• Admin Animix
• February 10, 2023
• 5 Comments

Sustained by the growth of Bitcoin, the world of cryptocurrencies has only continued to develop. Crypto coins are used in various ways, such as paying for goods and services, sending and receiving payments from one country to the other, and as an investment with high returns. If you haven’t yet invested in Bitcoin, there are compelling reasons to do so. It’s stable, no entity can alter transactions on the blockchain, and it retains its purchasing power in the future. Blockchain is a revolutionary technology, so it has the power to disrupt the world as the Internet did.

You can buy Bitcoin through an exchange like Binance or from owners (but make sure to safeguard your privacy. There’s a steep learning curve when it comes to investing in Bitcoin, so if you go into the crypto world without knowing a few things, you risk losing some of your money. 

1. Table of Contents

   A Trading Plan Is a Must for A Serious Investor

Good decisions help make money, while poor decisions cost money. No funds are at risk if you have a trading plan, so use a systematic approach when investing in Bitcoin. The plan helps you answer important questions such as what, when, why, and how much to trade. Equally, it helps you stay detached from the emotions that could set in. Now, you’re probably thinking that copying an investor who is successful will also make you successful. Copying someone else’s plan carries a high risk of losing money because you trust that person to make the decisions for you; they most likely have different goals, attitudes, and ideas. 

Your plan must be personal to you. Figure out how much time you can commit to Bitcoin trading, if you can combine trading with regular work activities, and what you can do to keep up-to-date with the trends. A proper plan must include a trading strategy that defines how you enter and exit trades. The most popular strategies among Bitcoin traders are: 

• Day trading. In day trading, you leverage short-term changes in the prices of Bitcoin. Because Bitcoin is volatile, day trading is highly rewarding. You end the day with your digital assets having a higher value than when you started.   
• HODL. HODL stands for “hold on for dear life”. Don’t sell your crypto coins, even amid rapidly developing extreme price movements. You’re not skilled enough to profit from short-term trades.   
• Dollar-cost averaging. Invest the same amount of money in Bitcoin at regular intervals over a certain time period, regardless of price. Don’t make large or irregular crypto buys if you want to yield better results. 

1. Keep In Mind That the Past Is the Past 

To get a better understanding of Bitcoin’s historical performance, take a peek at the returns during the highest and lowest points, namely 2011, 2016, and 2018. You’ll notice stark differences. The price swings reflect investor enthusiasm and dissatisfaction with its promise. Attention must be paid to the fact that Bitcoin’s past performance isn’t indicative of future results, meaning the methodology counts, not the recent price. Past performance can be a helpful metric, yet it’s not the only aspect to take into account. The price of bitcoin rises or falls because investors trade at the wrong times or let their emotions get the best of them, so if the crypto market is down, don’t panic. 

1. Ignore The Market Noise & Perform Your Due Diligence 

The business news covers all sorts of topics, creating noise that can be deafening. The information or activity doesn’t genuinely represent the underlying trends, so ignore the noise around you. It’s best to buy and sell Bitcoin only if it makes sense. Examine every event, assess its implications on your investment portfolio, and try to time the market. Maintaining focus requires discipline, so never trade without adequate homework. Research offers you direction on implanting your plan while being confident in your own decisions. Estimating the growth rate is very hard due to the many factors involved, but try to do the math and don’t react to predictions. 

1. Long-Term Trading Can Make Money 

The longer you Invest In Bitcoin, the more likely you are to enjoy a higher return on your investment, so play a steady long game. Bitcoin derives an advantage from the network effect, whereby it gains additional value as more people want to own it. Some investors are of the opinion that Bitcoin will rise again because the supply is fixed, while others expect it to gain value as fiat currencies depreciate. Long-term investing ensures success, but you must perform your due diligence as far as research and analysis are concerned. It’s easy to underestimate the importance of this. 

Having an expert by your side will give you peace of mind as you buy and sell Bitcoin. To be more precise, they’ll help you invest according to your time horizon, risk tolerance, and financial goals. You can use the Internet to find professionals in your area or ask friends, family, and co-workers for recommendations. Another critical aspect to think about is where you’re going to store your funds. Even if exchange wallets are secure, you should better store your crypto tokens offline so they’re less susceptible to hacks. Over the past couple of years, countless crypto coins have been stolen. 

Final Thoughts 

Be it Bitcoin or another digital asset, investing without knowing the details is one of the biggest mistakes you can make, so understand what you’re getting yourself into. Transactions such as moving coins from one wallet to another aren’t that urgent, meaning it’s best to find a time when gas is low – when most people are asleep; otherwise, you’re just burning money. It’s essential to control your emotions, so don’t let them interfere with your trading decisions regardless of the allure of Bitcoin. Overcome emotions like fear, hope, anxiety, boredom, and frustrations to avoid self-harm and wealth loss. 

Investing in Bitcoin takes luck but, most importantly, precision and insight. There are numerous people who have gone from rags to riches, and you can very well be one of them.

Admin Animix

Twenty years from now you will be more disappointed by the things that you didn’t do than by the ones you did do. Sail away from the safe harbor.