So, you’ve won a lottery. Or only plan to do so – it’s okay to think about the future. Or you have any other sum of money (we’re not going to ask where you got it), and now it’s time to put it to good use. But how? Buying a house, a car, moving to the Maldives, paying the mortgage – all of those are obvious solutions. Well, what about investing?
Many people who win the lottery end up broke – simply because they don’t know what to do with the money. And when their most courageous dreams come true, the properties and cars are bought, and the debts – repaid, life is slowly becoming uncertain. Money is not eternal, and you often don’t notice how fast it can disappear. Lottery investment is one of the most clever decisions one can make because it means having a stable plan.
But how, where, when? Stocks, retirement funds, investing in startups? All of those seem good, but before you make any decisions, consider something else – cryptocurrency. You don’t have to (and shouldn’t) put all your money into BitCoin, of course. But even a small investment into it may become your ticket to a better life. How and why? We’re here to explain.
So go buy a lottery ticket: in your local store or online, for example, via lotterycritic.com, where you can check the results as well; and read on! Cryptocurrency is waiting for you.
Why Invest Lottery Money?
But first, why should you invest your lottery winnings? Isn’t it better to buy several properties, move to another country, or open a business? Of course, you should think about making your dreams come true first. However, very often, people who win the lottery don’t know how to manage money properly – and end up broke, with their dreams shattered. Nevertheless, it doesn’t mean that you should invest all the money you win – there’s a cleverer approach to that.
The best thing you can do is find a qualified financial advisor. This is the person who knows how to handle large sums of money and use it in different financial situations. A financial advisor will help you decide how much money to spend on paying off your debts, topping off your emergency or/and retirement funds. They’ll also advise on whether you should buy anything extremely valuable in your current financial situation, or is it better to put the money in the bank and stay low for some time.
And after you’ve dealt with all the debts and necessary purchases, it’s high time to think about investing. Talk to your consultant about the amount of money to invest in different places (don’t put everything in one place), and make sure to leave at least several percent for buying cryptocurrency.
Cryptocurrency is one of the most important new stores of value. To put it simply, it’s global, like gold, and has value in every country, but is easier to use. You store it in a digital wallet, which usually is an app, and all you need is access to the internet and your private key (unique code you need to sign off purchases). Cryptocurrency is decentralized, so no banks or governments control them; you exchange them just like you’d exchange money with a friend, informally.
Of course, cryptocurrency is risky – and it always will be. But stocks aren’t that safe either – have you seen what Reddit users did to Wall Street? The thing with cryptocurrency is, you need to stay clever all the time. And now, clever means investing.
While it may seem otherwise, cryptocurrencies are still in their infancy, and for now, they’re not going anywhere. Moreover, we don’t know where the cryptocurrencies may reach and what markets will they disrupt. What if it becomes the most popular currency for mobile payments or takes a part of the store-of-value market held by gold? And everything seems possible, especially considering that younger generations are much more likely to buy, hold and use cryptocurrencies. The number of active users of cryptocurrencies grows strongly every year – a sign that the financial ecosystem is developing.
Yes, the cryptocurrency growth hasn’t been smooth – for example, Bitcoin’s value has bounced all over the place in the last ten years. But while the crushes have been rapid, the increases haven’t been less significant: by February 2021, it cost even $38,000! Yes, it’s a higher-than-average risk, but for a higher-than-average return.
And if you don’t want to use cryptocurrencies or want to stay a little safer, you can use it as a way to diversify your investment portfolio. By allocating a cryptocurrency properly, you can mitigate the risks relative to the potential gains.
How to Invest Properly?
Just like with any other type of investment, with cryptocurrency, you need to know how to do it properly and lower the risks as much as possible. Here are some tips:
- Always have a financial plan and understand what you’re doing.
- Start small, and never invest everything you have. Remember that cryptocurrencies are volatile, and you can lose a lot of money.
- Keep your cryptocurrency safe – add a “seed backup” (a backup phrase) to your cryptocurrency wallet, so you can access it even if something happens.
- Do all investing from a secure internet connection. Never use public WiFi.
- Remember about the taxes.
- Have a buy-and-hold mentality, and don’t expect to sell your cryptocurrency a week or month after buying it.
A Final Note
Winning a lottery seems like a miracle, and it often is. All your debts can get paid off, all your dreams (or most of them) can come true, and it looks like you can stop worrying about money. But in reality, winning a lottery is precisely the moment when you need to start making a proper financial plan and think about your future. And investments are what’s going to come to your mind.
Many people say that investing in cryptocurrency is risky, and very often, they’re right. However, if you know what you’re doing, and if you’re doing it correctly, you can earn a lot more than you can lose. We hope that this article helped you understand why investing your lottery winnings into cryptocurrency can be a good decision – and explained the basics of how you should do it. Good luck!