Investing always carries risks, and that is why it is important to identify our profile as an investor. Usually, taking more significant risks entails a higher return, in the same way, that more controlled investments, with less risk, provide more peace of mind but a lower return. In any case, there are always common mistakes that we should keep in mind before entering the world of investing, regardless of our profile.
6 Mistakes You Should Avoid Before Making Any Investment
1. Act on impulses and Invest without a plan
A significant mistake that we should always avoid is to act on impulses because it is well known that haste is not good advice. So, in any investment, we should consider and design our strategy and ask ourselves a series of questions such as: What disposable income can I devote to the investment? In the coming months, will I need that money? What risk profile am I willing to assume? When do I think it would be an excellent time to collect profits and get out of the investment? The more questions we ask, the more chances we have of success.
2. Not taking into account the taxation of your investments
Capital gains from investments are subject to taxation. You can also declare failed investments that have generated disabilities. It is important to know the taxation of the country where we reside to meet our tax obligations because a successful investment not properly declared can be a massive headache. Usually, this kind of information is provided by the invested project, but it is never too much to consult with a professional in the field to stay calm.
3. Not to ask questions
Although it may sound incredible, we are sometimes unable to clear up those doubts that are addressed to us and which make a lot of sense. They are probably doubts shared with other investors. Saving questions for yourself should never be an option, especially if any of the investment conditions are not clear to us. Gathering as much information as possible for a better analysis of the situation and solving your doubts and pending questions with the most suitable people should be one of the commandments of any investor.
4. Wanting to make a big profit fast
If we opt for investments that provide a high yield in a short space of time, we will have to assume many risks and the particular possibility of losing all our money. Taking it to the extreme, betting on the roulette of any casino in red or black can provide us with a 100% profit in a matter of minutes. These decisions depend on our user profile and the risks we are willing to assume. Still, investments in the medium or long term, with remarkable returns and moderate risks, should be in the portfolio of every good investor.
5. Find someone who can guide you in investment issues
Past returns do not guarantee future returns, nor will a "stroke of luck" be constantly reproduced. "Siren songs" are also common in the world of investing, and positive experiences from third parties can seem like a good opportunity. In these situations, it is always best to carry out our analysis and keep the investment plan and strategy that we should have established in advance.
6. Not to think about diversifying your investments
Diversification is a key element in investments. Not all industries are subject to the same risks and opportunities, and business cycles affect some more than others. "Don't put all your eggs in the same basket" has proven to be an excellent investment strategy. And once we think about diversifying, we can build a portfolio with riskier investments and more conservative ones valuing the economic cycles that can happen over time of our investment.
3 Mistakes You Should Avoid Before Investing in Ethichub
Making an impact investment in our platform and opting for passive income is relatively simple. So to achieve an optimization of our investment, and once we understand the common mistakes to any investment, we will specify three other points that you should consider.
We all learn from mistakes, and it will always be better to learn from the bad experiences of others than to regret our own mistakes. So do not be afraid to ask in our social channels or write directly to our support department.
Now it is time to talk about the three mistakes you want to avoid when starting investing at Ethichub.
- The first mistake to avoid is not being aware of the start and end date of the project. At EthicHub, we work with small producers of raw materials, financing the entire harvest cycle in certain months. It is impossible to claim the passive income received throughout the stipulated cycle and until its completion. So your contributions must be made with a capital that you do not need to recover in a short period of time.
Making a huge social impact takes time!
- A second recurring mistake when making an impact investment is not claiming the income obtained as soon as you have the opportunity. Letting a few days, weeks, or even a month go by is a time where your savings remain immobilized, and you are not generating passive returns. And although from EthicHub, we send you an email to inform you that the loan has already been returned, sometimes it can go unnoticed.
That is why it is good practice to be attentive to write down the approximate dates of the return on your calendar. Do not let the time pass if you want to reinvest the principal plus the passive income obtained regularly in new projects and continue generating social impact.
- And the third mistake when making impact investments like the ones we propose on the EthicHub platform is not using the referral campaign we have for all of you. Many Ethichubbers have come to the platform because other Ethichubbers have recommended it, trusting in our platform and in the social impact that we make together. Thank you very much for your trust but be aware that you have a good tool.
You and your friend will appreciate it!
If you have any questions feel free to leave a comment or join our telegram community where you can also interact with other investors and ask any question you may have related to investments.