Bitcoin is one of the cryptocurrency industry’s most exciting investment opportunities. In recent years, Bitcoin has seen unprecedented gains, transforming millions of investors’ lives and helping them achieve financial independence. However, if you would like to start buying and investing in Bitcoin, you need to bear a few things in mind.
If you are new to cryptocurrency, then the chances are that buying Bitcoin, or any crypto for that matter confuses you. That’s fine, we’ve got you covered. Here are 14 tips that you can use to help you buy Bitcoin more easily:
Geographical Location
Unfortunately, crypto trading is banned in some countries. That’s not to say that there aren’t still ways that you can buy cryptocurrencies, however. Bitcoin is particularly controversial crypto, restricted in many countries, including Egypt, Oman, Morocco, Bangladesh, and China. According to the trading experts from business24-7, you can buy cryptocurrency from exchanges or brokers. If you live in a country where ownership of Bitcoin is restricted, then you will have to use a VPN to buy them. Your VPN location should show you as being in a country where crypto is legal, like the UAE, for example.
Starting Small
As with any new investment, you need to start small when investing in Bitcoin. It’s easy to get carried away, especially with Bitcoin, where so many people are profiting, but you need to limit yourself and start small. Never invest more than you can afford to lose. This is especially true when you are a beginner and do not have enough experience to take chances. However, as you become a more experienced trader, you will be able to take chances and risks.
Experts do not recommend taking any risks as a beginner, however. Instead, you need to ease yourself into the trade, learning, and studying.
Secure Wallets
If you are buying Bitcoin, you need to take one piece of advice seriously is opening a wallet. While it is possible to store your Bitcoin on the platform or marketplace, you buy it from this is ill-advised. Crypto theft is a huge industry in its own right. Your marketplace account can be hacked very easily. A secure wallet is fundamental to ensuring that your investment is safe. Most experts recommend using offline wallets, especially if you buy sizable amounts of Bitcoin.
Market Research
Again, as with any new investment, market research is essential. You should not invest any money into Bitcoin until you understand what’s currently going on. Fortunately, learning about current happenings with Bitcoin isn’t difficult. Changes, forecasts, and market updates are covered daily in online journals, magazines, and newspapers. Additionally, you can join a masterclass, where the teacher will tell you about everything that’s happening with Bitcoin at the moment. If you are going to join a masterclass, do your research so that you can find the most informative and useful class possible.
Trading Strategy
Whenever you are investing or trading, you need to have a strategy. You also need to stick to your strategy. Lots of traders carefully create strategies, then abandon them when they don’t go to plan. If you do decide to attend a masterclass, then the person teaching you should also advise how to create a trading strategy. Failing that, you can always copy strategies that are published online. YouTube videos are also great to learn about new strategies, especially if you do not have the money to sign up for a masterclass.
Crypto Fraud
Crypto fraud, unfortunately, is very common. If you aren’t careful with managing your crypto, you too could fall victim to crypto frauds. A big part of avoiding crypto thieves is storing your crypto in a secure wallet. Make sure that you keep your wallet’s password written down, locked in a safe. If you store your wallet password online, then hackers could, in theory, access it. If your device were to be infected with malware, then hackers directing the virus could take your saved passwords and any documents you have saved. Do not share your crypto passwords with anyone, either.
Profit Targets
Ideally, you should have profit targets in mind when you first start trading. You can then trade using stop loss and take profit. Be as realistic as possible about your targets. Many first-time Bitcoin traders think that they are going to make millions of dollars in their first month. This is incredibly unlikely, if not impossible. However, what is possible is for you to make a reasonable return on your initial investment, especially considering Bitcoin’s recent unpredictability. Study the market, then work out an amount of profit that is reasonable and that you are comfortable with taking.
Using Leverage
If you do not have a lot of money to invest, then you could consider trading with leverage. However, if you are going to do this, you need to be very cautious. If you don’t know what you are doing, trading with leverage is a guaranteed way to bankrupt yourself. However, it can be very lucrative when you approach trading with leverage methodically, take your time, and study. If you do intend on trading with leverage, then start slowly, especially if it is your first time doing so.
Diversify
While this article focuses on Bitcoin, you should also consider diversifying your portfolio and investing in other cryptocurrencies. Some of the most popular cryptos that are predicted to rise in price exponentially in the next few years include XRP and Ethereum. As with Bitcoin, you need to conduct extensive market research if you are going to trade alternative currencies. It is also advisable to avoid alt-coins. Alt-coins can be lucrative if you know what you are doing, and as a beginner, likely, you don’t. In addition to avoiding alt-coins, watch out for pump ‘n’ dumps.
Holding Bitcoin
Once you have purchased Bitcoin, consider holding it. While you can make a reasonable profit from buying and selling Bitcoin daily – it’s often better to hold onto it. This is because Bitcoin, historically, has seen huge price rises. While it isn’t guaranteed that any such rises will occur again in the future, industry experts believe that they will. In just under two years, Bitcoin’s price went from around $5,000 to over $40,000. It is completely feasible that a price rise of this magnitude could happen again. If you diversify your portfolio, trade other cryptos, and hold Bitcoin, you could maximize your profits.
Controlling Emotions
Bitcoin can be difficult crypto to trade because of the previously mentioned price jumps. Many traders who bought Bitcoin when it was incredibly cheap sold it the minute that the price rose a small fraction. This was because they got excited and did not want to wait. You mustn’t do the same. These same traders could have made fortunes if they had waited a while. Do not let your emotions control your trading decisions.
Approach trading methodically; do not make judgments based on how excited or angry you are. Instead, trust your profit plan, market research, and the judgments of other, more experienced traders.
Finding a Platform
One of the first things you should do if you are interested in trading Bitcoin is find the perfect platform. There are many different crypto platforms, some of which are better than others. To find the perfect platform, then you should do your research and ask for the opinion of other traders. You can often find pretty extensive reviews on online forums like Reddit and in chatrooms. In addition, if you attend a masterclass, then your tutor will likely recommend a platform to you.
Password Storage
As mentioned earlier, you need to take your password security very seriously. In addition to keeping your wallet password in an offline wallet and storing its password on a piece of paper in a safe, you should also keep your marketplace accounts secure, which you can do by activating two-factor authentication. Password storage is not to be taken lightly. If a hacker manages to get into one of your accounts, they will likely be able to get into all of them. Two-factor authentication is one very effective way of securing your password.
Cautious Trading
Finally, make sure that you trade cautiously once you have bought Bitcoin. This means that if you ever trade privately with other traders, you are cautious. As mentioned throughout this article, crypto theft and fraud are unfortunately very common in addition to being cautious when trading privately, make sure that you are cautious in your entire approach to trading crypto. While it’s possible to make a lot of money, it’s also entirely possible to lose everything. Don’t treat crypto like you are gambling. Instead, approach it cautiously, with care, and with a view to making a fortune from it.
Bitcoin is by far the most popular cryptocurrency available. Unfortunately, it is also one of the most expensive. If you want to profit from Bitcoin, you need to start by buying it from a reliable vendor and trading it cautiously. Ensure that you take your security seriously and never do business with any dodgy marketplaces or traders.