Business investments are all about risks and profits. While people already know that it could be a dangerous game to play, there are still some ways that you can avoid losing money because of wrong investments.
Overconfidence is another thing that makes business investments more dangerous. People get too confident often about investing in something that has really no guarantee. Here are some business investments that you must think twice before trying to avoid hurting your finances.
- Penny Stocks
Penny stocks are those common stocks that are being traded by about less than 5 dollars per share. In the US, there are reports that there have been organized crime families that are actively manipulating penny stocks since 1970. It is still a very risky investment today because it is easy to manipulate.
- Digital Currencies
Popularly known as Cryptocurrencies, virtual currencies have been a famous investment online for many people since 2009 when Bitcoin started to be known around the world. Digital currencies also play a big part in the total world market, but it is now also being used for illegal activities like purchasing drugs. It can also be easily hacked since it is online.
- Alternative Investments
Alternative investments are also known as exotic investments or structured products. It is named such because it is very complex. Many investment managers get attracted and offer alternative investments because of their popularity, but there is only limited success in engaging with this type of investment.
There’s no denying that you can still earn profit with these entities, which is also why most of these are popular even if it is risky. There are even some notable people that get rich through these investments like Satoshi Nakamoto—as seen on his online business page. However, these are the type of investments that you would rather not choose to deal with to avoid hurting your business finances.