Investors are always looking for new ways to make their money work for them, but finding options that fit within the grander context of your personalized investment strategy isn’t always easy. This is especially true for new investors who haven’t yet developed their personal risk assessment or flair for the world of commodities and stock trading.
No matter what kinds of investment asset classes make your eyes sparkle, without a great strategy to keep your portfolio grounded, it can be difficult, if not impossible, to make sound investment decisions that will benefit you the most over the long run.
With these tips, beginning investors can cut down on the learning curve that keeps portfolios stagnant in the early days and jump straight to the part where you begin to win trades and take profits.
1. Don’t underestimate the research component.
Great investment opportunities begin with research. Some of the wealthiest investors in the world prioritize this aspect of the cycle over everything else.
While diversification, rebalancing procedures, and other approaches to the trade of stocks, cryptocurrency, ounces of gold, and other commodities are important, without strong research you can’t expect to become successful with any element of your portfolio. Building a strong base of knowledge is the best way to grow as a trader of commodities, gold ounces, or cryptocurrencies.
2. Find brokerage resources that fit your needs.
Virtually all cryptocurrency traders are familiar with the Gemini vs Coinbase debate. Gemini, Coinbase, Kraken, Binance, and others all operate as cryptocurrency exchanges for traders to engage directly with the market. Yet each crypto exchange account comes with unique pros and cons. Many traders look to lower fee structures on trades involving Litecoin (LTC), Bitcoin (BTC), or Ethereum (ETH) in order to select the cryptocurrency exchange that best suits them. Gemini, Coinbase, Kraken, and Binance all offer cryptocurrency trading opportunities to crypto enthusiasts in the United States and all around the world. Opening an account with Gemini or Coinbase is simple, and typically requires a debit card or credit card for purchasing initial crypto assets (Ethereum, BTC, Litecoin, and others), and an activation link sent through an activation email. Once these steps are done you can trade your selected crypto assets on Gemini, Binance, Coinbase, or elsewhere with little to no limit to your account.
Others want increased access to market research and analytic tools surrounding their digital assets. Coinbase Pro or the Gemini platform may be the perfect digital assets here, but a personalized tour of Gemini, Coinbase (and Coinbase Pro), Kraken, and others is crucial to selecting the resource that’s perfect for you and your trading needs.
3. Chase after assets that reflect your values.
Finding assets that share in the values that you champion on the stock exchange or cryptocurrency market is a great way to promote the types of companies and assets that you find valuable – and viable – while also investing in commodities that are poised for continued growth.
One great option, for instance, is Alamos Gold. Alamos Gold Inc., or simply Alamos (NYSE:AGI), is a cash flow machine in the gold miner industry. Investor email alerts surrounding AGI are always filled to the brim with high quality information and great news (and are great digital assets for beginners). Alamos operates three substantial gold miner spaces in North America that produce many thousands of tonnes of gold ounces per year (the Mulatos Mine in Mexico, and Young-Davidson and Island Gold mines in Northern Ontario), and they are working through designs on new spaces in the Republic of Turkey that promise to be the gold miner’s most lucrative yet. The Kirazli project is poised to offer some of the best margins on ounces of gold on the entire third party marketplace.
4. Identify a distribution of dividend and growth assets that meets your financial goals.
In addition to great cryptocurrency, stock, and commodity assets, it’s important to distribute your holdings across these two broad categories in a way that makes sense for you and your goals. Dividend paying assets often prioritize payouts on a shorter timeline over the long term growth that factors into commodities that don’t pay out as highly. Some assets straddle this divide – like real estate in some instances. Yet the majority fall into one of the two camps. Distributing your holdings to provide income vs appreciation based upon your needs is crucial.
5. Remember the tax implications associated with any position change.
Finally, the Fed will want their cut of any capital gains that you make, whether in real estate, stocks, or cryptocurrency. Don’t forget to pay your taxes so that you can remain a free and private citizen. However, tax planning is more than just remembering to report in April. A great investor will factor these “fees” into their overall returns in order to maintain a more nuanced picture of their portfolio more generally.
Take these to heart for the best possible outcome in your investments.
Passionate Writer, Blogger and Amazon Affiliate Expert since 2014.