Investing in alternative assets like rare collectibles and sports cards has become increasingly popular among investors who want higher returns and diversification. However, for beginners, it can be intimidating to navigate this investment landscape.
Fortunately, there’s good news! The growing popularity of alternative investments has resulted in the emergence of various investment platforms tailored to meet your investment needs. These platforms make it simpler for you to invest in a wide range of asset classes. They provide access to exclusive deals, require low minimum investments, and offer user-friendly interfaces.
Whether you’re intrigued by peer-to-peer lending, cryptocurrency, or real estate, alternative investment platforms serve as gateways to the world of alternative investments.
In this guide, we will explore the best platforms for beginners, helping you choose the one that aligns with your investment goals and budget easily.
Table of Contents
The Best Alternative Investment Platforms
1. Masterworks
Investors who are looking for innovative ways to diversify their portfolio beyond traditional investments may want to consider Masterworks, which is regarded as the leading platform for investing in artwork.
With Masterworks, you can buy shares in some of the most iconic artwork in history, including pieces from the likes of Bansky, Monet, and Van Gogh. The best part? Shares often start at just $20, and there are no accreditation requirements. That means anyone can invest in blue-chip artwork, regardless of their financial background.
Once Masterworks acquires and securitizes artwork, they hold it for a target period of three to ten years before selling it for a profit. And when they do, they take a 20% cut of the profits as a fee, plus a 1.5% annual fee. But don’t worry, investors get to split the remaining profits.
And for U.S. investors, there’s even more good news. Masterworks offers a secondary marketplace for shares, which helps improve liquidity. So, you can sell your shares more easily if you need to.
Overall, Masterworks is an interesting and unique platform that offers a fresh alternative to traditional investments. It’s a great way to diversify your portfolio and invest in something you’re passionate about.
2. Yieldstreet
If you are tired of the traditional stock market and seeking new ways to diversify your investment portfolio, Yieldstreet could be the solution for you as it is considered one of the most diversified and thrilling alternative investment platforms available.
With Yieldstreet, you can invest in a range of assets such as cryptocurrency, artwork, private equity, real estate, and structured notes. The variety of individual deals and funds is truly impressive. In fact, its flagship Prism Fund is a great option for those who want exposure to a range of assets, and it only requires a minimum investment of $2,500.
What’s more, Yieldstreet’s investment approach is tailored to your specific needs. Whether you’re looking for income, growth, or balance, Yieldstreet helps you create goal-based portfolios that fit your financial objectives.
However, it’s worth noting that many deals and funds on the platform require accreditation, with the exception of the Prism Fund. Nevertheless, the platform offers immense variety, making it stand out from its competitors.
When it comes to fees, most offerings have up to 2.5% in annual management fees, which is pretty standard for alternative assets.
Overall, Yieldstreet is a great option for those who want to diversify their portfolio and invest in alternative assets. With its variety of individual deals and funds, tailored investment approach, and reasonable fees, Yieldstreet is a one-stop-shop for investors seeking to expand their investment opportunities.
3. Fundrise
Fundrise is an innovative platform that has disrupted the traditional real estate investing model by offering a simple, low-cost, and accessible way to invest in eREITs, making it an excellent option for those who have always wanted to invest in real estate but could never afford to.
With Fundrise, you can start investing in income-generating eREITs for as little as $10. Yes, you read that right! You don’t need a large sum of money to start building your real estate portfolio. Once you invest, you can earn quarterly dividends, and the best part is that historically, Fundrise has returned around 8-9% annually.
Not only is Fundrise affordable, but it’s also a leader in the alternative investment space with its low annual fee of only 1%. Many real estate crowdfunding platforms charge 2% or even more in various fees, making Fundrise an attractive option for investors looking to maximize their returns.
Fundrise has made investing in real estate accessible to the masses. With a simple and user-friendly platform, you can easily track your investments and watch your portfolio grow. So, whether you’re a seasoned investor or a newbie to the world of investing, Fundrise is an excellent option to add real estate to your portfolio.
Investing in real estate has never been this easy and affordable. With Fundrise, you can start investing in eREITs with just $10, and with its impressive returns and low fees, it’s a no-brainer.
4. Arrived Homes
If you’re someone who is looking to invest in real estate but doesn’t want to commit to buying an entire property, Arrived Homes is the answer to your prayers. With Arrived Homes, you can invest in individual, residential homes starting at just $100. Yes, you heard that right – you can become a real estate investor with just a hundred bucks!
