4 investments to try if crypto makes you nervous

  • Ex-Wall Streeter Vivian Tu says crypto is going to be “a big part of our future.”
  • She says everyone should invest in crypto, but not if you’re investing money you can’t afford to lose.
  • You suggest real estate, ETFs, or I-bonds if you’re worried about cryptocurrency volatility.
  • This article is part of a series focused on millennial financial empowerment called Master Your Money.

“Cryptocurrency is going to be a big part of our future,” says Vivian Tu, a 27-year-old millionaire and financial literacy influencer with over a million TikTok followers.

Known for her candor about systemic injustice in finance and her ability to break down major financial concepts in a 60-second clip, Tu tells Insider that cryptocurrency — or at least the blockchain technology that underpins it — tends – will radically change the way we think about money for generations to come.

She adds that people shouldn’t “YOLO-ingest” all of their savings on crypto, and that you should maximize other passive income streams first, like an employer match 401(k), if you have one.

If you are worried about


in the crypto market, here are four other less volatile investments, according to Tu, that may be a better fit.

1. Exchange Traded Funds or Mutual Funds

Exchange-traded funds (ETFs) and mutual funds are a great way to invest in the market without picking individual stocks, says Tu.

Instead of buying individual stocks like Apple, Tesla or Disney, ETFs and mutual funds allow you to buy smaller chunks of each stock, bundled into a single package.

ETFs are a basket of exchange-traded securities. Mutual funds, on the other hand, are a group of stocks and other assets typically managed by a fund manager to maximize profits. Because you are buying a diverse set of assets, there is less risk than investing in cryptocurrency.

2. REITs

A real estate investment trust (REIT) is a company that owns, operates and invests in income-producing rental properties. “REITs are a great way to access real estate without spending tons of money,” says Tu.

Apps like Fundrise and Mynd make it easy to invest and track your progress. With some apps, you can start investing with as little as $10.

3. Savings vouchers

“If you’re very scared of crypto, I-bonds are about as secure as you can get,” Tu says. “They are sold by the US government and the rate of return changes every six months with inflation.”

Cryptocurrency is still relatively new and there are tons of security holes, she continues. If you want something guaranteed to give you some extra cash at the end of the investment period, an I-bond, a type of savings bond that you can withdraw after five years without penalty, could be the best solution for you.

4. Fractions of shares

Fractional shares are small portions of a whole share of companies like Apple, Tesla and Disney. They allow investors to diversify their portfolio with small amounts of money to start with. Some employers even offer fractional company shares as an added benefit in addition to 401(k) retirement plans and health insurance.

“There’s nothing wrong with investing a few dollars in fractional shares of a company you’re really passionate about,” Tu says. “It could be your favorite tech company you couldn’t live without, or your favorite hair care brand, or even your favorite fast food chain.”

Editor’s note: This post has been updated to clarify that I-bonds are cashed after five years, not six months.

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