Crypto Academy Week 7 - Homework Post for @stream4u

Hello steemit community! How are you all doing.
Week 7 of crypto academy is here and lecture was again very informative. This is my second homework for @stream4u. Let’s get started!

Money Management

Aa the title suggests, It is managing the money. People read articles and all, but when they invest, they need to everything about managing the capital and the portfolio.

This is not limited to the amount of investment, it’s just about investing whether small or large amount and never invest in only one coin just because you like it. Try different coins after checking the market.

Coins are like roller coaster, they go up and down. Some do very well in short time and some make us wait for a long time so we have to evaluate before we invest, see the charts, buying signals and make everything sure and after we are done with the evaluation we need to divide the total capital in 2, 3, or 4 parts.

Future plan on your Money Management.

I got some ideas from the lecture on money management.

I will never invest my COMPLETE capital in one asset because if I do it, all of my money will be at stake and i will have to wait for a ling time to get a good profit.

If I invest all my capital, my investment would be large so if the market crashes, all the money would go in loss, so bigger investment, bigger loss so no for that too.

I will invest in parts and at the right time as @stream4u suggested. Look for false signals and stay alert for change of market. So I will have to consider everything. For example I have 10 assets and 3 of them go in the loss, the other 7 would be so good that they will cover the loss for those 3 so that is the advantage of division in parts.

Portfolio Management.

In simple words, portfolio management is the collection. It is collection of the assets that you have invested in. It allows you to keep track of the output of each coin and provides you with analytical resources.

I do not have any investment currently so I can’t show my portfolio but I’m thinking to invest in near future. I’m still learning about the crypto and how the market works.

Future plan on your Portfolio Management.

It's quick to get caught up in the Bitcoin and Ethereum hype, but any professional investor can warn you against letting your emotions influence your strategy. Given that crypto markets are notorious for their high levels of volatility, especially during times of crisis, it's crucial to avoid taking some drastic measures. I don't want to follow the crowd, so I will always examine patterns critically, be patient, and think things through before making a decision.

I will learn all the cryptocurrency rules and all the legal acts by the government and I will decide what to do with my portfolio.

When one type of digital asset underperforms, diversifying your portfolio reduces your risks and maximises your returns. Traditional assets, in addition to digital assets, could be included in the event that the entire cryptocurrency system is disrupted. It is also beneficial to assign a certain percentage of your investment through various cryptocurrency. Aim for a monthly allocation of one percent for each digital asset you own. You don't want to put all your eggs in one basket, so be careful about how you distribute your money in order to maximise your profits.

Nothing lasts indefinitely. The wealth that cryptocurrencies have will come to an end. When the time comes, I will make sure I have a detailed strategy in place for exiting the market, cutting my losses, and reinvesting my profits. Making tax payments, looking for investments in conventional assets, and setting a price when I unload my cryptocurrencies are all part of a sound exit strategy. I will avoid being hard hit as the value of digital assets starts to plummet by preparing the game plan ahead of time.

When it comes to handling your cryptocurrency portfolio, thorough analysis is crucial. However, the best advice you can get is to avoid thinking you're here to make money. You've come to play a long game.

When was the last investment failed and Why?

Well, as I said earlier I haven’t invested in anything but I remember one investment. When I joined my university, there was a friend if mine who had a lot of interest in cryptocurrency and he had a lot investments. He was in Facebook groups, he used to get buying signal and then buy and make profit. So he told me about it to so I thought to give it a try. I invested $50, which is a very small amount but i was just checking. I don’t remember the name if the coin since he did all the work for me and he said wait for some time and you’ll see a pump and get profit but the opposite happened. That asset went down continuously and I lost my $50. After that I’ve never invested but as I wrote earlier, I’m thinking to make an investment.

Conclusion

Money management is very important. If you about money management you are in a long run .

If you know about money management, you know where to invest and how much to invest.

Portfolio management can make you very successful if it’s proper.

The most important thing is research. A good research is a must thing to do before investing ao make sure to do it.

That’s all from today’s homework. I’m sorry for not posting any screenshots because I haven’t had any investments in the past. All the work is plagiarism free.

Special Mentions
@steemcurator01
@steemcurator02
@stream4u