I think you will agree with me when I say:
Bitcoin has stunned every investor around the world, both who invested in it and who did not!!
And let me tell you, it was expected to happen.
To give a preview, Bitcoin is currently trading at almost 6x of its price what it was in 2017 around the same time.
Well, it turns out that you could too do that…
…by understanding about Bitcoin-an alternative investment.
And in this post I am going to accurately tell you the things you should know [Minus Bullshit]:
- What Are Alternative Investments & Alternative Assets?
- Types Of Alternative Investments & Other Alternative Investment Opportunities?
- Why Invest In Alternative Investment Products?
- Is Bitcoin The Perfect Alternative Investment At This Time?
- How To Invest In High Yield Investments Like Bitcoin?
What Are Alternative Investments & Alternative Assets?
Assets that don’t fall under the category of stocks, bonds, cash instruments or any form of derivates in the traditional financial sphere are called alternative assets.
- For example Cryptocurrencies like Bitcoin, Litecoin, etc. and Gold, Real Estate, etc.
Venture capital or commodities like oil, sugar, agro products also fall under the brackets of alternative investments.
And the act of investing in such assets (which I mentioned above) is called alternative investments.
Types Of Alternative Investments & Other Alternative Investment Opportunities?
list of alternative investments
Believe it or not:
The ones I told you are just a few of many other alternative assets investment available in the alternative investment market.
So here are a few more types of alternative investment opportunities/ideas:
- Real Estate: Airbnb, renting out, purchasing land of commercial purposes
- Bitcoin & Other Cryptocurrencies: Bitcoin, Ethereum, Litecoin, ICOs, etc
- Peer-To-Peer Lending: Person to person lending in expectation of higher returns of money given.
- Commodity Investing: Oil, Sugar, Cooper, Steel, Lithium, etc
- Precious Metal Investing: Gold, Silver, Palladium, Platinum, etc
- Forex: Trading national currencies like USD, EUR, GBP, etc
- Venture Capital: Investing in start-ups in expectation of their future growth.
It doesn’t end here:
Some unusual types of alternative investments have evolved and these are; digital credits, stamps, art pieces, digital collectibles like CryptoKitties and CryptoZombies, etc.
These all broadly make together the alternative investment markets.
Not all alternative investment options are sufficiently liquid alternative investments so get thoroughly versed in the investment that you wish to do…
Why Invest In Alternative Investment Products?
At the end of the day, these all are different investment product or alternative investment asset classes that behave differently than traditional investments.
Particularly after the financial crisis of 1999-2000 and 2008-mortgage crisis, alternative investments have gained traction.
It gets better:
As it is a good idea also for the investors to invest in various asset classes to balance their portfolio and this called portfolio diversification.
But this portfolio diversification is a highly subjective topic as many investors believe in this and many do not.
If you are someone who believes in this, then I suggest you stop reading right here because I am not a believer.
Let me be honest:
Portfolio diversification is the brainchild of investment managers.
And in this context specifically the brainchild of alternative investment management firms and their alternative investment managers to get their commission out of your investments.
Even Jim Rogers-American Businessman and Billionaire Investor say:
“Well, I know that people are taught to diversify. But diversification is just that’s something that brokers came up with, so they don’t get sued,” … “If you want to get rich… You have to concentrate and focus.”
And this means, to create wealth you have to choose one single asset class and bet on it, but this is easier said then done.
You have to be damm sure about your research and understanding of that asset class. And when you find such asset class, make sure you take care of that basket of investment very very carefully.
Another reason for investing in alternative investment assets is that they are less manipulated than stocks and bonds which are under total control of governments and banks.
And now I know some of you might argue that other investment assets like Gold and Silver are also highly manipulated.
And let me admit:
And this leaves us with one of the least manipulated and best alternative investment i.e Bitcoin & few other cryptocurrencies.
And now that you have understood this you are ready to move on to the next topic of discussion and i.e.
Is Bitcoin The Perfect Alternative Investment At This Time?
Well, hell-YESSS (!)
- Not A BUBBLE
Let me start with your concern of Bitcoin being a Tulip mania like bubble.