Arrived Homes allows you to purchase fractional shares of single-family homes, so you can invest in real estate without putting all of your eggs in one basket. And the best part? You earn quarterly dividends from rental income. That’s right, you get a share of the rental income from the homes you invest in. Plus, with a 1% annual management fee, investing with Arrived Homes won’t break the bank.
So, why choose Arrived Homes over other real estate investment platforms like Fundrise? While Fundrise is great for investing in REITs, Arrived Homes focuses solely on residential real estate. And with dividends ranging from 3.2% to 7.2% annually, Arrived Homes has proven to be a solid investment choice, despite being a relatively new company.
Investing in real estate has never been more accessible, thanks to Arrived Homes. With their low minimum investment amount and individual home investment options, anyone can become a real estate investor.
5. Vinovest
If you’re a wine lover seeking to expand your investment portfolio in a distinctive manner, Vinovest is the ideal alternative investment platform for enthusiasts of wine.
Vinovest lets you invest in curated portfolios of fine wines from around the world, similar to a robo-advisor. Plus, you can invest in portfolios that match your investing goals and risk tolerance. With a minimum investment amount of just $1,000 for the AI-powered portfolios, you can easily get started on your investment journey.
But that’s not all. Vinovest also has a separate marketplace where you can purchase individual bottles of wine, many of which are priced under $150. And, according to Vinovest, fine wines have returned an impressive 10.6% over the last 30 years, making it an excellent asset class to consider.
The best part? Investing in fine wines provides some downside protection as it doesn’t correlate with the market. So, even during market downturns, investing in fine wines can help protect your portfolio from potential losses.
Just keep in mind that Vinovest charges an annual management fee of between 2.25% and 2.85% depending on your investment amount. But with the potential returns and the unique investment opportunity, it may be worth it for wine lovers looking to diversify their portfolio.
In summary, if you’re a wine enthusiast looking to invest in a unique and exciting asset class, Vinovest is the perfect platform for you. With curated portfolios, a separate marketplace, and impressive returns, investing in fine wines has never been easier.
6. Collectable
Collectable is the ultimate alternative investment platform for sports fans and collectors who are tired of investing in the same old stocks and bonds and have a passion for sports memorabilia that just won’t quit.
Collectable offers a unique opportunity to invest in some of the most iconic sports memorabilia on the market. Whether you’re a die-hard fan of baseball, basketball, football, or hockey, there’s something for everyone. From rare trading cards to signed jerseys, and even worn sneakers, Collectable has it all.
One of the best things about Collectable is that you don’t have to be a millionaire to invest in these valuable items. The platform offers fractional shares of assets, so you can own a piece of history starting at just $5 in some cases. This allows investors to diversify their portfolio without breaking the bank.
But don’t let the low investment minimum fool you – investing in sports memorabilia is a highly speculative alternative asset class. Just because an item is rare doesn’t guarantee it will appreciate in value or have high liquidity. You should always do your research and understand the risks before investing.
To make the investment process even easier, Collectable securitizes assets and offers shares to investors. This means that investors can buy and sell shares of assets without having to worry about storage or insurance costs. The only fee investors need to worry about is a 1% trading fee if they ever buy or sell shares through the platform.
7. Rally Rd.
Rally Rd. is a unique and exciting platform that offers investors the opportunity to invest in rare and valuable collectibles. It is like a candy store for investors, with a wide variety of assets to choose from, including comic books, luxury cars, sports cards, and even NFTs.
Rally Rd. operates much like Collectable, with new collector items launching under an “IPO”. During the IPO, you can buy shares in the asset, and Rally Rd. includes an initial fee in the offering. After that, investors don’t pay any fees. The best part? You get to own a piece of these one-of-a-kind items without having to pay the full price.
But what happens if you want to cash out your investment? Rally Rd. has you covered. While liquidity isn’t guaranteed, Rally Rd. has a secondary marketplace where you can potentially sell your shares to exit earlier. And if you’re not in a rush to sell, Rally Rd. and shareholders can decide to sell an asset if a collector comes along and makes an offer.
Of course, it’s important to remember that investing in niche collectibles is a highly speculative venture. But if you’re looking for a new and exciting way to diversify your investment portfolio, Rally Rd. is the perfect platform for you. Imagine owning 0.5% of a Ferrari or 1% of a pair of Michael Jordan’s Air Jordan’s. With Rally Rd., the possibilities are endless.
8. Mainvest
Mainvest is a platform that offers exciting and unique opportunities for earning passive income, making it an excellent choice for those interested in alternative investment options. Forget about stocks, bonds, and mutual funds. With Mainvest, you can fund small American businesses and earn returns as a form of debt investing.
