Any Crypto/Stock Experts? Me: Wanting to invest

Brownguy Seeking Crypto/Stock Help
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After many years of wanting to get into the market, I've came to my thoughts that I want to make an adjustment and commitment. With that being said, I know there is lots to learn, charts to looks at, analyzing and lots more said. I know of some experts here on this platform, but would like to hear from others also. Please bare with me

What kind of crypto or stocks should I invest into? Any thoughts or suggestions? If you would like to reach out to me via discord, please do!

 

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Hey there

I will give you some insights in the way i invest.

Before you are thinking about investing you should think about your investment horizon, that is: when will you need the money you are investing? Do you want to invest for long-term or are you safing up to buy a house for instance?

When you will need the money short term (in a few years) then it might be better to either keep the money in the bank or invest in something that is deemed super safe (bonds)

If you are investing for longer term 5-10 years +

Stocks: ​

You don't want to be looking at single stocks. Don't try to chase stocks that you think are going to increase a lot, having single stocks is very dangerous since you are investing in single companies and are thus prone for large declines and losing a lot of money.
Luckily there is a super easy solution:
Buying ETF's (exchange traded funds) > this means you are buying a basket of different stocks all at once.

Personally i only invest in World ETF's (investing in over 2400 companies all at once, in different regions over the world)

With buying one basket of stock you are immediately spread out, and have diversified so much that your risk has decreased significantly.

Long term you can expect a return of 8% per year on average investing this way (this is average and even considering a crisis or bad bear market) A quick calculation example:

If you have safed 100.000 and you are now at age of 25 and will invest this money for 40 years until retirement:

100.000 x1.08^40 = 2.172.452

Without even investing further you are a multi millionair guaranteed, sounds crazy right?
That is what interest over interest is going to do for your investment.

This calculation is even without considering that you are going to add on your investment.

Now my actual strategy: every month i invest X % of my income in the ETF. So lets say its $500 per month. I will then check what the market is doing, if the market is in a dip (corona dip for instance) or is in an decreasing trend i might put more in that ETF, so maybe that particular month i up it to $750 a month or $1000 a month.

You don't have to do this strategy, putting in X% of your income every month into an ETF works fine, personally i am just trying to make more money in the long-run by buying more when the market is dipping.

Cryptocurrency: ​

The cryptocurrency market is heavily influenced by the halvening cycles of Bitcoin.



This graph was made a 1.5 year ago, and from this graph you could have predicted the crazy gains that Bitcoin made in 2021 and surprise surprise it did. The market is heavily volatile, and remember: volatility = risk with investing.

The main idea with investing is to buy at low price and sell at high prices. But how to know when prices are low or prices are high?

Markets are driven by sentiment, especially cryptocurrency are going to different psychological phases:



So in a nutshell, when there is panic: Bitcoin is called dead, a bubble, prices are low, panic is high. This is a moment where you wanted to be entering the market and taking positions. Just invest every month an X amount like above so you are taking the average price of Bitcoin over a longer period to control your risk.

When the market is in Euphoria and people are super opimistic calling "Bitcoin to go to 100K this year" etc (remember 2017 and 2021 peak where this happend) this is where you want to be slowly selling your positions and build up liquidity. This liquidity can then be used to buy more at the following dips

In my opinion Bitcoin is a very good investment for long-term, same as Ethereum. These are the coins you want to be investing in most of your portfolio in. Personally i don't associate with garbage altcoins that might 10x. Cryptocurrency is already risky enough to invest in those types of coins imo. The only other altcoin i believe in is ADA (Cardano)

Long read, but i hope this information is valuable for you

Wish you all the luck, and if you have any question about this feel free to add me on Discord

 

Thank you! Wow, that's huge. I appreciate it.

 

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Talk to an actual financial expert. Crypto people have a vested interest in trying to get you to buy crypto because it's the only way their "currency" holds value.
They have to convince you that their crypto is worth money, and if people stop thinking it's worth something then the value crashes.

In my non professional opinion Crypto is good for short term opportunistic gains. I'd avoid long term investments.

 

I truly appreciate your positive outlook on this. I'll definitely take into consideration. Bump!

 

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