How to invest your stimulus check?

So you have just received your stimulus check, but want to grow it?

These are some ideas on how you can grow your stimulus check. Firstly I want to point out that I'm not in any form a financial advisor, but these tips might help you get started but remember always do your own research.

Tip1: Invest in stocks. Don´t forget these are uncertain times, as of when I'm writing this the 17 April 2020 the stock market has gone up a lot, this might be a rebound, but nobody can tell 100% yet. The best tip given by many rich investors is to invest LONG-TERM, and not SHORT-TERM. The downside with this is that you won´t be able to use the money and in case of emergency you would have to sell the stocks you bought and might lose money this is the reason you should always have an emergency fund with money, for example, food and necessary before doing this. The upside with this investing strategy is that the risk is minimal even if the stock would potentially go down 10–20% it will most likely recover within a couple of years. How do I know this?

The average yearly return from the sp&500 is 10%(DON´T FORGET THIS IS AVERAGE RETURN NOT GUARANTEED).

This means that if you invest for example 5–15 years the 10–20% won't really matter that much and you would still be in profit from the trade.

Also, think about not investing in certain stocks and instead invest in the sp&500 if you are worried about losing money. This would minimize your potential risk.

This is a little bonus tip. If you are worried about losing money you can do something called dollar-cost averaging which means that you, for example, have the 1200$ and instead of investing it all at one time in stocks you can buy a 10$ stocks 10 times every 3–4 days and continue doing this until you invested all the money you want to invest. This way of risk managing will reduce the likelihood of you losing money the only downside is that it also reduces the possibility to profit directly from the trades, this is though a good way of “catching a falling knife”. This doesn't only work with stock but can work with crypto as well which I will talk more about in tip2.

Tip2: Invest in crypto, I want to point out that this is a more risky way of investing your stimulus check but if you are okay with the risk this might be a VERY good alternative for you. As mentioned before you can use dollar-cost averaging to minimize risk. Some cryptos to invest in can be Ethereum(ETH), Litecoin (LTC) and of course Bitcoin (BTC).

My personal recommendation is to start investing in Bitcoin(BTC) because it will have a halving May 14, 2020, this halving will most likely have a VERY positive impact on the overall bitcoin price after May 14, 2020. So if you don´t wanna miss the halving invest before this date.

What is Bitcoin halving?

Bitcoin halving is an event that occurs only every four years. The event slashes the number of new coins awarded to bitcoin miners in half. This will reduce the supply of bitcoins in circulation. This previous bitcoin halving made the price go up from around under 1000$ a bitcoin to over 19 000$ in just around 8–9 months.