Important facts about wealth, investing and finance

With each passing day I am more convinced that achieving financial wealth is both a science and an art. That is why now I understand that knowing the nature of healthy personal finances and cryptocurrencies is essential for us to be successful in this regard.

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Constant preparation in financial matters is important in this regard

Now, to understand the essence of good financial health. And the very essence of cryptocurrencies and the crypto market. We must be updated in a constant way. That is to say, because we can currently know a lot about all these issues. But if we are not updated on them, then we will be left behind in the dynamics of the times and of the markets.

Due to in the global financial scenario (and especially in the crypto field) all is changing. That means situations and events happen and change very fast.

Translation; This means that if we do not have the good sense to update ourselves in a constant way. Then we will miss out on valuable opportunities to increase our financial wealth.

Let's take the case of Bitcoin. One can know the great investment opportunity it represents. And we can understand the essence of Bitcoin at the programming and blockchain level. But if we don't understand the dynamics of the global Bitcoin market, we won't be able to profit from it. It's as simple as that.

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Thus, we can believe that we understand the dynamics of global markets from "A" to "Z". We can understand lots of economic concepts and theories. We may think we know Wall Street, crypto market and investing better than the back of our hands. But if we don't understand the specific nature of Bitcoin at a deep level, we will get lost in the grand scheme of things.

All this will lead us down the paths of fear and greed, and that would only lead to losses and disappointments for us. What would be very harmful to our personal finances.

And this is so because reality changes minute by minute and second by second. Thus, in Bitcoin trading and investing, we never know what will happen. What happens at a given moment can invalidate our perceptions. And also our decisions from the moment immediately before. The irrefutable proof is the great volatility that characterizes the price of Bitcoin. And that is well known to all.

Some will say that currencies, stocks and commodities also have this changing nature. But none of them have an essential nature like Bitcoin. That volatility so characteristic of the mother of all cryptocurrencies is unique.

What we need is to act with intelligence and common sense in its purest form

Besides to all that has been said. We must understand that, unlike in the past, saving today is not a wise thing. At least, it's not the best option to protect our money against devaluation. This is a truth that world governments do not want that people knows. Because it puts the world banking system and the status quo in jeopardy.

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If saving our money is not the best option, then what is the best option? This leads us to understand that the answer is investments. Which in turn leads us to wonder what to invest in.

If we know Bitcoin and cryptocurrencies like HIVE and LEO, among many other good options. Then we will decide to invest in them. But the key is not only in knowing exactly what kind of asset or crypto asset we should invest or trade in. But in knowing how to identify the right moment to do so.

There our preparation together with our capacity for observation and intelligence is crucial. Both play a fundamental role in the fact of obtaining great profits or great losses. Because investing or trading an asset can be a great idea in the grand scheme of things. But if it is not the right time based on what is happening in terms of fundamentals. And in terms of our personal investment capacity. Then it will be counterproductive to do it.

We must be careful in all this. Because it is when we understand the importance of the issue of liquidity to be successful. To put it in simple terms. We must always take care of having economic liquidity. To take advantage of the great advantages that are presented in the markets.

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Diversification is also an important issue

In all this trading and investment, an issue that is also fundamental is diversification. That diversification depends, among other things, on the liquidity factor that we talked about before. When we diversify our investment portfolio wisely, then we minimize market risk.

Even diversifying ourselves, we must take care of the liquidity factor, so we must know how to manage our capital well so that we always have money available for unforeseen opportunities. After all, we must know that the cryptographic markets are a living and changing organism, and based on this we must act on them.

Now, how to diversify, what to invest in and how to invest is something we have to decide for ourselves. Because here it will not be valid blaming anyone if things do not turn out as we expected. In the market, even with the most prudent and wise prediction, things can go wrong.

The point here is that we must be able to make minute-by-minute decisions based on the opportunities and threats that are presented to us. This will also lead us to take responsibility for our decisions, and to assume everything as learning that goes along. Feeding on preparation, wisdom, knowledge and observation, but also on trial and error.

Because in the markets, although many want to say the opposite, nothing is written on stone. Therefore, everything will be a matter of experimenting on them with wisdom and caution.

What do you think about the topic discussed? Please comment.

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