(ThyBlackMan.com) After waiting for nearly three years, Bitcoin reached an unforeseen peak of $19,857.03 in November 2020. This new record was set after the cryptocurrency topped its previous record of $19,783. Early adopters certainly made unbelievable profits. Particularly those who trusted and invested when Bitcoin was hardly valued at a few hundred dollars.
After the 2017 Bitcoin rally, the cryptocurrency again saw a sharp dip trending at nearly $4000 for a long time. With an uncertain future and fear of regulations, investors are still clueless about what will happen with Bitcoin in the long run. To help clear the air, here’s an ultimate guide that aims to provide clarity about Bitcoin investment, the cryptocurrency’s future, and investment strategies.
Bitcoin Investment for Beginners
Bitcoin is an open project which is not controlled by any government or organization. Just like every other investment opportunity, Bitcoin investment isn’t risk-free. It is advised not to invest in Bitcoin without basic research. Study about how it works, things to do, and things not to do.
Beginners who consider buying bitcoin should avoid making big moves with their money until they are very familiar with Bitcoin and cryptocurrencies in general. Do not fall for Bitcoin mining until you learn the professional way of mining Bitcoins and have the right resources to do so. Also, avoid day trading because it is one of the fastest ways to lose money when you’re new to Bitcoin investment.
Find the right wallet
Do not blindly trust cryptocurrency startups, mobile apps, and web-based wallets. Most of them do not let you use your Bitcoins. The internet is an unpredictable space and for your safety, we are not recommending any Bitcoin wallet here. Spend some time, learn about different Bitcoin wallets, and choose the one that’s right for you. Again, avoid exchanges and wallets that don’t let you use the Bitcoins you hold.
Stick with Bitcoin
Soon after Bitcoin rose to a new record high, many organizations including security companies and others introduced their own cryptocurrency. They are available for a lot less than the price of Bitcoin but remember the fact that most of them are scams and are there to take your money away. Note that Bitcoin is referred to as XBT and BTC.
Your Foolproof Bitcoin Investment Strategy
A successful Bitcoin investment strategy isn’t about mindlessly throwing money. You need a foolproof plan to make sure that you earn higher returns on Bitcoin investment, reduce risk, and stick with a strategy.
Setting limits
The first step is always the same – learn before you invest. The next thing to do is to know how much you should invest and get your finances in order to draw limits so that you won’t make decisions based on emotions. Invest only when you have sufficient funds for emergencies and don’t have any high-interest debt. Do this to avoid panic selling otherwise that would just kill the idea of long-term investment.
Enter at multiple price points
This may seem time-consuming, but if you want to keep your risk levels low, this is the strategy that will keep you safe and your profit margins bigger. Hold and invest a little when you can. You can set a rule like investing at some point near the payday. If you don’t see the dips, just keep the money aside and buy the dips when you can.
Let time work for you
The Bitcoin market is different from traditional markets. It is built with the combined knowledge of humans and algorithms which means you can’t time the market perfectly. Also, one thing you should know is that Bitcoin is scarce. With a supply limit of only 21 million, it’s very easy for a wealthy investor to manipulate the market in a way that all the predictions can go in any direction. So rather than relying on predictions, let time work in your favor.
Strategy review
In the end, it all comes down to how actively you monitor the trends and squeeze more information out of the time you spend on research. Consistently reviewing and optimizing your Bitcoin investment strategy is an excellent way to keep your knowledge about the Bitcoin market updated and ensure high returns on your investment.
Staff Writer; Corey Shaw
Have any Tech Tips? News? Hit up our Tech Guru at; CoreyS@ThyBlackMan.com