There is a common question in this platform is that, How much we should invest? Where to investment? And many more.
I want to share some of my views with all of you.
I want to say, As a new comer, invest in bitcoin is not so easy. Before investment everybody need to do some sesearch then it will not be so difficult. Here, one thing should remember everyone that every investment bear some risk. And every investor tries to minimize the risk by using different techniques. Here , in this platform we also use some techniques in investing. We can select a group of coin which past record is better than others. That means we need to study the price chart.
We also should remember that, It will not be wise decision to invest our all money in a single coin. We also should not invest our all money at a time. Rather we should invest our money with the changing situation and different time. It will reduce the investment risk.
To me, we should give importance to the investment techniques rather than investment amount. So, we can invest any amount of money what we have with us. And we should remember that, it will not be good decision to invest here by using the debt.
I think many of us agree with me. And guys, if you have any other idea please enrich us.
Thanks in advance for the participation in this discussion.
Diversification is the basics of safe investing technique and applies to any type of asset and sector. be it real world stock market or crypto currency. Dependency on a single equity or a single coin can bring financial disaster. So I recommend a very basic technique for investment in crypto currency which is known as "systematic investment plan" or SIP in short. This particular technique brings good result even if you don't have time to track the market.
In this technique, you invest a fixed sum of money in to a fixed set of assets according to the predefined percentages at certain interval. Lets assume you have $1000 to invest in cryptos every month and also I assume you don't have time to track the market. So what you need to do is, invest that $1000 on every 5th day of month into predefined cryptos like below,
Crypto 1: 25% - $250
Crypto 2: 35% - $350
Crypto 3: 15% - $150
Crypto 4: 10% - $100
Crypto 5: 15% - $150
On every 5th day of different month, the prices will also be different for these cryptos. So you will have the opportunity to enter into the crypto market into various price points to effectively average out your buying price. This technique will effectively increase your profitability. This same technique is usually used to invest in mutual funds in real world scenario and considered one of the best techniques to build a great portfolio.
**The date, amount and percentages are for illustration purpose and can be change according to your need and risk taking capability. Hope this helps!