It is an era of Bitcoin, no doubt! It has seen a huge hike of about 1400 percent in a recent couple of years, making many of the cryptocurrency trader’s millionaires in this process. The nature of Bitcoin is similar to the stock market; it has its high and low points. You never know the value of Bitcoin jumps up in the blink of an eye and goes down another second. It is all a game of betting and forecast. The market of Bitcoin is a highly lucrative place to invest and maybe that is the reason why Bitcoin is the buzzword on the lips of traders and economists.
So, if you too are caught in so much chaos around Bitcoin and want to invest in it, just keep few tips in mind. What are they? Let’s see!
Where to store the Bitcoins?
You just can’t start right away with the new thing, right? A baby first learns to walk before he/she can run. So, before jumping right into the trading of Bitcoin, you need to know all about it. Go through all the reviews first that how do you want to start trading and choose the platform from where you want to purchase the Bitcoins.
Coinbase is considered as the best platform for Bitcoin trading, buying and selling, if you are a beginner.
Keep a hawk’s eye on the market trend
One of the most common mistakes that a new crypto-trader does is to make the investment decisions based purely on Bitcoin’s price.
In reality, the value of a cryptocurrency is only valid once you’ve taken into consideration the current circulating supply.
If you’re considering buying Bitcoin, try not to focus too heavily on the current value of the coin and instead consider the percentage of the total market cap you are purchasing.
Is it worth investing in Bitcoin mining?
The industry for Bitcoin mining has accelerated at a rapid pace. In the earliest days of Bitcoin, the average home computer could be used to crack the cryptographic puzzles and earn Bitcoins. Unfortunately, since last year the only way Bitcoin mining is done profitably is within specialized data centers. These warehouses are jam-packed with machines built solely for mining Bitcoin.
Set the target you want to achieve
As Bitcoin is still a relatively new market to invest in, it’s very difficult to know when the right time is to buy and sell your Bitcoin. The volatility in the value of Bitcoin is unlike anything you’re likely to have experienced before with financial investments, so it’s important that you set clear profit and loss targets when opening trade on Bitcoin. Most beginner Bitcoin traders fail because they fall in love with their investments and don’t know when to let go of a bad position.
Fear of missing out!
The dreaded fear of missing out FOMO is also another newbie mistake among Bitcoin traders. Good Bitcoin traders invest regardless of fear of missing out on further price moves. Start earning today by visiting the Bitcoin Era.
Accept that Bitcoin is a volatile, high-risk opportunity
Finally, if you’re going to handle Bitcoin investing mentally, you need to get your head around the fact that it’s going to be a bumpy ride. The instability in Bitcoin is enough to scare off even the most experienced of traditional investors. Nevertheless, if you’re prepared to adopt a strict risk management strategy and consider diversification in other cryptocurrencies when necessary, there is no reason why you cannot turn this high-risk investment opportunity into a profitable one.
Carolyn Coley is a blockchain reporter. She joined Smartereum after graduating from UC Berkeley in 2018.
