Where invest: The most promising areas of 2018
Everyone knows that a bank deposit is not a tool for earning money, but rather for saving your money. Below we will tell about the ways and directions that can bring real profit in the new year.
Industry
Analysts predict the most rapid economic growth of the financial sector. Next comes the IT-Industry in the broad sense of the word. For example, companies show rapid growth in value in such industries as robotics, cybersecurity, manufacturers of hardware for mining cryptocurrency. Company shares that are implementing blockchain technology and payments in cryptocurrency are also growing. For example, in the U.S. market in months period, the shares of Eastman Kodak Company have increased by 3.5 time. This was due to the fact that the company launched its own cryptocurrency and blockchain-platform to protect digital rights of photos.
One more pool of industries, which are worth mentioning separately, stand between biology and advanced technologies. For example, clean energy. Alternative energy consumption is starting to be used by the world’s largest companies and states. For example, In the USA, solar and wind energy amounted to 95% of new electric capacity, and the UN plans to switch all states to alternative energy. Another niche of biotechnology is health (early cancer testing, genetic engineering, etc.).
Tools
There are a lot of options to invest in an interesting industry. Here are just a few of them.
Investment in startups
Investment in an innovative project can be potentially very profitable. Banks rarely give startups money for development, as it is difficult to economically justify the future level of profitability for the banks. The risks are high, but if the project turns out to be successful, the dividends can be impressive.
2017 was the year of ICO projects. That is, startups, investments in the development of which are carried out in cryptocurrency. Apparently, active development of the ICO sector in 2018 will continue, but with some changes. The experienced investors will stop investing in to the first projects that they see, instead they will be conducting a deeper analysis. Accordingly, the share of professional projects will increase over time-with a strong idea and a good team. It is these fundamentals that can guarantee success of any startup.
Cryptocurrency
Since we’re talking about cryptocurrency, we’ll add that there are a few ways to make money here. In addition to investments in ICO’s, you can also engage in online trading, that is to buy and sell cryptocurrency at the best time. For simplification of the process for novice investors there are automated advisors that help to determine this moment. One more direction is mining cryptocurrency. Right away It has become expensive to earn, high initial investments are needed. However, there are Collective investment projects in mining farms, and this is also a fairly profitable tool.
Lending
As we noted above, the financial industry brings some of the highest dividends. In fact, by keeping money in the bank, we provide credit to the borrower of this bank. But the profitability in this case turns out to be low. There are other alternative ways to lend money. For example, you can act as an investor in a microfinance organization. Profitability here will be high, but the risks are very high, the percentage of bad loans in classical microfinance is great.
But there are other alternatives. For example, P2PLending. Its original principle was that one individual on mutually agreed terms of credit loans to another private person. Now the situation is changing — institutional investors and banks are starting to come to P2P-Sites. As a result, the interest rate for borrowers is improving, but the profitability for private investors is declining.
Recently, the SHIFT.cash platform came on the market. It provides loans at their lowest risk form — secured. The site specializes in loans secured by the vehicles title. The benefits for investors are low risks due to the presence of real collateral, as well as the introduction of blockchain technology, which makes all transactions within the system safe. In addition, due to smart contracts, the investor can loan to a borrower located in another country. Including to places where bank rates are very high, so alternative lending is in high demand and brings high dividends for investors.
Funds
Mutual funds are an instrument of collective investment. The investor invests the desired amount, the threshold of entry into such projects is quite low. The fund then invests in priority areas funds collected from numerous shareholders. For example, in real estate or into IT startups. With the right investments made by the Fund, the value of the unit (initial Investor’s investment) increases, and it gets high profit. When choosing investment funds, you should pay attention to the history of the company, the directions in which it invests, team, reviews of shareholders.
