You might think that you are late for the Bitcoin party. Huge spike this cryptocurrency had back in 2017 is over and the hype is over too. However, that doesn’t mean that Bitcoin is dead or not promising. Actually, the best time to invest in this coin is now.
If you are familiar with this cryptocurrency, you should know that the future looks bright. The advanced blockchain technology behind it ensures that Bitcoin will be the currency of the future. Keep in mind that the amount of Bitcoins is limited – only 21 million. So the sooner you hop on this train, the higher are chances you will succeed.
However, there are some rules you should follow in order to be successful in Bitcoin investing. If you just go out there and put your money into this cryptocurrency without knowing anything about it or the tendencies of the crypto market, it will be more like gambling than investing. We need to highlight that investing in Bitcoin is an activity of high risk, so if you can’t let yourself lose invested money, don’t do it. Nobody is protected from this, so be responsible. On the other hand, high risk awards you with a chance at a great return on investment. If you would like to get some on-point insights on what should you do to successfully invest in Bitcoin, please proceed reading the article.
Follow the News
Before you start investing, take some time to get familiar with cryptocurrencies world. You will learn the terminology related to this niche and get familiar with trends. This will allow to better understand what impacts the price and the value of cryptocurrencies.
There are a handful of trustworthy news sources on cryptocurrencies, such as bitcoin.com.au. Read at least one news article for a week before you start studying investing. It can be difficult at first since you have no previous experience with cryptocurrencies, but it’s not rocket science and you will get used to it.
Mining Vs. Buying
Basically, there are two approaches to invest your money into Bitcoin. You can simply buy Bitcoins or join a mining pool and mine this coin. And there is no clear answer to the question.
Buying Bitcoin and holding it for a long time is a great way to fight inflation and save your money from an upcoming financial crisis. While traditional markets are in danger, Bitcoin might be the winner in this situation. So it’s more secure than investing in mining Bitcoin.
On the other hand, while mining might be riskier, it can also reward you with better results. It depends on electricity costs and mining difficulty – that’s additional risks you are taking.
Don’t Put All Your Eggs in One Basket
Diversifying is one of the main rules of a successful investor. There are some really hopeful signs that the price of Bitcoin will triple by 2021 but don’t get too excited and don’t invest all of your money in Bitcoin just because of the news like this.
After you get comfortable with Bitcoin, make sure to explore altcoins (alternative coins) – they can offer great value too. However, it might be even more complicated, since there are less news and information on other coins that are not Bitcoin.
Finally, there is a chance that the whole cryptocurrency market will go belly up, even though it’s very unlikely. But if there is even the slightest chance, you should be ready for it. Don’t put all of your investment funds into cryptocurrency, try other markets too.
Take Care of Your Security
Making money and then losing it to some cybercriminals can be devastating. That’s why you need to take cybersecurity seriously. Hacking and phishing campaigns are still really common in the cryptocurrency world, so be careful.
First of all, don’t keep your money in exchange. Your account can be hacked, or the online exchange itself can be hacked. Also, do the research before using the exchange. Some of them are relatively new to the market and can disappear at any time, so going with a big, well-known name is a wise move.
Keep your Bitcoins in a wallet. There are both digital and physical wallets, so it’s up to you which type of wallet to choose. Digital wallets might be more convenient, but it’s definitely more secure to keep your private keys in a hardware wallet that will be offline most of the time, so no one can access and hack it remotely.
A common mistake is to do the research, invest the money and then forget about the cryptocurrency market and simply wait for your millions to be magically generated. If you invest your time in learning new things and following the news, this will definitely pay off.
There are a lot of good reads on all topics related to Bitcoin, so you won’t run out of resources.