We have written many times about the threat of rising inflation and people are now looking for new ways to protect themselves from it.
Let’s look at the ways people prefer to invest in to protect themselves from inflation.
The purpose of buying an apartment has gradually changed over the years. People have realized that this is a very advantageous way to save money. At the time of the pandemic, interest in this possibility of protection against inflation increased even more. The market is now favourable for this investment purchase. Banks keep interest rates low and conditions are looser. So it looks like a very good idea together with the steady growth of real estate prices.
The truth is that this investment is long-term and, in the vast majority of cases, profitable. This type of investment is a very good protection from inflation. However this type of investment lacks liquidity. It takes long time to cash it out and if forced to do so quickly, one can even loose money. It is also not possible to take the funds with you if the need be. In addition it is not possible to take just a small amount of the real estate’s value and pay with it.
Other options that people invest in are precious metals. In terms of market development, these are some of the best ways to protect your money. Precious metals have zero interest, but zero interest is better than negative one. Precious metals are considered as a safe haven for a long time.
Even precious metals have their downsides. One is that in order to really own some precious metals, you have to store them properly, which can be costly. Also it is not safe to carry larger amounts of gold around. Travelling with larger amounts of precious metals is not very comfortable either. And it is very complicated to send a payment this way.
We’re getting to cryptocurrencies. This is an area where one can gain a lot, but also lose a lot. It is a very dynamic market that can change in a minute. However, interest in cryptocurrencies is growing steadily over the last ten years. The cryptocurrencies showed that they can cope very well with crisis, and even after a great decline, they recovered very quickly every time.
It is very easy to travel with cryptocurrencies and very fast to send a payment, even to the other end of the world. The trick here is that you have to know, which cryptocurrencies to invest in and also how to store them securely.
Every person has a different approach to investing. Investment in general requires a lot of study. This is very true for cryptocurrencies as well. You don’t have to invest only in those very well-known cryptocurrencies, consider looking at other digital coins such as Platoncoin (PLTC), which you can buy at Changelly cryptoexchange, for example. If you’re interested to know more about Platoncoin, check our whitepaper.