How to Invest Money Online to Protect Against Inflation

The best sectors for money online investment

Any person with money has a fairly large number of opportunities to invest it. However, in 2022, there are significantly fewer investment instruments that bring guaranteed income. The focus has shifted to capital preservation due to high inflation and weak European and American GDP data, according to a report from the investment portal investing.com.

The simplest solution is a bank deposit, but the rates on them do not reach the required values ​​​​to protect against inflation. A slightly more complex scenario is investing in the stock market and buying stocks or bonds. You can take a chance and try your hand at the trendy cryptocurrency market. And one of the most stable investment instruments that protect against inflation is real estate.

Disclaimer!  The information in the article is not an investment recommendation. Investors themselves decide which option is more affordable and profitable for them.

Investing money online in stocks: How profitable is it?

Usually, the stock market is a great tool for investing in the long term. However, since the beginning of this year, shareholders have seen a decline in both the American and European markets. This happened for several reasons:

• The overbought majority of shares over the past year and a half.

• Increase in the key rate in the US and EU countries.

• An impending (or already occurring) recession.

• Problems in the fight against inflation.

On one hand, buying back after a strong fall can bring medium-term profit.

On the other hand, there is no guarantee that the market will not collapse even more, especially given the tension in the world. In addition, money online investing in stocks requires a lot of theoretical and practical knowledge.

Cryptocurrency is a risky option for investing money online

According to TradingView, in 2021, cryptocurrency has become one of the most profitable assets. Therefore, many inexperienced investors are counting on increasing their budget with the help of bitcoin or other coins this year as well.

One of the most popular platforms for interacting with crypto assets is youhodler.com. The company allows for not only trading but also using the possibilities of crypto-backed loans or crypto-savings accounts.

Despite the hasty statements of some experts, cryptocurrency does not save from inflation. Recall that in the autumn of last year, Bitcoin reached almost $70,000, and already in June of this year, the price broke through the $20,000 mark. And this is not to mention the fact that cryptocurrency itself is a risky asset. For example, in April 2022, the rather popular LUNA coin was worth almost $120, and already in mid-May, the price fell below $1! The conclusion suggests itself — cryptocurrency is not a reliable tool for an online investment of money to protect against inflation.

Investing in gold: Why is it a dubious idea?

It is generally accepted that gold is a defensive asset, so investing money online in this metal makes sense. This can be done with the help of special funds or by buying gold, silver, platinum and other bars or coins on the website bullionbypost.eu. However, if you look into the topic, it turns out that the current inflation in the eurozone will not be defeated by gold. Analyzing the chart of the price of gold and the S&P 500 index allows us to do a little research. If we compare the returns of gold and the stock market over the past 40 years, the metal shows an average annual return of 3.7%, while the stock market — 9.2%.

If we take 10 years, the situation looks even sadder. The stock market showed an increase of 11% per year, while gold was only 0.7%. At the same time, the average annual inflation is 3.8%. So, it turns out that even in calm times, the valuable metal barely keeps up with inflation. Moreover, in 2022, the price of gold is declining (though not as strong as the stock market), while inflation has only been growing. The conclusion is that money online investment in gold or buying physical bullion is better than just keeping banknotes under your pillow but worse than any other investment.

Investing in real estate: What you need to know

One of the most stable and non-volatile assets of the entire spectrum today is real estate. The income from this type of investment will allow you to overtake inflation over the horizon of three to five years and save capital. At the same time, it is necessary to understand that the real estate market also does not exist in a “vacuum space” — it is tightly connected with the country’s economy and the processes taking place in the world.

It is important to understand that investing in real estate is not only buying an apartment. For example, investors of the estateguru.co platform have the opportunity to independently choose the projects that they will finance (for example, give a loan to a developer). After a certain period, the borrower returns the entire amount with additional interest. The bad news is that simply buying the first property you see will not guarantee a profit. Experts from this field can even be involved to evaluate the options under consideration (not for free, of course). Therefore, despite the attractiveness of this sector for investment, it is not so easy for a mere mortal to make the right choice.

An easy and profitable way to invest money online in times of high inflation

Just keeping money in a safe at home is far from the best idea. At least because the current inflation will simply “eat” them. The traditional ways of investing money online usually require a lot of knowledge in these areas. What to do for a beginner or those who have already received negative experience? One interesting option is to become a Quanloop investor. Quanloop is a financial business group that borrows money for a day and lends to its partners. At midnight, the debt is returned to investors. That is, this is an investment fund that provides its partners with the opportunity of wholesale financing, investors — with income from the interest rate, and the fund itself earns on the spread of rates. Everyone benefits from such activities.

Why is money online investment with Quanloop more attractive than traditional ways of investing?

• Quanloop allows investors to set their interest rates and risk.

• The average return on investors over the past six months was 12.4%. This is enough to cover the impact of inflation and even earn extra money.

• More than 70,000 EU/EEA investors have already joined the investment fund.

• When borrowing money, the company adds an insurance reserve from its own money.

• The fund is registered in Estonia and allows investors from almost any EU/EEA country to join.

• To participate in the project, you do not need to spend dozens of hours studying the sphere of investment. The company itself chooses reliable partners.

Quanloop does not promise hundreds of percent of profits like some scam projects do. The business model is simple and working, which allows people who have between 500 and 15 thousand euros to not only save but also increase capital in times of high inflation by money online investing.