In the vast sphere of bitcoin investments, success is at the offing for those who are patient. And for those who know how to be wise about cryptocurrency trading. We gathered information from crypto-experts and have come up with 8 bitcoin strategies you should try out to get you leaps and bounds closer to crypto-success.
- Due Diligence, And Nothing Less
New bitcoin enthusiasts (and perhaps, even the non-rookies) jump into the world of bitcoins, and cryptocurrency in general, simply because of social media hype. Unfortunately, they take the plunge without reading about cryptocurrency, on their own.
The hype is very real, especially with global events that are shaking the foundations of investing, and the overall future of diversified financial security. Yet the must-do here is your due diligence.
Research about how bitcoin works, how you can utilize crypto-exchange and create a wallet, what the numbers are in your location, which banks are affiliated with your chosen exchanges, etc. Check on security features, transaction fees, reviews from renown analysts, and the like, before hitting the pedal on digital cryptocurrency investing.
- Not Merely Different Cryptocurrencies, But Different Investment Types, Too
You’ve heard us say this before but we’ll say it again: diversify your investments. We’re not telling you to invest in other cryptocurrencies besides the mother-of-all-mother-cryptocurrencies--- bitcoin. We are encouraging you to also invest in hard assets--- stocks, gold, real estate, etc., along with the first.
Any kind of investment has its risks and volatility, and digi-money is not exempt. Experts have said that investment and/or portfolio diversification (investing in various types of assets) will tip the balance over to higher possibilities of earning from one and/or more of said investments.
You’ll basically be leveraging your portfolio for better chances of earning and earning more.
- Know About Technical Indicators
There is such a phrase as “trading technicalities”. As a crypto-trader, you should be well-versed with what it means. It equates to cryptocurrency news. Demand percentage, pricing changes, not just about bitcoins but about various cryptocurrencies as well.
Often, fluctuations in non-bitcoins show adjacent results with bitcoin itself. In addition to this, movements in demand directly affect bitcoin pricing. Its value, after all, is based on this. Just remind yourself not to jump the gun when sudden price increases take place.
Stick to the market cap.
- A Little At A Time
We understand your excitement about the financial opportunities bitcoin presents to cryptocurrency traders. It is among the reasons behind the surge in crypto-traders today. Still, keep calm. Invest a little at a time.
Disturbances in bitcoin value and pricing are frequent. And they are frequently erratic. Although the returns are excellent, they remain excellent only over the long-term. This implies that large-sum investments at present aren’t what get you the dough. Long-term, small-sum investments, on a consistent basis--- this is the proper approach.
- Bitcoin Wallet Security
This one has more to do with the safety of your crypto-coins and crypto-wallet. It’s true that bitcoins run within a blockchain system that assures data security. However, each trader is responsible for his or her own wallet and private key protection.
Make good use of 2FAs (2-factor verification features), and more importantly, a wallet that states its user-information security clearly and comprehensively.