Invest Early and Often - Ignore this Bitcoin craze!
#bitcoin #investing #dollarcostaveraging #legacy #compoundinterest #wealthstrategy #bitcoinbubble
It always makes me nervous see to people hop on a bandwagon when it comes to hot investment tips like Bitcoin. The media attention itself has built up false equity. If you are a person that is interested in buying bitcoin I have few questions for you. How much money do you have invested in other publicly traded investments? What other discretionary income do have you to invest? You will never get rich quick - Especially if you are a first generation middle class wage earner.
One of the keys to investing is to invest early and often. The investments should be based on the past history of the stocks/mutuals funds, not the futures. I personally would recommend new investors to purchase stocks or mutual funds with more than 10 years of operating history. This may sound conservative to a Bitcoin enthusiast, but to a traditional investor it is considered sound advice.
I personally believe the current the Bitcoin phenomenon is a bubble that will pop eventually. The block chain technology associated with Bitcoin will be a game changer across the world. Block chain technology is only in it’s infancy and interested investors should learn more about its future. The main challenge that faces Bitcoin and other block chain currencies is they have not faced any government regulation.
What’s the Mathematics on investing early and often?
Compound Interest Calculations: Compound interest - meaning that the interest you earn each year is added to your principal, so that the balance doesn't merely grow, it grows at an increasing rate - is one of the most useful concepts in finance. It is the basis of everything from a personal savings plan to the long term growth of the stock market. It also accounts for the effects of inflation, and the importance of paying down your debt.
Dollar Cost Averaging: Dollar-cost averaging (DCA) is an investment technique of buying a fixed dollar amount of a particular investment on a regular schedule, regardless of the share price. The investor purchases more shares when prices are low and fewer shares when prices are high.
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