Cryptocurrency--How to Make a Lot of Money Investing and Trading in Cryptocurrency by Andrew Johnson

Author:Andrew Johnson
Language: eng
Format: epub
Tags: cryptocurrency, cryptonomicon, cryptocurrency for dummies, cryptocurrency investing
Publisher: Andrew Johnson
Published: 2017-09-08T04:00:00+00:00

Chapter 4: Investing in Cryptocurrency Tips for Success

Understanding investment

Investing successfully is all about working smarter as opposed to harder. Rather than working long hours and sacrificing personal happiness to sock money away in a savings account, it is about taking that money and using it to potentially build a better life in the long run through a maximization of profits earn. Investing successfully is also about setting priorities for your money and the returns it will generate. Spending is easy to do and provides instant gratification and short-term satisfaction. On the other hand, investing is all about delayed gratification and making life better in the long-term.

Increased returns: One of the most important aspects of investing is what is known as compounding which is the process of generating larger returns in the long-term by reinvesting initial returns both early and often. In order for it to work out in your favor, it requires both time and initial earnings for you to reinvest. If given enough of both factors, compounding can help an initial investment grow exponentially over time. If you are lucky enough to still be 20 or more years away from retirement then compounding should be thought of as the most important investment tool in your arsenal.

For example, if you are currently 25 years old and want to save a million dollars by the time you are ready to retire at age 60, you would need to invest a little less than $900 per month, assuming you were going to maintain a steady five percent return on your investments for the next 35 years. On the other hand, if you wait to start investing until you are 35 then you will need to invest about twice as much to reach the same point. Finally, if you wait 20 years and don’t start investing until you are 45, then you would need to save four times as much to reach your goal.

Know what type of investing suits you best: The reason that there are so many different investment strategies out there is that there is no strategy out there that is right for everyone. Each investor has different reasons for wanting to invest, different acceptable levels of risk, different metrics for success and a different desired timeframe.

First and foremost, it is important that you determine the goals you have for your overall investment strategy. For some people, this will be keeping their principal intact while others are going to be willing to risk it all in order to accumulate more in the long-term. Depending on your goals, you may even want to create different isolated investments to reach each of them. Regardless of what your plans are before you get started investing it is crucial that you have a clear idea in mind about why you are doing what you are doing as this will make it easier to determine the best way to actually getting results. You are also going to want to keep in mind that your goals will

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