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The 5 most impor­tant invest­ment rules

We have gath­ered 5 clear rules for you on what you should con­sid­er before mak­ing your first invest­ment.

How exact­ly invest­ment works and what to look out for is unclear to many peo­ple. This is part­ly because there are count­less invest­ment options, but also because of the com­plex­i­ty and depth of the sub­ject. Before you delve into these depths, read this blog post as an easy intro­duc­tion. We have com­piled the 5 most impor­tant invest­ment rules for you:

1. Only invest mon­ey you don’t need to live on

High returns sound tempt­ing. Long-term prof­it pro­jec­tions make you dream quick­ly. But be care­ful: If you want to invest, only do it with mon­ey that you have left over” any­way, i.e. that you don’t need for oth­er pur­pos­es for the time being. If you lose the mon­ey in the medi­um or long term, it should not bur­den you finan­cial­ly. There­fore, you should not over­stretch your­self and invest the mon­ey that is avail­able to you. This is also extreme­ly impor­tant to us at Wat­ti­fy, which is why we ask you in detail about your invest­ment expe­ri­ence before your first invest­ment.

2. Now we do noth­ing at all!

If you win, you have to be able to lose. It is there­fore all the more impor­tant to pur­sue a strat­e­gy that will bring you long-term prof­its over many mar­ket cycles. If you lose mon­ey, don’t despair, because it usu­al­ly comes back. There­fore, one of the most proven invest­ment strate­gies is the long-term buy-and-hold approach. For exam­ple, you can buy equi­ty funds reg­u­lar­ly and then hold them for decades.

The mar­ket evolves, so as an investor you will always face short-term chal­lenges. The best thing to do is to sit out the small crises” and stick to your strat­e­gy. Don’t sell in a pan­ic at a low. By the way, this does not apply to Wat­ti­fy invest­ments, but we are prob­a­bly only one of many build­ing blocks.


Think about it and develop an investment strategy.

3. Diver­si­fy your invest­ments

You have found a suit­able invest­ment oppor­tu­ni­ty? That’s great, but still not enough! A broad diver­si­fi­ca­tion of invest­ments serves to reduce risk. There­fore, it is impor­tant to spread your invest­ments in a diver­si­fied port­fo­lio. This way you build up sev­er­al pil­lars and are not depen­dent on the suc­cess of one invest­ment.

In addi­tion to your invest­ment in Wat­ti­fy, you can also add pen­sion funds or oth­er invest­ment oppor­tu­ni­ties such as real estate funds to your port­fo­lio. Diver­si­fi­ca­tion cre­ates secu­ri­ty by cov­er­ing dif­fer­ent eco­nom­ic sit­u­a­tions that may devel­op in dif­fer­ent ways.

4. Under­stand what you are invest­ing in!

Before you take the step of invest­ing, you should study the prod­uct at your leisure. This will give you an addi­tion­al overview of the pos­si­ble risks. We advise against invest­ments that you do not under­stand or that are strong­ly rec­om­mend­ed to you.

If you decide to make an invest­ment, think about why it makes sense and when you can expect to make a prof­it. It is your job to under­stand your invest­ments. There­fore, you should know in advance the track record, costs and also the func­tion of your prod­uct.

Take time to understand and evaluate the investment.

5. Things do not always go accord­ing to plan

Once you have a sol­id invest­ment plan, don’t rest on it. It is advis­able to check the mar­ket reg­u­lar­ly — at least once a year — and make adjust­ments if nec­es­sary. It’s best to look over your port­fo­lio when­ev­er you review your accounts for tax pur­pos­es. And don’t for­get your life. Things tend to change. If you are plan­ning a new phase in your life, e.g. a move or start­ing a fam­i­ly, we rec­om­mend that you also review your invest­ments.

Well-informed about your first invest­ment with Wat­ti­fy

It is impor­tant to Wat­ti­fy that you are well informed about your invest­ments and that you can assess your risks your­self. That’s why we pro­vide you with as much infor­ma­tion as pos­si­ble on our web­site, in the app and on oth­er com­mu­ni­ca­tion chan­nels. Our aim is that you can invest with a good feel­ing and in the best pos­si­ble way. If you fol­low the rules, noth­ing will stand in the way of your first invest­ment step — good luck!

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