Financial Education for Cryptocurrency Investors


     In this article, you will learn about some tips on Financial Education that, in our opinion, are essential for anyone wishing to Invest in the Cryptocurrency Market. Beginners, youth, seniors and entrepreneurs.

Financial Education for Cryptocurrency Investors
Financial Education for Cryptocurrency Investors

What is Financial Education?

     It is extremely important for all people who make money to understand at least a little about Financial Education, essentially us, who invest in the Cryptocurrency universe! Because as we all know, it's an extremely volatile market, so if we don't have good risk management combined with a good financial education, we will expose ourselves too much and sleep poorly at night.

     Basically, Financial Education will help you organize your expenses and earnings so you can invest in the best possible way. It is a topic, along with Investments, whether from Fixed Income, Shares, Real Estate Funds and Cryptocurrencies to new ventures - which is extremely high all over the world, because investing has never been so accessible and democratic for everyone as it is today.

     Much of this is due to the constant evolution of the internet, which has taken technology to all regions of the world and is advancing much further - before our eyes - with the Web3, but that is a subject for another article.

How to Develop Financial Education?

     Financial Education is a topic that has increased a lot in Google searches, especially if we analyze the audience that searches for this topic: young people, the elderly, entrepreneurs, employees... beginners in general, looking for a better way to make their Money yield more.

     It is always important to say that the secret to developing this "Mindset" is to increase your earnings and decrease your Expenses. Can you understand this?


Analyze How Much You Earn and How Much You Spend:

     Analyzing how much you earn and how much you spend is fundamental to having a successful financial life. In the case of Brazil, it is estimated that almost 50% of the population is living with a dirty name! This is due to the extreme lack of Financial Education.

     So make your financial diagnosis! Some sardine investors (as we like to say), earn a fat pension or inherit a capital from a family member and decide to go all-in (all or nothing) in some asset they heard to be "The new Bitcoin" and end up losing good money. part of the investment.

     It is very important to Change your Mindset. Wealth is not formed overnight! Don't fall for the promise of false gurus who promise "quick and easy money", there is no such thing. Getting Rich is a process and you will get there if you do what you have to do with consistency and discipline.

We recommend: What are Bull Market and Bear Market?

If you have debts, you need to get rid of them!

     It is a fact that living in some emerging countries is not easy and often unavoidable to accumulate debts, however, before Investing, it is important to know how to save and set priorities when spending your hard-earned money.

"Okay, knowing that I'm going to get a loan from the bank so I can get out of debt"

     This is what comes to many people's minds when we say this, but it depends a lot on the interest rate you're going to get. Do the math! Is the debt high and unpayable because the interest is too high? Maybe it's time to take out a loan for smaller amounts.

"My debt is very small, in 3 months I pay it off and start saving more and investing"

     This would be the ideal Mindset. There are different cases and cases and realities, but if it's difficult to pay your debts, have you ever tried to get a second and temporary job until you can accomplish this feat?

After getting out of debt, create an Emergency Reserve!

     Ok, have you already gotten out of debt - or managed to renegotiate them for a monthly fee that fits in your pocket? Perfect, but now what? Now it's time to create an Emergency Reserve (or Opportunity Reserve). Having this money set aside is extremely important in Financial Education. After all, will something unexpected happen? Maybe his girlfriend gets pregnant or his uncle needs surgery and his family decides to help...

     It is very important to have this money to take advantage of market opportunities. Bitcoin or any other Cryptocurrency goes down a lot and your cash is gone... you can use the emergency reserve money to take advantage of the market drops and then, you can replenish your reserve.

     This Money, in addition to the ideal being at least 6 months of accumulated salary, we recommend that you have it in some daily liquidity investment, the easiest and most practical suggestion we indicate is the CDB of any relevant bank. Essentially the digital ones that have grown a lot.

Setting Goals is Essential!

     What are your goals? Why Save Your Money? This is a question that only you can answer. It's very personal to each one, but it's important to have a clear and defined purpose. Some people save to change cars, others to buy a house. Others, to retire well and not depend on the government.

     So, having a purpose in mind, it's easier to draw up a plan and follow it on a day-to-day basis, don't you think? For those of us who invest in the Crypto Market, it is necessary to respect market cycles and know how to save our money, essentially in bearish cycles so that, when the market rises, we can surf the waves of appreciation.

The importance of having more than one source of income!

     Let's say you are an ordinary person and earn around 2 minimum wages and you have a wife who earns the same. You both live in the same house in a big city and pay an average rent, you both manage to have a balanced life and you manage to save, but you feel that you would like to save more.

     This feeling is normal and what we indicate is to open the mind to new horizons. There is a phrase like this: "follow the money". Where there are people, there are businesses. You will be able to make the internet, an extra income and, perhaps in the future, have a main income. There are many possibilities and we truly recommend that you research this subject.

     Also, there are other ways to get extra work. You are human beings and you certainly know how to do something very well. Some people have excellent spatial intelligence, this person can work with delivery, uber... some women know how to do their nails very well, they can be manicurists in their free time...

     Investments stimulate work and the more you see your wealth growing, the more you will feel stimulated to work. Therefore, in Financial Education, it is very important to have more than one source of income.


     Now that you're debt-free, got some extra work, made your emergency fund, and are ready to Invest in Bitcoin and Cryptocurrencies, let's get to the facts:

     This market is very volatile and risky, so it is important to know how to diversify. As you have already made your emergency reserve, by nature you will already be diversifying and this is a step ahead of most.

     Another important point: in this market, Bitcoin is the asset that sends and dictates where other cryptocurrencies go, so be at least 50% long in this asset so that later you can think about buying other projects.

     To simplify your life, we are going to give you a suggestion on how to invest, just adapt it to your reality: if you can invest U$1,000 a month, we recommend that you divide this amount by 4 to contribute a little on every Monday, totaling U$200. If the amount you can invest is less than this, you can make monthly contributions.

Invest knowing that the responsibility is 100% yours.

     Our wallet nomination for beginners is: 50% Bitcoin, 30% Ethereum, 10% Polygon and 10% Polkadot. You will be able to buy these assets every week - regardless of the price - the target will be at least 5 years. Keep making contributions and over time your wallet will level up.

You can use the Bybit Broker to make your weekly contributions!

Lucas Lippe

The idea of freedom is fascinating and Bitcoin gives us that in many ways. Explaining ideas of a decentralized web on the Bitcoin Lovers website.

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Cryptocurrency investments are risky. The Bitcoin Lovers website is not responsible for the quality of the products or services presented on the pages and cannot be held responsible, directly or indirectly, for any damage or injury caused after the use of a good or service highlighted in this or any other article. Cryptocurrency related investments are risky in nature, readers should do their own research before taking any action and invest only within the limits of their financial capabilities. This page or any other article does not constitute investment advice.

AMF Recommendations: There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of that savings. Do not invest if you are not willing to lose all or part of your capital.