Last Updated on January 24, 2022
In this era of technology and digitalization currency has also taken digital form. Though there are so many digital currencies also known as crypto-currency like Altcoin, Litcoin, Ripple, Libra among others, but Bitcoin is the most famous digital currency. Bitcoin since its launch one decade ago in 2009 hiked unbelievably and has made thousands of people rich.
Bitcoin is just like the stock market.
The value of Bitcoin is unstable and volatile by nature. Its value keeps fluctuating and it may end up touching the sky or may even go down to zero. But still, Bitcoin is the highly lucrative currency for investment and favorites of all the traders and businessmen.
So, is the Bitcoin fever also driving you crazy? If you are interested in investing in Bitcoin, this is a must-read article for you. This article will provide you with some significant tips that you should be aware of before you start crypto-trading.
Where to keep the Bitcoins?
You can’t just jump into a deep valley without a rope around your torso. You should be well prepared for the adventurous bunging-jumping but with full security. Exactly like that before you start crypto-trading, you need to first go through all the reviews, study the way crypto-trading is done and also select the software that will do crypto-trade with.
Let me tell you that coinbase is the best software for beginners and it teaches and instructs the beginners making crypto-trading a smooth process for them.
Keen eye on market trend
Often the beginners make the mistake of making the investment decision totally based on the current price of Bitcoin. Let me break your bubbles. It is not the right way to crypto-trade.
Try not to just focus on the price of Bitcoin but instead consider the total number of buyers in the market of Bitcoin as the price of Bitcoin totally depends on the demand and hype around it.
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Is it worth investing in Bitcoin mining?
It is definitely worth mining but yes it is expensive. The Maths puzzles required for Bitcoin mining are very tough to solve. Till the last couple of years, the ordinary computer at home was capable of solving Maths puzzles and earning Bitcoin.
But now, Bitcoin mining is done profitably within specialized data centers. These warehouses are jam-packed with machines built solely for mining Bitcoin.
Set the target you want to achieve
Bitcoin is still an experiment and not still much is known about the ways it functions. Many beginners are not aware that when is the right time to invest and withdraw the investments.
Many new beginners commit the mistake of falling in love with an investment or a crypto-currency and are unable to remove a bad investment at the right time.
FOMO (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.
Accept that Bitcoin is a volatile, high-risk opportunity
It is a fact that where there is trade, there is going to be a risk. It is co-related. A trader must not just expect to win all the time.
Trading is all about instability and volatility. You will be shocked to know that the instability of Bitcoin even scares off the experienced traders. 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.