"Is Your Lifestyle Flexible?" is a question you should be asking yourself.
You may ask "Why?" and "What does that even mean?"
What does that even mean?
"Is Your Lifestyle Flexible" in a nutshell means are you at a point financially to be flexible with the investments that you are making.
Here are several questions you can ask yourself to understand more about how flexible your Lifestyle may be.
- Are you married?
- Do you have children?
- Do you have an emergency fund?
- Do you plan to send your children to college and help them pay?
- How much debt do you have?
- What is your income?
- How old are you?
- And so on and so on.........
The answers to these questions will help you know how Flexible your lifestyle actually is vs where you imagine it is. If you have not really sat down and thought about these questions you should before you go any further in your investing journey.
Most people do not think about these things before they start investing and jump at the first investment that offers the largest and quickest payout or so they think. Do your own research before investing in anything.
But where there is Reward, there is risk.
It is all well and good if that investment is a success but what is the likelihood of that and are you able to sleep at night while all of your money is tied up in that investment. Also, what if the investment is a total failure and you lose all of the money you invested. Where would you be then?
Back to my first question, Is Your Lifestyle Flexible?
The Ultimate Question
Where do you want to be in 5 to 10 years? Investing is a balancing act between "Where you are now" and "Where you would like to be in the future"
Most people can not honestly answer the question regarding Where they would like to be in 5 to 10 years. Are you one of them?
And then if they do know where they want to be in 5 to 10 years, they focus all of their energy on that instead of where they are currently and what it takes to get by.
WHY
Why should you know if your lifestyle is flexible or not? When you are creating your investment plan, you need to know the answer to this question so that you can truly understand how much risk you "should" versus "can" take on with your investments.
Most of the time, investors take on too much risk because they do not know how much risk they should to take on. Everyone looks at the "can" part of taking on the risk and not the "should" take on risk.
Hive Platform
First let me say that all "Crypto" is risky even Hive.
It is a new and emerging asset that everyone believes will make them a fortune so they can quit that day job that they do not like or provide their kids a better life then they have.
However Hive versus most of the other "crypto", in my opinion, is not as risky. On the Hive Platform you can get started with your efforts and start building a crypto portfolio with no investment. This makes "Hive" truly unique in terms of other crypto offerings available.
True, you can take your fiat and invest in it like you can with other crypto. But before you do, I want you to go back and answer that first question I asked...…Is Your Lifestyle Flexible?....
2nd Layer Tokens
So called 2nd layer tokens are available on most if not all crypto platforms. Before investing in crypto, please find out if your token or crypto that you are purchasing is the base level currency of that platform or one that is considered 2nd layer. 2nd Layer cyrpto/tokens take the risk of the base currency and then add risk of their own on top of that risk. Risk on risk is never a good thing.
The 2nd layer on the Hive Platform is a whole different level of risk which is layered on top of the risk you are taking with the Hive crypto currency. Where "Hive" is considered decentralized, I believe most if not all of the 2nd layer tokens are centralized. One individual or a very small select group of individuals make all the decisions regarding the direction the 2nd layer tokens will take.
I have only been on the Hive Platform for a little over a year and I have seen 2nd layer tokens that are rock solid and others that have shot up to the moon and then fell flat losing all of their value.
The rock solid ones have evolved over time, adding use cases, engaging with the community and also developing new apps. The details around each 2nd layer crypto/token is not the intent of this post, only that you should do your own research before investing.
Summary
Nothing is without risk but it is best to know the level of risk beforehand and if your "Lifestyle is Flexible" enough to handle that risk before you bet your life savings on it.
It is best to do your own research beforehand.