about becoming a digital landlord? Yes, that is an actual thing!

Essentially, you buy websites that have a good ranking in search engines, perhaps a high domain authority. You then lease them out to business owners for a monthly or annual fee, depending on the terms of your contract, much in the ay that you would with physical property. You get the benefit of the income; they get the benefit of a ready-made website with excellent search engine optimization and authority.

E-commerce

More and more businesses are moving towards offering virtual services and looking at how they can connect to not only their local market but the global market. This means that there are more opportunities than ever to invest in a brand new e-commerce business. It is a great way to keep up with the ever-changing dynamics of online business. Look for gaps in the market and follow new trends to help you to decide what company to invest in.

The most important thing to remember is that before you invest, whether a digital or tangible asset is to do your research. Investments by their very nature are risky, but it is how risk-averse you are that makes the difference. Digital assets are becoming more and more popular and commonplace so for those who are hoping to make a buck in the future; it is pretty important that they are taken into consideration as part of a diverse investment portfolio.

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