Ruchi Verma There are few assets out there where you can double your money within a few months. In 2020, Bitcoin became one of those assets. If you invested a few thousand dollars into bitcoin at the start of 2020, you could have enough to make a down payment on a house.
With the potential to make life-changing amounts of money, it’s no surprise that both experienced and amateur investors want to get in on Bitcoin. Unfortunately, many people don’t understand what they’re getting into, and they make some fundamental errors.
This article explains what the biggest mistakes with Bitcoin investing are and how to avoid them.
1. Selling Too Fast
If you really want to make some money in the world of Bitcoin, you need to hold on to it. One of the biggest mistakes that amateur investors make is selling their coins too fast.
Sometimes people make a little profit and sell all their coins, and sometimes people are spooked by the price falling. If you want to make serious money, you either need to be a skilled day trader, or you need to be in it for the long haul.
2. Going All In
No matter how much you believe in the bitcoin project, you should never invest everything into one asset. If all of your money is in Bitcoin, you’re only one crash away from losing everything.
It makes sense to invest in multiple assets rather than just going all-in on one.
3. Worrying About the Price
While you should try to keep informed about what’s going on with Bitcoin, you shouldn’t spend all day obsessing about the price. The more you look at the price, the more it will impact your judgment.
If you want to make the best decisions, you should only check the price once a day.
4. Not Using a Wallet
If you want to keep your Bitcoin secure, you need to use a Bitcoin wallet. Keeping your Bitcoin in exchange is bad practice as you could easily use your coins.
Consider investing in a hardware wallet. This is the best way to keep your coins secured against theft. A hardware wallet gives you a unique address that you used to send coins to it. For example, you could send funds directly from a Bitcoin ATM from https://www.bytefederal.com/.
5. Taking Predictions Too Seriously
You should be cautious about anyone who claims to know what the future holds for Bitcoin. Even if someone has made accurate predictions in the past, it doesn’t mean they’re always right.
You Should Avoid These Mistakes With Bitcoin Investing
It’s a great time to get into Bitcoin for the first time, but you need to avoid these mistakes with Bitcoin investing. Never risk more money than you can afford to lose and always keep your funds secured with a Bitcoin wallet.
Also Read: How Cryptocurrencies Can Affect The Value Of Gold?
© Ruchie Verma.
Disclaimer: I write this post as an informational part, please read all guidelines carefully before investing in financial transactions.
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I am not aware on this topic but your explanation made a few points lear to me. The main takeaway for me from this post is never risk more money than you can afford to lose. And for this we should have proper information.
I have little knowledge regarding investing and finances but found the post informative. Will share this with my husband, i m sure it will help him to understand more about Bitcoin investment.
I was looking to gain knowledge regarding this topic and you solved my problem very well. Proper information is must for this and you explained very well. TYSM.
This was very informative. A lot is being spoken about bitcoin of late. It is important for us to weigh the pros and cons properly and only then think of investing.
That’s nice topic, It is very important to have correct information on this subject. I was looking for something similar and this blog is helpful.
I have been reading a lot about Bitcoin investing, but have not taken the plunge yet. These are some wise suggestions for Bitcoin investing which shall come in handy when we do get into Bitcoins.
Financial analysts say Bitcoin is the future of investing. The matter out there is all very confusing to understand. Your detailed and helpful post has made it sound so simple to follow.
I have very little knowledge but I think it works quite similar to stocks.. All the pointers you have mentioned is applicable to stocks as well.. Not to sell to fast and going all in work. Here we should lamb to be patient and acquire as much as knowledge you can before investing.
I have heard about bitcoin but never invested in it. Though I always wanted to. But I was scared to invest in it. This is a very informative post for those who want to invest in bitcoin
I had never thought about bitcoin investment in such details. May be due to a lack of knowledge. But I am happy to have come across here as got to know how we should be avoiding certain mistakes to have a better hold on our investment.
A lot of buzz has been happening around bitcoins but the knowledge is so scattered that people dont know exactly what it is.
Bitcoin is the new rage and and we see many people talking about it and/or Dealing in it. These things need to be kept in mind when trading in bitcoin.
I heard a lot of bitcoin but never knew much about it. This is really very informative post and will invest on it.
I am still pretty skeptical about investing in bit coins. This is such a helpful topic and the pointers did clear my doubt to great extend
Bitcoin is still a tricky thing for me. Thanks for sharing more information regarding this so now I can carefully invest in it and things I have to keep in mind or avoid.
I was never a fan of bitcoin and still don’t seem to be in love 🙂 Reading more about it is helping me to understand it better, making an informed decision is a must when it comes to cryptocurrencies.
Bitcoin investment is all whole new thing for me. This information clears many doubts while investing in bitcoin
I have started gathering information about right ways of investment recently. I have practically very little knowledge about Bitcoin and Cryptocurrency. From this post, I have at least come to know about the mistakes to avoid.
This is a very new financial concept and still needs a lot of awareness about the legal dealing of this. Glad to have read the details about bitcoin investing.
Recently i saw so many people investing in Bitcoins. It is important for us to weigh the pros and cons properly and only then think of investing.
I have not invested in Bitcoin yet. That said, I’m following all conversations around bitcoin and have bookmarked your post for gaining further knowledge on this subject. I will try not to make the five mistakes with bitcoin investing and will sure keep your advice in mind.