Published on April 5th, 2021 | by Sunit Nandi0
2021 Investing Tips
This is a bite-sized guide to investing in 2021
The financial market can change so much in a year, so it’s important to keep yourself up to date on the latest trends and investment opportunities. At the start of 2020 most of us hadn’t even heard of Dogecoin and who would have thought to invest in PPE.
So, you want some tips on what you should be investing in during 2021. Well, look no further. Here are our top 6 tips for investing in 2021:
Tip 1 – It’s time to start taking cryptocurrency seriously (if you aren’t already)
It’s taken nearly two decades for the more mainstream investment markets to take cryptocurrency seriously. But 2019-20 saw that change start to happen. You can even buy a car with Bitcoin now.
If you haven’t already started investing in cryptocurrency then now is the time to start.
So, why has investing in cryptocurrency become such a popular form of investment? Well, this is partly because of the success stories. If you invested $1000 in Bitcoin in 2010, your investment would have been worth $287.5 million at the start of 2021. Now, you can understand the appeal.
It’s also easier to store than other assets like gold and art. The minimum investment in Cryptocurrency tends to be a lot lower than traditional stock buy-ins. Many large companies require you to invest in over $2500 worth of stocks as a minimum.
Another huge benefit of investing in cryptocurrency is that it’s a lot easier for the average person to buy into. You don’t need a stockbroker, there’s no middle man. You can even purchase and trade Cryptocurrency through apps and Crypto Wallets now.
So what Cryptocurrencies should you be keeping an eye on this year? Well, as a start Dogecoin and Bitcoin are showing very little signs of collapsing this year. However, buying into these already popular currencies is very expensive.
If you’re looking for smaller currencies to put your money behind, check out Chainlink and Ripple.
If you’re looking for a more secure form of cryptocurrency then look into self-directed ira custodian cryptocurrency.
Tip 2 – Stocks are still alive and kicking
Yes, cryptocurrency is all the rage at the moment, but its predecessor The Stock Market isn’t going anywhere anytime soon.
The current state of the global stock market will require you to make more shrewd decisions this year. However, there are still fantastic returns to be made by smart investors. If you’re worried, try sticking to the S&P 500.
Understanding alpha levels might help you measure the performance of mutual funds and stocks if you actively invest in them. Beta values can assist stock investors better measure risk levels and organize their investment portfolios accordingly. Alpha and beta are two key elements of the Capital Asset Pricing Model, which can help you decide if an investment is worth its risk.
Tip 3 – Don’t discount real estate
Buying to let has always been a fantastic form of investment. This hasn’t changed, but it’s something new investors often gloss over.
Yes, it doesn’t feel as passive as investing in stocks or cryptocurrency. But this kind of investment can lead to faster, greater, and more consistent returns. The property market saw a 7% growth over the last year, despite everything that’s been going on.
As if you needed more inspiration to invest in property, check out Ed Sheeran’s property empire that is raking the singer in millions of dollars every year.
Tip 4 – If you haven’t already set up your retirement accounts
This is a tip for anyone who has a little nest egg sitting around doing nothing for your portfolio.
Long-term ISA and retirement accounts are a great place to put any large sums of money you have sitting around. Put this money into a minimal access account and you can benefit from their higher interest rates.
Tip 5 – Think local
If you’re looking for a new way to invest, why not look around your local area. In a time like 2021, there are many, many successful businesses (small and large) that are looking for some financial support.
Now is the time to invest in businesses like this. As the world starts to open up again, businesses that were successful before 2020 will be successful again. If you’re prepared to wait for around 6 months you could soon be seeing some major returns.
Tips 6 – Prepare for an uncertain and volatile market
2020 was an insane year and 2021 doesn’t show any signs of slowing down. Keep this in the back of your mind when you make any kind of financial decision. The world hasn’t experienced an economic event like this in living memory, so nobody is quite sure what’s going to happen next.
This is not us advising you against investing. In fact, if you make some smart choices there are huge profits to be made. However, you should be prepared for the market to be cautious, uncertain, and even volatile at times.