The Top 7 Investment Tips (That No One Tells You About)

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If you want to build wealth, you have to invest. Not save.

You’ve probably heard this statement a million times already, and it is true. No doubt. But sometimes, investing can be seen as quite complicated and requires a lot of hard work, majorly due to so many economic factors that the market can be subjected to. I get it, I do.

Whether you’re new to this whole investing thing or you’re an investing guru, certain principles improve the foundations of investment and once understood, it is guaranteed that you’ll have a seamless process.

I’m not promising that the markets will always be good, but uhmm… it’ll help you get started and prepare you for what’s to come.

**The Complete Cryptocurrency Investing Expert Masterclass**

Here are the top 7 investing principles:

1. Focus On Financial Wellness First🧘🏻

Although these 7 principles are in no particular order, this definitely comes first. You can’t invest what you don’t have. So before you start pouring your funds to invest, you should make sure you’re healthy financially.

There are a lot of things you can do to improve your financial wellness, but here are the basics:

Create Your Income Statement This helps you to understand your current financial situation and helps you track your progress. Aside from this, calculate your personal net worth, which is a combination of your assets and your liabilities. Just for reiteration purposes, assets are what you own while liabilities are what you owe.
Tracking Your Expenses This means identifying your expenditures i.e. getting an accurate picture of where your money is going at that point in time, and where you’d like it to go instead. I recommend doing this every day throughout the month so you won’t miss out on anything. Even if you’re not going to invest. It just makes you to be accountable to yourself. Stop spending money on dumb sh*t like having a $5 coffee everyday, buying expensive clothes, always eating out, etc.
Pay Off High-Interest Debts First The higher the interest rate, the more money you continue to owe; and the earlier you pay this debt off, the faster you reduce the total amount you owe. There’s no true financial freedom if you’re still in debt. I think Robert Kiyosaki would agree with me:

Until you do all these things, you cannot be financially free.

📈 The TOP 50 Quotes for Successful Crypto Investors — FREE PDF 📈

2. Dollar-Cost Averaging (DCA)🗓️

Dollar-cost averaging is when you invest a fixed dollar amount regularly, regardless of the current price of the asset that you are buying.

This is what I mean: For example, if you dollar-cost averaging $200 every month, when the market is up, you make more; when the market is down, you continue buying and averaging down your purchase price.

According to statistics, the market will sooner or later recover, and you will get into a nice profit zone. Now, do you understand?

So no matter what the market says, you are steadily investing a fixed dollar amount. And it is very beneficial. Since it is almost impossible to time the market i.e., to know when the market will either go up or hit rock bottom, dollar-cost averaging helps get prepared for days that opportunities present themselves. This is especially true for volatile assets like crypto!

Asides from this, it also reduces your stress level and minimizes regret. You won’t be stressed when the market goes down or up. You don’t even need to look at the market if you don’t want to. Dollar-cost averaging is a disciplined way to invest.

If you want to sleep better at night, this is one of the best principles to adopt.🛌🏻

3. Keep Your Emotions In Check🎭

Another thing to note here is that we are humans, and our emotions often influence our decisions, whether we care to admit it or not. Some actions we might take will lead us to making poor decisions and eventually making investment mistakes.

For example, we are liable to take shortcuts if it seems that that is the best decision. Overconfidence can sometimes undermine our actions and jeopardize everything we’ve worked for. Trust me; this happens to the best of us, even those who have been in the field for long.

We think we know the market and the market can be predictable, but more often than not, we don’t.

From **The Complete Cryptocurrency Investing Expert Masterclass**

Investor mindset accounts for 50% of the success of any investor and it starts with stopping following the crowd. Don’t FOMO! To be a successful investor sometimes means to be a contrarian!

When we understand ourselves better and have our emotions under control, we tend to make better decisions which in turn would lower risk and improve investment returns.

I cover winner investor psychology in detail in The Complete Cryptocurrency Investing Expert Masterclass.

