The Best way to invest a million dollars in 2023 (Part 1)

One of the main laws of capital growth - money must work and bring profit. Even large sums can be wasted if you do not know how to properly manage your money. ToolsTrades experts prepared a detailed review - where to invest a million in 2023, which areas for investment are relevant at the moment, and how to better dispose of funds to ensure a passive income.

1. Securities Investment

Investing in securities is one of the most popular choices for investors. Bonds, securities that give their holder a coupon income, are considered a more conservative instrument. With this method, you actually lend money to the state or private companies for a certain period of time. In this case, the investor knows exactly the percentage yield of securities and the date of repayment, when he will get back the invested funds. Bond yields range from 3% to 12% per annum and up, depending on the type of bond, the tenor of the loan, and other factors.

Shares of Russian and foreign companies can be a more profitable investment tool, but these investments involve some risk. By investing money in shares, you acquire a stake in the business and become a co-owner of the company, receiving your share of the profits. Holders of significant shareholdings can take part in the management of the company and influence decision-making.

Equity investing is also available to individuals who do not have the status of a qualified investor. Access to purchase stocks and other stock market assets is provided by brokerage companies - intermediaries licensed to provide financial services.

There are two basic strategies for investing in stocks:

• Buying shares of promising companies to resell them in the future at a higher price;
• Buying dividend stocks - many companies pay a portion of profits to shareholders in the form of dividends.

It is not uncommon for investors to combine these two approaches - they buy shares in periods of decline, receive regular dividends, and sell assets after prices have risen and record profits. Experts recommend stockholders review their securities portfolios periodically, sell part of the assets, and invest the received funds into promising new securities.

The pluses of investing in securities -  are the opportunity to invest a million, receive a passive income, and increase capital by selecting promising companies.

The minuses - stock prices can both rise and fall. During economic downturns, share prices often drop by tens of percent. To reduce the risks, financial consultants recommend investing in shares of companies that operate in different economic sectors. In this case, the slump in the price of some shares is offset by the growth in the price of other assets.

2. Cryptocurrencies Investment

In recent years, alternative money transfers without the involvement of central banks or other regulators have grown in popularity. The industry of digital currencies is rapidly developing, and quotations of cryptocurrencies are skyrocketing at a cosmic speed. With the right choice of asset, you can invest a million and get multiple profits in a short period of time. Several thousands of tokens are available to investors on cryptocurrency exchanges with prices ranging from fractions of a cent to tens of thousands of dollars per unit.

The cryptocurrency market is highly volatile, the price can rise or fall quickly. There are different strategies for investing in cryptocurrencies - investing in mining (mining), storing tokens (stacking), buying and selling coins for a short period of time (trading), and others.

• The pluses of investing in cryptocurrencies - are the potentially high returns, and you can develop your own investment strategy.
• Disadvantages - there is a risk of losing part of the capital as a result of a decrease in the price of the selected asset.

Experts advise investing in cryptocurrencies 10-20% of the total amount of investment capital. Digital currencies are potentially profitable, but highly risky assets.

In the next article, we'll break down some more options for investing large sums of money in 2023. Stay tuned for more updates.

Also, if you want to use all available trading tools to increase your capital as soon as possible - follow this link below, or contact us via live chat. Our experts will help you to choose the best strategy for success.