If you haven’t heard of the latest craze in investing, you’ve been under a rock. It’s being called a risky business investing in highly volatile bitcoins and other cryptocurrencies. The future of virtual money has hit the mainstream and it is hot right now. With no physical presence, these currencies are all electronic or virtual in nature. They don’t even have intrinsic value. However, no one can deny that right now these cryptocurrencies are extremely valuable and those who invested in the early days, and held on to their investments, are living the high life now as multi-millionaires and some have claimed the title of billionaires! Does it pay to get in early? Well… it depends on who you ask.
I invested $40 dollars in Bitcoin in 2015. The last surge I saw my investment climb to $800. Wowzer.. off of $40??? If that's a great indication of the future, well I'm jumping on the bandwagon looking for a greater return. Nevertheless, as my grandmomma would always say, "Never put all your eggs in one basket." What a wise woman she was.
Here are 4 investing strategies that I've gathered along the way.
1 – Expect Volatility Early On
It’s basically a given for cryptocurrencies that they are going to be extremely volatile. One minute the price is sitting at 5 digits, and the next it’s at 4 or even 3 digits! It’s unpredictable and if you don’t take its volatility seriously, you could get in a lot of trouble. You could panic and sell off your crypto so you can minimize your loss.
However, if you’ve braced yourself for scenarios like this, then you’d probably just shut down your computer, or turn off your TV, and lie down and sleep off your doubts. Tomorrow is a different day, the price could go back up, and all will be fine with the world. Being prepared for volatility is tough, but it’s doable.
2 – Play at Your Own Risk
Do your research before you start investing in bitcoins and other cryptocurrencies. When you’re dealing with hard-earned money, you don’t want to lose everything in one day. You’re investing to make a profit sometime in the future. Don’t go all in without studying what you’re putting your money into.
3 – Be Versatile in Your Investment Portfolio
Don’t put all your eggs in one basket, so to speak. Don’t just invest in bitcoins. If possible, invest in other cryptocurrencies as well as traditional assets like stocks, bonds, and mutual funds. At least if bitcoin prices drop, then you’re not going to be totally in the red. Your other investments will help keep you afloat.
4 – Seek Different Storage Options
Store your virtual coins in cold wallets. Investing is a long-term game, and it is not advisable to keep your cryptocurrencies in online wallets such as your exchange’s wallet, or even your mobile app wallet. Keep your private keys in cold wallets such as paper or hardware wallets since these aren’t connected to the Internet. You can keep small
Well this is just a synopsis of how interesting Bitcoin is and will grow to be. I don't know about you, but I love to stay on the cutting edge of what's next. The more you are in the know, the more opportunities you have to profit. If you are interested in learning more and how to invest in it, The Basics and Need to Know About Bitcoin is a great place to start. '
I hope you found this information interesting and enlightening. Connect with me on Instagram for information, inspiration and motivation to push you out of your comfort zone. Let's start, market and grow to our next level.
Blessings and Peace,