Where to invest money in a crisis?

1.09.2022
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куда вкладывать деньги в кризис

A financial crisis isn’t always a bad thing. Of course, during this period, the country’s economic growth slows down, unemployment increases, and the inflation rate rises. But if you look at it from the other side, you can see that this phenomenon provides people with the opportunity to make good money.

If we translate the word “crisis” from Chinese, we get not “decline” at all, but “opportunity”. In times of crisis, people try to properly redistribute their savings. Someone does it clumsily and goes broke, becomes poor, and someone, knowing some rules, can get rich and increase their capital several times.

How to save money in a crisis? This question arises in the mind of almost every person, regardless of how much money they managed to collect. Of course, we are far from financial geniuses, but believe me, even with a small start-up investment You can get a good profit. We are not talking about millions at all, but money is never superfluous, so why not take advantage of the current economic situation and earn an additional few thousand.

Where to invest money in the crisis for ordinary people?

where to invest in the crisis

First of all, each person should understand the purpose for which they are going to invest money. There are two options – saving financial resources or increasing capital. However, before you invest your capital, think about whether you may need them in the near future or if you want to forget about them for at least a few years. If your money is not “touched”, then the amount can safely grow. The final profit that you can get from your investment depends on your decision.

Where to invest money in a crisis – cryptocurrency

Over the past decade, the popularity of investing in e-currency has started to grow. The profit from buying Bitcoin exceeded the index by 10 thousand times. However, it should be understood that there are other types of cryptocurrencies, and the growth has affected almost everyone.

What should I invest in during the crisis? The easiest way to invest in cryptocurrency is through an exchange. Many such sites sell and exchange this digital currency. Judging by previous experience, people received a huge amount of income. But novice investors need to understand that there are certain risks involved in this activity. For example, the site where your cryptocurrency was stored was closed, and along with it, you lost your digital assets. To avoid such situations, we recommend working with reliable services. It is advisable that the site has two-or three-step authentication. This way you can protect your capital as much as possible.

What to invest in during the crisis? If you like to take risks, you can try your luck in cryptocurrencies. This business is considered quite profitable, but there is also a risk of losing digital capital. Do not rush to invest your savings, carefully choose the resource where you will store your Bitcoins. Many sites have instructions for users that allow you to set up multi-step authentication for your wallet.

Where to invest in the crisis – bank deposits

what to invest in during the crisis

The first thing that can come to mind for a modern person is to put money on a deposit. Of course, you will not be able to make a huge profit using this method. Income on bank deposits depends on the level of current inflation. People open a deposit in order to save their capital and create a financial safety net for themselves. If you are thinking about tomorrow, you should have such “insurance”.

Bank deposits are one of the most liquid financial instruments. The client of a banking institution can close the deposit at any time and receive the entire amount at once. Disadvantages include possible loss of interest if you withdraw money earlier than the due date. For such cases, there is a ladder of deposits. This method will allow you to save most of the revenue generated. In the global network, you can find other recommendations that allow you to correctly approach the opening of deposits.

First, you need to choose a deposit with the maximum interest rates. Additional advantages of bank deposits include 100% security of your finances. Most of the deposits are insured by the state. The threshold may be different for each country. If your capital exceeds the safe deposit amount, it makes sense to open an account with different banking institutions.

What to invest in during the crisis-opening foreign currency deposits

This method is similar to the previous one, only you will open a deposit in a foreign currency. If you are looking for a good return, then use a different method, since this type of investment is designed only to protect your capital.

No one can predict how a particular currency will behave in relation to the national currency after a certain period of time. Do not think that you will be able to increase your investment with a foreign currency deposit or earn money on the difference in the exchange rate.

We recommend that you use the following strategy. Open several deposits in different currencies at once. The classic options are dollars, euros, and rubles. In most cases, the proportions on foreign currency deposits are equal to each other. You can also open an account in British pounds, Chinese yuan, and other currencies that are recognized worldwide. This approach allows you to insure your capital against depreciation. Since all currencies are closely related to each other, the weakening of one will lead to the growth of the other. For example, if the dollar depreciates, the euro may jump sharply. This phenomenon is called currency diversification. This way, you can be sure that your savings will remain safe and sound. Often, the profit on foreign currency deposits is not so high, and interest rates are much lower than on deposits in the national currency.

What to invest in a crisis-bonds

what to invest in during the crisis

Deposits and bonds have many similar characteristics. Despite the fact that bank deposits have a higher popularity, investing in bonds allows you to get a high profit. Income on bonds can exceed earnings on bank deposits by 30 to 40 percent.

Why, despite the high profit, this type of investment is not in demand among investors. The fact is that it is not easy to find information on bonds. Therefore, the reason is that people have not heard or do not know how to work in this field.

Making an investment in bonds is quite simple. You need to choose a broker on which platform you will trade. Using this service, you will get access to the stock market, where you can purchase bonds.

Novice investors are recommended to get advice from the staff of the chosen brokerage company. They will advise you on how best to invest your funds. Do not hesitate to ask additional questions, because their work includes consulting clients.

If you put your money in a bank deposit, and then did not wait and withdrew the entire amount, you lose your earnings. The bank will only refund you the money you originally invested.

