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As a millionaire investor, one of the most common questions I get is: What’s the best way for beginners to start investing online with just $100?

Four years ago, I set out to answer this question by investing $100 into five different investment methods—all of which you can do from your laptop. Today, I’ll compare the results of those investments to help you decide which strategy might work best for you.

To judge each investment, we’ll use the following criteria:

1. Learning Curve – How long it takes to understand and get started.
2. Passive Income Potential – How much money the investment can earn for you without selling it.
3. Tax Efficiency – The tax advantages or benefits available for each type of investment.
4. Risk Level – How likely you are to lose money and how volatile the investment is.
5. Results – My actual percentage return over four years and how much my $100 investment is worth today.

Before we dive in, a quick disclaimer: I’m not a financial advisor. I’m simply sharing my personal experiences and results. Always do your own research before making investment decisions.

1. Individual Stocks

Individual stocks allow you to own a piece of a company you believe in. This can be exciting because you’re directly investing in businesses you think will grow.

Learning Curve – High

Picking successful stocks isn’t just guesswork—you need to analyze a company’s fundamentals, including financial statements, leadership, and brand strength. I review income statements, balance sheets, and cash flow statements before investing.

A great way to practice is by using an investing app with a demo account (fake money) until you’re confident in your strategy.

Passive Income Potential – Good

There are two ways to make money with stocks:

• Capital gains – Selling the stock for more than you paid.
• Dividends – Regular payments from profitable companies (not all stocks pay them).

Tax Efficiency – Great (with the right accounts)

In the UK, you can use a Stocks and Shares ISA to protect profits from taxes. In the US, a Roth IRA offers similar benefits. Tax rules vary, so always research what applies to you.

Risk Level – High

In the 1995 dot-com boom, I got lucky with some stocks and made quick profits. But when the bubble burst, some companies I invested in went bankrupt. Even though I made money overall, it shows how risky individual stocks can be—especially if you put all your money into a few companies.

Results – Negative 32.3% Return

To make this experiment fair, I randomly selected 20 stocks by throwing a dart (blindfolded). The dart landed on Samsung, and my $100investmentisnowworth\ast \ast$67.72** (including $0.10 in dividends).

For comparison:

• Apple would be worth $170
• Microsoft would be $188
• Nvidia would be $988

This shows how hit-or-miss stock picking can be. If you want to try it, I recommend Trading 212, which offers:

• A demo account to practice risk-free.
• Fractional shares (buying small portions of expensive stocks).
• Stocks and Shares ISA (UK tax benefits).

2. Real Estate Investment Trusts (REITs)

A REIT is like crowdfunding for real estate. Imagine 3,000 people each contribute $,pooling$300,000 to buy a property. The rental income is then shared among all investors.

Learning Curve – Moderate

REITs are easier than buying physical property (no down payments or mortgages). However, you still need to understand how they work—they invest in offices, malls, apartments, etc., and earn income from rent.

Passive Income Potential – Great

REITs must pay 90% of profits to investors as dividends, making them a strong passive income source. Commercial leases are long-term, so income is stable.

Tax Efficiency – Great (in tax-advantaged accounts)

In the UK, holding REITs in a Stocks and Shares ISA means no taxes on profits or dividends.

Risk Level – Medium

REITs are less risky than single properties (diversified holdings) but can still drop in value if the real estate market struggles.

Results – 10.52% Return

I invested $100 in a UK REIT four years ago. Today:

• Investment value: $98.59 (small loss).
• Dividends earned: $1.93.
• Total return: $101.52 (10.52% up).

This shows REITs can provide steady income, but performance depends on market conditions.

3. Cryptocurrency

Crypto is digital money (like Bitcoin) not controlled by banks or governments. It’s highly volatile—some people get rich, others lose everything.

Learning Curve – Moderate

You’ll need:

• A wallet (online or offline for security).
• An exchange (like Coinbase or Binance).
• Understanding of tokenomics (supply/demand).

Passive Income Potential – Moderate

Crypto doesn’t pay dividends, but you can earn via:

• Staking – Locking up crypto to support the network (rewards).
• Yield Farming – Lending crypto for interest.

(I don’t do this—I just hold Bitcoin & Ethereum in a Ledger wallet.)

Tax Efficiency – Poor

Swapping crypto or earning staking rewards can trigger taxable events. No tax-advantaged accounts (like ISAs) apply.

Risk Level – Very High

Prices swing wildly. Bitcoin surged 1,000% in a year but can crash just as fast. Scams and hacks are also risks.

Results – 552.24% Return

I invested 1$Today:\ast \ast$652.24** (552% return).

This is exceptional—most cryptos don’t perform this well. Many fail completely.

4. Gold

Gold is a safe-haven asset, protecting wealth during inflation or economic crises.

Learning Curve – Low

Two ways to invest:

• Physical gold (coins/bars—avoid jewelry due to markups).
• Gold ETFs (like iShares Physical Gold).

Passive Income Potential – Zero

Gold doesn’t generate income—it’s purely a store of value.

Tax Efficiency – Good

• UK gold coins (like Britannias) are tax-free when sold.
• Gold ETFs can be held in ISAs (UK) for tax-free growth.

Risk Level – Medium

Gold preserves wealth but grows slower than stocks or crypto.

Results – 40.1% Return

My $100goldETFinvestmentisnowworth\ast \ast$140.10**.

5. Index Funds

Index funds (like S&P 500 ETFs) let you own hundreds of stocks (Apple, Amazon, etc.) in one investment.

Learning Curve – Low

No need to pick stocks—just buy the fund and let it grow.

Passive Income Potential – Moderate

Some dividends (reinvested or paid out).

Tax Efficiency – Great

Hold in an ISA (UK) or Roth IRA (US) for tax-free growth.

Risk Level – Low

Diversification reduces risk. Historically, the S&P 500 averages 8–10% annual returns.

Results – 79.57% Return

My 179.53**.

Final Thoughts

• Best for Growth: Crypto (high risk) & Index Funds (low risk).
• Best for Passive Income: REITs.
• Best for Safety: Gold.
• Most Beginner-Friendly: Index Funds.

The key takeaway? Start early—even $100 can grow significantly over time.

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