Everyone has a side hustle. Everyone is always looking for an easy way to make some extra cash. And everyone thinks that they have a unique ability to turn a profit, even in areas where many others have failed.
Unfortunately, the majority of these people that think they have everything figured out eventually discover that they had absolutely no clue what they were getting themselves into. So with that in mind, let’s take a quick look at five risky investments you should never make using credit.
NFTs
NFTs are getting major hype right now, but that doesn’t mean they are anywhere close to a “sure thing.” In fact, some of the first “non-fungible tokens” like NBA Top Shot have already seen shocking declines in value.
Whether you are looking at dirt cheap art projects or crazy-expensive Cyberpunks, there is a wide range of investment opportunities here that are filled with extreme risk.
Cryptocurrencies
Cryptocurrencies are another area that is seeing a ton of hype right now, and just about everyone wants to load up on Bitcoin and Ethereum while also putting way too much of their hard-earned money into whatever they think will be the next DogeCoin.
There is no denying that crypto will be a massive part of our future, but just like we saw with internet stocks in the late 90s, we have no idea which ones will ultimately be the winners.
Stock Trading
We saw all kinds of crazy action in meme stocks like Gamestop and AMC already this year, and that wild action may be continuing right now with Robin Hood and Coinbase both exploding in value.
But just like we saw with Gamestop and AMC, prices inevitably come back down to earth, and it’s always retail traders that are the last ones who get stuck holding the bag.
Sports Cards
Everyone’s rookie card has jumped in value over the past few years, and some of the best ones have skyrocketed beyond what anyone ever thought was possible. However, plenty of long-term sports card collectors will remember the market bottoming out and cards being close to worthless over the past few decades.
And while that Michael Jordan rookie card looks like a great buy today, there could very possibly be no market at all for it even just a year from now.
Other Collectibles
Did you hear that a sealed copy of the original Super Mario game sold for over $2 million this year? Prices on collectibles ranging from video games to Lego sets to sneakers have gone through the roof, but we all know those growth rates can’t scale forever.
Any of these investment markets could be your ticket to living a better life for years to come, but you have to keep in perspective that they could all collapse just as fast as they have been going up.
For that reason, it is critical to remember that you should only speculate in these markets with money that you are fully prepared to lose. If you do that, everything will be fine no matter what happens. But if you are taking significant risks on credit, you could be setting yourself up for a horrible day of reckoning down the road. Be careful!
