Risk & Return - A Principle of Finance

For one to be successful in a business, risk is always involved and same goes for Cryptocurrency investors. The act of simply buying coin to keep for a future sell, risk has been taken and the returns sometimes may be more than expected and at other times, too little than expected.

That is how investing is... But with that, comes being successful in whatever you're investing on

A principle of finance that has proven to make people successful is being able to obey the rule of risk & return. The process of collecting funds or using your own funds to invest instead of letting the money lie useless is what I call financing and there are principles to follow to be able to not invest wrongly and lose the money when you were only trying to increase it.

One of the principles to financing (putting your money to use) is what I call "Risk & Return"

This means investors are to be conscious of both the risk and return of their investment. It's important to note that the higher the risk taken in an investment, the higher the rates of return and the lower the risk taken, the lower the rates of return.

Although some seem to say this isn't all true as some do loss greatly for investing too much hoping to have a great return. But this is where knowing well enough before you go ahead with an investment.

Before going ahead with an investment, it is important to compare the risk with the return and vice versa. This has to be done both directly and relatively as sometimes this isn't taken into consideration and a lot of investments are lost.

While you invest, put in mind that the risk & return is principle that you have to be careful about so not to lose your investment.

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