Traditional vs Modern Investing: 5 Old and 5 New Investment Ideas

My blog focuses on Financial Literacy/Money. A key to winning with money is learning how to invest it effectively. As with every area, there are both old and new ideas. The following contributed post is entitled, Traditional vs Modern Investing: 5 Old and 5 New Investment Ideas.

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Investing money is something people have done for centuries. But while some types of investment have a long history, others are still fairly new concepts. Traditional investments typically offer more stability but a gradual return. Modern investments can be more risky – many investors are still figuring them out – but can potentially result in faster and higher returns. This post compares five traditional investment methods with five modern investment methods.

Five traditional investments to consider

Real estate

Property investing has a long history and is often seen as one of the most reliable ways to make a return. You can make money from real estate either by renting it out to tenants or by ‘flipping’ it (making improvements to boost its value and then selling it). Real estate includes land, residential buildings and commercial buildings.

Forex

Forex trading involves making money by buying foreign currencies that are increasing in value. These currencies are then converted back for a profit. The industry as we know it today didn’t get started until the 70s, however there are records of people buying foreign currencies as a form of investment from centuries ago.

Collectibles

Collectibles are items that have become increasingly valuable due to their rarity and demand. They include books, sports memorabilia, vinyl, old coins, stamps, wine, art, classic cars and antiques. Investing in collectibles can be a hobby as well as a form of investment.

Precious metals

Precious metals like gold and silver have long been sought out for their value. The likes of gold is particularly popular as a hedge investment as it typically gains value during recessions when other investments lose value. Precious metals can be bought in the form of bullions, coins, jewelry or antiques.

Traditional stocks

The first stock exchange, the Amsterdam stock exchange, was established in 1602. Since then many stock markets have emerged around the world, allowing people to invest in shares of successful companies. While there is always some risk when investing in stocks, you are generally guaranteed to make a return if you invest in long-running successful companies that have been around for decades. This includes the likes of Walmart, Coca-Cola and Berkshire Hathaway.

Five modern investments to consider

Domain names

Domain names are pretty much the internet’s equivalent of real estate. It’s possible to make money by buying website addresses that are likely to be sought after in the future. This domain name guide explains more about this relatively new form of investing.

Cryptocurrencies

Cryptocurrencies are digital currencies that were designed as a decentralised form of finance for getting around foreign currency transfer fees. The first cryptocurrency, Bitcoin, was launched in 2009. Since then, Bitcoin has risen dramatically in value, making it a popular investment asset. Some cryptocurrencies have proven to be very volatile, which has put off some investors.

NFTs

NFTs are best described as digital collectibles. They are receipts of ownership for sought after digital files (such as original copies of memes, digital images and songs) that are bought using cryptocurrency. This is still a very new form of investment with an unpredictable future.

Peer-to-peer lending

Peer-to-peer lending involves lending money to other people via online platforms and making money through interest. It essentially allows everyday people to become lenders. A lot of people have made huge amounts of money via peer-to-peer lending, but you do need to keep on top of repayments.

Tech stocks

Tech stocks are typically stocks belonging to relatively new tech companies like Tesla, Nvidia and Palantir. Some of these tech companies have seen huge growth in recent years with investors doubling and tripling their funds. However, tech stocks have proved to be very volatile making them a potentially risky investment.

Traditional or modern?

Most traditional and modern investments can have their benefits. Traditional investments are typically a better option for those looking for a low-risk solution or those who are technophobes. Modern investments are better suited to those who are tech-savvy and eager to make a lot of money fast. A mixture of both can help to offer a balance of high-growth and low-risk investments.

Author: anwaryusef

Anwar Y. Dunbar is a Regulatory Scientist. Being a naturally curious person, he is also a student of all things. He earned his Ph.D. in Pharmacology from the University of Michigan and his Bachelor’s Degree in General Biology from Johnson C. Smith University (JCSU). Prior to starting the Big Words Blog Site, Anwar published and contributed to numerous research articles in competitive scientific journals reporting on his research from graduate school and postdoctoral years. After falling in love with writing, he contributed to the now defunct Examiner.com, and the Edvocate where he regularly wrote about: Education-related stories/topics, Science, Technology, Engineering and Mathematics (STEM), Financial Literacy; as well as conducted interviews with notable individuals such as actor and author Hill Harper. Having many influences, one of his most notable heroes is author, intellectual and speaker, Malcolm Gladwell, author of books including Outliers and David and Goliath. Anwar has his hands in many, many activities. In addition to writing, Anwar actively mentors youth, works to spread awareness of STEM careers, serves on the Board of Directors of the Friends of the David M. Brown Arlington Planetarium, serves as Treasurer for the JCSU Washington, DC Alumni Chapter, and is active in the Dave Ramsey Financial Peace Ministry at the Alfred Street Baptist Church. He also tutors in the subjects of biology, chemistry and physics. Along with his multi-talented older brother Amahl Dunbar (designer of the Big Words logos, inventor and a plethora of other things), Anwar is a “Fanboy” and really enjoys Science-Fiction and Superhero movies including but not restricted to Captain America Civil War, Batman vs. Superman: Dawn of Justice, and Prometheus. He is a proud native of Buffalo, NY.

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