What are other potential investment opportunities to keep an eye on similar to cryptocurrencies?

Having more than one stream of income was less of a priority and more of a choice prior to the pandemic, it’s different now. One stream of income is next to none if you think about. Cryptocurrency is volatile, perhaps these coins are being banned in different countries as we speak, so come with me *wink*

1. Staking

Staking is directly related to certain cryptocurrencies. Staking is the process of authentifying the transaction made on the blockchain of said cryptocurrencies. While for Bitcoin, transaction are verified by proof of work (solving complex algorithms), some emerging cryptocurrencies have taken a different approach and verify transaction through proof of stake. Proof of stake is done by making each transactions pass through a pool of the asset. For example to transfer an amount from to wallet A to wallet B, it will go from A to the pool, then B will receive the authorization to withdraw said amount from the pool. This allows for privacy/anonymity and is still decentralized since it is the holders that are contributing to the pool. The holders are more over rewarded for their participation in the pool. A little similar to what interest are, the holders who participate in the pool will receive a percentage of their contribution, this is what is called “staking”.

Multiple coins offers staking possibilities, to participate in the pool you often need a certain amount of the coin in the first place so there is some barriers to entry. However this is a great passive investment which can earn some significant amount in the long term thanks to cryptocurrencies’ trend on the market.

2. Peer to Peer lending platform

FinTech’s has brought numerous opportunities on the market for individuals to get return on capital outside of the banking systems. Among those opportunities, P2P lending platform are standing out as an easy and mostly safe option.

You can expect return 2 to 5 times higher than traditional investment vehicles, users have experienced 11% yearly return on average (APR).

Platform like Mintos, allows to lend to business and individuals. However, while the risk is low and the company is supposed to paid back the principal and interest if it default (as with any debt), there has been cases of funds locked into said platforms after the company bankrupted.

3. NFT (winner takes all)

Recently crowned as the trend to follow in 2021, the NFT market is quite young but is growing as a tremendous pace. It is a rather risky form of investment ,nonetheless, NFTs in demand are selling for millions, while they only cost mere dollars to buy at launch.

This market is developing at a rapid pace with an always increasing numbers of digital artists proposing their creations. The vast numbers of creations can make it difficult to identify the high-return ones though. Nonetheless, it is a little like the real-world art market in the sense that there are some recognized collections and artists whose productions serve as a store of value (like the cryptopunk). And when the market will take off and be mainstream (probably with the mass adoption of VR/AR), those pieces will likely have an ineffable value. (hard to put a price on La Joconde). For the moment it is still a speculation tool.

4. Stocks (green stocks)

Thanks to Covid-19, the stock market is still in expansion for now and some stock shows incredible returns. Tech stocks like Apple or Google have benefited from the crisis, but others one to watch out for are green stocks from companies whose business model will have a large impact at scale on the environment. Biolargo for instance, in the business of water treatment, has strong financials and is an innovative company with effective patents. Knowing that a patent last for 20 years, this type of company has the potential to see its stock price skyrocket in the near future, backed by civilian demand and governments supports.

5. Bonds (Corporate and Treasury Bonds or Municipal bonds)

Bonds have always been a valid investment choice. They offer a greater yield that a typical bank saving account and are a good addition to a medium to long-term portfolio. One of the most secure type of investment, bonds emitter are rated based on their fundamental like countries from AAA to D ( http://www.worldgovernmentbonds.com/world-credit-ratings).

6. Real Estate In Dynamic Cities

With inflation around the corner, investing in real estate assets will prove beneficial if you have the capital. As we know real estate is always in demand and with a smart placement (look at hedonist characteristics), you can even make a return on investment by selling it later on.

Two models take advantage of this. Flipping, which consists in buying a home, refurbish it and then sell it at a higher cost. And direct long-term investment in dynamic cities. The record for coming renovations, new buildings and city-wide estate projects are available to the public through your municipality. Identifying the next trendy neighborhood, the next high-demand city is quite easy if you know where to look, who to ask.

7. Growth ETFs & Mutual Fund

Growth ETFs (Exchange Traded Funds) and Mutual Funds are a basket of stocks (like Index Funds) that allows you to unlock diversification while owning a single share. Diversification lessens the risk, it is often recommended to owns at least 50 varied-industry company stocks. Growth ETFs are particular ETFs in the sense that their basket is composed of high potential company (think Tesla, Microsoft, Alphabet etc…). Some mutual funds offers the same but they tend to be more conservative, in addition mutual funds are actively managed by a portfolio investment manager and they generally charge a hefty fee while they do not have an obligation of result which can be a deterrent. Nonetheless, most of them have good returns (or they would already be out-of-market).

These are the main investment opportunities you can consider, besides you may also need to consider the degree of participation you would like to take in those investment, if you are looking for something passive and without much to learn, to monitor, NFTs may not be the best suited. While if you are looking for extremely high growth potential, bonds may not be the best choice. So it is a matter of taste as much as a matter of personality. The question is, are you a risk-taker?