No matter where you are at in your investing journey, there are a few key elements when it comes to planning and long-term strategy.
Regardless of how you are approaching the market, whether as a trader or as an investor, you should develop a plan so that you can give yourself the best possible chance of remaining disciplined and focused throughout fluctuations in the market. Whatever your investment strategy, you should focus on investing in projects or companies where you believe in not only their mission but also their long-term viability.
In today’s blog, we want to review a few areas to consider as you make your investment plan for the cryptocurrency market. This is not financial advice, but simply proven areas that you can focus on as you develop your investment strategy.
When you start investing in crypto, or even financial markets, one of the key areas you will need to consider is your personal investing timeframe. How long of a time period are you investing for? Are you investing in a project for five years, ten years, or longer? Or perhaps you’re looking to invest over a short period of time and want to be able to recoup your investment faster than a longer-term strategy dictates. No matter what your end goal is, it’s important to have a strategy based on the timeframe you are prepared to hold onto that investment. This is important because the longer timeframe you have, the more risk you can take over a period of time. But if you only have a short amount of time, any losses will hurt more, and you might even lose all of your capital.
In terms of money, we have all heard the phrase “only invest what you can afford to lose”; while we all know it how many of us practice this? When it comes to investing, especially for those who are new to the market, the fear of missing out (FOMO) can be a huge roadblock to this mindset. It’s important to take a step back before investing in anything and ask yourself if this investment is one that you can afford to lose, or if you are at your limit. Many experts say you should have at least three months’ worth of living expenses in a savings account or money market fund, a low-risk investment that pays interest. This way, if you lose your job or get sick, you’ll still be able to pay your bills until you find another job or get better.
Beliefs are very important when it comes to investing. It’s important to take a step back before investing in a project or asset and ask yourself if this investment is in line with your beliefs. Worry less about missing an opportunity and ask yourself WHY. Why that project. Why that asset. You will invest in what you believe in; where and when you invest will be determined by your personality, character, and financial plan.
DYOR, also known as do your own research, is essential when investing. When researching a project, make sure your research centers around 1-5 years down the line. What is the project’s plan over this timeframe? Are they still going to be around? Research can be overwhelming at first. Fortunately, resources are available to help you understand it all.
If you’ve been in the crypto space for any amount of time, you know that Hye is very prevalent in this space. To be fair, hype is really used everywhere. When you are putting together an investment strategy, you want to make sure you are not making an investment or trading decision based on hype. Instead, know what you’re buying and why you’re buying it. Read up on projects you are looking to invest in, and make sure your decision is based on your own research, beliefs, and timeframe.
Don’t get swept up in the hype about a new crypto project that seems like a sure bet because they’ve had great returns recently (or even over the last few years).
Ultimately, we hope this blog has given you a better idea of how to design your own investment strategy as an investor and the initial steps you should take before investing. There will come a time when you know that you can invest. Remember to take your time, don’t feel rushed, and invest in something you feel good about.
For more information, check out our Rematic Education video here: https://youtu.be/b_hMhFjflKs.
It is the goal of Rematic to educate investors about cryptocurrencies through a video series called Rematic Education and in written form. Visit www.rematictokens.com to discover more about Rematic Tokens.