In many of our articles that ended with a golden rule when we have recommended investments as a way to let your money work for you and to beat inflation. So it’s time we brought you an article on how to invest, what principles you need to follow to avoid losing your money. Let’s take a look at it.
3 main rules
There are 3 main rules for beginners:
- Only invest what you can afford to lose. This is a golden rule and it is not a golden rule for nothing, because it is really important that you don’t borrow money you do not have to invest.
- Invest continuously, in increments. Even smallest amounts count. Investing all your money at once may not pay off.
- Invest when the price is low and take profits when it is high. This last rule is much easier to write, than to follow.
Time and timing
If you’re saving money, it’s definitely not good to just sit on it, but it’s better to put it into an asset and withdraw the profit over time. All investments have a time horizon, some are meant for a longer amount of time than others (for example real estates).
Don’t worry about hitting the exact low and high prices, not even a professional investor can do that exactly right. However, reinvestment is a great strategy and no one has gone broke on it yet. Basically, the way it works is that you invest some of your money in an asset that you sell for more than you bought it for and reinvest the money you make on it on another asset and just keep going.
Choosing your investment
There are several options, many investors have a “holy” trinity, which is stocks, real estate and gold and silver. Real estate is a long-term investment and has a very long return rate and requires a high starting capital, it’s not quite for everyone. Stocks are considered the foundation of any portfolio in a conservative investment strategy. However, if you do not understand stock markets, you need to have a good investment advisor you trust. Gold and silver investments can carry many fees or in a case of buying physical gold or silver there is a question of how to store it safely. Precious metals are mainly for those who will not need the money in a near future.
Quite new investment option is digital assets. However, these are very volatile assets where it definitely pays off to know at least the basics before you start investing. There are several ways how to invest in digital assets. One of these options is staking, which is also offered by PlatonCoin. This option allows you to lock up a portion of your cryptocurrency as a deposit for a certain period of time, and then earn rewards. In case you would like to see how much staking can earn you, you can contact us.
Do not put all your eggs in one basket. Diversify your investments according to your needs and preferences. If you need help with digital currencies or do not know how to start, Platon Life offers an insured digital wallet and also a customer service that will help you with any problems you might encounter on the way.
Source: platonlife.com, investopedia.com, hlidacipes.org