The advantage of bonds is that you can buy or sell them at any time. Thanks to the high liquidity of this product, you will not lose any accrued interest. There is such a thing as coupon income. This term refers to the daily accrual of interest on the value of the bond.

If you have purchased bonds worth 100 thousand hryvnias with an interest rate of 15, then every day their value increases by 41 hryvnias. If you decide to sell the bonds or at least part of them, you can still count on accrued income.

Make money in a crisis on bonds. Often, during an economic crisis, deposit rates increase. However, it should be understood that this is temporary. It is not profitable for the state and banking institutions to charge high interest rates. Therefore, after a certain period of time, the National Bank slowly reduces the interest rate.

How can I earn money in a crisis? This method also has its own strategy. It is advisable to buy long-term bonds, for example, 5-15 years. Also, give preference to the option with fixed payments. Thus, you will be able to secure earnings in the amount of 15 percent per annum and for a long time. Even if the National Bank reduces the deposit rates, you will still receive your 15 percent every year.

What stocks should I invest in during the crisis?

best investment in a crisis

Have you ever wanted to become a shareholder in a large organization? The crisis provides people with a great chance to earn a good income by investing in the stock market. In this case, there are only two strategic tactics.

The first option. When the national currency begins to devalue, companies decide to import. Delivery outside the state brings manufacturers considerable profit. At the same time, their expenses remain at the same level and in the national currency, but they receive their income in foreign banknotes. These areas include the extraction and processing of metals, the oil and gas industry, the automotive industry, etc.

By purchasing shares in such large organizations, you get the opportunity to receive a portion of the company’s profit. The investor can also count on additional income in the event of the company’s growth, since in such cases the interest of domestic and foreign investors in shares is simply huge.

The second option. It is necessary to wait until the stock prices of large companies start to fall. This phenomenon usually occurs at the time of an economic crisis. Stock prices are falling dramatically, in some cases by 40 to 80 percent. You only need to monitor the largest organizations so that the risk of bankruptcy is very low. Small companies may not survive in the market and close down. For this reason, invest only in reliable corporations that are time-tested.

After prices fall, after a certain period of time, they can sharply jump up and reach the previous level, and in many cases even exceed them. The potential profit of your deposits can be 20-30 percent per year, and sometimes even more.

Investing money in stocks during a crisis is a long-term investment. You may not even think about your shares, they will work for you. If you may need money in the near future, then this method is not suitable for you, because after the purchase, the shares may fall in price and by selling them, you will only get losses.

Best investment in a crisis – Mutual funds

If you don’t know anything about buying bonds or stocks, but you want to learn how to make money in a crisis, then the only way out is to help real professionals. Experienced specialists will do all the work for you, but, of course, it will not be free.

The advantages of mutual funds include the following::

  • availability of shares in several large organizations,
  • relatively small investment size.

The disadvantages of this method include interest for services. Regardless of what results you have received, whether you are at a loss or in profit, you will be charged a commission every year. In most cases, they are about 2-5 percent.

What to invest in during the crisis?

what stocks to invest in during the crisis

Precious metals have always played the role of protective assets during the unstable economic situation in the country. People were looking for a financial tool that would help them save and, in some cases, increase their capital. Currently, many investors have given their preference to gold.

What should other people invest in during the crisis? By buying gold, you will definitely be able to protect your savings from depreciation. Gold is considered a global currency that can be sold anywhere in the world. Its cost is constantly growing. If inflation is 20 percent per year, then the price of this precious metal will increase by 20 percent.

As the demand for gold among investors also increases, global prices are rising. Of course, you should not expect changes in the price every day. But still, this trend can be traced.

Where to invest in the crisis? If you decide to choose investing in gold, then there can be many options for purchasing the precious metal, starting with simple and ending with complex ones that require a certain amount of experience and knowledge.

Risk – free investment in real estate

Many people who do not understand anything about investing, try to get income in the financial crisis in the sale and purchase of real estate.

If you want to make money on this business, then you should invest only at the beginning of the financial crisis. The fact is that prices for apartments in these difficult times for the whole country are falling, because there is no high demand for real estate.

How to invest in a crisis? If you notice that prices have sunk very much, and then the economy has started to grow slightly, then you can try your luck and invest your money in real estate. Over the next 3-6 months, the cost of apartments will start to rise slowly. It is in this case that you can earn good money.

Where to make money in a crisis?

investing money crisis

If your main goal is to ensure the safety of funds and, if possible, slightly increase their size, then give preference to deposits or bonds.

How to make money in a crisis? To make money work for you, you should buy shares of the largest companies or mutual funds. In this case, you need to take into account the duration of the investment and the possible drawdown of your capital. However, this method can be attributed to the best investment in a crisis.

If you are trying to stick to the “golden mean”, then give preference to precious metals and real estate. On the one hand, they provide an opportunity to increase income, and on the other hand, the risk of failure is much lower than for the above types of investments during the crisis.

As you can see, there are many methods that allow you to get additional income during the financial crisis. A novice investor can choose a financial instrument that they can work with independently. We are sure that the above methods will help you get additional income from your deposits.

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