You will have some reservations when entering the bitcoin and crypto industry. The first thing you need to know is that there is no authority to hold your hand or to tell your troubles.. Bitcoin is anonymous. Stories about cryptocurrencies can be scary or highly motivating. Getting started can be a bit stressful, so you may want to consider important advice for new Bitcoin investors.. Also, “What to do when your cryptocurrency drops in value?” You may also be interested in our article.
1. Do your homework
When it comes to Bitcoin and other digital currencies, there are plenty of hype, rumors, success stories and horror stories. Make sure you understand exactly what you’re getting into and don’t risk more money than you can afford to lose.
Bitcoin is an exciting world to be in, but it’s a complex and confusing thing if you only act on the hype. Many people buy expensive cars even though they don’t know how the engine works, and that’s good because if it breaks down, there’s someone out there who can fix it. In the world of cryptocurrency, it’s you versus the world, decentralized and there’s no one to hold your hand.
Coinfirm’s CEO and co-founders Pawel Kuskowski;
“The more you understand, the more you understand, the better the better”
Don’t speculate about the big money to be made, actually go out and learn how Bitcoin and Blockchain work.
Co-founder and CEO of Wireline ‘su Lucas Geiger,
“This may seem obvious, but I guess the first thing is that it takes time to understand Blockchain and very few people do it.. If you don’t have a high-level understanding of how a Blockchain stores secure data (like cryptocurrencies), then you’re making a similar investment in a tulip bulb.”
A good place to start, Satoshi With Nakamoto’s white paper. Crypto fund manager Jacob Eliosoff wrote:
“If you have any technical leanings, take 10 minutes from the original 2008 Satoshi white paper, it’s only eight pages, it’s legit and an inspiring work of genius!”
The great thing about the cryptocurrency ecosystem is that there is a huge amount of material and information out there. Many websites and resources aim to make the technology easier to understand.
Moreover, the investment world is trying to make things easier by making Bitcoin more affordable to traditional investors.
2. Be careful
There will be risk in any investment, but that risk has grown a bit because of Bitcoin’s novelty and extreme volatility. Eliosoff emphasized:
“This is still a high-risk area. Don’t invest money you can’t afford to lose!”
After hearing success stories, throwing money into Bitcoin is tempting to be bold and flashy, but it’s the best part of getting attention, especially as a first-timer. There’s no need to wait to become an overnight millionaire with Bitcoin, and you’ll run into more problems than solutions by sinking massive amounts of capital in the beginning.
Marshall Swatt, a serial entrepreneur, suggested:
“Start small and invest a small portion of your capital.”
In addition, advice from Crypto Asset Management General Manager Tim Enneking:
“Following Bitcoin prices, deciding on an entry point and sticking to it You are almost always right in terms of predictable price action with Bitcoin – be patient as it may be your timing is off and Bitcoin price is coming. “
There are a number of investment strategies that work really well with Bitcoin, and the most successful are the most cautious ones.
Investing the same amount at the same time every week or month ‘ Dollars Things like ‘Cost Averaging’ are great for Bitcoin because it helps you get to the highs as well as the lows.
3. Effective diversity
While most new digital currency enthusiasts are familiar with Bitcoin, there are thousands of other cryptocurrencies out there, and some have grown even faster than Bitcoin. Diversification is wise, especially since many of these “altcoins” perform well when Bitcoin drops. Don’t worry, you should diversify your funds as a risk management technique, like investing in the stock market or FX.”
Famous stock collector Ronnie Moas is a strong believer in diversification. It’s easy to get caught up in a cryptocurrency, especially Bitcoin, but it’s important to protect your investments.
Don’t just put your cryptocurrency in Bitcoin, Moas warns. “More than 1,000 names must differ from at least a dozen. Concentrate on names in the top 50. ”
4. Keep coins off exchanges
There is still a lot of theft and fraud going on in the cryptocurrency space and it is important to take precautions. It is not difficult to complicate the life of hackers. Only use exchanges for this: replacement. After purchasing a currency, remove it from the exchange and move it into a wallet that you only control (for example, a hardware wallet).
Recently, accusations against BTC-e and its CEOs have caused many to lose large sums of money.
Matthew Unger, Founder and CEO of IComply Investor Services Inc., suggested:
“Just like some cash in your wallet, some in your bank account and perhaps valuables in the safe. like your belongings, you need to manage digital currencies in the same way.”
5. Get ready for a tough journey
Bitcoin is widely recognized for its volatility, with many traditional investors fearing it. A big drop in Bitcoin price will not cause permanent disaster, but when the charts are red it will be a tough decision to continue your work.. Generally, when the Bitcoin price drops for a few days, people are afraid to try to avoid losing money by exchanging their holdings and doing so. Of course, the most famous (and so far successful) Bitcoin strategy is to “ignore” or “hold” your investment, regardless of market volatility. you can buy it and forget it, as it can help you miss volatility.
cointelegraph