Topic: Use your money wisely. Invest or Deposit ? - page 13. (Read 4689 times)

Don't ever get carried away with current money which we think is a lot, there have been many stories when people had a lot of money and then went bankrupt, the thing they do is waste money in vain never thinking about investing so when the money runs out they regret it and this is already late.

I am not really excited with Bank interest about 3% until 10% in one years and seems small fund or profit return based on $100,000 saving money, better use for trading in Bitcoin and focus trade at big potential altcoin only. I sure have highest profit return than saving or locking our money in the ban trough deposit.

Have risk if want earn Bank interest, need to lock our money one or two years later and get penalty or cut off our saving fund if want unlock before due date, but if use it for trading and use short term way I think easy earn profit about 4% until 6% in daily day. But interest in the bank without any risk yet and different think when using for trading in cryptocurrency.

I would prefer to invest my money rather than having to save or deposit it in a bank. because the reason is actually quite simple. depreciation of the currency is not proportional to the interest offered by the bank. Maybe not in every currency. But it happened in my country's currency. The price of building materials increases every year by more than 10%, even not during high inflation like now. and guess what happened when inflation was as high as it is now. then the increase in any product will be much higher. when in fact it is not a product that becomes expensive. but the value of the currency itself is shrinking.

Bitcoin investment is indeed more risky. even the decline can also be deeper. but if held in the long term we can expect multiple profits someday. for example when the bitcoin halving started. do not have to exceed ATH. if we buy now and bitcoin returns to $32k then that means our money has grown many fold. then especially if btc creates a new ATH.

But still, for me the investment is also divided into several parts.

- high chance and high risk part (bitcoin)

- the part that is low risk and has the expectation of a high chance of increase in the future in a very long period of time (property, land and the like).

and I chose to invest about 80% in the second choice. and 20% in the first choice.

I think to solely place the 100k money you have on a single venture is just a little too complacent. And is bound to lead you to greater risks and losses as a result, one way or the other. Investing all of it would yield you greater risks at the expense of a greater profit potential, and with the market looking very volatile right now due to recession and other economic factors, investing it wholly is not gonna be wise. On the other hand, saving and depositing all of it in a bank will yield you nothing but peanuts in the long run. 100k is a huge amount of money and is most of the time sufficient to cover multiple ventures at the same time. I would suggest you divvy it up to an emergency fund, some of it to your investment and assets, and another as savings. Don't mix your emergency funds and savings for one another because savings should be kept ideally until your retirement, and emergency funds are only to be used for emergencies.

Investment is the best option for managing our finances, don't get carried away when we get money and income so we always use it for things that are not useful, for example, being too wasteful or buying a lot of things we don't need, sometimes we have to force investment so that we get used to it and are disciplined.

If one must invest his money on something, then it has to be a profitable asset that will yield more of its kind than anything that is liable of taking away from you, the mistakes most people do is that they invest on liabilities not knowing and with time their investment worth will not yield anything and yet not able to meet up with the current market situation of prices with commodity, which means what one hundred dollars can buy will no longer cost that same hundred dollars but would have inflated to something close to two hundred dollars, but if your asset invested on yielded it kind, then it wouldn't turn a liability anymore since you can still afford the inflated price and fiat is not a good investment or means to deposit your money over a long time.

I can't allocate that kind of money arbitrarily, even if it's free or without any connection with other things, you still have to have good management to maintain the value of that money and have to provide advantages and benefits to people around you.
I plan to use the money 5% to help people who are in trouble or affected by disasters, 30% to open new business opportunities and open job vacancies, 50% most of this I will use as a long-term investment in bitcoin, and the remaining 25% I will make a reserve fund, tax payments and others for the smooth running of my business ecosystem.

While the truth is I am a big bitcoin fan and supporting this coin all the way , I must admit that I also diversify from some altcoins , maybe at least 30% of my total investments are in Altcoins , so yes diversification is always best because I must say that in the past I already gain from all of my holdings.

