Ways to Speculate With Your Money
If you're unsure about the stock market and other traditional ways of saving and investing your money, there are lots of other ways you can invest or speculate with your money. Of course you should note that speculation is one step further than investing. When you invest, the probability of you earning money on your investment are typically higher than 50%, but when you speculate, the odds are not always in your favor. Here are some ways you can take on massive risk in the hopes of massive returns, but remember that you are much more likely to lose your money speculating than investing.
Buy Bitcoins. Bitcoins have become somewhat of a frenzy lately. For those of you that don't know what a bitcoin is, it is an alternative currency that is distributed and controlled electronically. That is, there is no currency other than where it is held in an electronic wallet. The supply is limited based on an algorithm and lately the demand has been going crazy. Bitcoin prices have risen from a few dollars to several hundred dollars in a matter of months. Getting in early could have made you a millionaire, but what happens if you buy now? The trend could continue and your speculation could pay off. Or maybe bitcoins are like beanie babies and will become a relic of the times.
Gamble. Gambling is one of the oldest forms of speculation in the world, with ancient civilizations like China and Rome using cards and dice to speculate. Today, gambling has become widely accepted with some form or other available in almost all states. At the start of the Internet age, online gambling was available to anyone. Laws were passed to regulate online gambling and it almost went away, but now many states and countries are making it legal for the first time.
Buy a Lottery Ticket. Many people don't think twice when they buy a lottery ticket, but playing the lottery is definitely a form of speculation. By definition, less money is paid out than is taken in, which means that the house will always win. Keep this in mind when playing the lotto. On the plus side though, you can win more money playing the lotto than almost anywhere else, and you can usually play it for just a dollar or two.
Stock Options. While stock options are designed to mitigate risk, they are actually one of the easiest and most regulated way to speculate with your money. You can buy put or call options on underlying securities, commodities or indices in the hopes of a quick move up or down that can net you big returns on your initial investment. However, if your bet doesn't pay off you will lose your entire investment when the option expires. The nice thing about stock options is that they are legal in nearly every country and are fairly priced because of all the speculators and arbitragers playing the market.