5 Tips To Make The Most Out Of Your Investment

Earning money is an amazing feeling and if you want to double your hard-earned cash, then investing is something you should definitely consider. Contrary to popular belief, being an investor isn’t an easy job. You have to constantly be on the look-out for fluctuations in pricing so you know the best time to sell or buy assets.

Want to make the most out of your investments? Here are 5 amazing tips to make your money work for you, whether you’re trading forex, stocks, bonds, or cryptocurrency:

1. Use Your Profit To Invest In More Assets

Seeing how much you made from your investments makes you want to squander all of it away. We get it: after devoting hours into research and carefully predicting the market’s behavior, you feel like you actually deserve to treat yourself. And you do, just not on material things but on other assets.

Cashing in is one of the biggest mistakes you could do as a long-term investor. If you really want to make more money, you should be in it for the long haul. Spend your hard-earned cash on other assets, or top-up those you already have. Trust us, you’ll feel more satisfied when you see a growth in your portfolio.

2. Minimize Fees As Much As Possible

One way to do this successfully is through diversification. Invest in a couple of passive index funds and choose ones that have little to no cost. Having a bunch of these in your portfolio is sure to give you great investment returns throughout the years. On average, passive funds cost about 0.15% - 0.20% of your capital, so that’s definitely a great way to boost revenue.

3. Open A Retirement Account

When you do decide to take out money, make sure that you put it into good use. Open up a retirement account and funnel your returns through your savings account. Retirement accounts typically have no tax throughout the transaction period and only taxes you when you are already using the money.

Moreover, there are a couple of retirement accounts that can be used to fund cryptocurrency wallets. Instead of letting your money sit and virtually disappear behind your retirement account, use these funds to secure better returns for the future, even if you can’t use it immediately.

4. Don’t Buy All At Once

If you’re planning to invest in a particular asset and you have an allocated money for it, don’t spend everything in one go. Use ⅓ of the cash for an initial investment and wait a couple of days before buying more of that asset. This way, you can observe trends in the pricing and find better price points for the same asset. After a suge, you can sell some of your returns, combine it with your remaining cash, and wait for the price to start going down. The downward trend of an asset, usually referred to as a “dip”, is the best time to invest.

Again, to maximize your capital, buy only a fraction of the asset and see where the price moves in the following days. Once the price starts going down, you can invest the full amount and enjoy the ride back up.

5. Consider Holding On To Your Investment

Not everyone has a knack for day trading. If you’re not sure how trading works or if you’re afraid to risk your capital, simply hold on to your investment and wait. This is especially true for cryptocurrencies. Instead of holding on short-term and buying and selling according to the price, consider setting a “selling price” at which you will decide to cash in on your asset.