To know for
Invest
Investments are placed are money to generate new sources of passive income, but also to protect against inflation.
The most common ways to invest are the Stock Exchange, to obtain fractions of company shares (sometimes with dividends), the crypto-currency market which allows you to invest in a project that is behind the crypto (that's is a very volatile market), and real estate which is a solid investment and which increases in value over the long term.
The purpose of an investment is to grow your wealth over the long term.
OPENING AN ACCOUNT
First of all before investing it is essential to have a bank account. To be able to deposit and withdraw money to invest.
I recommend Boursorama which is an online bank and which offers a free rate to have their card. Boursorama is easy to use and complete.
The processing of withdrawals and deposits of crypto currencies or other assets is faster than in normal banks.
If you want to create your account here is my sponsorship code to earn between 80 to 130€ when opening your account (if the link does not work here is the code MACL665705).
ADVANTAGES DISADVANTAGES
What are the advantages of investing?
-Increase, with the long-term return
-Protect, thanks to investments you can benefit from better long-term tax treatment (to protect yourself from inflation and taxes)
-Revenue, create a new source of passive income
-Independence, you are not dependent on banks in the event of a crisis, you will always have your money
-Advantageous tax treatments
And what is its downside?
It's to lose all your investment if you haven't studied the project a minimum beforehand
BUSINESS PLAN / BALANCE SHEET
Few people think about it, but a business plan is essential to succeed in your investments.
The objective is to have a clear and precise vision of all the elements.
Here is an example of a Business plan that is easy to understand and implement (on the right side of the page).
Having an Investment Report is useful for knowing how much profit you have made each month or week (depending on your preferences).
With a glance you will have an overview of your portfolio and the evolution of your investments.
You can create a Google sheets to have access to your reports at any time.
I believe that one day we will look back to the times we live in now and say, "It was a great time to invest"
/ Mary Callahan Erdoes
TRADE
The objective of trading is to buy at the lowest price to sell at the highest price to make a profit. You can trade in the stock market and in crypto, but the best is to trade the crypto market to take advantage of market volatility.
For this I offer you as a TradingView tool (join with this link to earn $30 on the site), choose your pair for example BTC/EUR (if you buy with EUR) or BTC/USDT (if you buy directly with Tether ).
Then on the chart you can use indicators to know when to buy and when to sell:
-Moving Average, is an indicator that follows the trend based on past prices. As the name says, it follows the trend, which means it goes up and down with the market.
-The MACD (Moving Average Convergence Divergence), results in the approach and the distance of the moving averages. It is an indicator that is used in technical analysis to try to identify and confirm trend reversals.
-Bollinger Bands, indicates whether the price of an instrument is high or low on a relative basis. When the market is calm, the bands contract and when it is choppy, the bands widen.
-The RSI (Relative Strength Index), is a leading indicator for technical analysis. Used in conjunction with trend analysis, it aims to: identify the power of a movement (indicate if the movement is running out of steam); indicate whether you are overbought or oversold.
-Volume, results simply from the addition of the number of securities traded on an asset during the period studied.
If you learn how these indicators work and keep your charts up to date you will be able to know when to sell and when to buy during the best times.
If you want to deepen your technical analysis here is a training that shows you how to use indicators .
LEARN MORE
Before investing, study the projects behind it, the team on which the project is based and see if it is a solid project.
Diversify your portfolio, and invest in what you know. And have a long-term view.
Use scheduled investments, to invest every month and benefit from compound interest (this is possible on Trade Republic, and Binance).
Trade to avoid market declines, and benefit from bullish market effects (you can use TradingView to do your analysis).
If you want to join a community passionate about investment and motivation, join us on Instagram and on our Telegram channel to discuss with us and the community.
