Over the course of time, Business oriented people and Finance enthusiasts have ventured into the financial sector with hopes to increase their net-worth by investing in a system that is influenced by real life spending habits of the general public.
The top leading niche’s of this nature are
Before the thrill that comes with the prospect of investment returns starts welling up in you, here are a few tips that can guide you in sailing these turbulent sectors.
PLEASE NOTE: The purpose of this blogpost is for education and entertainment. EBT is not responsible for the results of your actions.
Which is better to invest your money in?
Cryptocurrency and Stock Market
So There is no straight answer to that.
if that is what you began reading this post to get, Ouch!
but hold up there’s something to take from this.
To be honest there’s no where you’d get a straight answer for that; only you can decide for yourself.
It all depends on your Trading strategy, Ideology, and your level of Risk tolerance.
If you can stand high risk, then you can go into cryptocurrency.
But if you are the type of trader who likes to play safe then the stock market should be your go.
Before we continue, Let’s look at Steve.
Steve puts $100 into his crypto wallet hoping that his money will rise by a certain percent. Steve lies on his couch and calls himself a cryptocurrency investor.
The next day the opposite happens.
Rates drop by a huge percent and the $100 he put now has a value of $50. And an emergency comes up, that he now has to withdraw that money to purchase a $50 product. What Steve actually did was spend $100 on a $50 product.
Now, with Bitcoin. It is really just a system of money transaction that has the potential of increasing or decreasing monetary value.
In other words, it’s random speculation and to a certain level of knowledge that is not how investment works.
Stock market on the other hand are backed by real life companies that usually yield profit.
These are companies that sells shares to the public.
You may wonder, why would a company share it’s assets and profits with the public? Simple because they need the money!
Now they could just go ahead with debt financing but that comes with the disadvantage of re-paying with an interest rate; So these companies result to equity financing.
As a potential investor in the stock market, after purchasing stocks from a company you get an annual profit called Dividends.
And that is the sweet spot. Are you a prospective stock investor? do run a company you are currently seeking for investors for a buy in? then the stock market should interest you.
The stock market or stock exchange is where stocks of major global companies are traded.
As a prospective buyer you buy not from the company itself but from another shareholder like you with the help of a stock broker who serves as an intermediate.
As many industries the internet has been a game changer for the stock market where as a trader you can create your own online account and carry out purchases and sales for as low as $7.
Although the volatility of the stock market can’t be compared to Cryptocurrency, Alot of factors affect the stock prices of companies, factors like security, media reports, politics, and of recent A Global Pandemic.
It’s very hard to navigate this precarious niche if you don’t have the right knowledge.
Before You sink your dollars into any of these sectors. Below are a few rules that will help you see cryptocurrency and the stock market from a clearer view.
1. Get your emotions in check:
Avoid your emotions going over the place, during a rise and during a recession.
2. Choose an area that you are competent in:
if you want to get those returns, then you have to choose areas that you are competent and knowledgeable in. whether it is gaming, AI, social media etc.
3. Ignore the minutiae:
Ignore the short term rises. When theres a sudden rise, you get hit with dopamine, you get hit with sudden excitement. That blinds you from seeing the bigger picture.
4. Learn the game first:
Learn the game by studying the best players. Learn from their success and failures.
Do you still find these confusing? visit our previous blog-post titled “Cryptocurrency and Stocks for Beginners”