Investing for beginners
Investments are a great way to significantly increase your savings and make your money work for you. I’ll tell you about investing for beginners if you have a small starting capital.
Top 4 ways investing for beginners
It’s no secret that the earlier you start investing, the better. It’s worth familiarizing yourself with investments at a young age to reach your goal faster. But if you’re not in the under-30 category, there’s no need to be discouraged. It’s never too late to invest. Consider such investment options:
- Deposits and government bonds (OVDP);
- Gold;
- Stock market and US bonds;
- Cryptocurrency.
Deposits and Domestic Government Bonds
Domestic Government Bonds (DGB) are bonds issued by the government for internal borrowing. These two similar instruments offer stable and predictable returns. It’s worth considering taxation, which will deduct 1/5 of the income.
This method allows you not to earn money, but simply not to lose it, considering inflation. In the best case scenario, you’ll end up with a small profit. However, deposits are generally designed to preserve funds from inflation and at least not lose them.
Investing in Gold
As a long-term investment, purchasing gold is extremely advantageous. This precious metal not only protects your funds from inflation but also generates profits.
For example, since 2018, gold prices have more than doubled.
You can buy gold physically from banks or even as scrap from other individuals and melt it down or store it in jewelry. You can also invest virtually through ETF papers.
Stock Market and US Bonds
Investing in Western countries is more complicated than regular deposits. However, investments in Western countries can bring slightly higher returns. The main complexity is that to purchase assets, you need to use a broker. And this entails additional expenses.
There are many brokers available online. Look for them, read reviews, and collaborate.
Investing in US bonds requires a substantial amount of money because the investment term can reach up to 10 years. The interest rate is around 4%, but it can be fixed. US securities are among the most reliable in the world. The US government guarantees payments to anyone who purchases bonds.
In the stock market, the return is higher, approximately 7% annually, taking into account inflation and reinvestment of dividends. It’s more profitable to buy stocks for the long term, as the market situation often changes.
Investing for beginners – Cryptocurrency
Cryptocurrency is a profitable investment option. The key is to choose the right coins to invest in. Bitcoin, for example, was priced at $39,000 at the beginning of January and exceeded $68,000 at the beginning of March. Those who bought earlier made excellent profits.
Read more interesting articles on our Telegram channel.
It makes sense to invest in cheap cryptocurrencies as well. You can buy many of them, and these tokens also demonstrate good growth. The value of coins can increase several times in just a few months.
However, cryptocurrency investments are the riskiest because prices can sharply rise or fall. It’s necessary to analyze the market, the stability of the coin, fluctuations, forecasts, and news. In short, there are many factors to consider. There are plenty of options where to invest money. The choice is up to you. But investments are definitely necessary for anyone who wants to increase their capital and find new ways of passive income.
Read more interesting news:
