Investing in Cryptocurrency:Tips for Success – Kelvin Rich PhD
For example, if you are currently 25 years old and want to save a million dollars by the time you are ready to retire at age 60, you would need to invest a little less than $900 per month, assuming you were going to maintain a steady five percent return on your investments for the next 35 years.
On the other hand, if you wait to start investing until you are 35 then you will need to invest about twice as much to reach the same point.
Finally, if you wait 20 years and don’t start investing until you are 45, then you would need to save four times as much to reach your goal.
Know what type of investing suits you best: The reason that there are so many different investment strategies out there is that there is no strategy out there that is right for everyone.
Each investor has different reasons for wanting to invest, different acceptable levels of risk, different metrics for success and a different desired timeframe. First and foremost, it is important that you determine the goals you have for your overall investment strategy.
For some people, this will be keeping their principal intact while others are going to be willing to risk it all in order to accumulate more in the long-term. Depending on your goals, you may even want to create different isolated investments to reach each of them.
Regardless of what your plans are before you get started investing it is crucial that you have a clear idea in mind about why you are doing what you are doing as this will make it easier to determine the best way to actually getting results.
You are also going to want to keep in mind that your goals will not be completed in a vacuum which means you will need to be aware of your overall timeframe as well as how much risk you are willing to take on in order to ensure that you end up with goals that are actually achievable as op- posed to useless flights of fancy.
Prior to being able to accurately determine your goals, it is important to decide for yourself how much money you feel you would be alright with losing, as this will make it easier to determine your overall level of risk.
When deciding on this amount it is important to keep in mind that no investment, regardless of how safe it may seem in the grand scheme of things is without risk and that it is this risk that ultimately leads to profit.
The amount of risk you are going to be able to safely deal with is going to be, in part, about how quickly you hope to see a return on your initial investment.
If you have 20 years or more of investing ahead of you then you will be able to safely take on additional risk when compared to someone who is just a few years away from retirement.
After you have determined your current level of risk aversion, you are also going to need to consider how much time you are going to want to spend micromanaging your investments.
If you are looking for an investment strategy that allows you to spend relatively little time thinking about your investments then you are going to want to move forward with what is known as a buy-and-hold strategy where you would buy into one of the more stable types of cryptocurrencies, such as Bitcoin, and hold onto it for a prolonged period of time in order to see reliable, if not necessarily stellar, returns.
Published at Fri, 03 Jan 2020 10:56:56 +0000
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