During times of an economic crisis, people will likely look for profitable opportunities and ways to earn additional money by investing their own funds. As a result, a question arises regarding the safety of the invested capital, and its potential returns. How does one find a way to make profitable and safe investments? The abundance of the choices of investments available for a private investor these days is scary and disorienting. Everyone seems to want to invest a small amount with minimal risks and get maximum profits in return. Only in Wonderland.

If you wish to play the game of investments, you should understand what type of investment opportunities there are and what their peculiarities are. We can highlight four major types of investments that many modern private investors like to play around with, two of which are becoming increasingly unreliable and unprofitable in our opinion. These are: financial markets, real estate, bank deposits, and cryptocurrencies.

Financial markets

Investments into financial markets are arguably one of the most profitable types of additional sources of income, hence, why most investors prefer it. This involves trading on Forex, where you can trade currency pairs, the stock market, where you trade shares and securities, and, of course, commodities like gold, silver, oil, and many others.

With the right choice of a broker, these types of investment come with a nice number of advantages, which include:

• • High earnings and independence of profitability from the local economic and political situation of the country that you reside in;
• • Safekeeping of funds on offshore accounts by brokers, which significantly increases the chances of you being able to return both your investment and acquired profits without much legal trouble;
• • Transparency of trade. Anytime and anywhere in the world, you can learn about the situation in the market and calculate the probability of your income via the Internet;
• • There are plenty of examples of successful investors that are open to sharing their knowledge. When trading on financial markets, it is important to understand that without a competent broker, don't expect high profits from trading. In addition, if you manage to assemble a team of professionals to work together, you may very well turn your time and cooperation into a stable source of high income.

Real estate

Investing in real estate has lost its relevance and ceases to attract investors more and more with each passing day.

The reasons for this are:

• • Instability of the many nations' economies, that is, frequent depreciation of various properties;
• • Increase in the waiting period for profit, which is due to the abundance of the commercial real estate market;
• • High risks associated with the partial or complete lack of liquidity;
• • Significant loss of profitability from these type of investments in general.

Bank deposits

Bank deposits make a profit based on the interest rates that the banks offer. If we were to talk about the shortcomings of this type of investment, they are as follows:

• • Low guaranteed returns. The initial investments are influenced by inflation, yet when signing the contract, the percentage of the depositor's profit remains fixed;
• • The unreliability of banks, especially as of lately. During a crisis, a bank can fail at any time, and depositors won't be able to get their money back;
• • The impact of economics and politics within the country on the banks.

Cryptocurrencies

Revolutionizing our understanding of how money works, cryptocurrencies made a name for themselves with the introduction of Bitcoin by Satoshi Nakamoto in 2008.

Introducing the groundbreaking blockchain technology, cryptocurrencies have become incredibly attractive and profitable investments.

Here is why:

• • They have several uses. Bitcoin, in particular, can not only be used as a digital currency, but also as a tool for trading securities digitally, for insurance claims, for settlement between financial institutions, for crowdfunding and many more;
• • The potential for gain far surpasses any potential for losses. This is constantly proven by the incredible returns and people becoming millionaires by buying the right coins at the right time;
• • Easy access without any requirement for a middleman to manage your funds;
• • Provides interest on your investments, good ones for that matter, in the long run.

Blog news