6 Alternative Investments for 2023

With the economy continuing to show signs of progress, more people than ever are investing. However, with the stock market showing volatility, many investors are looking for alternative investments beyond traditional stocks and bonds. For those looking to put their money to work in the next year or two, these six options are worth consideration.

  1. Peer-to-Peer Lending

Peer-to-peer lending is one of the most lucrative alternative investments for 2023. It involves lending money to other investors or businesses at higher rates in interest than traditional loans from banks and other traditional lenders. Funds are lent through third-party lenders such as LendingClub.

Peer-to-peer lending has grown significantly in recent years as investors are looking for higher returns than are traditionally offered by the stock market, bonds, and other traditional investments. In addition, the process is fast and convenient, with borrowers and lenders connecting online. This type of lending is beneficial for both parties involved, as the lender earns a higher return than on a savings account and the borrower obtains capital quickly and with a lower interest rate.

Additionally, peer-to-peer lending provides certain advantages over traditional loan options. For instance, the ability to shop around and compare rates offered by different lenders and the convenience of applying and settling the loan online are both attractive features of the peer-to-peer marketplace.

The higher returns provided by peer-to-peer loans make it an attractive option for investors. These higher returns come from the lenders taking on more risk and seeking higher interest rates. To protect investors, peer-to-peer lenders often feature built-in safeguards such as payment monitoring, credit reviews, and investor protection funds.

With increasing returns, the transparency and convenience of the process, and numerous safeguards in place, peer-to-peer lending is becoming a popular investment option and growing in popularity.

  1. Real Estate Investment Trusts (REITS)

Investing in real estate through a real estate investment trust (REIT) can provide a steady stream of income and potentially large returns. REITs are a pool of money, often publicly traded, that is made up of real estate investments and other income-producing assets. REITs invest in a variety of commercial real estate assets, such as apartments, malls, office buildings, warehouses, and self-storage.

REITs provide investors with several unique benefits compared to other investments. For example, they offer diversification benefits due to their exposure to multiple types of real estate.

They also offer liquidity, since shares of publicly traded REITs can be bought and sold on a stock exchange. Additionally, REITs often pay higher dividends than other investments.

REITs can be bought through a brokerage account or other financial institution. Before investing, it is important to research the specific REITs you are considering and understand the related risks, costs, and expenses. Investing in REITs can be a great way for long-term growth as well as generate a steady passive income. As with any investment, investors should consider their risk tolerance and goals prior to investing in REITs.

  1. Digital Currency

Cryptocurrencies such as Bitcoin and many others are hot commodities in 2021 and can be a great way to realize returns in the long-term. There is potential for significant price appreciation, but there are also significant risks involved, so it is important to conduct thorough research before investing.

Cryptocurrencies operate independently from banks and other financial institutions, meaning they are not backed by physical assets such as gold or silver. Transactions happen directly between peer-to-peer, making them incredibly fast and secure due to the use of blockchain technology. Cryptocurrencies can be traded 24/7 and 365 days a year, making them available for trading at any point in time. Additionally, users are able to remain anonymous when trading cryptocurrencies, meaning their transactions do not get recorded or traced. Cryptocurrencies are highly volatile, meaning prices can quickly rise or fall within minutes or hours, which makes them a good investment for those who want to make quick profits. With the increasing popularity of cryptocurrencies, many merchants are now accepting digital currencies as payment for goods and services, which is likely to contribute to their rise in value as adoption continues to spread. Crypto investors should also keep in mind that there are hacker risks with digital currencies and must take steps to ensure the security of their holdings.

  1. Crowdfunded Investments

Crowdfunded investments are a form of direct investment in startups or small businesses. Investors get to participate in a business’s success, while reducing the amount of prior capital needed by the business owners. It gives funds to new companies and allows individuals to invest in businesses with varying levels of financial risk, depending on the company.

Crowdfunding also provides entrepreneurs with access to a large pool of potential investors. Depending on the platform the fundraiser is utilizing, the funds can be exchanged for equity, or in some cases, debt. This can be attractive to investors who may be looking for a higher return than traditional savings accounts and other investments, with potentially lower investment costs.

  1. Paystub Investing

Paystub investing is a relatively new investment opportunity that allows investors to take advantage of their paycheck to invest in stocks, bonds, mutual funds, ETFS and more. It provides a great way for people who are paystub for the self-employed or freelancers to invest on a regular basis.

By using paystub investing, investors are able to invest their overall paycheck amount, or a predetermined portion of their income. This allows them to build long term wealth through regular investing and potentially seeing higher returns than if they were to put their money into a savings account. Additionally, many of these paystub invest programs offer a host of other benefits, such as low or zero fees, investment education, and tax-advantaged investing. Paystub investing is an appealing investment opportunity for those looking to create diversified and resilient portfolios in order to secure their financial future.

antique bills business cash
  1. Precious Metals

Precious metals such as gold and silver are a classic form of investment that can provide excellent returns over time. Many investors choose to invest in physical metals such as coins or bars, while others prefer to invest in metal funds or ETFs.

Precious metals have been seen as a store of value over the centuries, being used as a currency to facilitate long-distance transactions. Precious metals also hold significant value in jewelry, with many cultures and societies placing large importance on jewelry made of gold or silver. Precious metals can offer investors potential tax benefits, portfolio diversification, and the potential of capital appreciation. In the commodities market, gold and silver are often seen as a safe haven, where investors often flock during uncertain economic times.

Given the current economic conditions, it is important to take a diversified approach to investing that includes traditional investments as well as some alternative investments. These six alternative investments will provide a great opportunity to diversify your portfolio and potentially realize higher returns in 2023.

Krystal | Sunny Sweet Days
Follow Along
Latest posts by Krystal | Sunny Sweet Days (see all)

Similar Posts