Do you have money to burn? It can be a great position to be in, but if you are thinking about investing in businesses, then it can be difficult to know where to invest. You might be rightly worried that if you invest wrongly you could end up losing all of your money.
But don’t despair. In the 2020s, the decade of the technological change, there are an unrivaled amount of opportunities and schemes to take advantage of, from cryptocurrencies to supersonic flights.
Be part of the future. Check out this list of industries to invest in.
Do you have a traditional bank account? Do you get phone calls from them every time you go abroad and spend money? Worse, do you have to pay huge ATM fees if you want to take money out in a different currency?
All these problems have been solved by so-called fintech or neo banks. These are banks that operate entirely online, without branches. They let you hold balances in multiple currencies, spend freely abroad without any fees, and manage your money from an app.
Their customer base is growing as they launch across the world and try to break down the monetary borders that can cost us the earth. Apps like Revolut also allow you to invest in stocks and shares for free from their apps and even deal with cryptocurrencies.
Vying for the business of customers with all their money tied up in traditional banks, these fintech companies are continuously looking for investors to take their products to the next level and start making a profit.
You could try Monzo, Transferwise, and Revolut and see what their share price is and where they are likely to head over the next few years. Or you could look for smaller startups in the Fintech scene.
Evaluate the nature of their products, if you are interested and if you think they are likely to take off. Listen to expert advice, but ultimately use your judgment before you make your investment.
Another hot investment strategy is cryptocurrencies. These fluctuate wildly, so they are more of a risk than investing in a fintech bank. However, the rewards can be great.
What Are Cryptocurrencies?
Cryptocurrencies are digital currencies. They are not affiliated with any bank or country, and they are underpinned by a powerful computer system called the blockchain.
Rather than giving your money to a bank, who then lends it out to others to make a profit, you can ensure that your money is yours and can’t be arbitrarily frozen by a bank on behalf of a law enforcement agency.
Cryptocurrencies have many benefits, but the negatives are that cryptocurrencies can be used for illegal or illicit activities such as tax evasion or drug dealing as it’s harder to trace the money.
Investing in Cryptocurrencies
There are now hundreds of cryptocurrencies, of which Bitcoin is the most famous and worth the most in terms of its value. Mix and Ethereum are also well-known cryptocurrencies, but even Facebook once had its own cryptocurrency.
To begin investing in cryptocurrency, decide which one is right for you. Research is key here. Read lots of books on cryptocurrencies and network with other traders online to see what they are doing. Understand what’s ahead for Bitcoin in 2020.
You could also book a trip to San Fransico or Chiang Mai Thailand, which are big centers for people trading in cryptocurrencies. There are regular meetups, open to everyone, where you might learn a thing or two
Remember not to take everything everyone at cryptocurrency meetups say at face value as they are your competitors and they wouldn’t want to give away too many secrets.
Try trading on practice investment apps and see if you make a loss or earn big. Also, look not just at recent patterns but the long term trajectory of the currency you are investing in. This might be harder to figure out if it’s a new cryptocurrency.
If you have a lot of money lying around in the bank, you might want to consider investing in companies looking to launch the first supersonic flights since Concorde. They hope to cut the journey times from New York to London and San Francisco to Tokyo by several hours, to just three or four hours in some cases.
Private companies, often funded by investors and shareholders, are building the planes and then signing deals with the major airlines. Virgin Atlantic and Japan Airlines have already signed a deal with Boom, a supersonic airline development company.
The first companies to sell these airplanes will make a huge profit as they start to replace ordinary business class flights and slowly come into standard operation.
High-Risk Business Model
However, there is also room for losses as well. Many airlines have been averse to new supersonic jets after Concorde due to safety concerns, which led to a huge reduction in the number of passengers.
As the service was a luxury first class-style of transportation and the planes were small, it relied on a small amount of high-paying customers rather than a large volume of customers, which is a risky business model.
Research is key here. If you are investing serious money then you need to do at least six months of extensive reading and investigating.
Try to educate yourself on the airline industry and how airlines make money as well as the challenges that you can face.
Driverless cars are another new technology that looks set to dominate, if not in this decade but in the 2030s. They could help reduce the carbon footprint left by traditional cars as carpooling through services like Uber becomes more common. Driverless cars are one of the biggest industrial investment opportunities of the decade.
Many firms committed to driverless cars are also committed to using green energy and electric cars rather than creating cars using fuels that are bad for the environment.
The key to their success will be both cost and how far the companies developing driverless car technology can convince the public that they are safe. The first death of a person due to a driverless car, Elaine Herzberg, was a major setback to companies such as Uber.
It’s hoped, however, they will soon be safer than traditional cars. Humans are more likely to make errors, as errors in computer systems can be reduced to less than 1%.
Look at the various companies that are on the market and try to determine which one has the most reasonable chance of coming to market first as well as the one most committed to making their driverless cars safe.
Speak to key experts in the industry before you invest, and consider splitting your investment across multiple companies if you think they stand a good chance of success.
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