About Alternative Investments

This site is dedicated to three of the latest avatars of the Fintech. This acronym stands for financial technology, basically meaning applying technology advances to the financial sector.

The most famous example is online banking, which first started to disrupt traditional banks a few years ago and is now very common. Alternative investments aims at focusing on three recent innovations : peer-to-peer lending (aka P2P lending), automated trading, and crypto-currencies.

P2P lending

This investment style allows you to lend money to people and/or businesses; the P2P company acts as an intermediary between the lender and the borrower. This investment form is accessible with virtually any investment size : the minimum investment amount is usually as low as $10.

Automated trading

It allows you to subscribe to strategies and have them automatically traded in your broker’s account. You can view them as a mutual fund on steroids, or as the poor man’s hedge fund (these commonly require more than $100k !). Unlike mutual funds which have strict constraints, the strategies aren’t limited to buying stocks : they can also sell short (meaning they bet on the stock value going down), and trade on derivatives or currencies. This usually leads to improved returns, at the cost of a greater risk.

This part of the website is still under construction.

Crypto-currencies

Crypto-currencies like bitcoin are often associated with criminality due to their total anonymity. But they can also be excellent trading vehicles !

Here’s a graph showing the value of one bitcoin in US dollars (courtesy of blockchain.info).It started close to zero a few years ago, was around $1000 at the beginning of 2017, and as of this writing (2017, July) is close to $3000. Surely it’s possible to make some profit from such large moves, right ? That’s what I’m going to find out. Stay tuned for this third section of Alternative Investments regarding crypto-currencies at the end of the year !

 

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