The Future of Investment Trends since the Fall of BitCoin

Last year, most investors were excited about the prospects of cryptocurrency. Heading into the middle of 2021, the price of Bitcoin dropped significantly making many investors rethink their investment plans. There are many investment opportunities that offer similar payouts as Bitcoin, without all the risk. Here are 5 future investment ideas that you should consider if you're tired of the volatility of crypto!

1. Nasdaq-100 index funds

A Nasdaq-100 index fund is a great way for new investors to get exposure to some of the best tech stocks with little risk. A Nasdaq-100 is essentially a portfolio that contains stocks from the top 100 largest companies like Facebook and Amazon. Since you're buying a diverse set of stocks rather than investing in just one brand, you won’t be subject to the failure of any one single company.

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2. Meme Stocks

Our next pick is an unlikely choice and it’s certainly a reflection of the times. Meme stocks are stocks that are gaining high interest and immense value due to their popularity on social media channels. Most of us have heard the story of how a group of people on the popular social media site Reddit managed to get GameStop’s stock to soar in value overnight.

The value of meme stocks cannot be predicted through normal investing principles and therefore they are only an option for an investor willing to take on a substantial amount of risk. However, as always in the investment world, the risk of volatility comes with great rewards: even GameStop gained more than 1,600% thanks to Reddit!

3. Certificate of deposit

Certificates of deposit are certificates issued by financial institutions. They are a popular choice since they usually offer a higher interest rate than typical savings accounts. These investments are time-locked meaning that you won’t have access to your money for the duration of the time specified when you purchase the certificate.

Certificates of deposit are good investments for risk-averse investors that won’t need to access their money for a long period of time. They are considered a very safe investment since they are federally-insured.

4. High-yield savings accounts

A high-yield savings account has long been one of the most popular forms of investing. This type of savings account essentially pays out interest on the current cash balance you have in your account. If you decide to go down this route, consider choosing an online bank account. Since the bank has fewer overhead costs, they usually offer higher interest rates.

This type of investment is great for very risk-averse investors as there is no risk of ever losing your money. It’s also great for people that think they’ll need quick access to their cash in the future.

5. Rental housing

With rental prices skyrocketing across the country, it’s a good time to consider investing in real estate. With the rise of popularity in vacation rentals through channels such as AirBnB, there’s quite a lot of profit to be made. Mortgage rates also hit an all time low recently, making the thought of buying a rental property all the more enticing.

Rental housing is a good opportunity for long-term investors that don’t mind having their money tied up in real estate. The downside of this type of investment is that you’ll need to actually manage your property. While you can hire a property management company, this will eat into your profits substantially.