Best Way To Invest $10k – Top $10k Investments In 2023 Compared

What are the best $10k investments to make in 2023? We introduce you to the best ways to invest $10K in 2023. These are primarily medium to long-term investments that will continue bringing returns long into the future.

The majority of these investments can also be viewed as a retirement plan because they appeal to virtually all classes of investors, regardless of their risk tolerance level.

We also go over factors to consider when choosing the best $10K investment for you.

Read on.

 

Below, we discuss each of these investments in detail. We tell you why they make it here, who can invest in them, how they have performed in the past, and their projected future performance.  

A Closer Look At The Best Ways To Invest $10K Today

There currently are numerous investments that you can make with as little as $10k. And when vetting all these and coming up with the list of top $10k investments below, we considered three key factors.

First, we examined the investment’s past performance to determine such factors as its resilience and sensitivity to market shocks. We also looked at its projected future performance to determine its viability. And lastly, we assessed its risk profile to determine if it appeals to the risk-averse or the more tolerant investor.

Let us discuss the top 10K investments and explain why you may want to add them to your portfolio and what to invest in right now.

1. Cryptocurrencies – Overall Best $10K Investment in 2023

Our top pick for the best ways to invest $10K today is crypto investing. And it is informed by the fact that cryptocurrencies have outperformed virtually all other asset classes in the last 10 years. They have consistently posted impressive gains, maintained an overall uptrend and survived even the most devastating market crashes. Today, for example, the all-popular Bitcoin is trading more than 2 million percent above its 2011 prices.

We also list cryptocurrencies among the best $10K investments because we expect them to continue rallying and growing your investment. At the time of writing, for example, the majority of the coins and the larger market have lost as much as 75% of their peak 2021 prices.

This says that as soon as the market recovers (with recovery expected sometime before 2024), these coins are expected to rally by at least 300% and recapture their all-time highs. And by the turn of the decade, we expect others – like BTC – to have rallied by as much as 5000% to tear above $1 Million.

We also include cryptos here because they support multiple investment strategies that appeal to both beginner and pro investors. Some - like staking, HODLing, and liquidity farming - appeal to beginners and the more risk-averse investors. Active trading, ICOs, and arbitraging – on the other hand – are considerably riskier and appeal to pro traders/investors.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

2. Stocks – Best Conventional $10K Investment

Stocks are arguably one of the most popular investment methods around today. This explains why they dominate virtually every investor and trader’s portfolio.

This popularity could be attributed to a host of factors, key among them being the fact that stock investing is lucrative and virtually anyone (regardless of their experience) can make money here. These are also the primary reasons why we believe you should add stocks to your basket of the best $10K investments.

Expert stock investors with a relatively high-risk appetite will usually engage in active stock trading. This could involve trading actual shares or margin trading share CFDs with high leverages on online brokerages. They will also target volatile but hugely promising stocks.

The risk-averse and beginner stock traders will, on the other hand, turn to less risky investment strategies like buying and holding. They will also target less risky but promising growth, value, or dividend stocks. If they must actively trade stocks, most will turn to managed brokerage accounts, copy trading, or Robo-advisors.

Your capital is at risk. Other fees apply.

3. Real Estate – Earn Double Income When You Invest $10k in REITs

We also rank real estate investing – specifically REITs – among the best ways to invest $10k right now because they help you make double your income. Real Estate Investment Trusts (REITs) refers to a fund that invests in income-generating real estate properties – both residential and commercial. But unlike traditional real estate companies that are either owned by an individual, entity, or a few persons, REITs use resources pooled from thousands of retailers.

REITs are one of the few investment vehicles that let you start investing in real estate with as little as $100. You don’t even have to own the actual property.

You earn double income from REIT investment in the form of dividends and value gains. This implies that incomes earned from the use of property – mainly rent – are distributed to REIT contributors in accordance with their contribution amounts. Your initial investment, which represents your ownership of the REIT, will also appreciate when the value of the owned properties rises.

The passive nature of REITs makes them one of the best beginner-friendly ways to invest $10k today. Note, however, that real estate investments aren’t as liquid as stocks, and neither are they as lucrative as cryptos.

4. Copy Trading –Beginner-Friendly and Highly Lucrative $10K Investment

We feature copy trading in our list of the best ways to invest $10k today because of its beginner-friendliness. This means you don’t need any prior trading experience to start copy trading. And that you can also start with as low as $200 on such copy trading brokerages as eToro.

