For some people, working a 9-5 job for a number of decades and saving up money as they go is the only reasonable path to financial security. However, not everyone has the patience for this; some people want to enhance their earning power and are willing to take some risks in order to achieve that goal.
If you aren’t timid with your money, there are innumerable ways for you to invest it and grow it. Below are just three high-risk but high-reward ways of making money.
Cryptocurrency Speculation
There’s no denying that a lot of people have gained out of the emerging crypto market. While cryptocurrencies are a very long way from replacing a fiat currency that we all know and love, cryptocurrencies have already made a number of people into multi-millionaires. The research says there is money to be made in the cryptocurrency space, but anyone trying to sell this to you as an easy way of making money is lying.
The simplest way of making money from cryptocurrencies is simply to purchase some and then hope that it increases in value. Contrary to what some people believe, cryptocurrencies are not guaranteed to increase in value. In fact, there are a number of reasons why cryptocurrencies are much less stable than regular currencies as a store of value. In other words, the value of cryptocurrencies fluctuates much more dramatically than regular currencies do.
Invest in an IPO or ICO
An initial public offering can attract a significant amount of interest from investors, depending on the business in question. For example, Snapchat’s 2017 offering drew a great deal of attention to the company. When this happens, it can often temporarily distort the valuation of a business and can lead even the most experienced investors astray. Even when the IPO is for a business that is not very well-known, it still represents an opportunity for investors to get in on the ground floor. More importantly, it can enable investors to get a slice of the pie that is going to be worth a lot more than they paid in the future. If they pick the right business, of course.
An initial coin offering is equivalent to an IPO, except it is used to distribute cryptocurrency. For businesses that are based around cryptocurrencies, there are many investors who would rather receive cryptocurrency instead of shares. If the business does well, it follows that the associated network token, the cryptocurrency, will increase in value in much the same way that shares would. Depending on how the underlying blockchain network is configured, it is possible that all of the cryptocurrency tokens that will ever exist for the network are mined when it is created. In other words, there will not be any new coins made.
Trading Stocks and Shares
To the untrained eye, it can often look as if trading stocks and shares is heavily dependent upon luck. However, there is actually a good deal of strategizing that underpins the moves that most traders are making. Buying stocks and shares that you think are going to increase in value and then selling them sounds much easier than it is.
It is also worth noting that most people who trade in stocks and shares will have to wait sometime before they see a return. The exception to this is day trading when traders aim to resolve their trades within 24-hours of making them. Although many people day trade for a living today, it is advisable to cut your teeth on more conventional trading before you try day trading. You need a good intuition as to which sort of businesses are logical targets for day trading before you sink any money into it.
If you are determined to play it safe, the above investment options probably aren’t for you. But for those who are willing to take more risks in order to chase bigger rewards, there are plenty of people who have successfully walked these paths before.
