These investments are less risky than crypto and could make you a millionaire

Nowadays, many investors are drawn to cryptocurrency because the media continues to broadcast stories about people getting rich. But while there is money to be made in cryptocurrency is also a very risky prospect.

Not only could regulatory issues impact the value of the cryptocurrency over time, but if demand starts to decline, it could easily take a massive plunge. And this is in addition to the general volatility that the crypto market naturally experiences.

So even if you want to invest some of your cryptocurrency assets, you shouldn’t rely on them to grow your wealth in the long run. You should, on the other hand, look at those investment options which are considerably less risky.

Image source: Getty Images.

1. Dividend shares

As the name suggests, dividend stocks share the company’s profits with investors, usually on a quarterly basis. Not only can you make money from these dividend payments, but you can make money if your dividend stocks themselves increase in value over time. Plus, while there is always the option of collecting your dividends and spending that money, reinvesting your dividends could really help you grow your wealth.

2. Fractions of shares

Buying individual stocks is a good way to build a diversified portfolio that grows in value over the years. But some individual actions can be a bit too expensive for your budget. If so, it is worth considering fractional shares.

Fractions of shares allow you to buy part of a stock if you can’t trade a whole stock or if you don’t want to tie up too many investment dollars in a single stock. Fractions of shares are an excellent solution for building a diversified portfolio. After all, if you don’t spend a lot on individual businesses, you can own more than one.

3. S&P 500 Index Funds

Index funds are passively managed funds that aim to match the performance of an existing market index. And while there are different index funds you can focus on, S&P 500 funds are a good bet.

The S&P 500 itself is made up of the 500 widely traded stocks, and by buying stocks from index funds, you get instant diversification without having to do a lot of research. Additionally, the S&P 500 itself has a strong history not only in terms of strong returns, but also of recovering from market downturns.

While it is not necessary to turn away from cryptocurrency altogether if it fits your risk tolerance profile, you should also be aware that digital coins have not been around for that long and it is difficult to predict their actual endurance as an investment. On the other hand, stocks have been around for a long time and have historically rewarded investors who buy and hold them for many years.

If your goal is to get really rich, you better not rely on cryptocurrency to get you there. While stocks are far from risk-free, they are a safer prospect than putting your money in digital coins and hoping for solid long-term results.

About Warren Dockery

Check Also

Endurance Technologies (NSE:ENDURANCE) next dividend will be higher than last year

Endurance Technologies Limited (NSE: ENDURANCE) announced that it will increase its dividend from last year’s …

Leave a Reply

Your email address will not be published.