4 Ways to Invest Small Amounts of Capital
Are you intrigued about all the investing opportunities available but wonder whether you have enough capital to get started or even open an account? Fortunately, it doesn’t take deep pockets to invest these days, and there are multiple avenues open to people of limited financial means. So, what are some of the best ways to put $100, $500, or $1,000 to work in the modern markets, and possibly earn a profit for your willingness to put money at risk? Here are four ways people are choosing to invest modest amounts of capital in today’s highly versatile markets.
Cryptocurrency, like bitcoin and Ethereum, can be a risky investment. It can also be a way to earn potentially outsize returns on your capital. The trick is choosing the most stable coins and not betting your entire bankroll on any one investment. For instance, most people new to crypto like to diversify their holdings among bitcoin and three or four of the other most traded cryptos. It also makes sense to use cryptocurrency as one of several approaches, rather than your only profit-making avenue. One advantage of buying alt-coins is that there are no account minimums, especially if you use one of the better-known and trusted online exchanges. If you don’t prefer that route, it’s always possible to buy bitcoin for cash at one of the thousands of ATMs located in retail stores all over the world.
One of the oldest, most beloved techniques for limited-resource investors to get involved in the securities markets is with low-cost shares of penny stocks. Fortunately, there are hundreds of these kinds of shares available to anyone who wants to buy them up, hold them long-term, or trade them for short-term profits. Another plus is that learning to trade penny stocks doesn’t take any special skill, nor does it take long hours of specialized study and research. However, if you choose to trade the pennies, remember to study the background of each company because most of the low-cost shares are issued by newer entities that have thin financial histories and aren’t as well-known as other corporations.
Silver has one advantage over the other popular precious metal, gold. It’s that you can purchase silver bullion for as little as $50. The per-ounce price of silver trends around the $25-$30 range, which means if you locate a low commission seller (coin shops are usually a good source), you can begin stashing away silver by the ounce on a regular basis. Note, invest the extra $20 or $30 to rent a safe deposit box at a bank rather than store the metal at home.
Roth IRAs have no minimum investment, are opened with after-tax earnings, and are a great way to save for retirement, no matter what age you are or what your income level is. When you withdraw the money after retirement, you’ll pay zero tax on it. Unlike traditional IRAs, Roth’s offers that unique advantage. Plus, you can set them up at just about any bank, credit union, or brokerage firm.