Cryptocurrency & financial investments: skepticism out of ignorance
The European Central Bank (ECB) holds the Base rate remains low, This entices many to look for alternatives. There are plenty of them, but as always, you can never have everything. There are safe investments, but they generate little profit. And there are riskier investments that promise high profit margins. These latter undoubtedly include bitcoins and cryptocurrencies.
But where do you start to deal with finances? For many people, financial issues are a complex book with seven seals and the fears are correspondingly large. That was also the case for me. The stock exchange but also the topic of cryptocurrency is therefore rather negative in Germany. Savings accounts and insurance are the ones favorite forms of investment by Germans, However, this is often based on complete ignorance. Because savings are by no means as secure as many believe due to the inflation rate.
Financial kung fu: 6 learning steps in dealing with cryptocurrency and bitcoins
So it is indeed necessary to deal with financial issues in general and cryptocurrencies in particular. However, this not only requires a lot of effort, but also courage to leave your own comfort zone. But it can be worth it.
The procedure reminds me a little of what it is like to learn martial arts: first you are overwhelmed, but then gradually it promotes self-confidence and you work your way step by step. From my own personal experience, I developed financial kung fu with the following 6 tips so that you avoid recurring mistakes when investing.
1. Deal with the topic
Are you also thinking about taking a self defense course? Would you like to promote your self-confidence because you sometimes lack a bit of it? Are you still thinking about which martial arts course might be right for you? It is about the same with finance: more and more people are interested in bitcoins and other online currencies and it seems as if many are distancing themselves from banks and increasingly switching to online trading.
If you took a self-defense course, it would not only promote your self-confidence, but also your concentration and balance. If you take a closer look at financial issues, you can increase your wealth. Perhaps you know the situation where Bitcoin suddenly shoots up, or at least it appears that it is doing so. Perhaps you have already bought and are one of the lucky profiteers. Now you can try to keep the course, keep a close eye on it, but be sure to get out if the situation becomes too risky.
2. Well prepared in difficult times
Even if the training is certainly hard, the advantages of martial arts techniques are obvious: It is reassuring to know that you can defend and defend yourself in a possible dangerous situation if you have to. So if you are in an emergency and it really matters, then you are well prepared for it and need no longer have any concerns.
You can also get problems with Bitcoin investment: Because on the financial markets, situations can arise very quickly that change rapidly. But what is the best thing to do when you realize that the situation has changed drastically? And changed to the negative? Laying your hands on your lap and waiting doesn't help, now it's time to act. And if you have acquired the relevant prior knowledge, then you also know what to do.
3. Proceed with a plan and goal
In martial arts you learn to become more concentrated and more efficient and how to best defend yourself. Example Kung Fu: The name also stands for that something was accomplished with very patient and hard work.
It is the same with investments: Always trade with a precise plan! One possible option for this would be, for example, that you think about a target and thus determine when the time has come to get out again. Certainly, you will get off too early sometimes, yes, but you are definitely less likely to jump off the train too late.
You should always keep an eye on potential gains and losses. Pay attention not only to the exchange value, but also to the fees. So you always have an overview of the development of your credit. It is also always useful to consider the different time slots when trading with bitcoins. Make sure you get a long-term picture of the development. And most importantly: Don't use more money than you could lose!
4. Find the right consultant
Nowadays there are also many martial arts schools or trainers who can help you with your training. But like in all other areas, you first have to find the right one, which also gives you the fun of this martial art and lets you dive completely.
There are also countless financial advisors and bitcoin tradersthat can help you keep your investment plan. Basically, however, nobody can really tell you which investments will bring the hoped-for wealth - and which will lead to losses. Unfortunately, the basis of your investment is always a guess! However, a presumption can very well be justified if it is based on a profound financial analysis. So take a close look at who you are taking advice from and read as much information as possible.
5. Learn to deal with unforeseen events
In martial arts, you learn to defend yourself better and to react correctly in serious situations. You also promote your motor skills, your self-confidence and you become much more balanced. Also more self-confidence, discipline and Respect Having in everyday life are factors that you will experience when you practice martial arts. All of this helps to deal with unforeseen situations.
It is very similar with financial topics: How does the vernacular say? "You only have to lose money if you want to make money." Even the best and most careful analysis cannot do anything against sudden events, but this statement is absolutely true. No matter how precise you are and maybe you have basically assessed the situation correctly, sometimes things just turn out differently than you think. Unexpected situations can always and without exception occur, whether you want it or not.
6. Don't jump on any hype
The demand for martial arts courses has increased extremely recently. This sport with a large and long tradition, especially in East Asia, has become more and more established with us in recent years. Many celebrities also train corresponding courses. And everyone wants to learn martial arts.
It's the same with cryptocurrencies and bitcoins: everyone talks about it and everyone wants to participate. But that carries the risk of spending more money than you actually have. Do not do that! In some trading guides you can read that you should never trade more than 2% of your own money. Many see this more calmly, but it does matter if you stick to stricter guidelines. Please do not make the mistake of the so-called "bull run". Don't assume that your portfolio could get a little bigger before paying out. Better set smaller and smaller milestones. It's always best to keep a close eye on your money! Your bank account will thank you.
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German edition: ISBN 9783965961005
English version: ISBN 9783965961012 (Translation notice)
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