3 Unique Ways People are Investing in 2021
Every year I keep track of what is trending in the investing space. Here are three things I’m seeing grow more and more this year.
Fee Free ETFs
A couple of platforms have launched over the past 12 months that offer fee free ETF investing in Australia. While countries like the U.S have had commission free brokerage platforms like Robinhood for some time, Australians haven’t had anything even remotely comparible for ASX listed shares.
Superhero and Pearler are two platforms that offer commission free investing in ETFs. There is a catch, you need to hold onto these positions for at least a year. Which is probably a good thing.
Crypto
Crypto isn’t an “exotic” investment anymore. Apps like Raiz are helping normalising having part of your portfolio in crypto. The Sapphire portfolio on Raiz which includes a 5% allocation of Bitcoin was their top performing portfolio in 2020.
Crypto is still a unique way to invest. The majority of people don’t hold any significant amount of crypto. This will definitely change going forward.
The interesting thing about crypto is it’s not as simple as people buying and holding anymore. There are apps where people are earning interest on crypto similar to savings account with a bank. People are buying NFTs and you can even hold tokens that are backed by underlying assets such as Gold or Stocks.
Copy Trading
Thanks to the hype around Gamestop, more and more people are getting interested in trading. Is this a good thing? Probably not. Most people don’t want to spend the time to learn how to trade, and they definitely don’t have the mental mindset to succeed over the long term.
The next best thing might be copy trading. Instead of making the trades yourself, you can copy a more experienced trader. And perhaps you might just learn more about trading through the process. Many of the traders on popular Copy Trading platform eToro do beat the market. Will this be sustainable over the long term? We’ll have to wait and see.
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This post was contributed by WealthDiary.