4. What’s Risky In The Short Term Is Safe In The Long Term; And What Is Safe In The Short Term Is Risky In The Long Term.⚠️

That’s a lot, but I hope you get my point. It’s as straightforward as it gets.

Short-term investments are those that can give you access to your money quickly and easily. Your money will be safer, but you won’t see as much growth. This type of investment is less volatile, meaning that the value of your investments is likely to be stable over time. Even if it’s going to fluctuate, it’s not going to be as wild as that of a long-term investment.

Long-term investments, on the other hand, are investments of higher risks, and you don’t have to access the money for a long time. These investments are more volatile and the value of your investments can change, depending on some economic factors such as inflation. This is the case for the stock market and definitely in the crypto market!

Because short-term investments are generally less risky, a more risky investment will be safe in the long-term and because short-term investments are usually less volatile/stable, making that type of investment long-term becoming risky.

5. Invest. Not Trade.👨🏻‍💻

Quite obvious but it still needs to be said.

Trading and investing are two different things. While trading is a short-term market move, investment is long-term. Trading involves buying and selling securities such as stocks or cryptocurrency in a short period. People trade because they want to make quick profits, and that is way different from what investment represents.

While any kind of investing involves risks, trading is way riskier than investing. Why? You can lose a lot of money in a short period of time, and you tend to make quick decisions based on guesses and intuition.

Investment is not trading, and trading is not investment, so one should not be mistaken for the other.

According to statistics, 90% of all traders lose money. On the other hand, if you invest in Bitcoin or S&P500 in the long term — e.g. 5 years — there’s a 90% probability of positive returns (at least based on the historical data)!

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6. It Is Easy To Say You Can Handle Volatility. Do You Know What’s Harder? Actually Handling Volatility.🌋

In simple terms, volatility means instability. It is the rate at which the price of a security increases or decreases for a given set of returns.

Volatility can be caused by a lot of factors, for example, volatility can occur when uncertainty in the market increases or due to economic factors, and it is inevitable. It is always bound to happen whether we like it or not.

Wanna hear a shocker? Nobody out there knows exactly when volatile times will come. Not even the gurus. It just happens.

During the bear market, a lot of investors that claim they can handle volatility start to panic and question their investment choices. Most times, they forget that it’s more than just talking about it but actually living through it and surviving it.

As an investor, you can deal with volatility by staying invested (DCA!), making sure your personal finances are conservative, and not paying attention to short-term market movements. If looking at the chart brings you down, go outside and have a walk instead!

Are you sure you can handle the market volatility?! (Image generated by me on MidJourney)

7. In The Beginning, Your Savings Rate Is All That Matters. Over Time, Your Investment Returns Become All That Matters.👴🏻

When you start investing, the rate at which you save is all that matters, because since you are saving to invest, the more money you save, the more you invest. Your savings rate has a larger impact in the beginning.

A little increment in your saving rate can make a large impact on your investment returns later. And this is why you should focus on concentrating your savings rate as early as possible so that you have more to invest.

The goal is to achieve a point where your investment returns will OUTPACE your savings. Once your investments are generating more cash-flow than your expenses, then you can start thinking about retiring.

This is one of the FIRE principles — Financial Independence Retire Early — that we cover in the The Complete Cryptocurrency Investing Expert Masterclass.

If you’ve gotten to this point, what better way to appreciate you than to give you an extra bonus tip?🎁

‘You can’t possibly know everything’. You can only try, but in reality, you can’t. So always define when you know enough to make a decision.

Know what you’re investing in, the company behind it, the team, the risks, and just the right things. You can’t possibly know them all but just the right amount of information.

Investment in education always pays off!

Which of these principles do you agree with and which one did I forget to mention? Let me know in the comments!💬

If you want to learn all the tips & tricks and techniques needed to be a successful crypto investor, check out my The Complete Cryptocurrency Investing Expert Masterclass.

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