If you are thinking about investing, and you should be, it is important to understand that it is in no way an exact science. Some people might make money regardless of what they invest in while others lose everything.
The easiest and most straightforward way to evaluate anything you are considering investing in is by looking at how many people have made money with it.
Some of the things people invest in offer high risk but also have the chance for high returns. Others are low risk with low returns. The best investment options are the ones where you have low risk and high returns.
Let’s take a peek at a few of the best options.
Bitcoin is a kind of digital currency, or cryptocurrency, and a payment system that is relatively new. It was created by a man called Satoshi Nakamoto.
He published his invention back in 2008 and then it was released as an open source type of software the next year. The system works on a peer to peer basis, meaning that users make their transactions without the use of an intermediary. The transactions are each verified by the network nodes and are then recorded in a ledger that is publicly distributed called the blockchain.
People who want to invest in Bitcoin can do so in one of two ways. They can purchase it outright from a variety of sources on the internet. They can also mine for it with “mining” services like Genesis Mining.
Both can be looked at as a type of investing because the end goal is to get the Bitcoin and then sell it when the value rises…which it is bound to happen due to there being a finite amount available. When you mine for it, you are investing both your time and your money, while buying it outright is just an investment of money.
Investing in real estate is interesting because of the many ways that you can do it. You can buy shares in one of the many real estate investment trusts or you might try the direct ownership approach. That one is probably the easiest way to just jump right in.
What happens is you find a piece of property that you think you can make a profit on by either renting it out or selling it for a higher price than what you paid for it. If you rent it out, you really only have to pay for the loan origination fees and down payment on the property out of your own pocket.
When you have it rented, the income for the rent can pay the mortgage and you might even make a bit over that amount each month.
This is an investment class for those who don’t mind taking a bit more risk in search of massive results. Speculation can be described as an art that has to do with investing in various stocks that have a very low value.
This strategy is based on the investor being able to buy a larger amount of stocks for his money. For example, a stock might have a current price of $2 and only advances $.02 during the day.
This means that those who invested in it made a 10% profit on their investment in a single day! Typically, investments of this type can swing wildly in both directions because of market capitalization and the low price of the stocks.
Because of this, they can offer some of the best options for investing as long as you can handle the risk that goes along with them.
Arbitrage is a strategy for investing that is used when you think two businesses might be ready to merge or if one of them will take over the other one.
This can be quite profitable because when businesses are acquired, they can have extreme changes in the prices of their stock. So, the question becomes, how can one benefit from this type of thing?
The heart of this lies with being able to predict when a business might be a takeover target for other businesses. If you can do this, you should buy shares of the target business and sell shares of the business taking over the other business.
As with any other thing people invest in, do your research and make sure that you are willing to take the risk for the return you might get.