Investing has come a long way from the days of stockbrokers shouting across trading floors. Today, thanks to digital platforms like Nemo Money, anyone can build an investment portfolio from their phone. Whether you're an expat looking to grow your savings across borders or a digital-savvy investor searching for the best type of investment, this guide is for you.
Let's dive into seven main types of investments - their risks, rewards, and how tech-driven solutions are making investing easier than ever.
1. Stocks: Own a Piece of the Action
When people think of investing, stocks are often the first thing that comes to mind. Buying a stock means purchasing a tiny slice of a company - when the company grows, so does your investment.
Why invest in stocks?
- Potential for high returns – Historically, stocks have delivered high returns to investors, helping them beat inflation by putting their money in stocks.
- Easy access – Digital platforms like Nemo Money offer fractional investing, allowing you to buy a portion of a stock.
- Diverse choices – Invest in everything from tech giants like Apple to innovative startups.
Risks to consider:
- Stock prices can fluctuate daily, making them riskier in the short term.
- Success depends on the performance of individual companies and the overall market.
2. ETFs: Diversify Without the Hassle
Exchange-Traded Funds (ETFs) are baskets of investments that trade like stocks. Instead of buying individual shares, you invest in a collection of assets, spreading out risk.
Why invest in ETFs?
- Instant diversification – Own slices of multiple companies in one go.
- Lower risk than individual stocks – If one company underperforms, others in the fund may balance it out.
Risks to consider:
- While safer than individual stocks, ETFs still follow market trends and can decline in value.
- Some ETFs focus on niche industries, which might be more volatile.
3. Bonds: Steady and Reliable
Bonds are essentially loans you give to governments or companies in exchange for regular interest payments. They're lower risk than stocks, making them ideal for balancing an investment portfolio.
Why invest in bonds?
- Stable returns – Receive fixed interest payments over time.
- Lower risk than stocks – Perfect for cautious investors.
- Good for diversification – Many investors mix stocks and bonds to manage risk.
Risks to consider:
- Returns are generally lower than stocks.
- Inflation can reduce the value of your interest payments over time.
4. Real Estate: Physical Wealth
Real estate investing used to mean buying property, but modern investment platforms now allow fractional ownership of real estate.
Why invest in real estate?
- Steady income – Rental properties provide a passive income stream.
- Value appreciation – Property values generally increase over time.
Risks to consider:
- Property values can drop due to economic downturns.
- Traditional real estate investments require significant upfront capital, though fractional investing lowers this barrier.
5. Cryptocurrency: Hot Trends
Crypto assets like Bitcoin and Ethereum have gained mainstream acceptance, offering high rewards - but also high risks. Here at Nemo money, you can trade crypto as CFD, (which means contract for difference.) This means you’ll be speculating on the price without actually owning the coin itself.
Why invest in cryptocurrency?
- Potential for massive returns – Some cryptocurrencies have skyrocketed in value.
- Decentralized finance (DeFi) – A modern alternative to traditional banking.
Risks to consider:
- Extreme volatility – Prices can rise or fall dramatically in a short period.
- Regulatory uncertainty – Government policies may impact the value of certain cryptocurrencies.
6. Alternative Assets: Beyond Stocks and Bonds
Investing isn’t just about stocks and real estate. Alternative assets - like fine art, collectibles, and even music royalties - are growing in popularity.
Why invest in alternative assets?
- Low correlation with traditional markets – These assets can hold their value even during stock market crashes.
- Unique opportunities – Invest in rare wines, watches, and other assets that reflect your interests.
- Fractional investing available – Platforms now allow small investments in high-value assets.
Risks to consider:
- Alternative assets can be illiquid, meaning they’re harder to sell quickly.
- Values can be subjective, making price changes unpredictable.
7. Robo-Advisors: Investing on Autopilot
Robo-advisors are AI-powered investing services that build and manage your portfolio for you - ideal for beginners or busy investors.
Why invest with a robo-advisor?
- Hands-free investing – Algorithms choose the best mix of assets for your goals.
- Lower fees – No need to pay high management costs.
Risks to consider:
- Lack of human guidance - some investors prefer personal advice.
- Performance depends on market trends and robo-advisor algorithms.
If you’re interested in AI-powered investing advice, our GPT powered Nemo AI is available to help provide insights and analysis into different stocks and markets. Download Nemo Money to try it today.
How Nemo Money Makes Investing Simple
Whether you're a first-time investor or a seasoned pro, Nemo Money’s smart investing tools make it easier than ever to build a diversified portfolio. Here’s how:
✅ Fractional investing – Buy shares in top companies without needing thousands of pounds.
✅ Alternative investment options – Explore individual stocks, crypto as CFDs, and ETFs from one platform.
✅ Nemes – Only Nemo Money has nemes - handpicked stocks that have something in common, making it quick and easy for you to explore a new industry or market, or sort stocks by qualities like volatility.
Final Thoughts
There’s no one-size-fits-all when it comes to the best type of investment - it depends on your financial goals, risk tolerance, and personal interests. Whether you prefer the high-risk, high-reward nature of crypto CFDs, or diversified ETFs, modern platforms like Nemo Money make investing accessible, flexible, and even fun.
So, what’s stopping you? Start investing today and build a smarter financial future! To get started, simply download the Nemo Money app from The App Store or Google Play. Then simply sign up and start investing! What’s more is new Nemo Money users can grab our registration bonus up to a maximum of $50 on first deposit. Terms and conditions apply. Happy investing!
