Investing is a challenge, especially in an economy shattered by pandemics, supply chain issues, chip shortages, and countless other short and long term concerns.
The good news is that creative investors are always finding ways around traditional barriers to investing. If you’re worried about stepping into a potentially overvalued stock market in 2022, here are some alternative investment opportunities that should be on your radar.
Cryptocurrency has been all the rage for the past decade. Since 2020, the crypto market has performed particularly well, even though it is accompanied by its massive up and down swings.
The initial cryptocurrency madman may be fading into the rearview mirror, but that’s not due to a lack of interest. On the contrary, widespread adoption is becoming more and more likely.
This has the potential to make crypto a solid investment strategy that could last for a long time. It might not give the same explosive risk-reward experience as the first few days, but the crypto tour is far from over at this point and deserves further study.
The continued explosive growth of the NFT world goes hand in hand with cryptocurrency. The NFT trend is newer than cryptocurrency and in many ways offers a more explosive chance for success.
The challenge for investors here is finding quality NFTs that have the legs to go the distance. Research your NFTs before making a purchase. If you’re having trouble creating a quality NFT at launch, look for a well-established alternative that’s already published.
For example, DeadHeads is a fan favorite project which, although already launched, has remained a solid investment. After a value of 0.09 ETH in June 2021, the floor value of NFTs (i.e. the lowest value one can buy) has doubled in price over the next six months. The project also has long-term value through an ongoing animated series that features previously owned NFTs.
Projects like DeadHeads can provide great investment opportunities. Just look for signs of long-term investment value, such as a quality NFT community and a visionary track record.
3. Real estate
The world of real estate continues to inspire dreams. Rising home values mean that getting into the action becomes an increasingly expensive proposition.
Fortunately, there are still plenty of ways for investors to find a backdoor into the expensive real estate market in 2022.
For example, existing homeowners should be looking for ways to invest in their own home. Angi’s outsourcing professionals highlight a number of home improvement projects that can provide a high level of return on your investment when you go to sell your home in the future.
Another option is to search for foreclosed homes. These can present valuable opportunities to flip a house and sell high in a bloated market.
4. Peer-to-peer loan
The decentralization of many traditionally expensive investment opportunities has opened many unexpected investment doors. One of the peer-to-peer loans is the one that continues to gain popularity.
An investment as simple as it sounds, peer-to-peer lending involves committing your own money to a system that allows others to borrow it. You are paid back in small installments that ultimately leave you with your original money with a tidy sum of interest on the side.
While peer-to-peer lending is a great investment option, be careful about how you allocate your loanable funds. Look for a trusted lending platform, like Upstart, to faithfully manage your money.
Stocks and bonds are a great way to plan for the future, but they should never be your only investment. If you’re looking for a way to increase your rewards, even with a little extra risk, consider options like the ones listed above for increasing your portfolio in 2022. Here are also some cash alternatives to help you out. diversify if you are in need of other outlets.
From meta-options like cryptocurrency and NFTs to tangible real estate projects to traditional but state-of-the-art financial loans, the opportunities are always available to any savvy investor who is ready to seize them.