Do you remember the first time you found out about Bitcoin? How excited were you with this new and emerging decentralized technology? Learning the ropes of cryptocurrency seems daunting and confusing from afar.
Whether you’re a “noob” or seasoned vet in the crypto space, there are surely some errors with Bitcoin investing to avoid. With so much hype, it’s easy to get lost in the mix. It can often feel overwhelming and difficult to know where or who to turn to next.
Don’t get discouraged. With our short guide below you’ll know what to look out for when investing in Bitcoin. Read on to get the inside scoop.
1. Selling Too Soon
You want to develop the ability to hold no matter what is going on with Bitcoin in the crypto market. Sell too fast is one of the bigger beginner errors with Bitcoin investing you can make.
Some will get too trigger-happy and sell their Bitcoin when they see the price go up. You want to hold your Bitcoin for as long as possible to gain the highest profits.
2. Timing the Market
Timing the market is too much work and is too difficult to predict. Some people can do this, but is it the best approach when it comes to your Bitcoin investment strategy?
While it is possible to learn this approach, it’s better to dollar cost average your fiat into Bitcoin. This way, you will invest the same amount over some time regardless of Bitcoin’s price and market cap.
3. Zero Confidence
To avoid errors with Bitcoin investing, you want to be sure you have confidence in your approach and strategy, right? You want to be able to handle the pressure and do your own research.
With time, you will gain the skills and knowledge to make a return on investment. Take your time and learn as you go. You don’t have to knock it out of the park every time, just be methodical with your decisions.
4. Zero Savings
You should always have a solid exit strategy and be mindful of Bitcoin investment risks and rewards. This means having enough savings in your possession.
Bitcoin and cryptocurrencies fluctuate and are volatile at times. Be sure to have a backup savings plan in case of an emergency. If you need fiat immediately, you can always trade your crypto for it.
5. No Wallet
Not having a wallet is one of the biggest errors with Bitcoin investing you can make. When you store your bitcoin on an exchange, you are far too vulnerable to hacks and attacks.
Investing in Bitcoin requires a level of responsibility as you are in full control of your funds. The best decision you can make on storage is with a wallet. Hardware wallets are the best option since they aren’t connected to the internet.
Whether for personal or business use, you can send or receive bitcoin from your wallet. You can also purchase bitcoin from a Bitcoin ATM and send it to your wallet. Head to bytefederal.com to learn more.
Avoid These Errors With Bitcoin Investing
Avoiding these errors with Bitcoin investing will give you a leg up against the rest. While you won’t always be perfect, you can take the intelligent approach.
Like anything, you will need to educate yourself if you truly want skin in the game. To do so, we advise you to check our blog to stay in the loop on business and tech.