Exploring Alternative Investments: A Beginners Guide to Non-Traditional Opportunities

Learn about alternative investments what is quickly growing beyond the traditional markets. Our blog pages offer tutorials on private markets, cryptocurrencies, real estate investment trusts (REITs), exchange traded funds (ETFs) and collectibles, empowering you to learn and navigate this fast growing diverse arena with confidence and expertise. Subscribe to YouTube Channel to stay informed and seize opportunities in the dynamic world of alternative investments.

John Nicholson

5/8/20243 min read

Collectibles

Collectibles encompass a huge variety of items from cars to comic books, matchbooks and much much more. Baseball cards and beyond come to mind in this intriguing facet of investing as well. Many people find just about anything collectible, if there is an interest there is probably a collector market. That being said it doesn't always equate to an investment grade collectible. Now when it comes to speaking about diamonds, gold, and other precious materials, people tend to call them investments.

Theoretically, these materials—and even stocks—could be termed collectibles because their price is based more on what people are willing to pay for them, known as their market value, rather than their intrinsic value. This is the calculated or perceived value of the good. Precious metals and stocks all have an intrinsic value.

For metals, this value is based on rarity. If you melt it, burn it, or bend it, you still have the same atomic substance in the end. For stocks, the value is produced by the underlying brick-and-mortar company that the share represents—a company that generates earnings to justify the prices you pay for its stock.

What makes collectibles different is that even a little damage can erase all of a collectible's value. This is because a collectible's value is based on nostalgia and other emotional factors—which can be erratic. Collectibles in pristine condition are valued higher than those that aren't. So, the value of a baseball card that's scratched or torn up is much lower than one still in its original condition.

Here is a great link to Investopedia which digs a little deeper into this topic,

https://www.investopedia.com/articles/basics/06/contemplatingcollectibles.asp

Cryptocurrency comes under many names. Bitcoin, Litecoin and Etheruem and more, You have probably heard about it quite a bit more lately due to its possible inclusion into use by the Trump administration. Many of the better known or more popular types of cryptocurrencies are Bitcoin, Litecoin, and Ethereum. Cryptocurrencies are becoming increasingly popular alternatives for online payments and will be used in the mainstream at some point in the future more prevalently. Before converting real dollars, euros, pounds, or other traditional currencies into ₿ (the symbol for Bitcoin, the most popular cryptocurrency), you should understand what cryptocurrencies are, what the risks are in using cryptocurrencies, and how to protect your investment.

What is cryptocurrency? A cryptocurrency is a digital currency, which is an alternative form of payment created using encryption algorithms. The use of encryption technologies means that cryptocurrencies function both as a currency and as a virtual accounting system. To use cryptocurrencies, you need a cryptocurrency wallet. These wallets can be software that is a cloud-based service or is stored on your computer or on your mobile device. The wallets are the tool through which you store your encryption keys that confirm your identity and link to your cryptocurrency.​

What are the risks to using cryptocurrency? Cryptocurrencies are still relatively new, and the market for these digital currencies is very volatile. Since cryptocurrencies don't need banks or any other third party to regulate them; they tend to be uninsured and are hard to convert into a form of tangible currency (such as US dollars or euros.) In addition, since cryptocurrencies are technology-based intangible assets, they can be hacked like any other intangible technology asset. Finally, since you store your cryptocurrencies in a digital wallet, if you lose your wallet (or access to it or to wallet backups), you have lost your entire cryptocurrency investment.

Bitcoin usage will become much more prevalent in the United States in 2025. The Trump administration has promised a set of guidelines to become a road map of sorts and possibly a currency backup. We have a link below the New York State Department of Financial Services to show currently approved bitcoin currencies in use in numerous Exchange Traded Funds currently available as of 2024. The crypto currencies will offer several benefits in the United States, making it an appealing option for many individuals and businesses. Firstly, it provides a form of currency that operates independently of traditional banking systems, allowing for greater financial freedom. Additionally, Bitcoin transactions are often faster and cheaper than conventional banking methods, especially for international transfers Lastly, it serves as a hedge against inflation, as its supply is limited, potentially preserving value over time.

Bitcoin, Etheruem & Digital Stablecoins

person holding space gray iphone 6
person holding space gray iphone 6

Cryptocurrencies: Future Payments

A wooden table holds a laptop displaying a cryptocurrency price chart, two cups of coffee, a smartphone, and a magazine with coins on top. A person is interacting with a smartphone on the right side.
A wooden table holds a laptop displaying a cryptocurrency price chart, two cups of coffee, a smartphone, and a magazine with coins on top. A person is interacting with a smartphone on the right side.

Investing Beyond Tradition