In its initial years after its launch in 2009, Bitcoin was met with a lot of skepticism about its survival in the long run. Experts also called it out for its high volatility. This being a new concept, institutional investors did not want to tread in uncharted waters before being sure about its credibility.
Bitcoin has not only survived the rather squib initial phase but in the last few years, there seems to have been a shift in the way people have started to perceive this cryptocurrency. Its acceptance as a sustainable currency has paved the way for its gradual incorporation into the global economy. Traders and investors have shown a newfound interest in this digital asset. Besides institutional investors, there has been an influx of new investors who are excited by Bitcoin’s prospects.
Important investor-related facts about Bitcoin
With many success stories of Bitcoin investors hitting the jackpot and amassing a huge fortune brought into the spotlight by the media and social media, the interest in it has increased manifold. But one must always be very cautious when starting the investment journey in the cryptos. A wrong decision can result in you losing your entire money in just one trading session; such is the volatility of Bitcoin. It becomes imperative that once you decide to invest in cryptocurrency, you must pay cognizance to the facts that are often overlooked or, let’s say, the secrets of crypto trading.
- Strategy: Investing in Bitcoin or any other cryptocurrency may seem appealing to earn a quick buck. But it is not so. Entering the investment arena with a strategy is imperative. Analysis of the market trends and the reasons for the recent volatility is a good start. Before investing in bonds and stocks in the financial market, one studies the company’s performance reports in the recent past to get an idea. Similarly, before investing in cryptocurrency, reading the white paper is advised. This will not only provide you more insight into the currency but about its utilities.
You also can take the services of the online platforms and trading apps that do the market research for you and guide you towards a gainful investment. crypto investment is a reputed trading app that has helped investors make the right investments.
It is always a good plan to invest as much of your money as you can afford to lose. Financial portfolio managers insist that only a part of your wealth should be invested in crypto as the chances of your entire investment being wiped out is very much a possibility.
- Timing: Volatility can cause the widest of fluctuations. Usually, when the cryptocurrency value falls, investors generally buy the coins. This trend is referred to as “buy the dip”. But according to experts, buying and selling are better done when the market is steady rather than in one of its upswing or downswing phases.
- Stay wary of scammers: Many attractive schemes regarding investment opportunities can be frequently seen on social media. Some companies advocating such plans may even try to lure you through personalized emails and messages. There are many fraudulent elements in the business trying to fleece people of their money through scams. Keeping a distance from them is better for your financial well-being.
- Select a reputed crypto exchange: Once you decide to invest in crypto, you need to buy it from a crypto exchange. Do a detailed study of the various exchanges and the services they offer. The factors that should help you reach a decision are the fee the exchange charges, the cryptocurrencies available, and the security of your digital asset.
- Avoid FOMO: Restraint is the keyword for investing in crypto. FOMO refers to the fear of missing out. Keeping a check on your emotions is important. When prices surge, investors in a fit of excitement may act detrimental in hindsight.
- Cold wallet: It is the best option for crypto storage. It is offline and so is safe from the risk of hacking. Buying a cold wallet to store most of your crypto assets is the safest option.
Conclusion
Investment always comes with its risks. To be well-informed, know your limits, and not make a hasty decision in a surge of excitement are the best ways to ensure that your hard-earned money is safe.
