Home Investment Cryptocurrency vs tangible asset investment – risky investments to make money

Cryptocurrency vs tangible asset investment – risky investments to make money

22 Nov, 2023 Investment

In the evolving landscape of financial opportunities, individuals often find themselves at a crossroads, torn between the allure of high-risk ventures and the safety of investing in tangible assets. What is an intangible asset compared to what is a tangible asset is the same difference between what is a risky venture and what is a safe haven of wealth creation. And at House of Assets, we’re not ashamed to say we’d much rather significantly grow our wealth in a comfortable, safe haven than having a big risk of investment. 

Risky Ventures: Cryptocurrency

In recent years, risky ventures have taken the financial world by storm, with many people fascinated by the investment trends of cryptocurrency, stocks and shares, and NFTs. 

Cryptocurrency investment, led by the iconic Bitcoin, has drawn in high-risk-seeking investors through its decentralised nature of digital assets, coupled with the potential for astronomical returns. However, the volatile nature of the crypto market means that values can fluctuate dramatically in short periods. Cryptocurrency investors may experience exhilarating highs and gut-wrenching lows, making crypto trading a rollercoaster ride of emotions. 

Day trading involves making short-term bets on the price movements of various financial instruments, including stocks and cryptocurrencies. Again, while successful day traders can reap the rewards of substantial profits, the risks are equally significant. Rapid market changes, unpredictable events, and emotional decision-making can lead to substantial losses. 

High-leveraged investments also amplify both gains and losses. Some investors are drawn to the potential for quick wealth through highly leveraged investments, where borrowed money is used to magnify returns. However, this strategy also exposes individuals to the risk of losing more than their initial investment. 

Safe Havens: Investing in Tangible Assets

Investing in art has emerged as a unique alternative to a traditional asset. And no, we’re not talking about the NFT digital art. Fine art, with its cultural and aesthetic value, can be appreciated over time. Many investors view art as a tangible asset that can diversify their portfolio while providing the joy of ownership and minimised stress.

Classic cars, particularly those with historical significance or rarity, have become sought-after investments. Car enthusiasts and investors alike appreciate the potential for these vehicles to appreciate the potential for these vehicles to appreciate over time, creating a tangible and enjoyable asset. 

Investing in rare and vintage alcoholic beverages, such as fine wines and rare whiskies, has gained popularity. These assets can mature and increase in value, appealing to collectors and investors who seek both financial returns and the pleasure of owning unique and high-quality spirits. 

In the dynamic world of finance, individuals must carefully consider their risk tolerance, financial goals, and time horizon when choosing between risky ventures and safe havens. While the allure of quick riches may be tempting, the safety of investing in alternative tangible assets, such as art, classic cars, and alcohol, provides a more diverse and stable foundation for long-term wealth creation. Don’t forget that cryptocurrency is heavily driven by reality and trends, which fluctuate in a heartbeat. In simple terms, think of how fast fashion trends change; stock investment trends change at double the speed in the real world! Striking a balance between risk and safety is key to navigating the seas of finance and securing a prosperous financial future, which is why House of Assets is here for you. Our House of Assets online marketplace/ auction house is your hub for all things tangible asset investment, and we can’t wait to be the matchmaker to your dream piece of art, classic car, whiskey, or vintage wine! For any queries, don’t hesitate to contact us.

Beth Macdonald

Bethany is a seasoned expert in tangible asset investment, renowned for her astute insights in the realms of art, fine wines, whiskey and classic cars. With over two decades of experience in the financial and luxury asset management sectors, and working for other auction houses/marketplaces, she has a deep understanding of the market sector and investment trading. Her passion for tangible asset investments started early in her career and she has keen eye for value and art.

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