Investing in Bitcoin is not as easy as it was 5 years ago. Nevertheless, the hype around Bitcoin is just as big, if not even bigger, than it used to be. There are many people who have some Bitcoin investments, but have you ever wondered what to consider when investing in Bitcoin?
In this article I will show you 7 things you should keep in mind for an awesome Bitcoin investment strategy. It will help you to invest successfully and leave the investment stress behind.
1) Don’t invest everything in Bitcoin
Especially with risky investments it is important to spread the risk as well as possible. You should not invest all your money in Bitcoin but also in other things that can balance the risk. Bitcoin, Ethereum, Litecoin, Ripple and other cryptocurrencies also offer an opportunity to make smart investments.
2) Don’t be afraid
Bitcoin has never had such large fluctuations as in recent months. Every little drop causes anxiety, but you should keep a cool head. If you have taken the time and researched and come to the conclusion that it is a good investment, there is no reason to be afraid. This way of thinking will save you a lot of nerves and protect you from stupid decisions.
3) Do not listen to others
Many people love cryptocurrencies and the associated opportunities to quickly earn a lot of money. These people invest in good luck and hope for a better life. Therefore, the tendency increases that these people search only for good news. They avoid bad news and only spread the good one. It probably gives them a better feeling. This creates a deceptive sense of security. And that could be a reason for bad investments. So never listen to others and their good news. Do your own research and search primarily for the bad, not the good news.
4) Don’t check the chart every minute.
I know watching your money grow makes you feel good. But the constant review of the charts doesn’t change that. So don’t check the charts every minute. Instead, look for new news that can give you an advantage or help you make better investments to keep the risk as low as possible.
5) Don’t trust pattern analysis
When Bitcoin’s price fell sharply in early 2018, many people tried to convince others that everything is fine. These are examples for analyzing wrong chart patterns. After every big drop, they announced that it would rise again. But the chart pattern analysis doesn’t work so well with cryptocurrencies. They are confronted with many rules and other things that cannot be implemented in diagrams. That’s why you should never completely rely on chart analysis.
6) Bitcoin investment is a game of luck
Investing money in Bitcoin can be very profitable, but unfortunately it also involves a huge risk of losing everything. There is no big company behind the investment. No management. No value is generated. You simply invest your money and hope that it rises. Nobody can really predict what exactly will happen. It’s a game of luck and you should always keep that in mind. Sometimes you should not put your luck to the test and secure your winnings in time.
7) Risks arise because you don’t know what you are investing in
As Warren Buffet said, “The risk is not knowing what you’re doing.” It is therefore important to be sufficiently informed about the investment object. What technology do they use? How could the future look like? Extensive research helps you to keep the risk as low as possible and to maximize your chances of success.
The investment in cryptocurrencies is risky at the moment. The largest cryptos decreased by 80-90% this year. It is therefore important to consider some aspects for a successful Bitcoin investment strategy. You should distribute your risk, not be afraid of fluctuations and not listen to others. Do your own research and learn everything about Bitcoin so that you can keep the risk as low as possible. And always remember, it’s a game of luck and sometimes it’s better to secure your winnings then gamble for more profits.