Best Alternative Investments 2024

Jeremy Biberdorf Image
Updated
Feb 21, 2024
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Alternative investments are gaining traction among everyday investors, looking to step out of traditional stock market investing. They provide a plethora of options outside of the regular stock market and traditional assets.

These investments often involve real estate investments, precious metals, digital currency, and more. This article will delve deep into the best alternative investment platforms, shedding light on their benefits, an overview of the platform, and the company behind them.

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Quick Breakdown

Best Alternative Investing Platforms


  • Best overall, especially for art enthusiasts looking for fractional ownership in paintings.

  • Best for individual investors wanting to tap into alternative asset classes.

  • Best for those interested in agricultural land investments.

  • Best for digital currency enthusiasts wanting an IRA with crypto trading.

  • Best for wine lovers seeking long-term returns through wine investments.

  • Best for diversifying your IRA with alternative investments.

The Best Alternative Investment Platforms in 2024

Masterworks

4.5 stars
Type of Investment Fractional share in artworks
Minimum Deposit $20
Best For Art enthusiasts
Benefits
Overview
Company
  • Fractional ownership in art.
  • Hedge against inflation.
  • Accessible to non-accredited investors.
  • Art-backed loans.
  • Secondary market for shares.
  • Annual returns based on art appreciation.
  • Hands-off approach in terms of maintenance.
Masterworks presents a unique alternative investment platform, allowing retail investors to purchase fractional shares in iconic artworks. This provides an avenue to invest in high-value paintings without the need for millions of dollars upfront.

With a historical track record of art appreciating in value, this platform gives a fresh approach to alternative investing. The platform also offers a secondary market, permitting investors to trade their shares with other members, adding liquidity to this form of investment.

Masterworks, since its inception, has revolutionized the art investment landscape. Positioned at the intersection of art and financial assets, it has successfully democratized access to fine art investments, once only reserved for the elite.

Yieldstreet

4.4 stars
Type of Investment Real estate, litigation finance, marine, etc.
Minimum Deposit $10,000
Best For Diverse alternative assets.
Benefits
Overview
Company
  • Diverse alternative investment opportunities.
  • Investment options include real estate, legal finance, and marine finance.
  • Attractive potential returns.
  • Available to accredited and non-accredited investors.
  • Short and long-term investments.
  • Automated investment options.
  • Detailed investment overviews.
Yieldstreet presents a unique alternative investment platform that offers a diverse array of opportunities, from real estate assets to marine finance. By allowing individual investors to participate in areas previously reserved for institutional investors, Yieldstreet diversifies investment portfolios beyond the traditional stock market.

Investors can tailor their experiences based on their risk tolerance and investment goals. Each opportunity on the platform comes with a detailed overview, outlining potential returns, risk factors, and more. This transparency ensures that investors are well-informed before making a decision.

Moreover, the platform's Prism Fund offers automatic diversification across multiple asset classes, suitable for those new to alternative investments or those looking for hands-off investment.

Yieldstreet was established with the mission to provide access to asset-based investment opportunities. Recognizing that many of the best investment deals were only accessible to large institutions, Yieldstreet aimed to level the playing field. Today, they stand as a testament to the democratization of the investment world, offering unique opportunities for both accredited and non-accredited investors.

FarmTogether

4.4 stars
Type of Investment Direct farm ownership, fractional ownership
Minimum Deposit Varies based on investment
Best For Agriculture and farmland investments
Benefits
Overview
Company
  • Direct investment in U.S. farmland.
  • Thorough vetting of farm properties.
  • Investments in sustainable and organic farms.
  • Hedge against inflation.
  • Long-term returns potential.
  • Transparent fee structure.
  • Opportunity for passive income.
FarmTogether offers investors a chance to delve into the agricultural sector through direct investment in U.S. farmland. Real estate investing takes a twist here, focusing not on urban properties but on the very foundation of our food chain. With a strong emphasis on sustainability, FarmTogether ensures that the farms they list are not only profitable but environmentally responsible.

The platform provides a detailed property overview, from expected returns to the type of crops and farming techniques. This meticulous vetting process gives peace of mind to investors, knowing their money supports sound agricultural practices. Investing in farmland also serves as an excellent hedge against inflation, ensuring long-term growth and stability for portfolios.

