What are the best investments for 2022? Top 15 asset classes Given the fact that the value of this industry will increase in the upcoming times, it is advisable to buy NFTs of your favorite art, and then send it at a profit later on. Overall, NFTs are a potentially a good investment for all crypto lovers and those who are interested in movies, sports, and art in general. Though there are concerns about the negative effect of NFTs on our environment, with the shift of Ethereum from the proof-of-work (PoW) consensus model to the proof-of-stake (PoS) mechanism, this concern will get sorted due to the decreased energy consumption of an NFT transaction. Moreover, considering the fact that NFTs provide the artists to make good money out of their art, its popularity will continue to soar in the years to come.
Creators can get the payment from the buyers in a transparent and trustless manner, eliminating the need for intermediaries and middlemen. They can share and utilize their NFTs across many platforms, and still remain the owner of art until they are sold.įurther, as an artist, you can connect with buyers easily through the use of NFTs. The thing which makes NFTs special is the alternative model of ownership that allows content creators to have complete control over their art. Therefore, if you have any item that has value, you can earn the value for your creation by making its NFT on the blockchain. Anyone who purchases NFTs gain public proof of ownership through the application of blockchain technology.Īny form of a digital file, such as images, audio, movies, GIFs, tweets, art, and even memes, can be made an NFT. The NFTs are linked to objects such as films, audios, photographs, and other media. In case you don’t know much about NFTs, you can understand it in form of the unique and non-interchangeable data units, which are kept on a digital ledger. The buzz around NFTs can be understood from the fact that even Collins dictionary has declared it as the word of the year for 2021. New forms of investment in 2022 – investing in NFTs So now that you know what makes a good investment, in the next part of our guide we are going to discuss 15 of the best investments for 2022 and beyond. While some individuals view the best investments as those that offer super low-risk levels that yield low returns, others opt for high risk levels that will potentially yield really high returns. Otherwise, there would be no point in increasing the underlying risk.Īs such, the best investments are those that cater directly to your appetite for risk. In the financial world this is known the ‘Risk vs Reward’ model, and essentially means that the more risk an investor takes, the more profits they should be rewarded with. On top of this, the best investments also ensure that risk levels are kept to an absolute minimum, with respect to the amount of growth that is expected. However, what if inflation grew by 3% in the same period? Essentially, although your $10,000 would be worth 1% more, when you factor in the 3% inflation rate, you’re effectively 2% worse off!Īs such, when asking yourself what is the best investment, it needs to be a financial instrument that not only protects your wealth, but helps it to grow.
In fact, the real-world value of your money will decline.įor example, if you held $10,000 in a basic savings account that paid an annual interest rate of 1%, then your original $10,000 would be worth $10,100 at the end of the year.
With the interest rates offered by banks now at record lows, keeping your funds in a basic savings account is no longer viable. At an absolute minimum, this would need to grow at a faster rate than that of inflation. In its most basic form, the overarching aim of making an investment is to increase the value of your wealth. 68% of retail investor accounts lose money when trading CFDs with this provider.