Before carrying your hard-earned money, it is worth exploring the places where you can invest money in the first turn to focus on the minimum risk that diversification of investments gives.
Below I will describe the meaning of each of the columns.
Location
Online - this includes any projects / places where we transfer money online, for example brokers and exchanges
The Offline category includes deposits in banks, as well as investments in real estate
Region
The world is usually divided into 3 regions - America, Europe and Asia, respectively, when buying shares on the New York
on the exchange, these investments should be attributed to the Americas. Likewise with buying an apartment in Spain, for
rental, it will go to the European Region.
Country
With a breakdown by country, everything is simple, all investments are distributed according to the countries in which they made, be it stocks
or real estate
Market
It is also worth dividing all your investments into different markets, i.e. not invest all of your money in stocks or
cryptocurrencies, this will reduce risks during periods of crisis
Sector
When investing in stocks, you should buy stocks from different sectors, for the same reason, in the event of a drawdown of one
from sectors, others tend to go up.
Industry
Each sector is divided into several industries and, as a rule, diversification by industry is even more
a confusing process that allows you to even less reduce the risks of drawdown of your portfolio
Bank/Exchange/Broker
Even having split all investments into different regions, countries and markets, it would be foolish to keep all the money in one bank,
therefore, it is advisable to divide them among several.
Cryptocurrencies
When investing in cryptocurrencies, it is worth deciding which of the options is most suitable for you based on the timing,
risks and the need for manual intervention.
2021-08-01
