Crypto Academy Week 7 - Homework Post for [@stream4u]
Background Source
Welcome to my assignment for week #7 assignment for teacher @stream4u, if you want to be part of this initiative, I recommend you to visit the teacher's original publication Here
1. Money Management.
Before investing or getting involved in the world of cryptocurrencies we must have a basic notion of it, inexperience can lead to losses most of the time.
Money Management is one of the most fundamental parts of trading if not the most important, it focuses on the management of money (our capital), we can classify the Money Management in a series of rules or recommendations to make before the investment.
Source
We should only operate with a moderate percentage of our capital, the first phrase that many professional investors say is: "invest money that you are willing to lose ", these are very powerful words that come from the voice of experience, we must know that in a market full of volatility and important news that influence the markets, the value of an asset can vary drastically from one moment to another. If you operate with amounts that do not suit you or you need to lose, you will have a huge stress and you can lose your calm and keep making more moves that lead to more loss, for example, keep investing to recover the investment and spend even more money than you thought.
Study and research very well in the asset you want to invest, there are several courses and tutorials online that will make you have a clearer and more accurate idea of how trading works, a technical study is always recommended before investing, as many amateurs are influenced by social networks, not bad, it is always advisable to read opinions of crypto-analysts and major investors, as the news can also directly influence the value of an asset, however having a balance between technical analysis and news highlights is important to make a successful trading.
Divide your capital in several parts, you can use up to 5% or 10% of your capital for your investments if you are a beginner, also dividing your capital in several parts will give you the opportunity to trade in different assets without the need to take big risks of loss in an individual asset.
Feel free to use all the tools offered by the exchanges, learn from them and use them with caution and moderation, here I will leave you an example of the three most common ones in cryptocurrencies.
2. Future plan on your Money Management.
My plan is to save, I want to get to have a capital with which I feel comfortable before making many operations, I refrain from spending money on unnecessary things, Steemit has allowed me to meet my goal that is still in development.
Both in the present and in the future I must have these rules very clear:
I must keep in mind that my investments can generate losses rather than profits.
I am constantly performing technical analysis and researching on the internet the latest and most important news of these assets to be able to predict in part a future price either in the short, medium or long term.
I have to have patience and maturity to be able to trade on the blockchain.
Source
3. Discussed Portfolio Management, if you have an investment and if it is okay with you then show portfolio and explore it briefly.
I will show you the cryptocurrencies in which I have invested during this period.
As you can see I have a total of 7 cryptocurrencies in my wallet (not including TRX, STEEM and SBD).
My two main investments are in Cardano, Chilliz and BTT, otherwise I only have fractions of Bitcoin and Binance Coin left over after making several transfers, and I use Tether to shelter my assets from volatility and analyze which cryptocurrency to invest in.
I have a medium-long term projection regarding the price of Cardano and Chilliz, with BTT my projection is long term.
Here is an example of what the cryptocurrency market looks like from the Exchange I currently use.
The sources of the images correspond to the Exchange Binance
4. Future plan on your Portfolio Management.
My ambitions in the world of cryptocurrencies are wide, the Steemit platform has allowed me to be able to save by writing paid articles depending on the quality, I want to make several investments in different assets, also get involved in the field of stocks or stock exchanges.
I must apply the necessary strategies to carry out these investments, continue saving and gaining experience.
My goal is to have a large portfolio in cryptocurrencies and quite orderly, have a good capital and make investments without affecting 50% of the total.
I am quite interested in Penny cryptocurrencies and assets that have a good project on top with a promising future, I am not very interested in investing in cryptocurrencies with very high prices. (for the moment).
Source
5. When was the last investment failed and Why? (those who have experienced this can provide views.)
Fortunately it happened with a small amount of investment, it was about one or two years ago, I was very inexperienced in this world of cryptocurrencies and I let myself be influenced by social networks, specifically from users who lacked advanced knowledge or simply people who made incoherent analysis, I bought a Ripple (XRP) when it reached the dollar, I had read and watched several videos of people who predicted a price for the Ripple moon, within weeks the price dropped quite a bit and to this day I have not had a positive return on investment.
Source
I have this Ripple in an abandoned wallet, I managed to make the exchange with some satoshis that I got through Faucets, this was years ago, these faucets paid you to perform different tasks, among them, see a lot of advertising, nowadays it is not very common to get effective Bitcoin faucets.
6. Conclusion
Money management is fundamental, we must investigate very well and do not stop learning about this world, especially if we want to invest or get involved, also cryptocurrencies are here to stay, this is the revolution of the economy and we have only been there for a few years, there is still a long way to go.
We must apply basic strategies and learn about all the tools offered by the platforms to exchange assets, we must be aware that there may be losses and gains, we must learn from our mistakes.
Let's take advantage of the opportunities, in the crypto academy our teachers have focused on writing quality articles to improve our learning, we must be careful with people who only seek to spread false information for their own good, in addition to pages and projects that do not provide sufficient insecurity.
With a good administration we can achieve a decent portfolio, it is not necessary to be experts, but we need to learn more every day and be aware of the news and never be inhibited to continue learning from this beautiful world.
Thank you very much for the opportunity professor @stream4u and also to the Steemit team for carrying out this successful initiative.
Hi @imagen
Thank you for joining Steemit Crypto Academy and participated in the Homework Task 7.
Your Homework task 7 verification has been done by @Stream4u, hope you have enjoyed and learned something new in the 7th course.
Thank You.
@stream4u
Crypto Professors : Steemit Crypto Academy
Thanks you professor!!
In the main image, a bit of what is meant in the text is anticipated, since it talks about investment and seeing its growth and for that, good teachers are required.
It is important to inquire about this world, and who better to do them than specialized teachers in the field. Happy afternoon to you