Beginner's guide to investing
We think investing is one of the most successful ways for people to empower themselves and improve their financial status. Here's a guide on how to get started with your own investments.
Investing used to be something that happened to other people. But those days are over. At Nuri, we think investing is one of the most successful ways for people to empower themselves and improve their financial status, no matter their situation.
We live in a time when people are beginning to realize there are better options out there. Jobs are different. Technology is breaking down the barriers to progression around the world. Income can be found in remarkable ways for less work. Investing is one of the best ways to give yourself the freedom to lead an independent life. Some people are even able to retire or achieve financial independence by the age of thirty, primarily through investment. And that’s without founding a multi-billion dollar business or working 100 hour weeks.
Investing in cryptocurrency is one of the most universally accessible ways to kickstart growing your wealth. It doesn’t matter if you’re already comfortable or are on a tight-budget, anyone can do it.
What is investing?
People get confused about investing. Most think it is a high-octane, shouty activity in which wealthy people in suits get even wealthier overnight. The reality is very different. Investment is a way to accumulate wealth, not short term profit.
Investing is a process in which investors gradually build profit through buying and holding assets for a long period of time. Unlike traders, investors don’t try to time the market. In fact, many investors don’t really follow the short-time price changes of their investments. Investors often hold their assets through several price cycles. This means that if the prices of their assets decline, they still won’t sell.
The reason why investors don’t sell once the price of their assets is because they believe that the price of most assets rise over time. Cryptocurrencies are attractive assets for investors because they are easy to buy and have great historic returns. This means that their prices have increased significantly since they became available.
In 2021, you don’t need a suit or a fancy university degree to invest. Technology has democratised the process and made the benefits of investing accessible for everyone. Realistically, you don’t even need to get dressed.
Why should you invest in cryptocurrency?
The primary goal of investment is to create wealth. The secondary goal is freedom. This freedom can come in many forms. For some, it is the ability to retire early and make the most of the remaining healthy years after a lifetime of work. For others it is to help their children get a good start in life and guarantee a good education for their family members. Regardless of the motivation, becoming an investor gives opportunity. The opportunity to be free from financial restrictions. The opportunity to live life on your own terms.
In the past, investment often meant using the services of a stockbroker or signing up to a complicated investment strategy. The fees of using these services are high and initial investment sums are prohibitive to many people that want to grow their wealth. Cryptocurrency is making the benefits of investment available to everyone. With cryptocurrency, there is no middleman, no rules about how to get started and no elitism. It’s a financial ecosystem that gives equal opportunity to all investors.
Cryptocurrencies like Bitcoin are some of the hottest assets in the world. Everyone wants them. From first time investors to elite hedge fund managers in the world’s most prestigious firms, people are scrambling to buy cryptocurrencies. There are two main reasons why cryptocurrencies are some of the hottest assets in the world. The first is that cryptocurrencies have an incredible rate of return. If you had bought $1000 worth of Bitcoin in 2015, it would be worth over $288,000 in 2021. That’s a total return of over 28703 percent.
The second is that more financial institutions are adopting cryptocurrency every day. From the world’s largest companies acception Bitcoin as payment to cryptocurrency companies being listed on public stock exchanges, cryptocurrency is breaking into the mainstream. With every small act of acceptance, the cryptocurrency industry grows. As more people learn about how cryptocurrency could improve their situation, demand for cryptocurrencies will also grow. This means that early investors still stand to benefit from the early mover’s advantage.
When you invest in cryptocurrency, you are totally in control of how much you buy and how long you hold it. Bitcoin is more than just an investment. When you buy Bitcoin you also buy access to a whole new world of financial possibilities, from instant global transactions to 24/7 trading.
Things to remember
Investing is an exciting process. But that can actually be a problem.
Like all life changing decisions, making your first investment is something that requires thought and careful planning. The most fundamental question of all is to ask yourself why you are investing in the first place.
Effective investors have a goal. This goal is usually something personal and varies from investor to investor. Some people want to reach a target that means they won’t have to work until retirement age.
Others invest until they can afford a downpayment on a house. Other investors are motivated by money itself and want to reach a goal for the sense of satisfaction it gives, as well as the lifestyle that comes with hard-earned wealth.
Investing is a long term activity. This means that if you are someone looking to get rich quick, the chances are it’s not the right financial strategy for you. The goal of investing is to build wealth in a steady, stable way.
But how long is long term? This is something all investors need to decide. The period of time someone holds an investment is called a time horizon. The longer the horizon, the longer the compounding effect of interest can work to boost the final amount. Your time horizon is an important factor to think about in order to effectively achieve your investment goals.
Investing always has an element of risk. All investors need to carefully assess their risk tolerance. Risk tolerance is the amount of uncertainty an investor is able to take on. There are a number of factors that contribute to risk tolerance, including age, income and financial goals.
The best way to invest without overloading your risk tolerance is to diversify your portfolio. A diverse portfolio is one in which investment is spread across different assets in different sectors. This way, if one asset rapidly loses value due to market fluctuations, the others will still hold their price. At Nuri we believe Bitcoin should constitute 2 percent of a healthy portfolio.
What do I need to start investing?
Cryptocurrency is one of the easiest ways to start investing. It’s flexible, stress free and you can make your first purchase in minutes. Here’s how to get started.
Once you have decided your investment goals, assessed your risk tolerance and worked out what you can afford to invest, you’re going to need somewhere to store your cryptocurrency. Cryptocurrencies like Bitcoin are digital currencies. That means they are electronic and can only be used and stored online. Cryptocurrencies are stored in wallets.
Wallets are like a bank account for traditional currencies, except they are purpose-built to store cryptocurrencies safely and securely.
How can I invest in cryptocurrency?
Buying cryptocurrencies like Ether and Bitcoin is one of the quickest and easiest ways to become an investor. Unlike with traditional finance, you don’t need a big initial investment or to pay a middleman to get started.
At Nuri we made it as easy as possible to become an investor. You can make your first cryptocurrency investment with just €10. All you need is to sign up for your Nuri account here and you’ll be investing in minutes.
Our goal is to help people manage their finances and grow their wealth. We know that it’s not always easy to save and that income can vary from month to month. That’s why we don’t make any monthly minimum investment requirements. We give you the tools you need to invest on your own terms.
Nuri offers a Crypto Savings Plan to help people grow their money. Our plan uses dollar cost averaging, where investors work out how much they can afford to buy and invest the same amount every month, to make investing effortless. It’s one of the most effective investment strategies and is recommended by legendary investor Warren Buffett.
Dollar cost averaging can cancel out price volatility and fit any budget, which makes it the perfect strategy for first time cryptocurrency investors. The smartest investors know that “time in the market” beats “timing the market,” watch this space for updates!