To become rich, you should first learn how to risk
We all have a huge potential, but the thing that keeps us back is the doubt in our own powers. It's not the lack of technical knowledge. It's the lack of self confidence.
That's why most people never manage to achieve great profits. They are too afraid that they will lose. And it is quite understandable that we have these thoughts ingrained. After all, almost all of us have been taught during early age at school, that being wrong is generally bad and we have even been punished for it. Seems like we forgot that in order to learn to walk, first we have to fall on the ground a couple of times. Get some bruises. And if we don't fall at all, then we will never learn.
All financially successful people risked, in order to achieve their success. And they did it, because they stood up to their own fears and doubts. So the biggest change and challenge we all have is to learn how to stand up to those fears and learn to risk.
And talking about risk, we are talking about a calculated one. To risk in terms of investmenting in company shares, bonds, cryptocurrencies etc. It is not what some people think they do, when they put their money in a save deposit bank account with almost 0% interest rate.
Talking about cryptocurrencies, if you invest $1.000 in a researched currency for example at a price of $0.02 , and in 6 months it sky rockets at $1.00, you have already made a $50.000, of which $49.000 is in profits. There is also the possibility to hold it and if the price grows further, you can manage to realize even greater profit.
Some may call this gambling, but it's not quite true if you know what you are doing. The idea is to use your technical knowledge, so you can take a calculated risk. That way you can increase the chances of gaining profit.
In general cryptocurrencies are considered as a high risk, high volatility investments in comparison to other investment options. But that also brings the higher chance of return on investment. You can always prefer safer and more stable options, though. It depends on your style and risk tolerance.
Speaking of styles and risk tolerance, there are different investing styles. Some of them are:
- To invest in cryptocurrencies you consider are going to increase their price in the long term, and are currently under valued. This is based on the all-in principle and the "buy and hold" strategy. It is considered as a very high risk, but if successful it has a very high RoI (Return on Investment).
- To invest in many cryptocurrencies diversifying your investment portfolio. That way, the risk is lower. For example, you have 1 BTC for investments. You decide to diversify and invest in 50 different cryptocurrencies. So you invest 1/50 of BTC in each. That way the risk is distributed, and even if 90% of those coins lose their value, those 10% that have the chance to skyrocket 1000%+ are going to bring you a fair amount of profit.
- To invest in a currency that you can yourself promote and you believe you can yourself increase the value of it. This is medium risk/high profit investment, but it requires technical knowledge and/or having a lot of followers.
To be a successful investor not only in cryptocurrencies, but in most fields you should have the following qualities:
- You should be able to recognize an opportunity, that everybody else has missed.
- You should know how to get yourself the money needed for investment. Not everybody has a high initial capital. So one should be smart enough to get the money needed. And no, banks are not at all the best option.
- You should know that communicating with smarter than you people is very important. Choose carefully the people from which you take advice and to whom you believe.
In order to become rich, you should first learn how to risk.
PS: Take all content written in the Internet with a grain of salt.