Things you should keep in mind when investing in Bitcoin
At the time when everything is being digitalized, currency is not an exclusion. Bitcoin is now one of the digital currencies people want to invest in. With so many people talking about the Bitcoins these days, you would get to hear more than one opinion for it. Some say it is absolutely wasteful to invest in Bitcoin while the others consider it to be the future of all kinds of investments.
An investment should always be proceeded by an essential research. Let us outline several things you should better know before starting investing in Bitcoin.
1. Certain safety and universal character of Bitcoin investment
Bitcoin is yet one of the digital currencies that are enough safe to trade. Safety is actually driven by the kind of technology used for trading as you have access to the information about the number of Bitcoins in use and the general policy remains transparent.
Universal character of the coin will be another reason to invest in Bitcoin. There are no borders over the world that can influence you trading your Bitcoins.
2. Possibility of partial investment
You can not predict the price of Bitcoin because of its volatile character: the price keeps changing on the basis of the demand. Here important is that you can purchase and sell Bitcoins in partial figures too.
Each Bitcoin is divisible to the 8th decimal place, meaning each Bitcoin can be split into 100,000,000 pieces. When buying Bitcoin, you don’t have to buy a full Bitcoin and can easily buy less than one. It is usually done through exchangers with the minimum amount of 0.01 BTC.
Partial purchase allows you to play at the course jumps and relatively level different purchases that were made partially at a profitable and not very good rates.
3. Possibility of research in the sphere
Important thing about Bitcoin is that country’s economy doesn’t affect the Bitcoin`s value. There is no fixed time when the value of Bitcoin goes up or down. There are various resources that can give you a deep insight about the situation on the market in different scopes. You can use cryptowatch to read the charts and keep track of the history of Bitcoin value. Also, you can watch the real-time Bitcoin price charts to figure out the best time for investment.
4. Invest only what you can afford to lose
You can be mixed up by the possible profit and the desire to increase your savings. But you as an investor should determine the boundary limit for which you should never leave.
You can rely on the previously carried research to determine the allowable margin of investment. But you should always remember that you do not need to put everything you have in one asset. Moreover, in any case do not get involved in the debt investment.
5. Decide on the type of investment
Cryptocurrency trading is definitely related to the type of personality and psychological type you are and you should know for sure what type of personality and investor you are to be successful in your undertakings. There are three main groupings of cryptocurrency investors:
Day traders are watching the markets 24/7, researching and buying/selling multiple times during the day. This procedure is intensive and risky. Such type of traders is usually represented by the younger generation.
Swing traders behave less intensively than the day traders. Investments are held for longer periods (from a few days-to a few weeks). Buy and sell can be done on a part-time basis and only a few times during the whole time. Most of the users probably represent this type of the traders.
Long-term investors usually buy and hold, and view their investment over periods of years.
The market might „try“ to move you away from your trading “personality” but don’t allow this to happen staying with the type of trading which is best for you.
6. Invest in „worthy“ coins
Make sure you buy only coins or tokens which have essential value. Don’t make a decision to buy some „unknown examples“ purchasing them on somebody’s advice.
There exist over 1,500 cryptocurrencies actively traded today and new ones continue to enter the market actively. But unfortunately most of them do not have essential value. “Worthy” cryptocurrencies have a well defined market, a large community and what is important a trusted team of developers and financial backing.
7. Use safe/ trusted exchange platform/exchanger
Though there is a wide set of options to choose from, you need to consider each of the factors to make a conclusion with what platform to stay. Here would be helpful to read the online reviews or recheck the website interface to make sure that your doing with the trusted name. You need to know the historical records that concern safety and security when it comes to online cryptocurrency exchange platforms.
The same situation if you decide to deal with exchangers. You can always rely on the reviews and statistics of special sites (for instance, bestchange.com) containing collective lists of available exchangers in different exchange directions with indication of their reliability.
8. Don’t store your assets in exchangers
You should always keep in mind that even the most popular and stable exchangers on the first view can be hacked and you can loose your entire money. Nothing prevent your account from malicious use: neither the best and safest password, nor 2-factor authentification. Make sure that you won’t leave money there for too long.
The most important thing which is worth remembering is to follow the reasonable approach in investment. There are also people falling a victim of hypes surrounding some of the cryptocurrencies or being captured by the fear to miss something important out or hoping to make quick money.
Being the owner of Bitcoin means to have the share in the whole ‘venture’. Thus, buying and holding Bitcoin becomes a bet on success in the digital revolution of money.