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7 Smart and Unique Ways to Invest $1000 Online

Updated on June 1, 2016

What makes these methods smart?

Einstein described insanity as doing the same thing over and over again and expecting different results. Millions of individual investors simply "gift" their money away to shrewd investment firms every day in the stock market. Even if you do make a profit, brokerages and taxes simply eat away the profits, to leave you in the red every year.

The average individual investor underperforms the market index by 1.5% per year. Active traders underperform by 6.5% annually. Additionally, with the introduction of high-frequency trading, any chances of an individual investor succeeding have simply vanished. You'd be better off trying your luck at a casino than trying to make a profit in the stock market against a supercomputer that trades multiple times in a second.

Keeping the above facts in mind, I decided to reveal some of the ways that I use to make money online. All thanks to the internet, you can now invest the same way that the top 1% invest, with just a thousand dollars.

What makes the following methods smart:

  • They won’t make you compete with supercomputers and hedge-funds.
  • They won’t enrich any brokers - no brokerage fees.
  • They guarantee profitable returns in most cases.
  • They're easy to follow and available online.
  • They don't require big investment amounts.

Peer-to-peer Lending

  • P2P lending has boomed in the past few years. Billions of dollars have been loaned out by individuals like you so far.
  • An individual can go online, apply for a small loan, and get access to funds within 24 hours.
  • Lenders get better guaranteed returns (around 7% p.a).
  • Signing up as an investor/lender is easy.
  • Here are the top 3 P2P lending sites: Lending Club, Prosper, and Funding Circle.


  • When a bunch of individuals fund a company or an idea online, it is called crowdfunding.
  • When these individual investors get equity, and guaranteed dividends, it is called Equity Crowdfunding.
  • The returns are massive (20% p.a.)
  • You get to be part of a potential billion dollar company.
  • There are tax benefits too (only for eligible fundraising companies).
  • Just make sure you diversify by investing in multiple companies.
  • Here are the top 2 crowdfunding sites: Kickstarter, and Fundable.

Hedge-fund like Mutual Funds

  • The top 1% invest in hedge funds, but what about those who have just $1000 to invest?
  • Turns out, for all such investors there are mutual funds that mimic Hedge funds in strategy.
  • One such type of mutual fund is called a Long-Short mutual fund.
  • The average return for a long-short mutual fund is 14% p.a.
  • They are regulated and you can compare the returns of various funds online.

Managed Futures Funds

  • Another Hedge Fund like fund is called Managed Futures Fund.
  • Such funds invest in futures and options on your behalf.
  • They provide an average return of 14% p.a.
  • The minimum amount needed to invest is $1000.
  • Some of the best funds provide an annualized return upwards of 30%.
  • Goldman Sachs and Pimco provide good returns for such funds. (Don't take this as investment advice)

Flipping Websites

  • While you cannot flip properties for a thousand dollars, you definitely can flip websites and earn thousands of dollars, according to redditors.
  • Sellers usually create high-ranking, ad revenue generating automated websites.
  • The average return when you flip such a website is close to 100% p.a.
  • Here is a more in-depth guide: Entrepreneur.
  • You can check the price of a website on a site like Site Price and you can buy a website from a site like Flippa.

Passive Income Websites

  • Although, you can flip a website if you want to, a better way to invest a thousand dollars would be to buy an automated website that generates cash flow.
  • A popular choice is a discussion forum that earns ad revenue.
  • Average earning for a good site is about $300 per month.
  • Ad revenues can be checked on Site Price prior to purchase.

Confiscated Goods Auctions

  • The TSA confiscates items regularly. These items are then auctioned off.
  • Here is a list of websites where you can find out about buying such goods: List.
  • You can buy many items online at discounted prices from the official website: GovDeals.
  • You can flip the discounted items for a nice 30-70% profit.


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