Copy Trading is the art of copying winning trade strategies and settings of highly successful traders/investors and replicating them in your own trader account. It allows virtually anyone to make money trading any asset, regardless of their analysis or trading skills/experience. It is a wholly passive and fully automated process that mirrors your favorite pro-traders portfolio into your account in real time.

We also list it here because you can copy-trade virtually any asset. eToro, for instance, allows you to copy any of the popular and highly successful stocks, crypto, commodities, index fund, ETFs, and futures traders. And if you are looking for more diversified and regularly rebalanced portfolios, the online broker lets you copy expertly created smart portfolios.

But even more importantly, we believe copy trading to be a top $10K investment today because it is massively profitable. On eToro, for example, the majority of verified popular investors have helped their copiers earn double-digit percentage returns on their investments for several months – consistently. And all this at no extra cost to you as the copier trader seeing that the broker doesn’t charge a copy trading commission.

68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

5. Government Securities – Safest $10k Investment Right Now

Government securities, especially bonds and T-bills, are the safest and most reliable investments right now. And this explains why they feature in our list of the best $10k investments today.

But we also include them here because of their long-term potency, seeing that bonds will consistently pay competitive interests for an extended period of time. Not forgetting that you do not need prior investing or trading experience to participate in government security auctions and invest in bonds or treasury bills.

Note that there are different types of bonds. The most common, however, has to be the regular bonds that often pay a fixed interest rate throughout their lifetime. There also are inflation-protected bonds used by investors to preserve the real value of your investment by shielding it from the value loss occasioned by rising inflation. Also known as TIPS (Treasury Inflation-Protected Securities), the latter is not as common and often attracts lower interest than regular bonds.

If you are looking for an investment that offers a near same level of safety and guarantees as government securities and higher returns, consider investing in corporate bonds. They, too, are considered safe and passive investments and, therefore, quite beginner-friendly.

6. Index Funds – Most Diversified $10K Investment

Index funds are exchange-traded assets that track the performance of a basket of stocks or other assets. They are designed to mirror the overall performance of this basket of stocks or assets. The S&P 500, for example, tracks the performance of the top 500 companies in the US, while DOW 30 tracks the performance of the top 30 technology companies. A fund is traded as a single asset, and its value will rise with the rising value of these stocks and vice versa.

You should consider adding index funds to your list of the most popular $10K investments for two primary reasons. For starters, they have consistently outperformed individual stocks. And secondly, index funds are less sensitive to market shocks – unlike individual stocks.

They are more resilient and will rebound from even the most devastating economic crisis - fast. This has helped them sustain an overall uptrending price action, which is attractive to any long-term focused passive investor.

Secondly, index funds have outperformed individuals most beginner to intermediate active traders. But they still remain one of the most beginner-friendly investments. And this is made possible by the fact that they will almost always rally after a market crash. Not forgetting that they can be copy traded on virtually all the popular copy-trading platforms like eToro.

You may also consider adding index funds to your pool of top $10K investments because they are affordable. For starters, index funds attract relatively low management fees, averaging 0.25% p.a.

7. NFTs – Fastest Way to Grow Your investment By Collecting Digital Art

Non-Fungible Tokens, commonly known as NFTs, are a relatively new asset class. And they refer to digital art hosted and sold in the crypto market. They shot to popularity in 2021 and have since become one of the most profitable investments, especially after their uptake by some of the most popular celebrities and multi-national off-chain brands. This has seen the floor price of some of these NFTs rally by several hundred thousand percentage points in less than a year.

They have now broken off into a worldwide trend, more commonly referred to as the NFT craze, which continues to drive massive demand and attention to this crypto art. We also observe that as the crypto market readies for recovery, the NFT craze is expected to push the price of these NFTs way higher, further enhancing their lucrativeness. And these are some of the reasons why we rank NFTs among the best ways to invest $10k today.

There are two primary ways of investing in NFTs today. The first involves buying promising NFTs and HODLing – waiting for their value to explode. Alternatively, you may consider coming up with your own NFT collection and spending the $10K on designing the art, promotion/marketing, and creating value around the project before auctioning the digital arts at a premium. Or you could simply choose to trade NFTs actively.

Note that NFTs are as risky as they are lucrative. Some forecasters and analysts are even convinced that as much as 90% of NFTs currently available will be worthless in the next five years. 

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

8. Robo-Advisor – Best Passive Investment Program for Multi-Asset Trading

Robo advisors are automated trading algorithms that invest and trade on your behalf. They are the compromise between the often-unsuccessful manual trading and hiring an expensive brokerage account manager. It starts with finding a reliable Robo advisor and creating your investment portfolio. Most of these algo-traders support diversification and will let you invest in multiple assets.

