Thinking Of Buying Bitcoin? Follow These Tips
Thinking of entering the crypto world? Taking this plunge can be daunting as there is no centralized authority in control. Also, the stories and rumors circulating cryptocurrencies can be fear-inducing.
While investing in bitcoin can be intimidating for a newbie, there are various tips that can maximize the success rate.
· Research, Research, And Research
Before you dive into the crypto world, you need to learn about blockchain technology and cryptocurrencies. As there are plenty of success stories, hype, rumors and tales of horror when it comes to digital currencies, you need to understand what you’re getting yourself into.
As exciting the crypto world is, it is equally complex and confusing.
You can also find a trusted person that you can engage with to ask questions to understand this technology deeply, so you don’t make the same mistakes as them.
· Don’t Invest Money You Can’t Afford To Lose
Investment is a risky business. And, this risk is magnified by the newness and volatility of bitcoin.
As a potential investor, you should be aware that the digital currency is in the early stages compared to similar stock markets.
You might be tempted to be bold and brazen, and want to throw money at bitcoin after hearing the success stories. But, as a newbie, you need to be cautious.
So, start small and invest a small portion of your capital. Don’t invest the money you can’t afford to lose.
The managing director of Crypto Asset Management, Tim Enneking advises, “Don’t chase bitcoin prices. Decide on an entry sum and stick to it. With bitcoin, you’re nearly always right in terms of foreseeable price action — it’s your timing that might be off. So, don’t lose the patience and let the bitcoin price come to you.”
· Don’t Keep Coins On The Exchanges
With a significant number of thefts and hacking in the crypto world, it is critical to keep your cryptocurrency safe. And, most of the cryptocurrency thefts happen at the exchange.
So, make sure you’re using the exchanges just for exchanging. Once you’ve bought the bitcoins, move money off the exchange and store it into a crypto wallet.
Matthew Unger, CEO, and founder of iComply Investor Services Inc. say, “just like one keeps some cash in the wallet, some in the bank account and perhaps the precious stuff in a safe, digital currency should be managed in the same way.”
· Get Ready For A Roller Coaster Ride
Bitcoin is notoriously volatile. So, before you enter the world of cryptocurrencies, set your mind for a roller coaster ride.
If you’re not ready for peaks of 200–300% and then a sudden drop of 100%, the crypto world is not for you. So, make sure you learn about what successful traders are doing to be successful.
Ending note: Bitcoin investment can be profitable that can also turn out to be very risky. As exciting as this journey will be, there will always be drops and hikes in its prices. So, don’t be afraid to get involved but do learn about the risks and how to invest.
