5 Alternative Investments for 2018

Looking for something more than the measly returns you're getting with your traditional investments?   Looking to diversify into something new?  I've put together different options for alternative investments.

These alternative investments do carry different degrees of risk and like all investments make sure you do your own research and never invest more than you can afford to lose.

Copy Trading

Why try and pick the right stocks to invest in yourself, when you can get someone with much more experience to do it for?!  That's the basic premise behind copy trading.  When you copy trade, you automatically copy the trades made by more experienced and hopefully profitable traders.

eToro is the worlds largest platform for copy trading. You can browse through the profiles of thousands of traders, see their past trades and performance and allocate money so that you can invest in their future trades.  Copy trading helps reduce some of the risks associated with trading and makes buying stocks, forex, commodities etc more accessible.

Micro Investment

10 years ago, you couldn't invest in stocks or funds without a large amount of capital.  These days, you can invest in a broad range of assets with as little as $5.  Apps like Acorns have opened up the world of investing to a whole new range of people.  Acorns transfers small amounts of cash (think $5) at regular intervals to an investment account.  This money is invested across a range of assets based on your investing goals (you can choose how aggressive you want your investment to be).   And you don't need to pay huge amounts to a fund manager.  Just $1 a month.

Acorns is my favorite but there are a growing number of these types of apps.  If I was a fund manager, I would start getting worried.  Because as soon as the “older folks” realise how much they are wasting in fees etc, they too might embrace this technology.

Cryptocurrency

If you had invested in cryptocurrency a few years ago, you would have been pretty wealthy by now.  It's impossible to ignore cryptocurrency anymore.  Even if you invest small amounts, the chance of large returns is still there.

Coinbase allows you to invest small amounts in Bitcoin, Ethereum and Litecoin at regular intervals.  It's basically dollar cost averaging for crypto.

Cryptocurrency is very volatile, so never invest more than you can afford to lose completely.  Although it might be tempting to invest in a bunch of alt-coins, unless you understand the technology, it's probably best to stick to buying into the big boys like Bitcoin and Ethereum.

Cloud Crypto Mining

Hashflare is a cloud mining platform.  You basically purchase computing power in the cloud to mine cryptocurrencies.  I'm testing the platform at the moment, and the jury is still out whether you can make money from Hashflare – but I feel like this is a space that will potentially get more and more popular.

Copy Portfolio

Another product from Copy Trading platform, eToro.  Copy Portfolios are investments based around different themes.  For example there is a Big Tech fund, which invests in the big tech companies.  Or a Gaming copy portfolio which invests in gaming companies.  Whats different about these funds compared to others is that there are no fees and it's all done online.  You can buy into and the close out your position at anytime, and instantly.   The funds are automatically rebalanced each month.


Disclaimer: eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.

Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 78% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.

Past performance is not an indication of future results.

Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.

eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.

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