Project Hope; Passive Income Investment Strategy
General Description
HELLO Project Hope community friends, this time I'm back to posting about financial management strategies. Why do I never get tired of writing about financial management, because financial management is very influential on our readiness in old age. Therefore, it is very important for everyone to ensure proper financial management.
Passive income is the best financial management method as a guarantee of readiness for the day of tau. Of course, the passive income method can only be obtained by investing. Both investment in the real sector and investment in the form of crypto assets or the capital market. However, for this post, the passive income investment method that I will describe is through crypto assets.
It should also be understood that investing in crypto assets carries a very high risk, just like investing in other places as well. One of the risks that may occur is a very high price decline in the type of crypto that has been invested. Or an analysis error, resulting in an investment when the price of that type of crypto asset is very high. It could also be at the wrong moment that there was a purchase or sale of the type of crypto asset itself.
So it is very important for anyone who wants to invest in one type of crypto asset to ensure the appropriateness of the price at the time of buying and selling, market sentiment towards crypto trading and ascertaining the fundamental conditions of the type of crypto to be bought, or sold. These are the three things that I will describe in this post in the hope that anyone who wants to invest in one type of crypto asset has a basic understanding before the investment is decided. So the desire to be able to earn income with the passive income method is as planned.
1. Ensuring Price Feasibility
Price greatly influences someone to buy or sell an item, in this case crypto. If the price is cheap, then logically, that's the right time to buy. If the opposite happens, i.e. the price is high, then it's time to release or sell the crypto that has been collected. But that is the basic logic that occurs in economic law relating to the law of demand or supply for an item or service.
So the question is, do all these things apply fully in the crypto world? I want to start the answer with a case example of one type of crypto asset, namely; ethereum. When it first launched in 2015 the price of 1 ethereum was only $8.08. Such a low price is unlikely to be recovered in 2022. Due to market capitalization, ethereum is one of the most sought after cryptocurrencies by investors in the cryptocurrency world. So that the price increases all the time, even though under certain conditions the price of ethereum will go down.
But at the time of this post I wrote the price of ethereum was at $2,870.01 per one ethereum. Of course, the price is very high when compared to the price when it was recently launched in 2015. _Even so, currently the price of ethereum is decreasing, because the peak of the increase has occurred in November 2021 with the price $4,870,80 per ethereum. Right now, the right moment to buy ethereum even if compared to the price at launch is higher than today. But if you're hoping to invest in ethereum cryptocurrencies at launch prices, that seems like an "impossible".
2. Market Sentiment Against Crypto
After ascertaining the right price position to invest in one type of crypto, the next step that must be considered is the market sentiment towards that type of crypto. Let's take the example of ethereum, at the beginning of the launch the price of ethereum moved slowly and there was a decline in several points in the middle of the first year of launch. This is due to the negative market sentiment towards ethereum because the crypto market share does not yet understand the overall development concept of ethereum.
However, over time, the market sentiment towards ethereum began to improve. This is due to information on strengthening the system and what the ethereum developers do and the decentralization concept it applies. So that investors who invest in ethereum have full authority in managing their finances in the form of ethereum coins. This issue has a positive impact on market sentiment for ethereum coins so that the price of ethereum continues to strengthen . And the peak of the increase occurred in November 2021.
Meanwhile, recently, ethereum price has weakened again, weakening to 50% when compared to November 2021 when the highest price of ethereum was. One of the weakening factors for ethereum is due to the policies of some governments that have not provided legal certainty regarding the existence of crypto trading, including ethereum. So that this issue has a negative psychological impact on ethereum coin holders. the consequence is for most ethereum coin holders to massively release ethereum into the market. This resulted in a drastic drop in prices.
3. The Fundamental Conditions of Invested Crypto
The two factors above (Price and Market Sentiment) should be able to provide an overview for potential investors in the crypto world to determine their attitude in investing. However, after getting information related to this description, potential investors in the crypto world do not need to rush into investing. The fundamental condition of the type of crypto that is invested must be really good and credible. If not, then it is possible that the wealth he invested will disappear instantly.