Built upon the ethos of transparency, sustainability, and profitability, FarmTogether has grown rapidly in the alternative investment sphere. Their team comprises industry veterans, ensuring each farm listed meets strict criteria. By connecting investors with farmers, FarmTogether fosters an ecosystem where both parties thrive.

iTrustCapital

4.4 stars
Type of Investment Digital currency in IRAs
Minimum Deposit $1,000
Best For IRA-based cryptocurrency investments
Benefits
Overview
Company
  • Investment in digital currency within IRAs.
  • Tax advantages of IRA combined with crypto trading.
  • 24/7 trading platform.
  • Low trading fees.
  • Secure storage for digital assets.
  • Transparent pricing.
  • In-depth educational resources.
iTrustCapital has carved its niche in the fusion of traditional IRA benefits with the digital currency trading market. For those wanting to diversify their retirement accounts beyond stocks and mutual funds, this platform presents a unique opportunity. It combines the potential upside of cryptocurrencies with the tax advantages of individual retirement accounts.

With a straightforward interface, users can seamlessly trade popular digital currencies round the clock. Every transaction maintains tax advantages, eliminating the need for complex reporting. Beyond trading, iTrustCapital prioritizes security, employing state-of-the-art storage solutions to safeguard users' digital assets. This combination of trading power and security brings a refreshing approach to retirement planning.

Launching with an ambition to revolutionize the retirement investment landscape, iTrustCapital has successfully integrated the dynamic world of cryptocurrencies into the stable framework of IRAs. Their growth story underlines the increasing demand for alternative platforms that keep pace with contemporary investment opportunities while retaining traditional benefits.

Vinovest

4 stars
Type of Investment Fractional ownership in rare wines
Minimum Deposit $1,000
Best For Investing in fine wines
Benefits
Overview
Company
  • Invest in fine wines.
  • No storage concerns; wines stored in professional facilities.
  • Access to global wine markets.
  • Potential hedge against market volatility.
  • Liquid secondary market.
  • Expert curation and selection.
  • Transparent pricing and fees.
Vinovest presents a delightful blend of passion and profit by allowing individuals to invest in fine wines from around the world. Traditionally, wine investment required significant knowledge, storage facilities, and access to sellers. Vinovest eliminates these barriers, providing a platform where even a novice can partake in this sophisticated alternative asset class.

Investors on Vinovest don’t need to worry about storage or authenticity. The platform ensures that each bottle is stored in optimal conditions and is insured.

Additionally, Vinovest's team of sommeliers and data scientists curate a selection, ensuring only the best wines are available for investment. With a liquid secondary market, investors can choose to hold onto their wines or sell them, providing both long-term appreciation and potential for shorter-term gains.

Vinovest emerged from the idea that wine, an age-old passion, can also be a viable and exciting investment. With a mission to democratize wine investment, Vinovest has quickly grown into a trusted platform, bridging the gap between wine enthusiasts and investors. Their meticulous approach to curation and focus on transparency sets them apart in the alternative investment landscape.

Alto IRA

1 stars
Type of Investment Real estate, startups, loans, etc., within an IRA
Minimum Deposit Varies based on investment
Best For Broad alternative investment options for IRAs
Benefits
Overview
Company
  • Utilize tax-deferred or tax-free growth.
  • Invest in startups, real estate, or crypto.
  • Simple, intuitive online dashboard.
  • Clear fee structure with no hidden costs.
  • Opens up a plethora of alternative assets.
  • Implements high-grade encryption for safety.
  • Make investments using IRA or 401(k) funds.
Alto IRA has risen as a transformative figure in the world of alternative investment platforms. Catering to the needs of both accredited and non-accredited investors, the platform's main allure is its ability to offer a seamless blend of traditional IRA benefits with the world of alternative assets. This means that an individual investor can leverage the tax advantages of an IRA while diving into investments not typically associated with retirement accounts, such as startups, real estate, or even digital currency.

The platform offers a clear, user-friendly interface that simplifies the otherwise complex world of alternative investments. With Alto IRA, gone are the days of being restricted to the stock market or mutual funds for one’s retirement account. Instead, a user can take charge, diversifying their portfolio in ways that align more closely with their risk tolerance and financial goals.

Furthermore, the platform emphasizes transparency, ensuring that users are never in the dark about fees or the nuances of their investments. With a crystal-clear fee structure and dedicated customer support, Alto IRA ensures that investors, whether seasoned or novices, find comfort and confidence in their investment journey.

Established with a mission to democratize the world of investments, Alto IRA is all about giving power back to the people. The company believes in breaking down the barriers that have historically kept everyday investors away from the lucrative world of alternative assets. With its innovative approach, the firm is not just an investment platform; it's a revolution, transforming how we perceive retirement investments.

With its headquarters located in the US, the company has rapidly grown in stature, drawing attention for its unique blend of traditional and alternative investment opportunities. Its dedicated team, strong track record, and commitment to transparency make Alto IRA a trusted name in the ever-evolving investment landscape.

