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Trying your hand at investing could very well be the best decision you make with your money. While there are no guarantees that you’ll make wild profits, it is generally considered far better than leaving your savings with your bank, whether it’s a current or savings account. These very rarely beat inflation increases, and that money will often depreciate over time. However, making smart investments could serve your savings much better, helping them retain their value or possibly even increase in value too, making you some nice profits. Remember that there is still a risk that your investments could go wrong, and you might lose money. Only invest what you can afford to lose and ensure that you spread your investments around to create a diverse portfolio.
Dividend Stocks
Investing in dividend stocks can be a very smart investment strategy. In fact, over the years, these stocks have even outperformed the S&P 500 and have been subjected to less volatility on average. The reason behind this is two-fold. A dividend stock offers standard capital appreciation, with the stock price impacting your returns as with standard investing, and also, investors receive dividend payments alongside this. For example, you might invest $10,000 into a business, buying 100 shares for $100 per share. If each share pays a dividend each year of $5, your investment will provide you with a flat 5% increase of $500 at the end of the year, which is quite nice. You can either keep the money for yourself or reinvest it back into the company or elsewhere.
Cryptocurrency
Many people continue to garner interest in the exciting world of cryptocurrency, especially as its volatility sees it often making headlines. This high volatility makes it both intimidating to inexperienced investors and enticing to others, as theoretically, you can make a lot of money on cryptocurrency like bitcoin, and many have done. However, it’s important to be wary at the same time, as this volatility goes hand in hand with big losses too. This is why cryptocurrencies are best to be added to an existing portfolio of other investments. Consider adding bitcoin or Ethereum to your investment portfolio today. You can buy from exchanges such as Paxful, which also offer other useful ways to trade cryptocurrency. For example, you can convert ETH to USDT, which is known as a “stablecoin” that stays at around the same value as the US dollar but retains a secure digital identity.
S&P 500
The S&P 500 is always worth considering when considering what to invest in. The chances are, however, that you’ve already considered this or have already invested here. However, if you have yet to do so, it’s very much worthwhile investing in the S&P 500 for the long term as it’s a relatively safe marketplace. Every now and again, the S&P 500 will enter a bear market, which dictates that the market is going down in value, similar to how a bear will swipe downwards with its paw when attacking. However, the S&P 500 will often enter a bull market, with stock prices rising, just as a bull would thrust its horns upwards when fighting. Ultimately, these marketplaces continue to rise higher than before, regardless of any market crashes, which is why investors will often just hold onto their stocks during this time and wait for the value to rise again, which is why it’s considered a good investment for the long-term.
