The best ways how to invest 100k

$100,000 is a rather large amount of money, which opens up a number of attractive investment opportunities. By investing your capital correctly, you not only protect your money from inflation, but also provide yourself with additional finances to realize your own goals and dreams. We present the most popular ways for investing — from investment funds to bonds and cryptocurrency.

How to invest in the stock market?

The stock market is not just movie footage of crazy brokers drowning in a whirlwind of investments and Warren Buffett’s ridiculous sayings. It’s also a way to make solid profits, even after deducting all capital gains taxes from your income.

During a recession, long-term investing is often a bad decision, as important companies refuse to pay dividends due to financial difficulties. Fortunately, things have stabilized in 2021 and major companies are back to regularly distributing profits to shareholders.

For those who don’t want to stop at one particular company, a good solution is ETFs, which are investment funds whose value is similar to an entire stock index, such as WIG20. This is one of the most popular answers to the question of where to invest 100k in 2022.

Corporate bonds

If the stock market is too risky for you, you can turn to good old-fashioned bonds. These are debt securities, or simply put, loans made to private companies or the government. Although bonds are calculated as a low-risk financial instrument, you can increase your risk (along with your potential return) by choosing corporate bonds. Bonds are one of the best ways how to invest 100k!

Investing in the Forex market

You can also trade currencies not through real exchange, but through virtual transactions of a speculative nature. This is done with the help of CFD in the Forex market! You can play in the Forex market using brokerage accounts, which provide such an opportunity. Non-bank trading platforms create the best conditions for Forex players due to low spreads and very functional mobile applications.

Investing in cryptocurrencies

Cryptocurrencies, among which not only Bitcoin, but also, for example, Ethereum, have become a hot investment asset in recent years.

The topic, which only a narrow circle of specialists was interested in, has become an object of desire even among conservative investors years later. However, it is important to remember that cryptocurrencies (especially those that are less popular) are a very volatile asset and can be subject to speculative attacks.

Cryptocurrencies can be purchased on special online exchanges to then store them in virtual or physical wallets. Such physical wallets resemble a memory card or external storage device. Bitcoin or ethereum can also be purchased from bitmachines, or “ATMs” for cryptocurrencies known in Polish cities. They are then downloaded to a physical or virtual wallet.