5 Investment Options That Don’t Involve the Stock or Crypto Market

Historically, the stock market has delivered generous returns to investors over time. Many current millionaires started making their fortune by investing there, and every day the market still gives significant opportunities to the people.

For that reason, when people think of investing, they usually start by looking at the stock market.

However, many investments could leave you similar or even better profits without the need to be watching the market all the time. Also, not all of us have the mental control to be pending on the ups and downs or the time to learn about a company.

Whether you think it is not a good time to spend your money there or want to diversify your portfolio, here are five alternatives to invest that are not the Stock market and the risk of each of them.

Peer-to-Peer Lending

P2P Lending is basically loaning your money to individuals or businesses through online services that match lenders with borrowers.

The benefit for the company is to offer its services at lower rates than a traditional financial institution. At the same time, lenders can earn higher returns compared to savings and investment products offered by banks.

One of the great things about this type of investment is that you can contribute small amounts as little as $25, so you can reduce your risk by diversifying your money into several debtors.

You can earn from 6% to even 12% annually with this type of investment, and many pages are offering those services right now. A percentage that I consider very good considering that lending a bank does not even reach 1% per year.

My experience with P2P Lending has been positive so far. The applications that I have used (Binance and Lending Club) have ensured that my money is insurance while transactions occur.

Risk to take into account.

The principal risk with P2P Lending is that you can lose your investment if the borrower defaults. But there are pages like Binance that have protections in case this happens.

Also, pages like Lending Club spread your money into hundreds of individual loans. So if one person is not paying, your portfolio won’t get clobbered thanks to the interest rate you are receiving.

Stable coins on a High-Interest Rate Platform

Many people don’t invest in Cryptocurrencies because they don’t like the volatility. However, there are stable ways to take advantage of the staking benefits that the crypto apps offer. For example, use stable coins to stake in different platforms.

Stablecoins are cryptocurrencies without volatility. They share the same powers as ETH, but their value is steady, more like a traditional currency like USD. Some of the most popular stable coins are USDT, USDC, and BUSD, which are from Tether, Coinbase, and Binance.

Then, you can use these coins for Staking or Pools, which is a process to participate in transaction validation (similar to mining), but the page you use does all the work.

The process is like investing in a bank deposit certificate, but in the Crypto world with a better interest rate.

Companies such as Binance, Pancake Swap, Crypto.org, and CoinBase offer up to 14% by Stake Stable Coins. The locked time of your money can be as low as a daily.

This is my favorite type of investment because I know the power of cryptocurrencies and trust the pages I mentioned above. In total, I have 30% of my money there, and I have obtained Pools with up to 80% per year.

The risks that stake Stable Coins have.

Stable coins are projects of a specific Crypto page, so you would lose your money if that company falls bankrupt. But companies such as Binance, Crypto.org, Pancake Swap, and Coinbase are valued at more than 2000 million dollars.

You can reduce the risk of investment using different applications to stake your money, and always with reliable platforms and popular as those I mentioned above.

Savings Bonds

Savings bonds are debt securities issued by the U.S. Department of the Treasury to help pay for the U.S. government’s borrowing needs.

These investments are considered one of the safest places to put your money because the American government backs them, so the only way you could lose your money is if the government defaulted on its debts.

You can buy either Series EE bonds, which pay a fixed interest rate, or Series I bonds, which have a portion of the interest rate based on the inflation rate.

The minimum purchase is $25 for a $25 EE bond.

Disadvantages of Saving Bonds

The greatest disadvantage is that it does not have the interest rate as high as the other products I mentioned earlier, and in some cases, you have to wait more time to start seeing the profits.

I recommend just putting a part of your money there that you do not need for at least six months.

Private Equity Funds

Private equity funds are pools invested in companies that represent an opportunity for a high rate of return. They have a fixed investment horizon that goes from four to seven years, at which the PE signature expects to come out profitably the investment.

A private equity fund is raised and managed by investment professionals of a specific private equity firm.

After obtaining an equity interest in a company, the private equity firm looks to eventually profit by selling the company outright or through an initial public offering (IPO), so your earnings will depend on how well the company goes.

This type of investment has gained traction due to its history of high returns, which is not easily achieved through more conventional investment options.

Risk os private equity funds

Private equity money is invested in new companies or startups that have significant growth potential. But the startups have a higher risk of falling into bankruptcy in the first five years, regardless of whether it is a good idea.

To minimize the risk, some funds management companies diversify your money in different Startups, so if one of them does not get expected earnings, you will not lose all your money.

Real Estate

Real Estate is still one of the best ways to invest your money. 90% of the current millionaires obtained their wealth by investing in it. And many others are making a lot of money every day in this old market.

And the reason is pretty obvious. Even though there are many business ideas and new necessities (and many “gurus” saying that real Estate is dead), people will always need a place to live or stay.

I know that many people don’t have the money to invest in this expensive business, but there are cheaper options you can consider now to take advantage of this market.

One example is to have Airbnb on rented properties. This strategy has been successful for real estate investors with enough capital to rent in good locations but without the power to buy a house. You only need the correct documentation and permissions to do it.

Other options can be lands and small spaces for businesses like stores. They don’t cost as much as a house, but they can still give good returns and capital gain.

Risk of real state

The greatest risk that Real Estate has is not finding people who want to rent or buy the property later. If you used a loan to buy that property, then it will be an even greater risk if you do not have the solvency to pay the monthly mortgage.

This risk can be minimized by borrowing only what you could pay with your current salary without the benefits of the house.

Final thoughts

There are plenty of great ways to diversify your portfolio by making investments other than stocks. These are just a few of them.

Some of these are outside the box and probably less liquid than stock or coins investments, but they have meaningful returns on investment.

So if you were looking for alternatives to the market because you want to diversify, you have no time, or you are not psychologically prepared, you should consider study one of these options.