Investing in stocks and shares has long been considered something that goes hand-in-hand with long-term wealth, and can help you to build your savings, protect your money from inflation and taxes, and make some potentially sizable returns.
Most millionaires know that putting your money somewhere where it will grow, rather than leaving it sitting in a savings account, is a wise – if not essential – move, and although the markets can be volatile, those willing to learn the ropes, create a sound strategy and play the long game can stand to reap some impressive rewards later down the line.
If you’re wondering which assets to consider investing in in 2022, then there are some that stand out from the crowd. Here, we take a look at three of the best.
Cryptocurrency
Despite recent market volatility, the demand for cryptocurrency remains at an all-time high, and with a seemingly endless array of new alt coins – alternatives to Bitcoin – coming to market by the day, the amount of choice is greater than ever before.
The crypto market has long been known for its dramatic peaks and troughs, and in 2022, we’ve seen some of the biggest sudden dips yet. For many amateur investors, this led to a rapid sell off of assets like Bitcoin, Ether and Ripple – but more experienced traders took advantage of the price crash to get their hands on multiple cryptocurrencies at a fraction of what they would have had to pay previously.
Although we’ve seen some hints of recovery, the current global pressures influencing the market are unlikely to be resolved anytime soon, so cryptocurrency investment is, at present, a safe bet only for those willing to play the long game. Nevertheless, experts believe that given the growing adoption of cryptocurrency by luxury brands, and the increasing implementation of blockchain technology for security and authentication purposes, the future still looks bright for those willing and able to hold their nerve and wait it out.
Oil
As a global commodity, oil will never not be in demand – at least, not for the foreseeable future. Although there’s been a distinctive shift in consciousness regarding the types of fuels we use and their impact on the planet in recent years, currently, we still heavily rely upon fossil fuels. And despite the introduction of sustainable alternatives, the rising gas prices sparked by the pandemic and ongoing conflict around the world are a prime example that there’s a long way to go before the alternatives go mainstream.
Currently, the world’s demand for oil is predicted to be more than 98 million barrels per day in 2023 by the U.S. Energy Information Administration (EIA), placing it at an all-time high – so if you thought its global popularity was waning, then think again. As a growing number of nations seek to industrialise themselves, oil is as highly sought-after as it ever has been, and this is irrespective of price.
In 2023, an estimated 101 million barrels of oil will be produced each day, breaking the previous record – but it is, however, worth noting that oil exploration is slowing, and the discovery of new reserves is dramatically lower than it was in the 1940s. This is partly down to budget cuts, but also due to the mounting pressure on nations around the world to explore more sustainable alternatives – and means that oil is in increasingly short supply.
Despite collapsing at the height of the 2020 Covid-19 pandemic, oil is an asset whose price has recovered well, with rising inflation at the start of the Russian invasion of Ukraine seeing prices surge to over $125 per barrel. It’s likely that in the future, we’ll see prices climb even higher, so although now isn’t the best time to buy for those seeking a bargain, investors can still expect to make some good returns should they choose to take the plunge now.
Buying stocks of oil drilling and service companies is one of the easiest ways to invest, while energy sector ETFs are another alternative worth considering. You can start trading almost instantly with the Oil Profit app, which is downloadable from the Apple app store and Google Play.
NFTs
NFTs – or non-fungible tokens – have been making waves of late, and are fast becoming one of the most popular investments of the year. Virtual tokens that use blockchain technology to record proof of ownership of anything considered unique or rare – from original digital artwork to collectibles to songs and video game items – and have exploded in popularity in 2022, so if they’re not on your radar just yet then they should be.
NFTs are digitally certified with a unique signature that cannot be forged or altered, which is great news for artists, designers and collectors, amongst others. The first major auction house to enter the NFTs market, Christie’s sold an artwork depicting Satoshi Nakamoto – the creator of Bitcoin – for an eye-watering $131,250 and, since then, it has become clear that NFTs are something very special indeed. Later, Twitter chief executive Jack Dorsey’s first ever tweet sold for the princely sum of $2.9 million, while the original source code for the World Wide Web fetched a sizable $5.4 million in June 2021.
The value of any one NFT will of course, always depend on demand, and markets can be volatile. But if you’re keen to dip your toe into the water, then all you need is a crypto wallet, which is used to send, receive and store digital assets – and of course, the money to invest. NFT marketplaces allow you to connect your digital wallet and start trading straight away – but you’ll need some of Ethereum’s Ether cryptocurrency available to cover transaction fees.
