Start your 2023 off right with these 4 simple investing resolutions

Regularly review & rebalance your portfolio

What better time than the new year to open your investment portfolio and take a gander at how things are going? We know that after the turbulence of 2022 that it can be a bit of a scary undertaking, however, it’s important to know the state of your investments and to rebalance where necessary to make sure you’re getting the most out of your investments. 

Rebalancing essentially means adjusting your portfolio based on your current personal financial situation or to take action based on the top and bottom market performers. Keep both in mind when you conduct your review and also consider asking yourself the following questions:

• What assets have performed well, and which haven’t? 
• What factors (i.e. geopolitical events, industry news) could have impacted the performance?
• Is it time to sell an asset or  buy another?
• What’s your current exposure? And has your risk appetite changed since the last time?
• Could you do with more diversification?
• Do your investments align with your values? How do you feel about your investment journey so far?

Remember: regular portfolio reviews are essential to make sure you’re always setting yourself up for success. Make a plan this year to check in on your investment at least once a quarter and as always do your own research and stay informed about what’s happening in the market.

Pssst: With the Bitpanda Crypto Indices, you can automatically invest in the best of the crypto market without having to lift a finger. The BCI auto-invests in a predefined and diverse portfolio of the leading cryptocurrencies by market size and liquidity. Since the index automatically rebalances the weighting in your portfolio over time, you’ll never miss out on the next big thing in crypto.

Establish a savings plan

Look, a savings plan is always a good idea, regardless of the time of year. Life is unpredictable and saving money can help you become more financially secure, as it provides a safety net in case of emergencies. The best practice is to send a portion of your income to your savings account every month, and extra points if you automate your pay-ins.

Another smart, set-it-and-forget-it way of saving money and building wealth in the long term is to set up a Bitpanda Savings Plan: Buying Bitcoin, Ethereum and other cryptos or digital assets on a weekly, biweekly or monthly basis makes you less dependent on short-term price fluctuations and is a good strategy to smooth out market volatility. With Bitpanda Savings you can set up as many savings plans as you want for any digital asset that we offer, be it crypto, stocks*, ETFs* or precious metals like gold. It’s automatic, easy and stress-free - all the things we want for you in 2023.

Expand your portfolio by diversifying

We know you’ve heard it a million times, but diversification truly is one of the golden rules of investing. Not putting all your eggs in one basket helps you to mitigate your investment risk. Investing in a diverse set of asset types also helps to hedge against inflation. What’s more, diversifying allows you to expand your investment horizons and  explore asset types that fit your interests, values or lifestyle. You’re a crypto-enthusiast but want to get into stocks*? Commodities* were your thing in 2022 but in 2023 you might want to add precious metals. Reduce your investment risk this year by expanding your portfolio with different asset classes.

Get ahead of your taxes

Don’t let tax season sneak up on you in 2023. Get your documents in order and prepare everything for filing way ahead of time to avoid stress and  resolve any potential issues. 

Especially when it comes to crypto investments, you want to make sure you’re familiar with all of the regulatory frameworks for crypto taxation in your country and to keep an accurate record of all your crypto transactions from the last year. Blockpit is your best friend here: Blockpit is a software that tracks and automatically calculates your tax liability and optimises your tax reporting by allowing you to generate tax reports so that you can rest assured that your filing is correct. 

Tip: It’s a good idea to also include the taxation of your investments in your overall cost calculations, along with fees on purchases and sales. To keep track of tax and regulatory developments over the lifetime of the assets and their advantages and disadvantages, it is best to consult a tax advisor.

Invest in you, with Bitpanda

Ready to start investing in your future? Let Bitpanda help you reach your investment goals. Simply register with Bitpanda then take your pick from a range of cryptocurrencies, metals, stocks* and ETFs*. 

Disclaimer

This article does not constitute investment advice, nor is it an offer or invitation to purchase any digital assets.

*Commodities are the underlying Exchange Traded Commodities of the contracts offered as Bitpanda Commodities and are brought to you by Bitpanda Financial Services GmbH. More information about the product and the PRIIPs KIDs are available at bitpanda.com. Investing carries risks up to a total loss of the invested capital. Make sure to conduct your own research before making any investment.

Risks involved. * Index Certificates (e.g for commodities), Stocks and ETFs are underlying assets of the contracts offered as Bitpanda Stocks, brought to you by Bitpanda Financial Services. More information at bitpanda.com. This article does not constitute investment advice, nor is it an offer or invitation to purchase any digital assets.

For more information about the Bitpanda Crypto Indices, including a detailed description of the product, the issuer and the risks, please download, read and analyse the prospectus which is available here in English and and here in German (audited version). Make sure that you understand all the relevant aspects of the product and have read the prospectus before you invest in the Bitpanda Crypto Index.

This article is for general purposes of information only and no representation or warranty, either expressed or implied, is made as to, and no reliance should be placed on, the fairness, accuracy, completeness or correctness of this article or opinions contained herein.

Investing carries risks. Make sure to conduct your own research before making any investment.