So it is very important for anyone who wants to invest in the crypto world to collect as much information as possible regarding the type of crypto asset he wants to invest in. In a simple understanding the fundamentals of a type of crypto can be interpreted through the capitalization of market value. If the market capitalization value of the type of crypto you want to invest is high, with standardization above billions of $ (dollars). Then it can be said that the fundamentals of this type of crypto are good. On the other hand, if the market capitalization value is low, then it is better to avoid investing in these types of cryptocurrencies.
Because the market capitalization value is a definite indicator of the type of crypto, transactions or trades are smooth on the crypto market exchange. And it will be difficult to be manipulated by naughty investors in the crypto market by monopoly on the sale or purchase of one type of crypto. With the high value of market capitalization and the absence of a monopoly in buying or selling any type of crypto, the price of that type of crypto will remain stable and under control.
Conclusion
Getting a fixed income by passive income is everyone's hope; one of them is through investment. However, to be able to carry out the passive income concept in a sustainable manner, it requires high accuracy and sufficient information as well as maximum accuracy before investing.
If not, the hope of being able to earn a steady income through passive income with investment will cause doubly harm or disaster at once. First when the investment is made with a loss at that time. And secondly, it is certain that you will not get passive income as an old-age guarantee, because the investment value has already been lost, when the loss occurred.
Therefore, understanding the price game, the prevailing market sentiment and the health (fundamental) of the type of crypto to invest in is very important. So that the investment you make can be ascertained to be the right type of crypto that is good and credible. So that the value of your investment will continue to increase at any time, so that your hope of being able to get passive income can be realized.
Before investing in any cryptocurrency the capitalization must be investigated to be sure it is the right coin to buy. For now cryptocurrency is the best passive investment to invest in because the future will be control by cryptocurrency and not flat money.
Agreed @jennyvic09, in the current era of digitalization, almost all sectors have been touched by the concept of digitization, including the financial sector.
Therefore, innovation and improvisation with a touch of technology is a must in contemporary conditions.
So that we can continue to grow and survive so that we are not crushed by time.
Hello friend @santiago91.
That is the dream that many of us have, to have passive income that sustain our needs with those profits and manage to save money, a dream difficult to achieve but it is not impossible, it can be achieved with time and with a lot of effort.
Greetings @ munawir91
A very interesting post the ones you share with us in addition to your tips, however every person who knows a little about the crypto world traces a route to generate their income. However I agree with you, it is important to be able to generate income passively with little risk.
thank you very much for sharing
You're welcome @dgalan, thanks again for the suggestions and responses.
Your post has been successfully curated by our team through @shemul21. Thank you for your committed efforts, we invite you to do more and continue to post high-quality posts for a chance to win a valuable upvote from our curating team and why not be selected for an additional upvote later this week in our Top Seven.
Thank you @shamul21, for being willing to curate my writing. Your posts are also quite interesting and I consistently follow them for added insight in understanding crypto and investment strategies. Thanks very much.
Hello mate!
Having passive income is indeed something everyone starts looking for at some point in their life, yet they always tend to choose plans with least things to do and high stability which kinda make sense to me.
Yet when it's about cryptocurrencies, it all starts with choosing the right token, investing in the right amount and time, and most importantly, study that token project very hard before putting money in their to avoid any unnecessary losses.
Thanks for sharing!
You're welcome @lennyblogs, thanks again.
Hi @munawir91, it is the dreams of almost everyone to have their money work for them instead of working for money. Just like you have already established, there are so many risk attached to investment especially in the cryptocurrency space and it calls for more care and attention which requires constant study to have our funds and investment safe and safeguarded.
Totally agree with what you have said @bimbo45.
Passive incomes are good measure for securing ones future the inception of crypto currency makes passive income very accessible for users today as there are multiple streams for users to invest on, one need to carefully make research on a project before making any move of investment.
Agreed @mccoy02, thanks for the response.