The Basic Rules Of Investing

24 74
Avatar for Eybyoung
2 years ago

Investment is one way to achieve financial freedom if one can succeed in their investment plans and strategy. It is one way of building wealth; if you want to start building wealth, you must begin investing early. However, investment comes with risk, so you should know at least the basic rules of investing.

Here are the three very basic rules of investing you must know or apply:

  • Do not trust scam investment

  • Do not invest money you can't afford to lose

  • Never put all your eggs in one basket

In this blog, I'll elaborate on the three basic investing rules. Before jumping into any investment and applying it for your successful investment journey, you must know it first.

Do Not Trust Scam Investment

Scam investment is rampant nowadays, especially in crypto. According to Federal Trade Commission (FTC), more than 46,000 people reported losing $1 billion in crypto to scams when 2021 started.

It would help if you research the project you want to invest in. Don't just rely on heresy or some proof of huge profits or earnings—conduct thorough research before putting your hard-earned money. Ask reliable and trusted people about the project and search more about the details of the company or the project you'd like to invest in.

By 2021 fraudulent crypto type of investment has risen to sixty times higher than in 2018. Crypto is the riskier investment, mai; mainly used by scammers because once the transaction proceeds, it is not reversible.

Always remember that a too good to be property investment is likely, not true. If someone promises you huge returns on your investment, be doubtful it is most likely a scam. Gaining good profits in any investment takes time. There's no quick rich in investment.

Do Not Invest Money You Can't Afford To Lose

Investment sometimes wins and sometimes does not, so you should not use the money for investing you can't afford to lose. Don't invest money for bills; budget for necessities or payables. Some say this is mythical advice, but for some newbies in investing, this is an essential factor that needs to be shared.

There's no quick profit in investment, so you should not use money already intended to pay your bills, etc. To avoid investing money you can't afford to lose, you can try building up your savings first.

Once you already have savings, you can maximize your investment risk by creating a financial portfolio.

Never Put All Your Eggs In One Basket

Old gangsta in investing already knows these phrases. Still, for newbies entering the world of investment, this is a warning—not to put all your resources on a single project or investment to avoid losing everything.

For example, you want to invest in Bitcoin alone. What if Bitcoin Giants sold their old Bitcoin? Then the demand for Bitcoin decreases, and its price will drop drastically, leaving you with regrets.

It is essential to diversify your portfolio in case one of your investment fails. You will not lose all your money on it. You must not put all your eggs in one basket for your safety. Continuously diversify, look for an excellent project to invest in, and do your research before doing so.

Conclusion

Those are the three basic rules of investing; as you grow in the investment world, you must know many financing rules to be a successful investor. To master something, you must learn more about it; the same goes for investing.

The basic rules will help you kick start your investing journey with those helpful insights you can apply.

11
$ 3.10
$ 2.82 from @TheRandomRewarder
$ 0.05 from @Ruffa
$ 0.05 from @LykeLyca
+ 4
Sponsors of Eybyoung
empty
empty
Avatar for Eybyoung
2 years ago

Comments

Well said do not put all your eggs in one basket, I remember how I was been scam last year, it was a painful experience

$ 0.00
2 years ago

Nowadays nkakatakot na mag invest lalo na sa mga ponzi schemes. Even friends mo lolokohin ka. Anyways, I'm a bit dismayed with my investments in smartBCH., though I still have hope with it. They're not wasted yet, I hope.

$ 0.00
2 years ago

Same here, I am too disappointed with my investment this 2022.. in SmartBCH and in crypto in general, I wasn't wise to take profit. But hopefully we will learn from our experiences.

$ 0.00
2 years ago

Thanks for the tips ate Eyb. ✨ Dami pa nga namang scammer nowadays, mga mapanglinlang. And that do not put all your eggs in one basket is what I always hear from financial advisors talaga.

$ 0.00
2 years ago

We always tell everyone to invest what they can afford to lose but because they wanted quick turn over, they invest more than necessary. It has worked for some while some, not so much. Thanks Eby for this heads up... We all need that timely reminder because it's easier to forget.

$ 0.00
2 years ago

Yeah, I've done the same thing too..keep investing and just burnt out the money 🤣 while I was writing this, it seems I am writing for myself as a reminder ahahaha

$ 0.02
2 years ago

🤣🤣😂🤣😂😂 I can imagine

$ 0.00
2 years ago

I will keep these rules in mind, though I don't have any plans in near future, but hopefully one day when I do, I will apply these rules.

$ 0.00
2 years ago

Great, you should be interested in investing while you are still young and no responsibilities yet.. I mean your own family, it's great to start aiming for financial freedom while you're still single.

$ 0.00
2 years ago

That is true and I liked it. I will once I complete my bachelor, because I just stepped in crypto world and got only 1 BCH so don't wanna lose a penny of it

$ 0.00
2 years ago

Scammers are everywhere especially sa mga newbie na Hindi pa alam Yung crypto. Lalo sa mga pinoy naeenganyo sa too good to be true na offer pero kapag og kana red flag na para sayo yun

$ 0.00
User's avatar Yen
2 years ago

Kaya nga, mga pinoy pa naman baliktad utak.. don nag e.invest sa mga obvious scam kasi malakihan return 🤣

$ 0.00
2 years ago

Ganon din ako dati e kaya nascam ako palagi . Buti nalang nadiscover natin Ang rc at napiwanagan Tayo sa mga Ganyan scam Kaya Dina Tayo na scam 🤣

$ 0.00
User's avatar Yen
2 years ago

Yung never put your egg in one basket talaga bhe! 🤣 Masakit sya huh

$ 0.00
2 years ago

Hahahaha experience mo ba bhe? ,🤣

$ 0.00
2 years ago

Scammer here and there talaga peg nila no, aigooo. Kaya ako never na nagtry mag invest. Mag iinvest ako sa crypto pero para laruin lang and, sell din talaga agad. Or if not ee BCH ko nalang nilalagay haha..mas kampante ako dun ee

$ 0.00
2 years ago

Oo haha buti pa nga ikaw eh, mapaglaro ka.. pinaglalaruan mo lang si BCH hahahaha

$ 0.00
2 years ago

Investors are chopping live lol when they succeed in their strategy. Very educative, i fell for these rules.

$ 0.00
2 years ago

Haha yeah.. nice, glad it educate you.

$ 0.00
2 years ago

Yung scam investment yan talaga dapat ingat ma'am eybyoung nuh kasi pag magkamali at ma scam ubos talaga lahat. Dami ng nabibiktima sa ganyan ma'am.

$ 0.00
2 years ago

Oo yun kasi iba gusto madaliang profit kaya na.e scam lagi.

$ 0.00
2 years ago

Totoo ma'am eybyoung. Gusto nila fast earnings agad.

$ 0.00
2 years ago

Indeed investing is a way to financial freedom, only when people are smart and wise through the process.

$ 0.00
2 years ago

True, kaya ako isa rin sa goal ko maging good investor eh.

$ 0.00
2 years ago