Will you invest £1,000 in stocks, gold or crypto? Investing money for the first time is not an easy task. Here we are going to explain where to put your money if you think to invest your first £1,000 today.
But before making any investments, it is necessary to research and ask for advice from a trusted and experienced investor. £1,000 is not necessarily a lot of money but is an amount that can grow into a fortune if well spent.
You will not be in a position to buy a property with this kind of money, but there is a load of other options that you can put this kind of money.
Your options will largely depend on your risk appetite. High-risk investments attract attractive profits, but keep in mind that you could also lose your £1,000. The best way is to spread your risk through high, mid, and low-risk investments. Here are few ways of how you can invest your first £1,000 today.
Stocks and Shares
The first thing to consider if you are investing £1,000 today is to open a stock trading account.
The good old stocks and shares would be a wise place to start your investment of £1,000 today. There are many companies all over the world that you can choose from with affordable shares and stocks. A thousand pounds is not as much, so you can easily select a few companies to buy shares and stocks.
There are companies within the UK and around the world whose share price is still below £50. However, if you want to invest in big-name stocks like Facebook and Amazon, you could consider fractional share investing.
The best way is to take about a quarter of this cash and distribute it to four companies. The shares and stocks will not make you rich in a short duration, so you must be ready to wait for a couple of years to realize reasonable returns from this investment.
Check Out: Best Shares to Buy Right Now
The next option is to choose an investment fund for your £1,000.
An investment fund is more or less the same as buying stocks and shares, only that now you do not get to choose the companies from which to buy stocks and shares.
You can invest with a company that invests the money on your behalf.
The company has access to various assets, including stocks, bonds, shares, and other investment options. They place your money in a pool and pay you profits based on the performance of the investment.
This method is a bit risky but has more returns compared to buying shares directly from individual companies. They ideally use your money for daily trading and pay you interest after an agreed period.
The good thing with such a fund is that they have diversified investment options, some of which you would find difficult to access.
Invest in Commodities
Not many people remember to invest in commodities like gold and silver. You can take a portion of your £1,000 today and buy a share of these commodities, then hold them and wait to earn from the price change.
You do not have to wait for long as these commodities' prices keep oscillating. If you have the time, you can keep monitoring the changes to buy when the price is low and sell when the price goes up.
Technology has enhanced your access to such commodities. You can buy and sell them online from anywhere in the world as long as you have an internet connection.
Invest in Cryptocurrencies
You can start investing in crypto assets with your first £1,000.
This investment option is relatively new, and not many people have adequate knowledge about it.
Find platforms that will guide you on investing in cryptocurrencies and advise you on the best digital coins to invest in. Currently, there are more than 5,000 cryptocurrencies, but only a few are viable as investment options.
You would be better off placing your bets on cryptos that are already popular such as Bitcoin and Ethereum. Due to their liquidity, market capitalization, and demand, they are good investment options to invest in today.
However, there are a lot of other upcoming coins that have a promising future. Do just dive into them, but try and seek as much information as possible. There are already a lot of experienced investors in this field that will give you valuable advice. Ensure that you don’t invest the entire amount in the digital coin, but only a fraction.
Read Also: Top 7 Best Cryptocurrencies To Invest In
Invest in Yourself
It may not cross your mind, but investing in yourself is also an excellent way of turning your £1000 today into a fortune. You can learn a new skill or a new language and use it to earn some money.
For instance, if you learn how to trade online, you could make a lot more with that knowledge than without it. You could also learn how to make websites and start commercializing on that skill in as few as four months. There are many other short courses you can pay £1,000 today and start earning more than in your current job.
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