Crypto investors are riding a wild creature to multiply their investment in the highest risky market in the world. Many of the investors get addicted to the adrenaline and the high risk / reward ratio in the ecosystem.
While crypto is an untameable one, the other markets, which have been regulated a long time ago, have safer approaches to investments and market nature. Any investor would probably look for the best way to make gains in the shortest time in a semi-passive way by putting the money into work.
Though, theoretically, everything sounds perfectly good to buy low and sell high, markets have risks of global problems, monetary policies, natural disasters, and human factors. Thus, it is hard and getting harder to manage a portfolio safely by fighting against the distractors that target your assets or liquid currencies.
Cheap - Abundant Money / Scarce Money
The quantitative tightening has been draining the money flowing in the world. With the decisions taken by the central banks following the inflation after pandemic, the economies had their best and worst days due to some highly volatile times they went through.
Chep Money is the time when there is quantitative easing around the world. During that time, it is very easy to get debt for low APR and grow your investments with some loans. However, the reflowing starts to happen, the rules of the game changes drastically.
The less money in the economics, the harder it becomes for investors to grow.
Growing does not have to be done via stock market or crypto investments. Rather than these, I believe in putting money into interest accounts, buying gold, or opening a position on Brent Oil may be some of the ways that anyone can "hedge" the deep crush in the markets. As it keeps going up for several months, there should alse be a. "heathy" correction to continue from where we were.
In the good days, when the companies can find cheap loans with low rates, people have credibility and sources to control their operations, doubtle-digit gains mean nothing to us because our initial investments are done in very cheap times.
When the paradigm shift happens, stubborn investor loses the most due to the emotional steps possibly taken. If the FED and other central banks are insisting on increasing the interest rates to cool down the economies and markets, you can do literally nothing about that.
Monthly Single-digit Percentages
The best way to make the best gains from this strategy is to cash out your money when the things are changing. When everything happens and you are in the middle of a strict monetary policy, all you can do is to grow your financial knowledge, put some funds in interest accounts in the banks and / or buying government bonds at high return promises.
According to the recent results of my personal experience, taking loans and buying an asset, it can be a car, a house, or a piece of land, you are earning around the amount of money with your investments for a long time. The only difference is the level of stress, the burden on the shoulders, and the time spent.
When I turn back and see what I had been doing with my hustle in crypto, stock markets, ETFs and others, I realize that I could not take a firm step while trying to manage my capital. Sometimes it is the best to leave the train earlier and be okay with 3% - 5% yearly gains if the markets are under huge pressure. It might be the time of settlers!
What do you think about adjusting your actions according to money cycles?
