Investing is a big deal for anyone. As Investopedia describes it, the act of allocating resources, usually money, in anticipation of an investment income or profit. Yes, people don’t invest for fun, they invest primarily for profit. Of course we expect to earn more for the money we earn. invest But what if profits are uncertain? Crypto as in the stock market, especially in the stock market markets where your profits depend on price increases?
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Fear of investing
That’s what many people fear. Stock prices and crypto markets are so volatile that they can change in seconds. You can make big money in these markets, but you can also make big losses. Many people lose millions of dollars in this market. But with the right strategy, you can avoid losing and gain what you gain.
Let’s take a look at 6 strategies to win in this field. scary market. But before that, remember that we are talking about investing, not investing. trade.
Trading is a kind of investment where you play with market prices. It is like a short term investment. Money moves as market prices change. This is where you can study market movements. Buy and sell wisely. And this is where people suffer great losses without proper guidance and knowledge. time.
So, here are 6 things to avoid wasting your money. Help for you.
1. Invest in what you are willing to lose.
If you want to invest, it is better to start small. Don’t go big right away because of FOMO. And only invest what you know. In other words, we allocate our investments according to the proportion of our knowledge of the market. For example, if you have learned a bit about cryptography but are willing to give it a try, invest at least 5% of your income or less.
When it comes to taking risks in the stock and cryptocurrency markets, some say you should think of your investment as dead money. It should be considered gone. That’s why experts say you should only invest as much as you can lose. Do not lend money for an investment or expect an immediate return on the money you have just invested. Profits don’t happen overnight. Don’t even rely on it for your daily needs.
You need to study these markets. But don’t worry if you don’t have one. Time to study it, Tip #2 is for you.
2. Invest for the long term.
Long-term investing can save you from the fear of losing the money you are investing in. It is one of the safest investment methods. And if you don’t have time to watch or study price fluctuations, long-term investment is the best option. A good company’s stock or token has the potential to rise in the future. And there are many good companies with great potential for further growth. This is why it is so important to note tip #3 as well.
Also, it is not recommended to check your portfolio on a daily basis in order not to be intimidated by the uncertain ups and downs of the market. Remember you are long term.
3. Invest in a quality business at an affordable price.
Many companies are entering the market now. Some are very attractive because they are very good at marketing and advertising. However, one thing to watch out for when investing is that it is liquid, stable, has a reason to stay in the market, and has the potential to grow further in the future. Industries that have become part of the needs of people in banking, commerce, landowners, consumers, telecommunications and property. Take Jollibee Philippines’ stock market as an example.
On the other hand, you need to be extra careful with cryptocurrencies, especially since NFTs happen a lot. The game is under construction. Before investing, you should first read the company’s white paper or do some research. youtube, google, and Twitter can also help with research. Many people give you freebies but beware of scams as they will only steal your information, especially your wallet address. Always be vigilant and don’t take chances for freebies run by hackers and scammers.
You must remember that the morale is low too. Don’t rush when the prices are too high and lots of people are earning. They make money because they bought it when it was low. So buy some when the price goes up and wait for it to go down before selling.
4. Invest with diversification.
In addition to investing in quality businesses, investing through diversification is also important. This technique is to prevent large losses. Don’t go out all at once . Diversify by allocating a certain percentage to quality businesses. For example, you invest 25% in banks, 25% in consumers and 25% in finance. 25% holding for property stock market investments. For crypto investments, invest 25% in Bitcoin, 25% in Ethereum, 25% in NFTs like SLP (Smooth Love Potion) or Vigorous (VIS), then 25% in AXS ( Axi Infinity Shards) or MATIC (Polygons).
That way you can avoid big losses when one of your investments goes down and you always have something to boost your investment.
5. Invest regularly.
Another thing to remember when investing is to invest regularly. It’s like allocating 10% of your monthly income. Regular investments are important, especially for long-term investments. Think of the average cost in pesos or dollars. Prices change at any time and may vary from month to month. So, if you bought your tokens today at a high price, then after a month you buy them at a low price and then the average investment price will fall and you will be able to make more money in the future if the price goes up.
If you want to increase your investment, don’t rely solely on price increases. Get into the habit of saving for the future.
6. Invest early.
Some people have misunderstood investing as “for the rich.” Some people say they will invest when they reach a certain age or at this point. However, it is better to invest early. Fear of missing out (FOMO) usually arises when you spend all your time thinking about whether to invest or not. Start investing as soon as possible. Investing early is always a good idea, especially for long-term investors. Imagine your money growing when you retire and invest at the age of 20. Millions of people may already be waving to you.
Now that you’ve learned about these six tips, I hope you’ll be brave enough to get started. Saving for your millions now. Yes, millions – set your goals high and invest for the long term!