Are you looking for new ways to invest? Are you looking for something beyond just ETFs. Thankfully these days there is a world of different opportunities out there.
Here are 5 unique ways you can invest $1000 in 2021. I think there is something here for everyone, no matter what your investing goals are.
Bitcoin has been my top performing investment over the past 5 years. It's definitely a unique way to invest. It's also highly volatile and unpredictable. I have no idea where the price of Bitcoin is going. And there is a risk you could end up buying into Bitcoin right before a crash.
A more sensible approach to investing in Bitcoin is through dollar cost averaging. All this means is investing small amounts at regular intervals. When you do this you reduce the risk of buying in at the wrong time. Sometimes you'll buy when the price is high, sometimes you'll buy when it's low. Overtime it will average out.
On Coinbase, you can setup recurring investments for dollar cost averaging.
Copy trading is where you automatically copy the trades made by more experienced investors. Trading is difficult. It takes time and discipline. Two things many of us don't have an abundance of.
When you copy trade, you're taking advantage of someone else's knowledge and skill. When they make money, you'll make money too! You can browse through the profiles of traders, see how profitable the have been in the past and what type of strategy they are using. Copy trading is one of my favourite alternative investments as I can set it up and it works by itself.
You can start copy trading with as little as $200.
These days building a diversified portfolio of stocks is now cheaper and easier than ever thanks to fractional shares. With fractional shares you can buy just a fraction of a share instead the full thing. This is particularly useful for shares that are priced over $1000 such as Alphabet.
You can invest in stocks with as little as $10 at a time. This means if you have $1000, you can build a portfolio made up of numerous different companies.
You can find out more about buying fractional stocks here.
Did you know you can earn interest on your crypto! So instead of it just sitting around doing nothing, you could be earning up to 12% interest per year. It works just like a savings bank account, but for cryptocurrencies. I consider crypto savings to be much riskier than bank savings. So I wouldn't go ahead and put my life savings into it. But it is a great way to turn any spare crypto you have lying around into a money maker.
Here's a bit of a crazy one. Did you know that you can invest in Whisky. This is something I've been dabbling around with over the past 12 months. Every year, many of the top distilleries in the top Whisky producing countries (Scotland, Japan and Australia) release special editions. These special releases can easily fetch 2x+ on the resale market. And they tend to appreciate in value over time as they become rarer and rarer. Some distilleries are so valued by Whisky aficionados that every bottle gets snapped up (not just the special releases).
There are also opportunities to invest in actual casks of Whisky. You basically provide cash up front and then receive a return once the Whisky has aged and is bottled. There is even a marketplace where you can exchange shares in Whisky barrels.
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. 67% 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.