Investing can be exciting at first, but it's easy to become overwhelmed by the options. It seems simple: you have some extra cash and you want to put it to work. But with so much information noise online, it can be hard to figure out the true merits of each opportunity.
Let's break down some of the most popular investment routes for retail investors.
Holding equities and other traditional assets
Many investors choose to start by holding equities and other traditional assets. You can easily buy them through your bank or an investment app. After reading some advice, you carefully create a portfolio. Unfortunately, it can take years, even decades, to see decent returns on your investment, especially since equity valuation is heavily dependent on market cycles. If we're in a recession, it could take a few years just to break even.
The deal with traditional assets is that you have to be patient, really patient . Long-term thinking is great for investing, but is it really the best option?
Holding cryptocurrencies
You may have heard some stories about people making 50x returns on their cryptocurrency investments in just a few weeks. It sounds amazing, and you jump on the wagon. But soon you find yourself checking crypto prices multiple times a day, reading news and analytics, and feeling anxious when you don't see immediate returns. The cycles of euphoria and fear can be overwhelming.
After a while, you realize that cryptocurrencies are insanely volatile and you have no clue when the current trend it will be reversed. Nobody can forecast long or medium-term prices of crypto currencies, not even the most advanced hedge funds. The deal with cryptocurrencies is that you have to be prepared to make a bet and hope that you get lucky.
Manual trading
Manual trading (also known as day trading) might seem like a great way to make a living from the comfort of your home. But be careful. Research shows that' 97% of day traders lose money ' and' 99% are not able to make predictable profits . Human emotions and lack of a systematic approach make us poor decision-makers when it comes to trading. If you're into gambling, day trading might be for you. But if you're into investing, it's probably best to avoid it altogether.
What’s the alternative?
We believe that investing should be simple and profitable. That’s why we created Investomat.
Our team has developed an innovative market neutral crypto trading strategy. Then we carefully back tested and live tested the strategy during three distinct market cycles.
Our strategy leverages the upside potential of cryptocurrencies. At the same time it actively minimizes the risks of market downturns. As a result the value of your investment grows during rising market and remains stable during sideways and bear markets.