Hello friends,
I am doing good, and I hope that you are having a good time with your near and dear ones.
Investment is a requirement in life that we all should do because this is the method that we can follow to grow money. when we keep the money with us and do not invest it then it does not grow instead it loses its value because of ongoing inflation. This inflation is everywhere across the world however the percentage can vary depending upon the economic situation of the country. It is low in a few countries and it is very high in some countries but there is hardly any country where it is not there. In India, the inflation rate is approximately six to 7 percent which means if I keep 100 rupees with me then after a year the value will be approximately 93 rupees because of the inflation.
We need to invest somewhere where we can earn more than the inflation amount so that we grow the money after reducing the inflation percentage and ideally, it should be 10% or more. Doing the investment with the earnings interest of six to 7% will not grow any money in reality instead only the adjustment will happen with the inflation. Multiple instruments are available in the market including stocks, precious metals like gold and silver etc, and mutual funds now crypto as well.
I believe it is a good practice would be to diversify the portfolio across different instruments and then still crypto has more potential as far as returns are concerned. If we compare the returns with different instruments along with crypto for a period of the last five years then I'm sure the winner is going to be the crypto market. so now that we know that here we can earn a lot but we need to remember that this type of earning potential comes with long-term commitment and it is also applicable to different instruments available in the traditional market
Even now when crypto has grown a lot but still there is a lot of potential that we can in cash provided we invest with discipline and that follow a long-term strategy. it is also recommended to follow a diversified approach where we invest a certain percentage with crypto and we also choose different segments for the remaining amount so that if one does not work then at least the rest can compensate for the loss and overall things can be on the profit side.
Thank you
Posted Using LeoFinance Alpha
