Probably you already have heard something about Bitcoin or cryptocurrencies and are impressed by its massive growth this exciting technology is experiencing. Want to get into the markets but having doubts or thinking it's maybe too late? In my opinion, it's certainly not too late and I will cover the secret to success when investing in Bitcoin. Just like the start of the internet in the '90s, this Blockchain technology has a bright future ahead!
1. Become an expert in Cryptocurrency Technology
It always starts with proper education. If you want to be a successful Bitcoin investor you first have to invest in time. Moreover, it's very wise to do an online trading course in technical analysis or Bitcoin programming languages. Also, this cryptocurrency technology is brand new and has a disrupting force. As a result, it's very wise to learn all aspects of it starting with reading the Bitcoin Whitepaper. Other famous subjects are Bitcoin mining, which can be divided in :
If you commit yourself to DYOR and know something about all aspects listed above you are on the right path of finding a successful strategy as a starting cryptocurrency investor.
2. Spend money you don't need in the near future
Investing, in general, is about finding the right opportunities with low risk and high reward setups. When doing this right it's very important NOT to get into a financial crisis in the first place. This being said, invest only what you can afford to lose and also expect that you might lose it all.
This changes your mindset and reduces your fear of FOMO by taking profits way too early!
Investing should never be a way to pay your monthly rent or other expenses, it's rather a vehicle to accumulate wealth in the long term. Bitcoin being around for almost a decade is here to stay and has a bright future ahead!
3. Getting to know about Boom and bust Cycles
When investing in cryptocurrency one has to deal with pump-n-dump coins, crypto scams and whales trying to manipulate cryptocurrency markets. It's all in the game and this is what makes investing in this kind of asset very exciting. The Bitcoin markets are very young and this kind of decentralized technology has disrupted centralized governance or regulation. This is the main secret to success behind Bitcoin. Its decentralized nature is the main reason why big corporations haven't entered this kind of markets yet. Like I explained earlier, this could be a risk but at the same time big profits could be made and the sky is the limit.
To start getting profitable as a cryptocurrency investor one should know the boom-bust cycles very well. For example, if you are feeling euphoric and be able to conquer the world, just keep in mind that this feeling isn't going to last forever. At these moments it's better to take some profits off the table. On the other hand, if the cryptocurrency markets turn against you which results in heavy losses or bags being in the red for a very long time. As a result, many investors would sell out of fear and run, or being angry and feeling depressed. These moments, according to the Wallstreet cheatsheet, are best for buying new assets.
4. The secret to success in Bitcoin is all about diversification
The number one rule when investing in cryptocurrency projects is not to get too emotionally attached or involved. You must remember that you are an outsider, e.g investor. So, keep in mind that your money comes first! Also, never bet on 1 horse, but put your money in several different projects. Investing means that there also will be losses or in other words, you can't be right 100% of the time. Always keep in mind that one of your investments just won't get the expected results. Just make sure you find some good ones as well. In my opinion, when investing in cryptocurrency or Bitcoin, always keep a certain amount in the mother of all coins which is BTC. In the end, the secret to success behind cryptocurrencies and its disrupting blockchain technology comes from founder Satoshi Nakamoto.
5. Always have a plan and focus on it
It's very important to have a proper plan in place before getting your money into Bitcoin or other cryptocurrencies. Maybe you are in the assumption that investing in crypto will get you rich overnight. If so, then I have to disappoint you. It just doesn't work that way. Being a profitable investor means that you have to work for it and be patient. In fact, the secret to success with investing in cryptocurrency is that it's a long term game.
With that being said, it just takes time and to avoid getting distracted or feeling overwhelmed, it's very wise to have a clear end goal or target being setup. Investing in Bitcoin could also be a ticket out of job slavery and a start to financial freedom. Never forget your goals!
Investing in the cryptocurrency markets could be a real bummer when buying at the wrong time. To prevent you from this financial disaster it's very wise to educate yourself about the asset first. Also, to be more confident in these volatile markets, social media channels like Twitter or Telegram could be a great help. Just remember, to be profitable in any market you have to buy low and sell high!
If you want to know more about investing in Bitcoin or cryptocurrency, read the full article below.