But why stop there? With Mainvest’s wide array of small businesses available on its platform, you’ll be investing in a diverse range of businesses that include cafes, breweries, food trucks, wineries, and restaurants. You can support local entrepreneurs while enjoying the thrill of earning impressive returns on your investment.
And the best part? You don’t need to be a Wall Street tycoon to get started. With a minimum investment requirement of just $100, you can get in on the action and diversify your portfolio across several businesses to reduce risk. Mainvest targets 10-25% returns for investors – not too shabby for a passive income stream.
Now, we know what you’re thinking – “What’s the catch?” But here’s the kicker: investors don’t pay fees. That’s right – business owners cover the costs, so you can rest assured that your money is being put to good use. And while debt investing does carry the risk of borrowers defaulting on their loans, Mainvest’s low minimum investment requirement makes it easy to spread your investments across multiple businesses, mitigating your risk.
9. Prosper
If you’re looking to diversify your investment portfolio and explore alternative options, Prosper might be the perfect platform for you. Prosper is a peer-to-peer lending platform that enables you to invest in personal loans, just like a bank would. And the best part? You can get started with as little as $25.
So, how does it work? Well, borrowers make monthly payments on the loans you invest in, and you earn interest on those payments. According to Prosper, the platform has an average historical return of 5.7% per year, which is quite impressive compared to traditional investment options. Plus, you can begin earning interest quickly, as borrowers make monthly payments.
But, of course, investing always comes with some level of risk. Prosper has some requirements in place to help mitigate risk, like minimum credit score requirements and income and bank statement proof. However, loans are unsecured, meaning borrowers can default, so it’s essential to be mindful of the potential risks.
Luckily, Prosper has made it easier for investors to spread out their money and reduce risk. The low $25 minimum investment amount means you can invest in multiple loans, which reduces the impact of any single default. Additionally, investors can choose individual loans to fund or use Prosper’s “Auto Invest” feature to fund loans that match preset criteria.
In summary, if you’re looking to diversify your portfolio and explore alternative investment options, Prosper could be a great choice for you. With its easy-to-use platform and low minimum investment amount, investing in personal loans has never been easier.
10. BlockFi
Investing in cryptocurrencies could be a suitable alternative to traditional assets such as stocks and bonds, considering the significant growth and success of the crypto market, particularly Bitcoin. For those interested in exploring the world of crypto investment, BlockFi is an option worth considering.
BlockFi is a revolutionary cryptocurrency investment platform that allows you to buy and trade digital currencies seamlessly. The platform offers several unique features, including the BlockFi Interest Account and the Rewards Credit Card.
One of the benefits of investing in cryptocurrencies is their potential to serve as a long-term store of value. Unlike paper money, many cryptocurrencies have a finite supply, which is capped by mathematical algorithms. This limited supply ensures that the asset class can’t lose value from inflation.
Cryptocurrencies’ unique supply and demand dynamics also make them a potential source of high returns. Investing through BlockFi presents even more benefits.
With BlockFi, you can use your crypto as collateral to borrow money at rates as low as 4.5% APR. This feature means that you can access funds for other investment opportunities without selling your crypto holdings. Instead, you use your crypto as collateral to secure a loan.
The BlockFi Interest Account is another exciting feature that allows you to earn interest on your crypto holdings. Simply store your crypto on the platform, and BlockFi pays a standard rate depending on the currency and the amount held. This way, you can earn interest on your crypto holdings while waiting for the right time to sell.
BlockFi also offers a Rewards Credit Card that earns crypto on purchases. You get 1.5% cashback in Bitcoin on every purchase, which is automatically credited to your BlockFi Interest Account. Plus, new cardholders can earn up to $250 in Bitcoin after making their first purchase.
11. FarmTogether
Investing in farmland may seem like a thing of the past, but it’s actually a valuable asset that has been delivering solid returns for investors over the last 50 years. With the rise of crowdfunding platforms, FarmTogether has emerged as a popular choice for those interested in investing in agricultural real estate.
What sets FarmTogether apart from traditional investments is the potential for earning cash from operating yields and gains from the sale of an asset. This is why farmland is considered a great long-term growth option with only five down years in the past 50 years.
As of now, FarmTogether is available exclusively to accredited investors, but the platform has plans to expand its offerings to non-accredited investors in the near future. Investing in farmland is an excellent inflationary hedge, as it benefits from inflation, and it can help improve land value and crop income.
With FarmTogether, investing in farmland has never been easier. The minimum investment requirement is only $15,000, making it significantly more accessible than other commercial real estate deals. This lower minimum also allows for greater diversification, enabling investors to spread their capital across multiple properties.
