The 4 Best investment options in 2021

Making a smart investment can help you weather a financial storm and you might even be able to change your life.

The last year has been tough, however, there are quite a few options to consider if you want to begin investing this year.

Bonds

Investing in bonds is definitely one of the safest options of investing your money this year. While they offer a lower rate of return than stock, they are low-risk investments and the rate of return is still higher than that of a savings account.

Normally bonds are issued by corporations, but the local governments or the federal government could also issue bonds.

It is important to note that you will be required to wait until the maturity date has arrived in order to collect the return that you’re expecting from the bond.

The time required for maturity, interest rate and the principal amount will depend on the expectations of the bond issuer and the bond buyer and may be different for different bonds.

A lot of people see this as a conservative investment. However, this is a very good investment option for those who are closing in on retirement, if that sounds like you, you should make heavy use of bonds.

Remember that it’s a tradeoff, you will receive low rewards for low risks.

Real Estate

Real estate has always been a safe investment, and the year 2021 is no exception. You can create wealth and build a passive income by investing in real estate.

There are different ways of investing in real estate. For instance, you could purchase a property and lease it out, or you could invest in real estate by buying shares in a REIT (real estate investment trust).

By purchasing shares you will be investing in an REIT which, in simpler words means, that you will be investing in a holding company that owns real estate.

These holding companies can own condominiums, office buildings, commercial property, apartments, and hotels.

If you invest in a holding company, you will receive from them payout dividends each quarter or annually, which could be passive income for you.

Investing in an REIT or purchasing properties are both great investment opportunities, especially if you’re looking to invest in an income generating asset.

Cryptocurrencies

The last couple of years have been very interesting for cryptocurrencies, especially Bitcoin. For those of you who do not know much about cryptocurrencies, Bitcoin is the most well-known and largest cryptocurrency by market share.

A couple of years ago one Bitcoin would have cost you less than $1,000, however, today the price of one Bitcoin is around $35,000.

However, it is worth noting that cryptocurrencies have a very volatile nature. This is because the first cryptocurrency Bitcoin came out only in 2009 and the crypto industry is still in its infancy stage.

However, as many businesses and online merchants start accepting Bitcoin as means of exchange, the crypto industry is showing signs of maturity.

Those who invested in Bitcoin a few years ago are very happy with the returns they got. While investing in cryptocurrencies is one of the riskiest investment options, the rate of return is amazing. You could make a fortune if you invest in the right cryptocurrency project at the right time.

Moreover, many people buy and sell crypto assets more frequently to take advantage of the market’s volatility by making small profits.

This process of making small profits through frequent buying and selling is known as trading. If you want to start out small and learn about the crypto industry before you feel comfortable enough to invest a large amount, you should start Bitcoin trading with an app that offers automated trading, such as BitIQ (bitiqapp.com).

Such apps take into account many different factors that could influence that price of crypto assets before performing trades on your behalf. This could also be a profitable side hustle for you.

Once you have enough knowledge and experience, you could decide how you want to invest in the crypto industry.

Small Cap Stocks

Small cap stocks are not like Apple or Amazon stocks, but they are still a good option this year. Most investors tend to overlook small cap stocks for the larger caps, but these come with a much higher rate of return.

Moreover, since these stocks are not so popular around the world, they will not be easily affected because of fluctuations in other markets.

It may be safer to invest in small cap stocks and domestic growth in 2021, when everyone is trying to move back out of the coronavirus pandemic. For a balanced portfolio, you could also invest in some large cap stocks.

As economies around the world gradually start to recover, it will be interesting to see what investors will see as the next big thing.

Remember that investing has always been risky, so it is important that you do your homework to come up with an investment plan that will help you safeguard against huge market swings.