The Key to Good Investing In A Cryptocurrency World
THE BIG THING I WANT YOU TO KNOW:
The key to good investing isn’t chasing the sexy, new trend. It’s much less exciting, but IT WORKS and when you build your investment strategy on what works rather than what’s exciting you can experience life-changing peace. But, that isn’t to say there isn’t room for crypto somewhere…
There’s a big thing in the news right now and that’s cryptocurrency. The most famous one is Bitcoin, but Facebook recently announced Libra as a new digital currency option. (Related: CBS This Morning Discussing How Facebook Libra Will Differ From Other Cryptocurrencies)
In 2017, Bitcoin went up 1200%! It was an incredible explosion, but of course, what goes up must come down and last year it dropped over 70%.
I’ve said not to throw a lot of money at Bitcoin in the past, and some people may have taken my comments to mean that Bitcoin and cryptocurrency is bad, but that IS NOT what I’m saying at all!
What I’m saying is that you have to have a core investment philosophy that drives the way you think about how you choose to invest. This is what I get excited about…
there is a proven (Boring) strategy that leads to success.
The #1 Rule to your long-term investing strategy is never be too sexy!!!
I get it people, you want to be involved in things that feel interesting and exciting, but trends come and go!
Boring is best.
Clients, typically young investors, often bring up things like penny stocks, cryptocurrency, and the latest headline to get rich, but if you’re constantly chasing the next best thing to invest in, you’re on an unsustainable roller coaster, my friend, and it’s time to get off.
Fortunes are not made by suddenly finding the golden elixir, they are built with GOOD INVESTMENT STRATEGY.
I’m not say there’s anything wrong with exciting trends. What’s wrong is hoping the trends are what will lead you to success. Why? Because Bitcoin dropped over 70% last year!
The key to long-term investment is massive diversification — owning a little bit of a whole lot of stuff.
Boring investing wins in the end… it doesn’t look cool in headlines, but it is effective
If you mitigate risk as much as possible by massive diversification, any one company going under doesn’t put you under. And you ride that out over decades and that is what leads to significant, solid, sustainable wealth over time!
So is it okay to own a little of Bitcoin? ABSOLUTELY!
**I want to make sure you hear me say this: Bitcoin and cryptocurrency isn’t bad!** It’s actually revolutionary, but own some of it and some of a lot of other things.
here’s a healthy response to crypto-buzz
It would be WAY easier if things were black and white and we could say “Cryptocurrency is unreliable, don’t invest in it,” or “Cryptocurrency is everything, that’s all we should be investing in!”
A healthy response for the investor today is NOT to be reactive to the new and exciting trend that comes to the market, but to get off the roller coaster.
If you want to invest well, it’s about creating an investment philosophy where you own a little bit of everything and you grow over time. Yes it’s boring, but it’s effective. You can see the power and the magic of compound interest over years and years of consistency to get you to the point where you don’t have to worry about a sudden change in the market because your plan is built to handle it, it’s DYNAMIC.
If you don’t have that set up right now, if you’re living moment-to-moment based on how you feel, that does not work over time. We can’t base our investments on a gut feeling or a news article, but on long-term thinking and strategy.
If you find yourself being reactive to trends, let’s create a strategy where you can take the right amount of risk that’s based on YOU and you can feel confident moving forward.
If you’re looking for approval to invest in cryptocurrency — I say go for it, but do so wisely.
You’re not going to reach your dreams by just going after what the next and most exciting thing is, or reactively avoiding the next risk that pops up. You’ll reach your dreams when you have a plan that fits you, your age, your situation, and your desires for the future.
So what is your dream? Have you thought about how your finances are moving you towards your goals in life? We want to help you go after that and we aren’t against Libra or Bitcoin playing a role in your success as long as it is a part of a BIG-picture diversified BORING plan.
What is something you can get lost in when you’re bored?