The year 2021 has been a very difficult one for anyone who wants to invest money profitably. The evolution of the stock markets is difficult to predict due to the Corona crisis. Many prices have recovered since the stock market crash in the spring of 2020.
How things will continue in 2022 depends on the success of vaccination campaigns, rising inflation, and possible economic recovery. Let’s see what are the top 5 safest investment ways in 2022.
1. Where is your money best invested?
Although interest rates on Investing Activities, such as savings accounts, time deposits, and overnight money have been at their lowest point in years, they are still among the most popular investments. However, investors cannot generate a reasonable return on it. There are better investments to invest your money profitably. Every investment has its advantages and disadvantages.
For years, the low-interest rate phase has been pushing down interest rates for classic, secure investments – and there is no end in sight. Consumers who want to avoid losing their savings due to high inflation should therefore open alternatives in 2022. Before investing in a particular place, you should check reviews, such as lux algo reviews.
There is no better investment. Rather, successful capital investment is a combination of safe and return-oriented options.
2. How to invest money?
But what opportunities do you have in 2022 in yourinvestment portfolio? Below is a list of your most important options.
Shares are securities that represent an interest in ownership in a company, the so-called joint-stock company. So when you buy shares in a company, you buy a stake in that company. As the value of the company increases, so does the value of your shares. You can now resell them and make a profit. Some shares also pay dividends. These payments occur when the company distributes part of its profits to shareholders.
Bonds are similar to a loan or a debt. Simply put, you borrow money from a company or a state. Instead, you will receive outstanding payments (coupons) and, after a certain period, of course, the money borrowed back. Like stocks, bonds are traded so that their value can fluctuate and you can make a profit if you sell them early. We’ve put together more information about bonds for you here.
ETFs, short for Exchange Traded Funds, are exchange-traded funds that rely heavily on a specific index or reflect it 1: 1. So there are funds that are traded on the stock exchange and have the same evolution of value as the index they are looking for. An example of such an index is the DAX.
ETFs have become very popular in recent years, not only among beginners, because they have made investments accessible to many more people and, above all, they are cheaper than many other financial products.
The first thing that comes to mind for most people when thinking about investing in real estate is buying a home. This is a long-term investment that, in most cases, involves taking out a loan that you will repay over several years. So you save on rent, but you don’t get any extra income. If you invest in a property and rent it out, you will at best generate a monthly passive income.
In 2009, the most popular cryptocurrency saw the light of day: Bitcoin. Behind it and the other virtual currencies is blockchain technology. In other words, a concatenation of data records that stores all transactions transparently and without falsification. Cryptocurrencies cannot be used everywhere as a means of payment. But they are becoming more and more popular as a form of investment. Not to mention: they are probably the hottest investment trend right now.
However, large price fluctuations (up to 10% in an hour) also make them a very risky form of investment. If you want to invest in Bitcoin and Co., you should take a closer look at the topic beforehand and try to understand this young form of investing with less investment.