Meme-based cryptocurrency may not be your best route to wealth. Shiba Inu has seen its value skyrocket in recent months, but today, there are better investment options to become a millionaire.
If you hope to become a millionaire, investing in a speculative cryptocurrency such as Shiba Inu (SHIB) might seem like one of the quickest ways to get there. After all, its price has risen so much this year that it has certainly enriched the first investors.
The meme-based cryptocurrency was created in response to another virtual currency developed on the basis of a meme called Dogecoin. Interest in it has increased this year, causing prices to skyrocket. And since many people have made money in SHIB, you might be tempted to try investire in Shiba Inu you too with the goal of getting rich, but given your current situation, the chances of this happening are low.
The reality, however, is that there is a much more reliable path to accumulating a good stack of money by investing. Here’s what it is.
If you are looking to achieve millionaire status, this is the best investment
If you want to have the best chance of becoming a millionaire, that’s much better invest your money in an S&P 500 index fund rather than investing in Shiba Inu, and there is a simple reason for that.
L’indice S&P 500 has a proven history. And an index fund that tracks its performance is a relatively low risk and very simple way to invest. In fact, when you invest in a index fund that replicates the S&P 500, you get exposure to around 500 of the largest and most established companies in the United States, most or all of which are likely to stand the test of time.
Unlike Shiba Inu, an S&P 500 fund won’t produce stellar gains in less than a year. But it won’t see a double-digit drop in its price within days either, which could very well happen to Shiba Inu. And the price of an S&P index fund will never go down to 0, which is a very real possibility once people lose interest in the Shiba Inu and whip out their money to buy more coins.
The S&P 500 produced an average annual average return of 10%, this means that if you invest enough money in an S&P 500 fund each month and let your money grow you will end up becoming a millionaire letting enough time pass.
The problem with trying to become a millionaire by investing in Shiba Inu
If you are hoping the Shiba Inu will make you rich, there are some big issues to consider.
First, if you haven’t joined very early – and most people don’t because they don’t hear about these opportunities on social media until it’s too late – there’s a huge risk of buying at a very high price. Shiba Inu has already seen skyrocketing prices, despite not having a proven track record practical use in the real world. It is equally likely that prices may continue to fall rather than continue its meteoric rise.
Unless you have a crystal ball and cannot predict exactly the right time to buy and sell or have reason to believe that the coin will stand the test of time for decades through good and bad economies, your investment is very unlikely. on Shiba it won’t make you a millionaire.
Unlike investing in Shiba Inu, an S&P 500 index fund, it’s the safest you could want today.
Three best S&P 500 indexed funds
These three major S&P 500 funds are extremely similar in composition as they all track the same index (S&P 500). All three exchange-traded funds (ETF), invest in the 500 stocks that make up the S&P 500 index and all have closely replicated the performance of the index itself:
- Vanguard S&P 500 ETF (FLIGHT)
- iShares Core S&P 500 ETF (IVV)
- SPDR S&P 500 ETF Trust (SPY)
There are negligible differences between the performance of the S&P 500 Index and each of these three funds that follow it. The S&P 500 slightly outperformed each fund, as would be expected considering each fund’s expense ratio.
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Why do investors like S&P 500 index funds?
S&P 500 index funds have become incredibly popular with investors and the reasons are simple:
- You own many companies: These funds allow you to own a stake in hundreds of shares, even if you only own a share of the index fund.
- Diversification: This large collection of companies helps reduce risk through diversification. Poor company performance won’t do you much harm.
- Low cost: Index funds tend to be low-cost (low expense ratios) because they are passively managed, rather than actively managed.
- Performance solida: Your returns will effectively equal the performance of the S&P 500, which historically has been about 10% per year on average for long periods.
- Easy to buy: it is much easier to invest in index funds than to buy single stocks, because it requires little time and no investment experience.
These are the main reasons why investors have turned to S&P 500 index funds.
This has been the performance of the S&P 500 since 1990
Could it be interesting for you: Investing in Index Funds. Advantages, disadvantages and where to invest
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Investing in ETFs
There is no doubt that ETFs are experiencing a real boom, climbing the ranking of the most attractive financial instruments for investors.
ETFs are as easy to trade as stocks and at the same time allow you to benefit from diversification, as is the case with mutual funds (but with drastically lower costs). This combination of attributes has made ETFs one of the most present financial assets in investors’ portfolios.
If you want to better understand what ETFs are, how they work and how to build ETF-based investment strategies, check out ours ETF Guide.
How to invest in ETFs
Investing in ETFs is very easy: you just need to open a brokerage account with a reputable broker and find an ETF that fits your budget and investment goals. If you are looking for help with this, I recommend that you visit our rich one section dedicated to ETFs.
ETFs are financial instruments that are regulated and listed on the main world stock exchanges. In order to invest in ETFs independently, it is therefore necessary to go through an authorized broker.
Among the many brokers and banks that allow you to trade on ETFs, we have narrowed the circle to those with the lowest commissions, those who offer the most ETFs and those with the best trading platforms. More specifically, among the various parameters taken into consideration, we have given greater importance such as commissions, account maintenance costs and the possibility of trading ETFs listed on both the Italian Stock Exchange and European stock exchanges.
Best Brokers for ETF trading
There are many Brokers who give the opportunity to invest in ETFs, not all are the same and for this reason the choice may not be easy for those who have no experience in this sector.
The doveinvestire.com portal, thanks to the experience of our traders and analysts, has selected some of the best CFD Brokers following some fundamental criteria such as:
Safety: to be taken into consideration, the Broker must necessarily be regulated by an international body;
Commissions: the Broker must have an advantageous commission plan for the trader;
Trading platform: the platform must be simple and intuitive but, at the same time, complete with the necessary tools;
Customer service: anyone may need support, especially when you are in trouble and your money is at stake. A quick assistance service ready to answer any question is a necessary requirement for a good Broker.
Below is the updated list of the best brokers to trade on ETFs:
CFDs are complex instruments and come with a significant risk of losing money quickly due to leverage. Between 62 and 89% of retail investor accounts lose money when trading CFDs. Consider if you understand how CFDs work and if you can afford to take this high risk of losing your money.
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