We offer some tips to be successful in crypto investments
Investing in Bitcoin (BTC) can be quite complex if you have just become aware of its existence. In fact, taking the big step and entering the crypto world is a risk for anyone regardless of previous investment experience. This is because the crypto industry does not have a centralized authority to guide investors. Rumors, hype and fairy tales dominate the Internet, and separating facts from rumors can be difficult at times.
Like any other business venture, you should never rush headlong until you know all the facts. Many investors in Bitcoin Up who have suffered losses will agree that they have not done enough research. By listening to rumors and rumors, you are only preparing for failure. However, the crypto community can help us in our research: it is better to talk to people who are already in the industry.
1. Do research
The crypto world has existed for several years now, which means that many things have changed since its birth. If you are only now approaching Bitcoin, you have to make up for lost time. You will make better investments when you understand exactly what you are doing. Cryptocurrency offers unique investment opportunities, but that doesn’t mean they are risk-free.
Caution can help you avoid making mistakes: learn more about the technology behind Bitcoin and find out how the whole system works. A solid knowledge of how the blockchain stores data will certainly help you understand everything about investing in BTC.
It is not enough to read some articles on the internet to know enough about Bitcoin: knowing it like the palm of your hand takes time. Find a reliable mentor and ask him as many questions as you can, so that when you invest you will do so in a safe environment.
Ignore the hype and dig deeper to find out the truth. Otherwise, if you rely solely on success stories as a guide, you will end up risking money you cannot afford to lose. Although Bitcoin opens the door to an exciting world, stories that tell of terrible failures prove that this world can be equally complex and confusing.
2. Proceed in small steps
Knowing everything about the crypto world does not mean being ready to invest. Risk is inherent in every investment and crypto currencies are no exception. You should proceed with caution, because digital currencies are still in the early stages of development. The risk is extremely high, which means that you can make a lot of money or lose everything you have.
Start small and see how it goes before you bet more money. Instead of chasing the price of Bitcoin, let the price come to you. Timing is key when it comes to investing in cryptocurrency. Once you have decided on an entry point, don’t change your mind just because someone has told you otherwise.
Once the price reaches the desired point, do not use all your capital! Buy in small amounts, a little at a time. Investing in Bitcoin is like summoning a genius from a lamp: one wrong move and you lose everything.
3. Broaden your horizons
Ideally, no investor should bet everything on a single asset. When investing in crypto space, you need to diversify effectively. In this way, the decline of one currency can be easily offset by a gain of another.
In addition to Bitcoin, you could also invest in Ripple (XRP), Ether, Bitcoin Cash (BCH) and Litecoin (LTC). Spreading the funds equally among the different currencies maintains a balance, because if one of them fell by a certain percentage, another one could grow by the same amount.
Study all available crypto and invest with caution. A crypto currency can easily collapse, given the similarities that there are with startups. Researching and keeping up to date with the market is crucial because a currency can collapse to zero from day to night.
4. Keep your coins on your wallets
Since you are investing in a digital space, you should take computer security very seriously. Cybercriminals are everywhere. Use exchanges to buy currencies and put your funds back into wallets as soon as you’re done. If you hold your assets on exchanges you are potentially exposed to cyberattacks.
Many exchanges have been hacked before and this trend will not change. Consider investing some of your money in cold wallets, i.e. wallets that are found offline, which for this reason are much safer than hot wallets (which are found online).
5. Buckle up, the road is bumpy