Each investment carries certain risks. Gold can be stolen, a bank can fail, even a state can go bankrupt and not pay out its bond yields. Therefore, it is a good idea to first determine what level of risk you consider low enough and possible gains are satisfactory. You probably know that in most cases, the highest rate of return can be obtained from long-term investments, but to do so, you need to wait 5-10 years, so not everyone has that much time or patience. An example of such an investment is real estate or stocks on the stock exchange. Patient investors with appropriate portfolio diversification achieve satisfactory results because they average risk and increase the chances of exiting at the right time in the cycle. Real estate is considered a fairly safe option (provided that it is insured and the purchase itself is preceded by a thorough inspection of the land and mortgage register and other documents), while shares are not necessarily, because their price depends on many external factors. Of course, you can only invest in large companies to minimize this risk, but buying at the wrong time in the cycle (i.e. at a high price) will significantly reduce your chances of earning profits in the future. For those who value security, an interesting choice are inflation-indexed bonds for 4-6-10 years. These investments carry a moderate degree of risk, but it is impossible to say in advance what the profit will be during this period. The advantage of such a solution is the ease of purchase, a low entry threshold and a state guarantee that the bonds will be redeemed. On cryptocurrencies, depending on the market situation, you can earn a lot, break even or lose. You will not lose on the deposit, but the shorter the term, the lower the interest rate at the bank. Something for something. For example, this year we have relatively low cryptocurrency prices, but we will have to wait some time for further increases. In addition, there is a risk of further declines and for this reason, beginners who have neither the proper knowledge nor the mental resilience to market fluctuations should not, in my opinion, invest in these assets. Alternatively, you can buy Bitcoin or Ether (i.e. the largest and therefore the safest cryptocurrencies) with a view to keeping them for several years and exiting the market in the next cycle. However, no one can guarantee that such a cycle will actually come. Physical gold and silver give a great sense of security, but a glance at their price chart from the last 20 years to see that it is difficult to make money on these metals. Therefore, I treat them as a safe haven for old age or inheritance for children, and not as a source of income. I personally break down money into three parts and diversify my portfolio between different financial instruments. I avoid the most risky ones, because a recession can occur at any moment, and it can take years to recover from very large drops. It's also always a good idea to keep some cash in order to enter the market at the right moment, as there may be a good deal.
Each investment carries certain risks. Gold can be stolen, a bank can fail, even a state can go bankrupt and not pay out its bond yields. Therefore, it is a good idea to first determine what level of risk you consider low enough and possible gains are satisfactory. You probably know that in most cases, the highest rate of return can be obtained from long-term investments, but to do so, you need to wait 5-10 years, so not everyone has that much time or patience. An example of such an investment is real estate or stocks on the stock exchange. Patient investors with appropriate portfolio diversification achieve satisfactory results because they average risk and increase the chances of exiting at the right time in the cycle. Real estate is considered a fairly safe option (provided that it is insured and the purchase itself is preceded by a thorough inspection of the land and mortgage register and other documents), while shares are not necessarily, because their price depends on many external factors. Of course, you can only invest in large companies to minimize this risk, but buying at the wrong time in the cycle (i.e. at a high price) will significantly reduce your chances of earning profits in the future. For those who value security, an interesting choice are inflation-indexed bonds for 4-6-10 years. These investments carry a moderate degree of risk, but it is impossible to say in advance what the profit will be during this period. The advantage of such a solution is the ease of purchase, a low entry threshold and a state guarantee that the bonds will be redeemed. On cryptocurrencies, depending on the market situation, you can earn a lot, break even or lose. You will not lose on the deposit, but the shorter the term, the lower the interest rate at the bank. Something for something. For example, this year we have relatively low cryptocurrency prices, but we will have to wait some time for further increases. In addition, there is a risk of further declines and for this reason, beginners who have neither the proper knowledge nor the mental resilience to market fluctuations should not, in my opinion, invest in these assets. Alternatively, you can buy Bitcoin or Ether (i.e. the largest and therefore the safest cryptocurrencies) with a view to keeping them for several years and exiting the market in the next cycle. However, no one can guarantee that such a cycle will actually come. Physical gold and silver give a great sense of security, but a glance at their price chart from the last 20 years to see that it is difficult to make money on these metals. Therefore, I treat them as a safe haven for old age or inheritance for children, and not as a source of income. I personally break down money into three parts and diversify my portfolio between different financial instruments. I avoid the most risky ones, because a recession can occur at any moment, and it can take years to recover from very large drops. It's also always a good idea to keep some cash in order to enter the market at the right moment, as there may be a good deal.
