So you’ve finally decided to take the plunge and invest in Bitcoin? Congratulations and welcome to the community. Odds are you’ve started doing a little research already and have seen the number of articles and forums focused on Bitcoin.
As more and more people get their start in BTC, more and more resources are popping up. The problem this causes for newcomers is that it can get overwhelming. With all the information being pushed, it can get tricky to make your plan.
What to consider before investing
Before we get to it, let’s first talk about what you have to consider. The problem is that a lot of would-be traders end up disappointed because they aren’t raking in as much as they thought they would.
Let’s remember that Bitcoin is still a relatively new currency. As a result, there’s a lot about the market we don’t fully understand. That said, a great tip to start your trading is to plan for the long-term. This helps avoid being easily influenced by market sentiments during times of uncertainty.
Another thing to think about is how much you’re willing to risk. It’s inadvisable investing more than you can afford. Set aside an amount that you’d be willing to forget about for a while. Making risky and impulsive transactions based on wanting an earlier profit can be a dangerous way to invest.
4 tips for investing in BTC
Now, let’s talk about some general advice that can help answer the question that a lot of us are asking—how do we make money with Bitcoin? We’ve summarized all the tips into a few points to help you get started.
Use credible resources for your research
The first tip involves filtering through the different articles and sites you might encounter as you do your research. Kind of like how you want to buy Bitcoin from a secure exchange, you’ll want to make sure that your information comes from reputable sources.
If it’s available, look for data and references when you read about how the Bitcoin market works. Lastly, check if the website you’re using is accredited. If they aren’t, make sure they’re at least partnered with one that is.
Strategize based on what you’ve learned
It is so easy to get into crypto. For example, you can even buy Bitcoin with credit card instantly so this early on, it’s good to develop a strategy that suits your investment goals. The thing about copying other traders is that they might not share the same needs as you. Investing periods, budgets, and other factors can make things difficult for newcomers.
It’s for these reasons that it is advisable to strategize based on your situation. Do you want to be able to pull your money out right away or would you rather leave it be and let it grow on its own? These are just some of the questions that you should ask
yourself early on.
Learn to ignore the “noise”
What a lot of people do to study the market is to follow Bitcoin social media accounts and join online communities. This is a great place to start but you should also remember the risks you face by relying solely on what other people say.
It’s hard to base your investments on assumptions by ill-informed Bitcoin influencers since they’re people too and are just as likely to make a mistake. However, the dangers don’t only lie with them. Your fellow investors will also have a lot to say and reading all their posts might leave a stronger impression on you than you might notice.
This is why doing your research is the best way to build a strategy. It’s good to study what others have done but it’s best if you have a plan that can keep you centered.
Use the available tools when you can
In the past, a lot of investors got away with using traditional investing techniques to get them by. These days, though, there are a couple of free tools that are available to us. These can help us make informed decisions that we can be confident about, lessening the uncertainty that others experience.
One example of this is the fear and greed index. This index measures market sentiments, showing users the general trend of the market. It uses fear as an indicator of BTC being undervalued (an opportunity to buy BTC) and greed as an indicator of BTC being overvalued (an opportunity to sell).
Bitcoin is for everyone
The point we’re trying to make with all this is that anyone can make money from investing in BTC. The trick with all this is how you manage your expectations, your money, and your time.
It helps when you can keep yourself updated with news about the Bitcoin market too. Immerse yourself in the community and try to learn as much as you can—Bitcoin was meant for everyone, all we need to do is take the first step.