The Best Alternative Investments for Millennials in 2025
As millennials continue to redefine financial priorities in 2025, many are looking beyond traditional investment vehicles like stocks and bonds. Faced with economic uncertainties, technological advancements, and a desire for financial independence, millennials are embracing alternative investments to diversify their portfolios and maximize returns.
Recent studies indicate that millennials are increasingly incorporating alternative investments into their portfolios. According to a 2024 Bank of America Private Bank study, younger investors, including millennials and Gen Z, allocate approximately 17% of their investment portfolios to alternative assets, compared to just 5% by older generations. (Bank of America)
This trend is further supported by findings from Alto's 2022 Alternative Investing Report, which reveals that 89% of millennials are likely to invest in alternative assets, and 85% express interest in learning more about them. (Altoira)
These statistics highlight a significant shift among millennials toward diversifying their investments beyond traditional assets, reflecting a growing openness to alternative investment opportunities.
Here’s a deep dive into the top alternative investment options for this tech- savvy generation.
Cryptocurrency and Blockchain-Based Assets
Cryptocurrencies remain a favorite among millennials in 2025. With Bitcoin and Ethereum leading the pack, newer blockchain projects, such as tokenized assets and decentralized finance (DeFi) platforms, have gained traction. Stablecoins tied to tangible assets offer safer bets, while non-fungible tokens (NFTs) appeal to those seeking unique digital collectibles.
Why Millennials Love It:
• High growth potential.
• Accessible through user-friendly apps.
• Aligns with their comfort in digital-first environments.
Tip: Consider platforms that allow staking or earning passive income through crypto holdings.
2. Real Estate Group Investing
Real estate is no longer just for wealthy investors. Group or fractional investing platforms enable millennials to invest in commercial and residential properties with as little as $500. These platforms often offer detailed analytics and performance reports, making it easier for investors to make informed decisions.
Why Millennials Love It:
• Lower entry barrier compared to traditional property ownership.
• Opportunity to diversify across multiple projects and regions.
• Passive income through rental yields and profit sharing.
Tip: Look for platforms with transparency in their fee structures and high customer reviews.
3. Green Energy and Sustainability Ventures
As eco-conscious consumers, millennials are driving investments in renewable energy and sustainable businesses. Solar energy startups, wind farm projects, and ESG (Environmental, Social, Governance) focused funds are thriving in 2025. Supporting these initiatives allows millennials to align their financial goals with their values.
Why Millennials Love It:
• Helps combat climate change.
• Taps into industries poised for long-term growth.
• Personal satisfaction in funding meaningful projects.
Tip: Research companies’ impact reports and financial sustainability before investing.
4. Peer-to-Peer Lending (P2P)
Peer-to-peer lending platforms are flourishing, offering millennials opportunities to lend money to individuals or small businesses in exchange for competitive interest rates. With advanced algorithms and AI-based risk assessments, P2P lending is safer than ever before.
Why Millennials Love It:
• Higher returns compared to traditional savings.
• Flexibility to choose loan terms and borrowers.
• A sense of connection by directly supporting borrowers.
Tip: Diversify your loans across multiple borrowers to reduce risk.
5. Art and Collectibles
Investing in art, rare sneakers, vintage cars, and limited-edition collectibles has moved beyond niche markets. Fractional ownership platforms such as aShareX allow millennials to invest in high-value assets without needing millions upfront. NFTs tied to physical art also blur the line between tangible and digital investments.
Why Millennials Love It:
• Combines passion with profit potential.
• Unique and tangible assets that can appreciate over time.
• Status symbol investments with cultural significance.
Tip: Collaborate with experts or platforms offering authentication and valuation services. Check out aShareX – Combining fractional investing with alternative investing in art and collectibles - in a unique new way
Breakaway Box:
Did you know, In 2024, the highest price achieved for a piece of art at auction was René Magritte's L'empire des lumières, which sold for $121.2 million at Christie's in New York?
This sale not only set a new auction record for Magritte's work but also marked the most expensive artwork sold at auction that year. Barnebys
Other notable high-priced sales in 2024 included:
• Vincent van Gogh's Coin de jardin avec papillons (1887): Sold for $33.19 million at Christie's.
• Mark Rothko's Untitled (Yellow and Blue) (1954): Achieved $32.47 million at Sotheby's Hong Kong. Artsy
These sales reflect a dynamic art market in 2024, with significant interest in both Western and Asian markets.
6. Private Equity and Venture Capital
For millennials with a higher risk appetite, private equity and venture capital investments offer a chance to fund startups and early-stage companies. Thanks to crowdfunding laws, many platforms allow non-accredited investors to participate in these high-growth ventures.
Why Millennials Love It:
• Potential for significant returns in the event of a successful exit.
• Direct involvement in shaping the future of industries.
• Opportunities to support innovative and disruptive ideas.
Tip: Assess the track record of fund managers and focus on industries you understand.
7. Precious Metals and Alternative Commodities
Precious metals like gold and silver, as well as commodities like rare earth elements, are gaining renewed interest in 2025. These assets serve as a hedge against inflation and economic volatility, making them a stable addition to any portfolio.
Why Millennials Love It:
• Tangible assets with intrinsic value.
• Protection against market downturns.
• Diversifies portfolios beyond traditional securities.
Tip: Explore ETFs or digital platforms that allow fractional ownership of physical assets.
8. Agricultural Investments
Agricultural ventures, such as farmland ownership, agri-tech startups, and crop-sharing programs, are becoming increasingly popular. As the global demand for food grows, millennials see this sector as both profitable and impactful.
Why Millennials Love It:
• Long-term growth potential in essential industries.
• Options to participate through crowdfunding or REITs.
• Contribution to global food security.
Tip: Focus on investments with sustainable practices and high growth projections.
Breakaway Box:
Beyond Financial Incentives : What is a crop-sharing project?
A crop sharing project is a collaborative agricultural initiative in which multiple stakeholders—such as farmers, investors, and sometimes local communities—share the resources, risks, and rewards associated with cultivating and harvesting crops. This model promotes mutual benefit and typically operates under a formal agreement or partnership.
In such projects, landowners or farmers contribute their agricultural land, labor, and expertise, while investors or external partners may provide financial resources, seeds, equipment, or other inputs necessary for crop production. Once the crops are harvested, the resulting produce is divided among the participants based on pre-agreed terms. The distribution often accounts for each party's contribution, whether in labor, capital, or land.
Crop sharing projects can vary in structure, ranging from informal local arrangements to formalized programs supported by governments, non-profits, or private companies. These projects are particularly popular in rural and developing areas, where they help reduce financial risks for farmers while improving access to resources and markets.
Beyond financial incentives, crop sharing projects can encourage sustainable farming practices, community collaboration, and food security. They often align with broader social and environmental goals, such as reducing waste, improving yields, and promoting equitable access to agricultural profits.
Why Alternative Investments Matter for Millennials in 2025
The economic and cultural landscape of 2025 has taught millennials the importance of diversification. By exploring alternative investments, they’re not only enhancing their financial security but also investing in industries that resonate with their values, passions, and long-term goals.
Before diving into alternative investments, it’s essential to research thoroughly, consult financial advisors, and assess your risk tolerance. With the right strategy, these innovative opportunities can help millennials thrive in a rapidly evolving financial world.
Learn more about alternative investing and get expert tips here.
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