Could not be more correct, diversification is the right thing to do, not going all-in into one asset even though it is safe or can give us great returns, everything is risky, so diversify to reduce and minimize risk.
But in the case that OP mentioned: $100k is idle money and has nothing to do with other living expenses, then I think we should invest and spend most of it on bitcoin investment. In the worst case, if bitcoin can't grow or crash, we will lose that money, but luckily, it doesn't affect our lives, so it's worth a try.

But still depends on the people if they want that 3% interest rate (which is huge from today's date) as you will get more profit and at the same time it has a low risk. But again as always higher risk equals higher rewards which are bitcoin. It is really best to diversify it and also put some money in the bank for a time deposit since for sure he will need it in the future, if not then he needs to donate it to someone else that needed money.

Many people are aware when they do not have money so they regret and want to invest, mistakes that are often made when having a lot of money is to use for pleasure, and from now we have to change thoughts to use money for useful things such as investment.

Always allocate funds when it comes to emergencies since we dont really know on what would happen ahead or in the future which it would really be that hard if you cant pull out your funds into your investment on the

time you would be needing it.This is why its really that just right that you should really be wise on making out allocations on certain key areas which you do really know that it would really be good
or would be benefiting you in the future.You should really be wise on making decisions.

Dont go all in with that 100k of yours with Bitcoin.There's no guarantee even though it does have that potential but we dont know on what the future holds.So better
be safe and having that risk management.

I guess OP won’t be needing the money for now so he can’t donate it as he might be needing it in the future. He can actually invest it in bitcoin for long term, but definitely not the whole $100k, maybe half of it. And then half of remaining balance he can diversify into stocks, bonds or assets. And the remaining balance he can keep it for his own savings. He might be needing it instantly when future circumstances suddenly appear.

It is 100% true that if one wants to increase his money double or triple or more then he must invest his money in some business or something else from which he will get profit.  But if one keeps his money in the bank then he cannot earn much profit from it.  If he keeps the money in the bank as fixed deposit then few people may earn interest but it is not very potential for him.

I don't pool all my funds, I spread my assets. A small part of the bank is used for emergency expenses in life. Most of the funds are used to invest in Bitcoin and hold it for a long time to make more money.

Dividing money in many places is better and safe, this strategy can save us from losses or loss, some types of high -risk investments of course do not be the biggest portion, because there are many unexpected things so we have to be smart to divide money in the right place .

Well, i will still consider investing more than 60% of my money in bitcoin. The reason is that bitcoin is the most secure and the chances of failure in bitcoin is way less as compared to any investment in any other altcoin. Yeah, you can say that invest in different alts and not keep your money in one asset class but why take risks when other asset classes are too risky to keep your funds, especially for the long term?

Most altcoins fail in the long run while bitcoin is the best investment for the long term.

Also, don't forget to invest in tangible assets, look outside the crypto market.
Think of real-estate, jewelry and other assets that you think you can easily own but will assist you when you badly needed funds.
Bitcoin is one digital asset that you can own, however, to ensure that you will have something to go to when crypto is in bad shape,
you need to consider other tangible assets. What if you can't access your wallet for any reason, and you need money immediately?

It is not a good idea to invest a significant portion of your savings in any one asset, especially a volatile one like Bitcoin, without a well-thought-out plan for managing the potential risks. Diversification, or spreading your money across a variety of different assets, is one way to manage risk and protect your savings.
However, if you are looking for a long term investment plan, then I will say this is the best option.
And remember this.

Depositing money will never make you rich but investing has the potential to pay off in the long run. However many people think they can quick double or triple their money without realizing the investment requires a very long term commitment to do it properly. That means continuing to contribute new sums over time and on a regular basis while practicing and refining your strategies. It is not a "fire and forget" type venture because the moment you start ignoring your money it can go very wrong. The best investors are the people who accept small rewards over a long time (5-10% per year) from dividend payouts, rather than trying to pick stocks which may go up in price and are highly volatile.