Alternative investments are unconventional investment assets such as cryptocurrencies, private equity, forex, crowdfunding, gold and precious metals. These are considered out of the mainstream of shares, bonds, unit trusts, and property investments.

 

Why (or Why Not) Alternative Investments?

Alternative investments can provide better returns than traditional investment assets although subject to significantly higher volatility and risk. Investors may also have specific knowledge or passion in specific alternative investments and enjoy the community that is in a particular niche. However, alternative investments can be complex, lack transparency and efficiency, and carry higher risks.

 

Types of Alternative Investments

Cryptocurrencies

Bitcoin (BTC) is an independent digital currency capped at 21 million (21,000,000) units without a centralized intermediary party (such as the Treasury or banks) to manage the transactions. Contrary to what it is called, bitcoin values are just numbers. It is the same when you check your bank account balance online – what you see on the screen is just a representative of the amount of cash you have with the bank, as stored in the bank’s centralized database. In banking terminology, the database is the bank’s ledger but for bitcoin, it