Gold is a common addition to an investment portfolio. He now shares the favor of investors along with bitcoins. Caution is warranted.
It is not a very happy idea to include bitcoins in the investment portfolio. This virtual currency does not have a very long history and is highly volatile. Its value falls to the bottom or vice versa to the top every time there is a positive or negative mention associated with it in the media.
Therefore, it is advisable to create an investment plan so that you have black and white that you wanted to invest in bitcoin and not in dividend shares. The plan can be compiled by a lot of people, from a bank adviser to a financial to a specialized investment broker. A different investment plan is suitable for each investor, as well as a different type of assets and their ratio in the investment portfolio.
Definition of objectives as a basis
If someone advised you to invest some money in bitcoin or gold, it may not be a very good idea, but not a bad one either. It always depends on what you promise from investing and what your goals are.
For easier understanding, we have compiled an investment plan mixed from three components – virtual currency bitcoin, gold and shares, as securities, which belong to the traditional assets in terms of these assets.
The last blow to bitcoin is its media coverage. As soon as the grandmothers in the village square start talking about him, it’s too late to invest. It is better to make a sale and make money on a wave that drives ignorant investors into the arms of loss.
Adequate return and risk
Felix Mužný is a 40-year-old father from a family with two small children. He and his wife Zuzana live in a two-generation family house with his parents. Felix works as a programmer and Zuzana is the co-owner of a company processing accounting for entrepreneurs and companies. Both spouses have income that ranks them among the upper middle class, hence the affluent (creditworthy) clientele. Read also: Bitcoin, gold, stocks: Be careful what you invest in
Felix’s demand is that he does not lose the money once set aside, or gain a constantly growing value from it. He does not like the excessive volatility that bitcoin has after every negative news in the media. He likes gold, but prefers stocks, bonds and time deposits.
If Felix wanted to include these assets, such as bitcoin, gold and stocks, in his portfolio, he should follow a simple key. Bitcoin should make up a maximum of one percent of its financial assets, gold between five and ten percent and shares about half. The rest of the money should be kept in deposits. It is still better to have zero fair value than a loss going to the principal.