Since Bitcoin became available, the number of investors has continued to climb. Now that we know more about it than ever before, even tepid investors are beginning to dip their toes into the crypto waters.
Bitcoin is the biggest and most recognized cryptocurrency out there. If you have been planning on getting into crypto investing, there are a few tips that can help you. But there are also a few things that you should avoid entirely.
Don’t Go All-In
Even if you think that Bitcoin price is at a great point, never, ever put all of your eggs in one basket. When it comes to tech-related finance, cryptocurrency is one of the most volatile investment types you will run into. Even if you think it is a hot buy, never put everything into the equation.
We hear stories about the handful of investors who put everything into Bitcoin and it made them rich. The reality is that it puts you at incredible risk, and more people fail when it comes to investing in cryptocurrencies than succeed. Stay protected and give yourself a chance to fight another day by diversifying your cryptocurrency investments.
Don’t Just “Buy Low”
There is a simple premise when it comes to investing. You buy low and sell high. Sounds simple, right? Well, one of the biggest mistakes Bitcoin investors make is assuming that low prices equate to a bargain. That can be the case sometimes but it can also be indicative of something else.
Sometimes, prices are low because of things like falling user rates. While this is less common with Bitcoin, it is a problem with altcoins that aren’t on a solid footing. Even with Bitcoin, prices can tank for any number of reasons. Stay informed, watch trending prices, and don’t just buy when the price plummets.
Don’t Forget Your Keyphrase
It is a nightmare situation but something that has happened more than a few times. The beauty of a crypto wallet is that you can protect it and even keep it offline where it can’t be compromised. That level of safety is great when it comes to one of the hottest investment types out there.
If you lose your crypto keyphrase, however, it can be horrible news for you. Crypto wallets have a finite number of login attempts. There is no “forgot password” feature. If you have it wrong, you will be locked out of your wallet and lose your assets. Keep the password stored somewhere so that you can reference it even if you have a brain cramp and totally forget it. This is a problem that can easily be avoided with a little extra caution.
Beware of Scams
An unfortunate part of life is that others will try to scam good people out of their money. That is part of the territory when it comes to anything related to money and cryptocurrencies are no different. There are plenty of scams out there, most of which sound too good to be true (because they are). A little diligence will go a long way toward keeping you safe.
Do your homework on the most relevant scams. Pump and dumps, cloud multiplier, fake coins, malicious wallet software, and even basic social engineering. This is your money and you need to take the steps to properly protect it. The beauty of cryptocurrency is that it can be extremely safe if you know what to do. Make sure that you cover your bases and you should be able to keep your investment safe every step of the way.