Frequently Asked Questions

What are alternative investments?

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Alternative investments refer to assets or investment strategies that deviate from the traditional approaches of investing in stocks, bonds, or cash. They encompass a wide range of assets including real estate, private equity, hedge funds, precious metals, wine, art, and even digital currency.

Such investments can offer portfolio diversification, serving as a hedge against market volatility. They might also offer higher potential returns, though often at higher risk.

Who can access alternative platforms?

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Historically, alternative investments were the domain of institutional investors or high-net-worth individuals. Today, thanks to platforms like Masterworks, Yieldstreet, and FarmTogether, even non-accredited investors have the opportunity to delve into alternative asset classes.

These platforms have democratized access, allowing everyday investors to diversify their portfolios beyond traditional assets.

Are real estate platforms safe?

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Real estate investing platforms, like other investment opportunities, carry inherent risks. However, platforms like Arrived Homes and FarmTogether undertake rigorous vetting processes for properties, ensuring transparency and authenticity.

Investors should do their due diligence, understanding potential returns, risk factors, and the track record of the platform to make informed decisions.

Why consider fractional ownership?

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Fractional ownership allows investors to own a "fraction" or "share" of an asset, be it art, real estate, or wine, without the need to fully fund the entire asset's value.

This approach democratizes investment, letting even those with a lower initial investment enter markets traditionally reserved for the wealthy. It offers diversification and access to assets that might have been out of reach.

How does crypto fit in alternatives?

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Platforms like iTrustCapital have blended the allure of digital currencies with the benefits of traditional retirement investments. Cryptocurrencies, while volatile, offer diversification away from traditional stock market investing.

They represent a modern, digital alternative asset that can potentially provide substantial returns, albeit at elevated risk levels.

Are wine investments liquid?

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While wine is a tangible asset, platforms like Vinovest offer a secondary market, making wine investments relatively liquid. This means investors can sell their ownership stakes, converting their wine assets back into cash, though the time and price can vary based on market demand.

What's the appeal of local business investments?

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Investing in local businesses, as facilitated by Mainvest, is about more than potential financial returns. It's about supporting community growth, fostering entrepreneurship, and having a tangible impact. The revenue-sharing model ensures that as the business grows, so does the investor's potential upside.

Can anyone become an angel investor?

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Traditionally, angel investors were high-net-worth individuals who provided capital to startups. Today, platforms like Mainvest have democratized this process. Now, everyday investors can back local businesses, though it's crucial to understand the inherent risks of early-stage startup investments.

What's the risk with agricultural land?

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Platforms like FarmTogether allow investment in arable and raw land. While agricultural land often serves as a hedge against inflation and offers stability, risks include crop failure, market price fluctuations, and potential land devaluation. However, historical returns have often shown stability and steady appreciation.

How do digital currencies hedge against inflation?

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Cryptocurrencies, especially assets like Bitcoin, are often viewed as a hedge against inflation. Unlike fiat currencies, which can be printed in unlimited quantities, assets like Bitcoin have a fixed supply. This limited supply, combined with growing demand, can act as a safeguard against the devaluation of traditional currencies.

Are alternative investments for everyone?

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Alternative investments offer diversification and potential high returns, but they also come with increased risks. It's essential for investors to assess their financial situation, risk tolerance, and investment goals before delving into alternative asset classes. They might not be suitable for every type of investor.

What's the minimum deposit for platforms?

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The minimum deposit varies across platforms. While some like Yieldstreet might have higher minimums, others, especially those catering to non-accredited investors, might offer lower entry points. It's crucial to research each platform's requirements and align them with your investment capacity.

Are these platforms regulated?

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Most alternative investment platforms operate under regulatory frameworks, ensuring transparency and protection for investors. Platforms offering real estate investments, for instance, might operate under the purview of real estate investment trusts regulations. However, always verify a platform's regulatory standing before investing.

Can I lose money in alternative investments?

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Yes, all investments, including alternative ones, carry inherent risks. While they might offer higher potential returns, there's also a possibility of partial or total capital loss. It's essential to understand the risk profiles of the assets you're considering and invest money you're willing to risk.

How do these platforms make money?

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Most platforms earn through a combination of management fees, service charges, and sometimes, a share in the profits. These fees cover the platform's operational costs, due diligence processes, and other services they provide. It's always advisable to be clear about a platform's fee structure before committing your money.
Jeremy Biberdorf

About the Author:

Jeremy Biberdorf is the founder of Modest Money. He’s a father of 2 beautiful girls, a dog owner, a long-time online entrepreneur and an investing enthusiast.