When you think of alternative investments, what comes to mind? For some, cryptocurrency is a frontrunner, while others resort to classic cars or art. These three alternative investment opportunities can produce good results. Let’s explore each of these investment classes in more detail, including why they are growing in popularity and how you can get started investing. Please note that this article is not financial advice. Each asset class below comes with investment risk. Only make investments in assets that align with your own personal financial goals.
Evaluating Cryptocurrency Trends: Smart Digital Asset Investments
The crypto market has exploded in recent years. What was once seen as a lucrative investment is now being worked into 401(k) plans. In fact, the U.S. Government Accountability Office found 69 crypto asset investment options in 2024. Similarly, 2024 also had over 40 crypto ETF launches. There are a few reasons behind the popularity of crypto investments, including:
- Decentralized Network – Cryptocurrencies use the blockchain, which is free from the control of central authorities, like the government. The greater control over finances and properties is attractive for many investors.
- High Returns – Cryptocurrencies have been steadily increasing in price over the past few years. For example, in 2015, Bitcoin was trading for a few hundred dollars. Today, the price is well over $100,000 per share.
- Growing Acceptance – Cryptocurrency is continuously being integrated into daily life. Many merchants now offer crypto as a payment option, while governments have started to recognize it as a formal currency.
- Accessibility – Cryptocurrency is accessible to anyone with an internet connection, offering greater financial flexibility compared to traditional banking systems.
With all of these factors in mind, many investors are flocking toward cryptocurrency as a part of their core investment strategy. While many new crypto ETFs and investment options are coming on the market, it’s important to thoroughly vet providers. For beginners, consider sticking to well-known cryptocurrencies, like Bitcoin, Binance, or Ethereum.
Navigating the Classic Car Market: Investment Insights and Finding the Best Car Shipping
Just like the cryptocurrency industry is gaining traction, so is the classic car market. New generations of buyers are appreciating classic cars for their performance and nostalgia. For example, many Gen X and Millennials can obtain a classic car with the same performance capabilities as a modern sports car at a fraction of the price. Similarly, purchasing a classic car brings a sense of rarity.
The interest in classic cars goes beyond their driving capabilities. In fact, many classic cars hold their value. This can make it a great investment over the long run or present a new business opportunity for buying and selling vehicles. If you’re interested in owning or reselling classic cars, it will be important to find a reliable car shipping company. Odds are, the perfect classic car isn’t just down the road. Here’s what to look for in a pickup and delivery company:
- Upfront Quotes – The price you pay for vehicle shipping shouldn’t be a surprise. Look for a company that provides a quote or estimate upfront.
- Insurance – The best car shipping company will have some form of shipping insurance. If anything does happen during transit, you want your investment protected.
- Customer Reviews – A good auto transport company will come with positive customer reviews. This might include details about the company being a trustworthy and reliable car transport service.
- Flexible Services – The best car shipping company will be able to provide you with a delivery timeframe, enclosed auto transport, and cross-country car shipping. You want flexibility in your automobile shipping.
If your prospective car shipping company doesn’t meet the above criteria, it might be time to look elsewhere.
The Rise of Fine Art Collectibles: Building a Diversified Portfolio
Fine arts is a broad investment category. This type of investment can include paintings, music, sculptures, photography, poetry, and more. Any type of art that has an aesthetic or intellectual purpose is generally considered fine art. While fine art can be pleasing to look at, it can also serve as a great investment avenue.
Here’s why:
- Portfolio Diversification – The art market isn’t attached to traditional financial markets, like stocks. This means that major market swings have little to no impact on the value of your fine arts, preserving your portfolio and providing diversification.
- Long-Term Capital Appreciation – Fine art can unlock long-term capital appreciation. For example, you rarely hear of famous paintings, like a DaVinci, losing their value. While traditional markets may face price swings, your fine art collection typically appreciates.
- Tax Advantages – There are certain tax advantages of investing in fine arts. For example, when selling or donating your art, you may be able to leverage lower capital gains taxes and charitable deductions.
Investing in fine arts can help you build a diversified portfolio because it is an effective hedge during inflationary environments. To start investing in fine arts, learn about the history and movements of famous artists. Familiarizing yourself is an important first step to finding great investments.
Comparing Alternative Investments: Crypto, Classic Cars, and Art for Long-Term Growth
Crypto, classic cars, and art may all have a place in your portfolio. While these alternative investments may be seen as lucrative or risky by some professionals, the risks are reduced over the long term. Compared to traditional investments, some alternative investments have higher long-term returns due to lower volatility. For example, while the stock market may be turbulent, your alternative investments will see little to no price movement.
There’s no one-size-fits-all approach when it comes to choosing which alternative investments to have in your portfolio. In fact, having multiple different types of alternative investments is a great way to diversify. For example, maybe you have a love for classic cars, so you choose to purchase a few vehicles. In addition, you slowly add crypto holdings to your portfolio.
Moreover, it can be helpful to choose an alternative investment venue that you are passionate about. If you are passionate about classic cars or fine art, you may be able to track down good investments with more ease.
Summary
Crypto, classic cars, and fine arts are three alternative investments to consider looking at. Before pursuing any new investment, it’s important to complete thorough due diligence.