A Guide On Where To Invest Spare Cash

A Guide On Where To Invest Spare CashHave you made some extra money and want to understand where to invest your spare cash? Remember: It’s better to invest it than spend it on something you don’t need. This raises a question – where do I invest?

Coming up in this article I’ve covered some assets that you can invest in. But I’ve gone into the most detail about the emerging cryptocurrency market.

Offering the volatility that can turn spare cash into some sweet gains, the cryptocurrency market offers some great investment opportunities if you choose wisely. It helps to know what crypto is first – what is cryptocurrency? Once you have some idea, check out some tips on crypto investing below. (Psssst…I’m the daughter and sister to financial advisors and have picked up some insights and tips along the way!)

Investment Options For Spare Cash

With your spare cash, you have several options on where to put that money. Each option comes with its own advantages and disadvantages. Each requires some knowledge of the field to spot investment opportunities, too.

  • Stocks & Shares: The stock market can make you money if you know what you’re doing. It’s worthwhile remembering that most investors don’t turn a profit, so try to keep trades simple with a standard investment account. Buy low and sell high.  If you need help learning how to invest in the stock market, you can read a beginner’s guide to investing in the stock market.
  • Commodities: Many people buy gold and silver. Precious metals tend to appreciate with time, particularly gold, and aren’t as volatile as the stock market or cryptocurrency.
  • Property: Property is a slow-moving investment market that relies on the upgrading of buildings and the appreciation of land value. While house prices rise and fall, they can be rented for consistent income and land rarely depreciates.
  • Collectibles: Collecting certain collectibles can be a form of investment as long as they’re kept in pristine condition. People do this with stamps, coins, comics, and many other hobbies.
  • NFTs: An offshoot of cryptocurrency, Non-Fungible Tokens currently exist as digital collectibles and art pieces that are bought and sold online. While the tech behind NFTs has far-reaching implications, the digital art scene for them is big right now.

Where To Invest Spare Cash In Cryptocurrency

As for cryptocurrency, you should check out the most popular projects happening today. The cryptocurrency market is full of short-term buyers and sellers but history has also shown that long-term holders can make good money… As long as they hold the right assets.

Bitcoin & Ethereum

Bitcoin and Ethereum are at the top of most people’s suggestions. Even though these two cryptocurrencies are the most popular, they are still subject to the volatility inherent in the crypto market. When they do dip, many advise that new investors jump aboard the Bitcoin and Ethereum train.

This is because Bitcoin and Ethereum are commonly referred to as the gold and silver of crypto, so they’re relatively safe investments to recommend. Bitcoin is currently at five figures per coin but was at four figures this time last year. As more coins get mined towards its 21 million coin limit, its price will increase.

With Ether, the cryptocurrency backed by the Ethereum blockchain network, it’s currently at four figures while it was below $400 last year. Its explosion in value was partly due to the NFT market, where Ethereum’s ERC-721 token standard was used. As blockchain and crypto become more mainstream, Ethereum is positioned to benefit from that extra attention.

How To Choose Cryptocurrency Investments

Outside of Bitcoin and Ethereum, I can’t suggest other investments without things getting a little too volatile. That said, here’s what you can do to gauge how suitable other cryptocurrency coins are for investment:

  • First, hunt for possible investments on reputable, legitimate crypto exchanges and brokers that also offer crypto options. They offer the most stable cryptocurrencies that will expose you to volatility but not too much that you lose your shirt.
  • Before investing, check out the use case of potential investments. The best mid to long-term investments aren’t just animal faces slapped onto a digital coin, they have the technology behind them that are beneficial to the space and have a viable future. Read the cryptocurrency’s white paper, it’ll tell you everything you need to know.
  • Cryptocurrency is similar to fiat currency, where its value is dependent on the market. That’s why Bitcoin is limited at 21 million to keep it in demand. The more coins in circulation, the less each coin is worth, and the less value the project has.
  • Check who the developers are (they should have public profiles) and take a look at the community behind the project. Are they active? Enthusiastic? Or is it a cynical pump and dump? The community is a sign of the project’s long-term potential for growth.

Get More Tips To Become Your Most successful You

As you might know, I started my career working in New York’s top ad and marketing agencies – rising up quickly to Senior VP.

But then I quit in my late twenties (to my parent’s horror) to pursue becoming a (hoped for) bestselling author.

Plus I wanted to help people – in a more personal way – as a branding and marketing consultant. Thankfully, my career plan/dream worked out! Now I love to help people with their writing, marketing and various entrepreneurial ventures. You can explore working with me 1-on-1 here

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