And my answer is again, hell-Nooo (!), it is not a bubble.
Bubbles don’t move like this, and you need to study bubbles of the past to understand that but for now, understand a straightforward thing that if something is bubble they don’t go up and down in cycles.
And my dear friend, Bitcoin has already gone through 4 significant ups and downs.
And it is highly likely to rise again but in cycles so if you are smart enough you will ride these cycles, and I bet Bitcoin is just ready for next 30,000- 50,000 USD mark.
Even one of the pioneer investor in Bitcoin- Max Kieser who started evangelizing Bitcoin at cents gives this graph:
This pattern will repeat all the way to Bitcoin $100,000 and beyond… pic.twitter.com/o9Wj4reBtv
— Max Keiser, tweet poet. (@maxkeiser) June 2, 2017
Yes, you read that right but wait there is more:
Bitcoin cannot be banned.
Of course, one can hear the news that Bitcoin exchanges or even Bitcoin wallets are being banned but Bitcoin as a network has no entity or in charge behind it, so how can it be banned??
It is not a company like Facebook which will be called for testimony.
It merely is an internet protocol run by enthusiasts and miners around the world to create an alternative investment class as well as an alternative banking solution for the masses.
So now say how you can beat that?
Of course not and that’s why I believe Bitcoin is one of the most liquid and best alternative investment options right now in the market.
- Highly Liquid
Don’t believe me yet??
So check out these liquidity stats:
Bitcoin has been clearing more tx volume than global gold markets since early 2017.
BTC: on pace to process $1.1 trillion in 2018 transactions
Gold: on pace to process $0.4 trillion in 2018 transactions
— Kevin Rooke (@kerooke) August 15, 2018
How To Invest In High Yield Investments Like Bitcoin?
Now the most crucial question for which you would be longing to get an answer, so let’s get straight to it:
One can buy Bitcoin like alternative investment through many ways such as via credit/debit cards, in cash, in exchange of gift cards, etc…
But these all happens through different Bitcoin, and cryptocurrency exchanges where you need to register yourself to get started and the good news is, registration is free:
Some of the Bitcoin exchanges, classified according to the buying options they have on it are as follows:
Option #1. Buy Bitcoin with credit/debit cards
- Changelly (Instant purchase)
Option #2. Buy Bitcoin For Cash [peer-to-peer sources]
- Bitcoin & Altcoin ATMs:
Option #3. Buy Bitcoin Via Bank Deposits Or Wire Transfers
- Bitfinex: Supports USD and EUR.
- Cex.io: Supports EUR, USD, GBP, and RUB
- Coinbase/GDAX: Supports USD, EUR, SDG, and GBP etc
- BitStamp: Supports USD and EUR.
- Kraken: Supports USD and EUR.
- Livecoin: Supports USD, EUR, and RUB
Option #4. Buy Bitcoin using Altcoins
- Changelly (Instant purchase)Read how to use Changelly here.
- Binance: Supported pairs are BCH/BTC, BCH/ETH, BCH/USDT
- Bittrex: Supported pairs are BCH/BTC, BCH/ETH, BCH/USDT
- Gate.io: Supported pairs are BCH/BTC, BCH/USDT
- Bitfinex: Supported pairs are BCH/BTC, BCH/ETH, BCH/USD
- KuCoin: Supported pairs are BCH/BTC, BCH/ETH, BCH/USDT
Option #5. Buy Bitcoin From Decentralized Exchanges
- Waves Dex
Now that you have learned about the best alternative investments you should make up your mind to invest in them.
So that’s all for today from my side and let me know which alternative investment you choose?
I am on Bitcoin and cryptocurrencies side, which side you are? Share with us in the comments section below 🙂
Hey there! I am Sudhir Khatwani, an IT bank professional turned into a cryptocurrency and blockchain proponent from Pune, India. Cryptocurrencies and blockchain will change human life in inconceivable ways and I am here to empower people to understand this new ecosystem so that they can use it for their benefit. You will find me reading about cryptonomics and eating if I am not doing anything else.