Are you thinking about starting to invest? We have prepared some tips and also investment suggestions for those who want to enter this world. Check out.
How to be an investor?”, “How to live on investment?” or “How to start investing?” These are questions that must have crossed your mind at least once. Investing is an activity worth considering, whether you want to increase your wealth or protect it in the future.
However, as is to be expected, starting to invest in any asset is not an easy activity and requires a very large amount of studies and search for knowledge. If you’re looking for how to get started, today we’re going to talk about some important points to get a good start.
Trace your goals
Setting a goal is fundamental for anyone who wants to start doing any kind of activity, so why should it be any different with investments? One of the first things you need to consider is: why am I going to invest? And where do I want to go?
First outline your main goal, which could be financial independence, a big purchase or simply reaching a certain accumulated value. Your goal depends on you and can change from person to person, but it is essential that you know how to identify what you want with your investments.
Analyze your monthly expenses
To invest you need to have money and to have money “to spare” you need to analyze all your expenses and determine how much can be allocated to an investment at the end of the month.
Analyzing all your monthly expenses is also a great opportunity to also discover where you are spending unnecessarily. This can help you identify money that could be being put to work for you and value in the future.
Never invest what you can’t afford to lose or what will leave you in debt. Know how much you spend, how much is left and how much you can use for your investments.
Know the different types of investment
After knowing how much you can invest, you have to know where to invest, right? And this is certainly the most important step, since investing in the right place is the difference between having the desired return or not.
Simply put, you need to understand that there are investments in variable income and fixed income. Each type depends on your objective and the level of risk you are willing to take.
In fixed income it is possible to find investments such as:
- Savings
- Investment Funds
- Treasury Direct
- CBD
- Bill of exchange
In this type of investment, the income is linked to a fixed amount and the risk is much lower than in variable income (in a didactic way, the risk is very close to 0). But security comes at the expense of income, as there are no fixed income with high earnings.
In variable income we have, for example:
- Futures Contracts
- Actions
- Commodities
- Cryptocurrencies
Investment in Variable Income has much more possibility of earnings (just look at Bitcoin), however it is much more recommended for experienced investors. It is necessary to study a lot and understand graphical and institutional analysis to be able to take a successful risk in this type of investment.
Know your investor profile
What type of investor are you? This is an important question that will determine the choices behind the chosen investment instruments. Your type of profile will be drawn when determining your strategies.
There are more conservative profiles, who prefer to bet on fixed income, on more traditional stocks with a good track record.
The moderate profile is the one who seeks more gains, but who does not want to risk too much, always trying to minimize losses, but knowing how to think in the long term, they are usually people with great knowledge about stocks and assets.
Finally, we have the bold or aggressive profile, the one who seeks opportunities to value their investment in the short, medium and long term, being more tolerant of losses. This is the profile that most “consumes” content about their investments, often making a living from these activities alone.
Diversify your investments
The protection of your portfolio comes precisely from its diversification. Putting all your money into a single stock or asset can be detrimental if something goes wrong and you have no way to recover.
It is necessary to allocate a little money in each type of investment, the amount depends on your profile and your objective. It is possible to put a little in fixed income and a larger amount in variable income, in order to always have a safety net.
Even for those who invest in cryptocurrency, diversification is necessary, never betting on a single cryptocurrency.
Each investor will have a different diversification strategy, but it is important to determine how it should be done, always with the aim of protecting your money.
Be patient and stay true to purpose
Finally, it is essential to be patient, it is impossible to always win! Many investors end up losing patience with a strategy, end up trading at the wrong time and losing money.
It’s important to focus and be true to your goal so you don’t get sidetracked and end up losing track of what you really wanted. Remember why you started investing and don’t let anything shake that vision of yours.
Invest in Cryptocurrencies
Investing in cryptocurrencies has the same characteristics as the investments mentioned in this text. Without a doubt, it is necessary to outline your objectives and maintain the other points that we have listed, especially in relation to understanding where you are investing.
Cryptocurrencies are variable income and have recently offered a series of opportunities for exponential appreciation. The history of Bitcoin is the most classic case and the one that certainly draws the most attention around the world.
But at the same time, this is also a very risky investment, requiring even more patience and emotional intelligence from the investor.
What are cryptocurrencies?
Cryptocurrencies are digital assets , with Bitcoin being the first currency of its kind developed, and offering different types of use for their users. There are thousands of cryptos around the world, with very famous and successful projects and others that are more unknown or that were a failure.
The truth is that there are a myriad of investment possibilities when we talk about these digital assets. Among the top cryptocurrencies for investment, you can find:
- Bitcoin
- Ethereum
- Litecoin
- ripple
- bitcoin cash
- Tether
Each of these cryptocurrencies has certain characteristics for the most varied types of investors. The choice of each one depends on N factors. And as we said, it is possible to choose more than one to ensure a good diversification of your portfolio.