The most effective way to make money is by spending money. Well, it may sound cliché but it’s the actual truth. Today, you can simply use your smartphone to invest millions in the stock market in a few seconds, but that wasn’t the case back in the old days.

History of modern investing can be traced back to the Amsterdam stock exchange market. It connected wealthy parties interested in investing in several opportunities. This made investment standardized by offering different types of services; liquidity, public value, and low transaction fees. This flare of investment opportunities from Amsterdam soon reached Europe and it helped in the development of stock markets.

This article gives you some descriptive pointers about the old and new investment opportunities that are available today.

Buying Shares of Companies

This is the most common type of investment, which is also relatively an old one. More often than not, it is usually the most expensive because it needs a big capital. It’s considered a growth investment because it’s a long-term venture. Growth investment means that your original investment increases in value over a relatively long period of time.

Shares allow you to receive dividends, which is a profit from the company that you invest in, depending on the percentage you own. This type of investment is one of the most volatile ones, the status and value of your shares are directly related to the fluctuations of the market. It needs a lot of patience and ability to take risks to capitalize on it.

Investing in Gold Coins

Precious hard metals like gold have been a popular form of investment since ancient times. Well, gold coins are still used to this day, mostly due to its effectiveness and the non-ending popularity of gold. You may find some people suspicious about investing in gold asking “are gold coins a good investment?” The answer is yes. This is because of the nature of gold, in that its value is almost always going up, even when many other markets are declining in value. Inflation has little effect on the value of gold. Politics and economic conditions always cause the monetary value to fluctuate, unlike golds. Many stock investors use gold as a side investment and forget about it until it reaches a high or a crest, and then capitalize on the profit.

Investing in ICOs and Cryptocurrencies

This is considered one of the newest types of investments, and one of the riskiest as well. They are still developing and haven’t reached their final stage, yet billions of dollars of investments are being poured in initial coin offerings for hundreds or even thousands of cryptocurrencies. A lot of risk management research should be done before considering investing in cryptocurrencies.

Investing in Both the Future and the Past

When people invest in old and traditional investment mediums, they are usually expecting a long-term, less risky, and stable profit. Those who like to venture into new avenues of investment usually expect a big payday and take on a lot of risks. Whether you're investing a dollar or a billion, you should research venues of investment while considering the risks you’re willing to take.


 

Published by Daphenee Plaisir