One of my guys the other day told me that investing in crypto is risky. I asked him what he invested in, he answered real estate. I told him that the approach is different. Then I started to think that really, investing is investing, and if he liked his method, I think I should respect that, because it is better to inject money into something that makes a profit, than not to inject it into anything.
Whenever I am teaching English to my students, when they are at advanced levels I teach them things about finance that can be useful to them. I teach them that the risk is greater depending on the asset they put their money in. However, the risk is reduced when you consciously know what to expect from your assets, always, and you are very sure of what you are doing.
Whenever I try to refine my humble knowledge, I come across a video recommending the "safe investment", the S&P 500, an ETF that I'm sure many of you know, but I personally don't agree with all of its companies, and not so much because of the country of origin, but because there are businesses in that fund that I simply don't like.
On the other hand, there is currently a highly user-friendly product called Sofipo, which are basically bank-like accounts in which you keep your money and are guaranteed an annualized return, of course with other advantages.
Both the S&P 500 and the Sofipos are very "safe" products for anyone starting to invest. In addition, I will always be in favor of diversification.
However, there are assets out there that are more attractive, and that are often unfairly rated. I am talking about tokens, whether the more traditionally known ones like $BTC , $ETH or $SOL , or others that are not as traditional like #TRU , #COS , #MANTRA , I would even dare to mention #PEPE .
If on average an ETF like the one mentioned above gives an annual return of 15.2%, and a Sofipo offers 10-17% annually, a token can give more than 20% return in a matter of months, and obviously I am being quite moderate when speaking, there are memecoins like PEPE, in which I personally was during the "PEPE Fever" and achieved a huge capital gain of at least 70%, and I could have achieved more, but I withdrew my profits at the time.
#Solana , for some time now it has given me more money than any of the products initially mentioned, currently with at least 16.93% in my last record of July 28, 2024, and that's without mentioning that I used a little of the profit to buy XRP.
And I'm going for more.
Risk tolerance, your goals, and investment timeframe all have a lot to do with this.
Risk tolerance is related to: age, amount available, ability to recover that amount if lost, self-control, education regarding the asset and self-knowledge.
Example: If I inject $2000 MXN, how much am I willing to lose? 10%? If so, the moment I see that my asset is worth $1800 I should withdraw my capital. Also, what is the minimum expected goal? 20%? If so, the moment I see that my investment is worth $2400 I should close my positions, withdrawing the loot.
Objective, whether trade, investment, and everything that one or the other encompasses.
Term, whether you only want to hold the asset for 2 hours, 6 months, or years.
Always be clear about what you expect from your assets, always write down your plan, and with that log or record you will be able to analyze what works for you, compared to what doesn't.
Invest in your future, invest today!
