{"id":63737,"date":"2022-04-25T01:00:00","date_gmt":"2022-04-25T06:00:00","guid":{"rendered":"https:\/\/www.success.com\/?p=63737"},"modified":"2024-08-21T06:36:47","modified_gmt":"2024-08-21T11:36:47","slug":"a-beginners-guide-to-alternative-investments","status":"publish","type":"post","link":"https:\/\/www.success.com\/a-beginners-guide-to-alternative-investments\/","title":{"rendered":"A Beginner’s Guide to Alternative Investments"},"content":{"rendered":"\n

Technology continues to change the way people view and interact with the world.<\/p>\n\n\n\n

One of those ways is how people invest their wealth. From cryptocurrencies to non-fungible tokens, these shiny alternative investments can be tempting<\/a> to the risk-willing investor. But is it the right strategy<\/a> for you? Let\u2019s dig in.<\/p>\n\n\n\n

Cryptocurrencies<\/strong><\/h2>\n\n\n\n

At its core, money is a token or symbol built on trust, one that facilitates an exchange of one\u2019s products or services for that token or symbol. Historically, that trust has been forged by virtue of the backing of government entities.<\/p>\n\n\n\n

The 2008 financial crisis took down the global financial system. The libertarian cryptocurrency underground took notice. Their response to the world\u2019s seemingly flawed centralized financial system: bitcoin.<\/p>\n\n\n\n

Bitcoin runs over a network of computers that belong to many people, spread out across the globe, who are collectively charged with maintaining and validating its ledger of accounts. No government, no banks, no financial institutions, no intermediary\u2014just like-minded people with computers, Gorrilla-glued together with a common purpose: to create an independent and decentralized financial system.<\/p>\n\n\n\n

The mechanism for validating that ledger is something called blockchain. Blockchain is encrypted software, or an algorithm. Thousands of individual computer systems must all validate each transaction that occurs on the bitcoin blockchain ledger. Because that validation process is foolproof, which means it\u2019s 100% accurate, it has slowly built trust in those who use it.<\/p>\n\n\n\n

This trust in bitcoin represents a counterweight to the need for traditional currencies backed or guaranteed by a government entity and run by a complex labyrinth of financial partners that, together, represent the current global financial system.<\/p>\n\n\n\n

Slowly, bitcoin has become a new token or symbol built on trust to facilitate an exchange of one\u2019s products or services for that token or symbol. In other words, thanks to blockchain technology, cryptocurrencies, such as bitcoin, are quickly evolving from a crypto asset to a form of currency that can be used just like money.<\/p>\n\n\n\n

How to Invest in Crypto<\/strong><\/h3>\n\n\n\n

You can buy cryptocurrencies, such as bitcoin or ethereum, directly through PayPal<\/a> or Cash App<\/a>. Or you can use an exchange.<\/p>\n\n\n\n

There are many cryptocurrency exchanges in the marketplace that trade cryptos; to name a few, Biance.US<\/a>, Coinbase<\/a>, Crypto.com<\/a>, eToro<\/a>, Gemini<\/a>, Kraken<\/a>, Robinhood Crypto<\/a>, and TradeStation<\/a>.<\/p>\n\n\n\n

Lastly, you can invest in crypto-focused mutual funds or exchange-traded funds.<\/p>\n\n\n\n

If you\u2019re doing it yourself, you\u2019ll have to do your homework regarding the types of cryptocurrencies you want to invest in, the exchange you want to use to manage your investing or the funds that focus on cryptocurrencies.<\/p>\n\n\n\n

If you don\u2019t have the time or interest to research, consider partnering with a certified financial planner or a financial adviser<\/a> familiar with cryptocurrencies.<\/p>\n\n\n\n

NFTs<\/strong><\/h2>\n\n\n\n

Cryptocurrencies are just one byproduct of blockchain. NFTs, or non-fungible tokens, are the latest crypto assets to emerge from this new technology.<\/p>\n\n\n\n

The best way to view NFTs is to think of them as a sort of certificate of authenticity accompanying any originally created digital asset. Ownership of NFT-designated digital assets created by someone, such as artwork, music, videos or memes, can be validated as an original digital asset sold to you, by virtue of you owning that NFT-designated digital asset.<\/p>\n\n\n\n

Because digital assets can be easily copied and exchanged, without being an NFT digital asset, why would anyone pay a premium for an NFT digital asset?<\/p>\n\n\n\n

The answer is simple: A copy is not an \u201coriginal,\u201d just as a copy of an original painting is not an original. An original da Vinci painting is far more valuable than a copy.<\/p>\n\n\n\n

The NFT authenticates that originality. When you own an NFT, you own an original.<\/p>\n\n\n\n

How to Invest in NFTs<\/strong><\/h3>\n\n\n\n

There are a number of marketplaces that allow you to trade in NFTs, such as Foundation<\/a>, OpenSea<\/a>, Rarible<\/a> or SuperRare<\/a>. These marketplaces charge a fee for NFT sales.<\/p>\n\n\n\n

Ethical Investing<\/strong><\/h2>\n\n\n\n

Ethical Investing is an investment strategy that is aligned to an investor\u2019s ethics, values, morals, religious preference or environmental concerns. Typically, ethical investors buy mutual funds or exchange-traded funds that include companies that meet the investor\u2019s ethical standards.<\/p>\n\n\n\n

How to Get Started with Ethical Investing<\/strong><\/h3>\n\n\n\n

In the investment world, ethical investments typically include:<\/p>\n\n\n\n