Although nothing is ever guaranteed, following certain practices will maximize your chances of success in Bitcoin investing.
1. You should understand how bitcoin works
You should have a firm understanding of Bitcoin before you make any trades.
Make sure you put in the time and effort to understand how Bitcoin works, including the principles of blockchain and how Bitcoin trades are made.
Although it’s important to understand the technicalities, don’t get caught up in them.
2. Long-term is the new short-term
Do you notice how time time is going by fast?
2020 was just the other day, now where in 2022 going into 2023.
There are a lot of stories about traders who make money from Bitcoin trades every day.
Some of these stories may be true, but these people probably have a lot of experience and know what they are doing. Instead of trying to battle the volatility of Bitcoin, go for a long term investment strategy (buy and hold).
Here are some quick tips for long-term cryptocurrency investing:
Do your own research: There is a lot of important information to know about each cryptocurrency before you invest.
By doing your own research, you can learn about a coin’s technology, its team, its community, and more. This will help you make calculated investment decisions.
Diversify your crypto portfolio: Don’t make the mistake of having all your eggs in one basket. When investing in cryptocurrency, it’s important to diversify your portfolio by investing in a variety of different coins. This will help to mitigate your risk.
Have a long-term perspective: Cryptocurrencies are a long-term investment. They are not suitable for short-term speculation. It is important to have a long-term perspective when investing in cryptocurrency.
Be prepared for serious volatility: The cryptocurrency market is not for the faint of heart, it’s very highly volatile. Prices can rise and fall quickly. It is important to be prepared for this volatility and to have a strategy in place to deal with it.
3. Make sure your wallet is secure
We talked about the different types of wallets for Bitcoin in this guide. The least secure wallets are online wallets, and the most secure wallets are hardware wallets.
However, it is more convenient to use online or “hot” wallets, even though they are less secure. Offline or “cold” wallets are the least convenient to use.
If you want to trade Bitcoins regularly, you should keep enough of them in an online wallet to do so, and store the rest in a cold wallet. If thieves get ahold of your private keys, you’ll lose access to your Bitcoins.
When it comes on to cryptocurrency security you cannot skimp or you’ll become a victim of hacks and theft.
4. Only use reputable exchanges
As Bitcoin values continue to rise, so does the number of thieves and scammers looking to take advantage.
Be sure to only use reputable cryptocurrency exchanges, like Coinbase, Binance, Crypto.com and Kraken, when buying or selling Bitcoin.
Before using any cryptocurrency exchange, be sure to do your research.
Look for things like a track record, user reviews, etc. If you can’t find this information, it’s probably best to find another exchange.
Also, be wary of exchanges that are promising deals that seem too good to be true, chances is that its probably shady.
5. Keep your eye on trends
You want to buy when the price is low and sell when it’s high.
6. When starting out don’t do Bitcoin trading
Bitcoin trading is not recommended for beginners.
Before you start trading, you need to learn about Bitcoin pricing and be able to control your emotions. Successful trading requires a lot of experience and knowledge.
You can use demo accounts to practice Bitcoin trading and learn from any mistakes you make before using real money.
7. Same thing for Bitcoin Mining (Newbies should avoid it)
Do not try to mine for bitcoins when you are first starting out.
It requires a large investment in high-end computer equipment and it would be more beneficial to use that money to buy bitcoins.
8. Embrace the fact that Bitcoin is volatile and risky
Bitcoin is a digital currency that can be highly volatile.
With this volatility comes the opportunity to make significant gains; however, there is also the risk of losing a lot of money.
In order to be a successful Bitcoin investor, you need to be aware of this and accept it.
9. If it’s too good to be true it’s most likely a scam
There are many cryptocurrency scams. Unfortunately, bitcoins are very valuable and thieves will do everything they can to steal them.
Look out for fake exchanges, too-good-to-be-true crypto schemes and phishing in emails and text. Cryptocurrency investors need to be more vigilant than ever.
Here’s what you should do to avoid them:
1. Do your research. Before investing in any cryptocurrency, make sure you do your due diligence and research the project thoroughly. Be wary of promises of high returns with little to no risk.
2. Don’t fall for imposters. Be on the lookout for scams that pose as legitimate ICOs or cryptocurrency projects. These scams often use fake websites, social media accounts, and email addresses to trick investors.
3. Avoid untrustworthy exchanges. Not all cryptocurrency exchanges are created equal. Some have been known to be vulnerable to hacks, while others have been accused of fraud. Do your research to find a reputable exchange.
4. Be careful with your private keys. Your private keys are what grant you access to your cryptocurrency. Keep them safe and secure, and never share them with anyone. 5. Don’t blindly trust anyone. In the cryptocurrency world, there is no such thing as a financial advisor.
Anyone giving you financial advice is likely trying to scam you. Be extra careful with anyone who promises to give you inside information or tips.
By following these tips, you can help protect yourself from falling victim to a cryptocurrency scam.
There is no need to worry about the future of Bitcoin, it is growing and here to stay.
The fact that you can now purchase Bitcoins from ATM’s shows how far it has come. The blockchain technology that supports Bitcoin is now considered to be the future of online financial transactions and supply chain management, so its here to stay.
If something seems too good to be true, it probably is.
Be wary of anything that claims to sell Bitcoins at an incredibly low price or promises guaranteed returns. These are almost certainly scams. Nobody can double your Bitcoins, so avoid anything that makes this claim.