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Invest in Crypto with Your Partner as Family Investment

Cryptos as an asset class is volatile, to put it mildly. It is not rare that bitcoin fell more by 15% in a single day. So it does not tick many boxes to be an investment choice for the uninitiated. But having read this far, you probably know all that and have solid views on your risk appetite, household finance and more. So maybe the word “PARTNER” draws your attention. And what’s so different to invest in cryptos with your partner? Moreover, what to consider and discuss with your partner about investing in crypto?

Write down and Dig Deep into Your Motivation

Why matters. For most people, it boils down to what do you value more in life and what is a more optimal way of living given your circumstance. Saying you want to a lot more money is not motivation. Collecting, earning, or even scamming money to grow your pile bigger is only a means to an end. Whether it’s a bank note, actual coin, or number of digits in your bank account, money is fungible. It is designed to be accumulable and can be summed to represent fiscal values that our society recognizes. So how to know or get a better picture of your deep motivation?

Ask Five Whys in a Row

The five whys method allegedly originated from the car industry to identify root causes and improve quality. Over time, it’s got traction in many other sectors like industrial incident investigation. The investigation team isolates a critical event that manifests itself in the incident. And the lead investigator asks whys to unpack the reason it happened layer by layer. In our scenario, you are the lead investigator. With your partner, you ask yourselves why make crypto a family investment.

It may go like this: You want your money to be working when you are not. Why? Because you want to earn more money to quit a 9-to-5 job. And Why? You want to spend more time with and attend to your family. Or maybe you want to figure out stuff with like-minded people without worrying about money. Or perhaps you want to support your children to explore the world and make their choices with some financial cushion allowing them to fail and get back on their feet. And still, why? You want to be able to say I’ve done my duty of securing financial support for my family, and now I want to go all out build something for and beyond yourself… Whatever you find in this process, your true, deep motivation will speak to you and light the way.

Get a Healthy and Regular Dose of Good Resources

Having worked out the true motivation is great. Meanwhile, you need to build informed belief to sustain that and to help you stay on track and progressive. Blindly believing in something is dangerous and usually detrimental to your life and tends to wreak havoc on your loved ones. So you must foster your understanding with a healthy and regular dose of good resources. They are like nutrients, a sort of good diet, to grow and turn the understanding into a more all-around and informed belief. And you need that to act on and execute your investment strategy consistently. Good resources come in different shape and forms. Instead of their formats for you to consume, let’s categorize them based on purposes. There are websites and services aggregating crypto market data and news like CoinGecko and CoinTelegraph. Specific portals specialize in trading analysis and crowd intelligence such as TradingView. You can find websites like CoinBureau and Messari that go length in assessment of major coins and research of select projects. What you may find insightful is to read macroeconomics research and economic data from sites like St. Louis Federal Research and its well-known FRED. And of course, do not forget quality podcasts dedicated to crypto and macro, like Breakdown with NLW. Sometimes, you just got to read some classic crypto white paper like bitcoin white paper.

Read at Your Own Pace and Learn to Articulate

Some of the best resources have good contributors publishing excellent pieces non-stop, be that market analysis, crypto project research, exchange platform evaluation, and even technical analysis, including its academic body of work. The point of being exposed to quality resources on different topics is to keep your awareness grounded and more immune to market hype, day-to-day price actions, and your emotions that come with them when not oriented and prepared. But be aware, not to drown yourself in the ocean of words. It’s to read at your own pace to learn to articulate, contemplate good reasoning, and push the boundary of your knowledge and awareness of the cryptoverse.

This is no piecemeal mental exercise. But doing it in you right way till it reveals what you value most for yourself and the family. And you will bump into question after question. Often you may not find good answers despite doing your own research and reading. But don’t let this bug you down. Press on to become more informed. Having awareness is already an impressive achievement. It will pay off for you and your partner to have a transparent discussion. If this discussion does not work out or converge, park it and step back a little. There will always be a new opportunity to revisit.

[backlink: H2 mass adoption - Learn and Invest in Crypto]

Put Your Knowledge to Work

Self-learning and discussion are all well and good. And it is satisfying to put that understanding into work to start working on your actual investment goals. Here are the 6 elements of using your knowledge and common understanding with your partner to start investing in crypto. There are tons of tools, platforms, and crypto-centered investment infrastructures out there. But that is what this frame of crypto investment is about. We will address them in various series giving due to each topic and close-up looks. So, let’s get back to the elements of starting to invest in crypto.

Describe Your Investment Goals in Achievable and Measurable Terms

First off is to have your investment goals in clear words and numbers. What goals are you investing for? How much do you set for the goal? “Old fashioned” goals would be retirement, education, home ownership, and emergency fund. With the energy transition phenomena blowing all over the place, you might have investment goals for home improvement like a home heating system overhaul, back garden sun house, or garage workshop. Or it’s more your dream project equipment like a 3D printer, CNC machine, slow motion camera set-up, or even your first crypto mining rig! Granted, all goals have their subjective aspects that influence the target amount. But by researching what you want hard enough, you will get a good ballpark figure! And that’s more than enough for the purpose. It’s not about the level of accuracy. It’s about getting the ball rolling without overthinking! Many people fall into this trap and overwhelm themselves with the false need for thorough readiness.