You then have to set such guiding principles for the auto-trader as your investing goal and risk tolerance level. For a small commission – often a fraction of what is normally charged by a managed brokerage account – the auto-trader will enter and exit trades profitably.

The fact that Robo advisors are profitable and affordable and will let you invest with as little as $10K make them one of the most beginner-friendly investments. These are also the main reason why you should consider adding the auto traders to your index of the best $10k investments right now.

9. Peer-to-Peer Lending – Invest in Low-Risk Lending Program with Higher-Than-Average Returns

Peer-to-peer lending involves bypassing banks and other financial institutions and loaning out your cash to individuals and small to medium enterprises. It is better than saving cash in a bank or similar financial institution as it attracts a higher return on investment. Today in the US, for instance, interest for savings accounts averages 0.16% p.a.

Popular peer-to-peer lending platforms like Prosper, Upstart, and Lending Club – on the other hand – let you earn between 5% and 36% p.a. when you lend to others. By investing in a P2P lending platform, therefore, you stand to earn between 30X and 225X more than you receive, saving your $10k in the bank. This is the primary reason why we feature P2P lending among the best ways to invest $10k today.

Additionally, p2p lending platforms have put in place safeguards to keep your money safe. These safeguards also let you determine the level of risk you wish to expose your investment to – effectively appealing to both risk-averse and tolerant investors. They achieve this by thoroughly vetting borrowers and grouping them according to their risk profiles.

Borrowers with a proven ability to repay, a perfect credit score, and a track record of timely loan repayments are charged relatively low interest on loans – closer to 5%. And the higher the borrower’s risk profile, the higher the interest. The platform then gives you absolute control over who you choose to lend to, allowing you to only lend to safe borrowers and high-risk borrowers or to simply spread your investment between both categories of borrowers.

10. Max your Retirement Account – Grow Your Investment in a Tax-Advantaged Retirement Account

The last item to our basket of the best ways to invest $10K is the padding of an investment account. Consider using the $10k to set up or maximize your retirement account savings. And where possible, we would encourage you to channel these resources to a self-directed IRA – preferably the ROTH IRA account.

There are several benefits to investing $10K in a self-directed Roth IRA (SDRIRA). For starters, the income from your investments is tax-free. Secondly, you can start withdrawing from the fund as soon as you reach 59.5 years. But even more importantly, it is highly flexible and lets you invest in alternative high-risk, high-reward assets like cryptos.

You also don’t need to be a pro-investor or trader to start using an SDRIRA. The internet is awash with free educational resources that will guide you through the Roth account opening and investing process. While at it, pay close attention to such factors as contribution limits, income limits, and allowed asset classes. And note that you may not be able to contribute the $10K lump sum in one calendar year.

What To Consider When Choosing The Best $10K Investment For You

Numerous investments fit the bill of the best $10K investment. In this guide, we have discussed what our analysts and the larger investing community believe to be the 10 best investments today. But since you won’t be investing in them all at once, how do you identify the investment that appeals most to you?

We have outlined a few factors that should help you arrive at the best investment for you:

Investing goals

Ensure that your preferred investment aligns with your investing goals. For example, understand that a self-directed IRA and government securities are good long-term investments while NFTs are excellent for short-term gains.

Risk tolerance

You will want to only invest in an asset with a proven history of resilience and a promising future.

Fees and minimum investments

Check if your preferred investment attracts managing/trading fees and assess the impact these overheads will have on your profitability.

Liquidity

You will also want to invest in fairly liquid assets. This refers to the speed with which an investment can be converted to cash – or some other asset.

Return on investment

It is imperative that you only invest in assets that don’t just help preserve the real value of your capital but also help it grow. This means that your preferred asset’s ROI should be higher than the combination of the prevailing inflation rate and investment management fees.

Conclusion – Best Ways To Invest $10K Today

Finding the best $10K investment doesn’t have to be complicated. We help you get started in this post by introducing you to what our analysts and the larger investment community consider to be the 10 best ways to invest today.

Here, we have discussed low-risk and beginner-friendly investments as well as high-risk assets that only appeal to expert traders/investors. We have also looked at investments with fixed income and others with highly variable but attractive returns. But even more importantly, we have provided you with tips on how to choose the best investment.

eToro – Best Trading Platform For Traders And Investors

68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

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