Investing allows you to use your money for practical reasons, whilst potentially building wealth along the way. When done right, investing is a win-win. Therefore, millions of people do it as a job and as a hobby. If you’re eager to learn more, this guide is going to discuss the knowledge you need before you start investing for the first time.

In this decade, the opportunities are limitless when it comes to investing. You can invest your money in stocks, government bonds, properties, cryptocurrencies, and much more. With this in mind, it’s understandable why you might be eager to get started with your investment journey.

Learn About the Different Cryptocurrencies

Today, cryptocurrency investing is becoming increasingly popular. This is why it’s essential to boost your cryptocurrency knowledge if you want to be a modern investor.

• According to statistics (Exploding Topics), over 46 million people in the US alone own a share of Bitcoin, which is a single cryptocurrency.

You also have to bear in mind that there are various other cryptos that people are investing in, too. These include Terra, Dogecoin, and XRP.

Many experts believe that Terra is a cryptocurrency that’s worth investing in – whether you’re a beginner or an expert. Just recently, Terra (and its coin LUNA) entered the top 10 leading cryptos by market cap around the world, which is an excellent indicator of what’s to come. Before going any further, check out OKX, where you can find the terra price today at okx.com.

However, don’t be tempted to put all of your eggs in one basket. When it comes to cryptocurrencies, it’s best to spread your investments, so that you can diversify your portfolio. Out of your entire investment portfolio, it’s recommended that you keep your crypto assets somewhere between 1% and 2%. If you want to take a slight risk, you can even go up to 10%.

Assess Your Finances

Before making any initial investments, you need to assess your finances, so that you can tailor a budget around the portfolio you plan to grow. Your budget should be based on your income, monthly outgoings, and variable expenses. From there, you’ll be able to calculate how much money you can afford to put into investments.

This figure varies for each individual. For some people, it might be $300 a year. For others, it could be $3000. However, whatever you do, don’t be tempted to go outside of your budget comfort zone.

Analyze Online Brokers

To buy stocks, most people now use an online broker. The one you choose will depend on your personal preferences. Popular examples include Robinhood, Interactive Brokers, and E-Trade.

Prepare for Tax Payments

As you will likely make an income from investing, you will need to prepare ahead of time for tax payments.

This will help you to better manage your finances and prevent you from being shocked by any tax bills.

Under the umbrella of investment tax, there’s ‘Income tax’ and ‘Capital Gains Tax’.

Income tax is simply how much money you make annually, whilst capital gains tax is when you make a profit when you sell shares, stocks, and other types of investments.

Invest Regularly (Even If It’s Only Small Amounts of Money)

Investing regularly – opposed to investing infrequent lump sums throughout the year – is widely regarded as the best investment strategy. This is because you’ll experience Pound Cost Averaging, which is where you even out the highs and lows across different markets.