Where to invest a small amount of money.

Passive income always seems attractive. Essentially, one can do nothing and still consistently receive income. Overall, the thought of how to multiply a small amount of money arises for many Ukrainians. Even in the challenging conditions of 2024, the situation has changed little. 

When exploring the topic of where to profitably invest a small amount of money, various options should be considered. There is no single answer to where it is best to invest a small amount of money. Everyone can choose their way to receive passive income. Moreover, the decision on where to invest a small amount of money can be changed. That is, investment can be constant, using different methods, and then subsequently investing funds differently. This way, it is possible to increase one's income. 

Where can one invest a small amount of money? 

Investing has long been a rather popular way to earn "smartly." This is quite an effective method that is certainly within everyone's reach. Essentially, you need to invest a certain amount first to then withdraw significantly more income. 

It is important to understand that successful investment requires thorough analysis, planning, and selection of suitable financial instruments. In 2024, there are many options in Ukraine for investing money with minimal risks and even without significant costs.

The most popular form of investing, which does not require much study, can be considered a bank deposit. In conditions where the country's economy is unstable, this form of investment is even more significant. This option is suitable for those who are not ready to take risks and seek a reliable way to preserve capital with minimal income.

The advantages of bank deposits are: 

1. Quite high reliability. Money is protected by the bank, and deposits in most Ukrainian banks are insured by the state.

2. Minimization of risks. Of course, such risks cannot be completely eliminated, but banks usually provide quite substantial guarantees. 

3. This type of deposit is quite convenient and simple. You can open a deposit online via the bank's mobile application.

This method of investing has its drawbacks. You cannot get a lot of income from the bank. There is a certain percentage, but it is usually quite low, especially if the deposit is created for a short term. Also, the investor has limitations on access to the funds. In most cases, deposits impose restrictions on early withdrawal.

For small amounts, a bank deposit can be a decent start, especially if you are willing to wait and do not plan to use this money in the near future.

Investment in cryptocurrency 

With the development of cryptocurrency and its decentralization, crypto is becoming another method of investment. Cryptocurrency is one of the riskiest but also potentially high-yielding investment tools. In recent years, interest in digital assets in Ukraine has significantly increased, and in 2024, cryptocurrency remains widely discussed.

The advantages of this type of investment are: 

1. Sufficiently high income. So, if you choose the right coins, their price can rise rapidly. Then the profit will be significant. 

2. This type of investment has high accessibility. To start, you don't need a large amount of money — you can buy a small amount of cryptocurrency.

3. High liquidity. Cryptocurrency can be easily sold or exchanged at any Time.

Crypto also has its drawbacks. Cryptocurrencies are subject to sharp fluctuations in value, which can lead to both significant profits and substantial losses. Moreover, buying crypto can expose you to fraudsters. 

It’s advisable to start with popular cryptocurrencies like Bitcoin or Ethereum, which are considered more stable and have stood the test of time.

Bonds and stocks 

There is another type of investment that may suit a novice investor. Bonds are debt securities whereby the issuer undertakes to return the invested money with interest within a certain period. The advantages of this investment are: 

1. Quite high reliability. 

2. Income that will definitely be of a certain size. The investor knows exactly how much income they will receive from the bond at the time of its maturity.

3. High accessibility. Bonds can be purchased through a broker, and a large amount is not required for this.

This type of investment also has its disadvantages. Compared to stocks or cryptocurrencies, bonds yield lower income. The liquidity of this deposit can also be low. Investments in bonds are suitable for those who do not want to take risks and prefer stable, albeit not very high, income.

Stocks are equity securities that give you the right to a share of the company's profits (dividends) and the possibility of earning from the increase in the value of these stocks. Investing in stocks is one of the most popular ways to increase capital.

The advantages of this type of investment are: 

1. Sufficiently high yield. Stocks of successful companies can significantly increase in price, which brings high income to investors.

2. Some companies pay dividends to their shareholders, allowing for passive income.

These are fairly accessible earning systems. However, this type of investment also has its drawbacks. There are risks of losing funds. If a company incurs losses or its stock price falls, the stocks can devalue, leading to losses for the investor. Additionally, with stocks, constant market analysis is necessary.