Decide Tangible Short-Term Rewards

Humans are hardwired to appreciate small rewards to sustain ourselves in a long journey that requires commitment and responsibility. Investment takes planning, discipline, and communication to bring the best out of you. It is aimed at getting something of value and meaning. Nothing of that sort is easy. It makes it more important to outline a support mechanism to help you stay on the journey. Small and short-term rewards are to give you guys a taste of satisfaction. They are a way to treat yourselves with the perspective of long-term goals. This is the classic wisdom, a bit cliché even. But in a market that changes as fast as crypto does, you need this more than ever to soothe the mind and a little something extra to enjoy and talk about with your partner. It would be a wonderful moment to experience, a sweet refreshment to enjoy, so the ups and downs of the journey have tangible meaning. Spending 5 grand for a long weekend with the whole family in Disneyland is awesome! Isn’t that sweet when it’s a reward that you earn by sticking with your investment goals?

Set Aside Only the Money You Can Lose

Okay, some people have the mental stomach and the know-how to leverage investment by multiple folds. There is gut and respect to be earned for those people. And if they succeed, fine, more power to them. But if you are like most of us who have a family and loved ones to support, you have the responsibility to provide and be the pillar of the house. More than probably, you have a job that brings in a steady income and a mortgage that persists in the family budget. The point is you do not want to screw up and poke a hole in the money bag such that you guys cannot pay the bills. Investment means your money is at risk, and you can lose it entirely and even worse. Say you are leveraging your investment using option or financial derivatives. It multiplies the gains and losses too. When you bet on the wrong side of the market, you must put in more money or be forced to sell your collaterals. People who have a deep enough pocket can eat it and play long. But for most regular folks, invest only the money you can lose and steer clear of the leverage. It’s like the wild west. Almost all prominent centralized crypto exchanges offer crazy leveraged futures. Think and plan twice before you start to contemplate this. It can eat you alive!

Discuss How to Proceed and Honor the Agreement

Going through thick and thin over the years, you and your significant other half must have learned many lessons in communication unique to your situation. No matter what specifics are setting the scene, you would want to be on the same page and go together. One can bend the fabrics of reality for a time, but eventually, it snaps right back at the face. Investing in crypto is no different. There are a couple of key points to discuss and agree on with your partner. Set the money source and amount per interval straight. From which bank account or whose income would fund the investment? How often would you put money into the pot? Any flexibility in timing and amount?

If you are the one who does the actual operation, make sure your partner is aware of every transfer and purchase. A quick word in your day-to-day talk would be an excellent place to start. Some people may think, why do you have to speak about it every month when it’s all discussed and agreed? Your partner may be as technology-savvy as you are. He or she may not see the purchase or transaction you do every time in a familiar platform, say an online stock broker like TD Ameritrade or a transaction platform like PayPal.

Note: the latter has adopted a more useful crypto deposit and withdraw function mid-2022, and online brokers also start to offer index funds or ETFs that invest in cryptocurrencies and projects.

Provide Transparent Monitoring for Both of You

To bring it up another notch is to ensure that your partner can see how your portfolio is doing on his or her personal device. It depends on the circumstance, but we should be talking about a smartphone or tablet for most folks out there. Two critical infrastructures to consider. One is a crypto wallet tracker. There are various services to choose from, like CoinTracker and CoinStats, both of which have been improving for years. You can sync your wallets, crypto, and defi portfolio to such a crypto tracker. You can load the app up on the device, and there you have the overview of holdings, price history, market cap, trend, trading volume, pie chart, and heatmap accessible at your fingertip or on a webpage. We will address specific functions and use cases of the trackers in other articles.

The other infrastructure is more traditional: a joint account that fund the investment. It’s a simple product to allow you guys to have one overview of how your money is being invested. Nowadays, every bank worth its salt, being internet-native or traditional brick-and-mortar, offers complete service online. In many cases, you can try to automate the downloading of bank statements for sharing and post-processing in a spreadsheet or cloud service like Google Sheets.

Touch Base and Discuss Changes

And finally, the good old in-person chat you can have any time, over dinner, on the way to work, or maybe during a shower. Having someone talking with you is the most effective attention grab. You have no choice but at least try to listen carefully to each other and converse. In investment, you and your partner update on good and bad, a market swing, and a blood bath like Luna implosion. Given that we are in the bear market, often the talking points may not be good news for your portfolio for some time. But the point is to share with your partner and have a common perspective for your crypto investment. It can just be part of the how’s-your-day conversation. And since the cryptos are volatile, including regulatory and political advancement, you will not run out of things to talk about any time soon. Remember the arrest by IRS of the Netherlands of an alleged Tornado developer whose work is open source? That was a saucy topic for quite a few discussions. And maybe you will discuss crypto while you bounce ideas of making money with your passion.

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