12. OpenSea
In the world of alternative investments, few have captured the attention of investors and collectors quite like NFTs. And when it comes to buying and selling these unique digital assets, OpenSea stands out as the first and largest NFT marketplace.
What are NFTs, you ask? Well, they’re non-fungible tokens that represent one-of-a-kind digital assets. Whether it’s a piece of art, a rare photograph, a memorable sports moment, or anything in between, if it can exist in the digital sphere, an NFT can be created to represent it. And OpenSea is the place to go to buy and sell these unique digital assets.
With OpenSea, users have the ability to create, sell, and purchase NFTs using cryptocurrency. The platform boasts an extensive array of NFTs in a wide range of categories, from art and music to sports and collectibles. Whether you’re looking to invest in a rare digital artwork or add a memorable sports moment to your collection, OpenSea has something for everyone.
To start investing in NFTs on OpenSea, investors need to first acquire digital currency, choose a wallet to store it in, and connect their wallet to the platform. From there, it’s as simple as exploring the marketplace and finding the perfect NFT to add to your portfolio.
Investing in NFTs may be a new frontier, but it’s one that OpenSea is leading the charge in. With a wide selection of unique digital assets and a user-friendly platform, it’s no wonder that OpenSea has become the go-to marketplace for NFT enthusiasts and investors alike.
Pros and Cons of Alternative Investments
Pros
- Diversify Your Portfolio: Alternative investments offer a way to diversify your portfolio beyond the traditional mix of stocks and bonds. This can help to reduce risk and protect your wealth in volatile markets.
- Potential for Higher Returns:: Alternative investments often have the potential to outperform the general market. For example, some hedge funds and private equity funds have generated higher returns than the stock market over the long term.
- Downside Protection: Alternative investments often provide downside protection. This is because many alternative investments don’t correlate with the market. For example, real estate investments tend to perform well in inflationary environments, while commodities can provide a hedge against currency fluctuations.
- Historical Inflation Hedges: Alternative investments can be good historical inflation hedges. For instance, investing in gold has been a traditional inflation hedge for centuries.
Cons
- Lack of Income: Alternative investments don’t generate income. For example, investing in a startup company may take years before the company becomes profitable enough to pay dividends. This can make it difficult to generate income from your portfolio, especially if you’re relying on it for retirement.
- Speculative and Risky: Some alternative asset classes can be very speculative and risky. For instance, investing in cryptocurrencies like Bitcoin or Ethereum can be highly volatile, with prices fluctuating wildly based on market sentiment. Similarly, investing in emerging markets can be risky due to political instability, regulatory changes, and economic fluctuations.
- Liquidity Concerns: Liquidity is often low with alternative investments, which can make it difficult to sell your assets quickly. For example, investing in a private equity fund may require you to hold your investment for several years before you can cash out.
Considerations Before Investing
Alternative investments have become increasingly popular in recent years as investors look for ways to diversify their portfolios and potentially achieve higher returns. However, before you jump into the world of alternative assets, there are several important considerations to keep in mind.
1. Assess Your Risk Tolerance
Alternative investments, such as private equity or real estate, can be more speculative and have higher risk profiles than traditional investments like stocks and bonds. As such, it’s important to consider your risk tolerance before investing in alternative assets. If you’re a more conservative investor, fixed-income options like bonds may be a better fit for you. Conversely, if you’re comfortable taking on more risk in pursuit of higher returns, alternative investments may be worth considering.
2. Consider Your Timeframe
Many alternative investments are illiquid, meaning they can’t be easily bought or sold on an exchange. This can make them a poor choice for short-term investments or for cash you may need in the near future. Most alternative assets require a mid to long-term investment horizon, so it’s important to consider your timeframe before investing.
3. Conduct Due Diligence
Before investing in any asset, it’s important to conduct due diligence to understand the potential risks and rewards. This is especially true for alternative assets, which can have complex structures and unique risks.
Researching alternative assets can take a lot of work, especially if you’re buying from another individual instead of a platform. Even on alternative investing platforms, doing your own due diligence and weighing the pros and cons is important. While alternative assets can offer attractive returns, they are not always passive upfront and require careful consideration.
Conclusion
In conclusion, alternative investments offer a unique opportunity to diversify your portfolio with non-traditional assets, and with the rise of alternative investment platforms, it has never been easier to invest in them. These platforms offer a range of options, allowing you to choose investments that align with your interests and goals.
While it’s important to weigh the pros and cons and consider how alternative investments fit into your overall asset allocation, with the right approach, they can be a valuable addition to your portfolio.
With low minimums and user-friendly interfaces, alternative investment platforms make it easy to get started and build a diverse portfolio.
