The notion of leveraging the online community to secure an additional source of income is certainly nothing new. This strategy began to emerge soon after Internet access became widely available during the latter half of the 1990s. It now enjoys mainstream popularity, and even casual investors are reaping the rewards.
Statistics clearly reinforce these observations. Current studies predict that the global value of the online investment community should reach a staggering $3.6 trillion by the year 2029. This represents an annual growth rate of approximately 2.80%.
So, how can the average consumer take advantage of these opportunities to create multiple income streams? While there is no single answer, there are plenty of ways to generate an appreciable side hustle. This article will examine five potent techniques and the benefits of each.
Table of Contents
The Fundamentals
We should begin by stressing that the methods will ultimately depend on one’s personal goals. Some individuals are looking to become involved with liquid asset classes. Others might instead need to generate a stable long-term income to supplement a retirement package, or to build a nest egg for their children. The discrete strategies outlined below will attempt to cater to both sides of the spectrum.
1. Consider the Benefits of Different Asset Classes
One primary benefit that can be attributed to the online investment community involves the sheer number of assets that can be monitored. For instance, partnering with a reputable shares trading platform provides access to a host of well-known firms such as:
- NVIDIA
- Apple
- Tesla
- Visa
- Deutsche Bank
Note that blue chips can often be classified as long-term investments, or medium-term positions (depending on the intention of the trader).
Commodities, indices, Forex pairs, and cryptocurrencies represent other possibilities; each associated with its own unique qualities. The primary question involves what you are hoping to achieve. This leads us into the next point.
2. Liquidity Versus Stability
Anyone who has been following the cryptocurrency community may be aware of the meteoric rise associated with tokens such as Bitcoin. Indeed, there was a time when the value of this asset increased by a staggering 30% within a single day of trading. The issue here is that what comes up can (and will) come back down. In other words, liquid investment opportunities carry a significant amount of risk due to their inherent volatility. They could still represent powerful tools to generate a short-term profit.
There are also investment categories that tend to be associated with long-term profits. Commodities, property, bonds, and stocks providing dividends are some common examples. While sudden price gains may not frequently occur, these are not the point. The long-term growth attributed to these positions can be attractive to those who possess a more conservative mindset.
The intention should be to determine which type of strategy you wish to adopt. Thankfully, it is often possible to enjoy the best of both worlds.
3. Creating a Balanced Portfolio
It is impossible to eliminate the risks associated with any type of investment. The main goal is to mitigate the impact that fluctuations may have on your finances. This is when the power of a balanced portfolio comes into play. Here are some of the reasons why this approach is one of the best ways to secure multiple passive income streams:
- It is possible to incorporate a kaleidoscope of asset classes.
- Balanced portfolios can often supersede volatile market conditions.
- Long-term profits can be used as a means to hedge against short-term losses.
- Numerous holdings may help to reduce the potential impact of unforeseen events (such as a sudden interest rate hike, or geopolitical tensions).
Note that curating a balanced portfolio will take time, and a fair amount of experience is normally required.
4. Take Advantage of the Latest Online Trading Platforms
Another reason why everyday individuals are becoming involved with the world of online trading involves the fact that modern platforms can eliminate the fees often associated with traditional brokerages. For instance, a one-off MetaTrader 4 download provides immediate access to numerous assets, the latest technical charting tools, and a host of options that will enable users to customise their investment experience. Demonstration accounts are also available; providing a means for novices to “wrap their heads” around the finer points. Virtual trading portals are now pivotal when generating multiple income streams.
5. The Growing Role of Artificial Intelligence
Artificial intelligence (AI) has already enjoyed a fair amount of attention thanks to how advanced these algorithms have become. From small business solutions such as advanced chatbots to big data collation, the applications are quite impressive. Readers might also be surprised to learn that AI is beginning to emerge within the world of online investing.
Tools such as ChatGPT can be used to develop an understanding of broader market conditions, and some believe that accurate predictive analyses could soon become a reality. Having said this, AI should only be used to supplement more traditional techniques. It can still be flawed, and accurate outcomes are far from guaranteed. However, AI-powered tools may be used to add another “string to the bow” within a balanced investment strategy.
Closer Than You Think
Generating an income stream through these strategies is much more of a reality than many have been led to believe. The methods outlined above could very well open up a world of possibilities to those who are willing to think outside the box.