I’m sure you guys are enjoying your time on the bitcoin roller coaster. We have seen some crazy volatility and trading happening recently. Everyone has been talking about the insane fluctuations in the prices we are seeing these days.
It’s good to go back into the fundamentals of cryptocurrency every now and then, in order to be able to make more informed decisions about investing in crypto, and more specifically in bitcoin. We have seen that the altcoins are still holding their pattern, staying pretty far in their dumps the whole time. However, bitcoin has had few incidents of going parabolic in 2019.
So let’s talk about some tips and tricks, or rather precautionary measures, as I would call them, that you can adopt to make the best of and protect your bitcoins.
Don’t go overboard when prices are high
Don’t go too crazy and try to buy a farm to win yourself an early retirement. Is it possible that bitcoin continues an uptrend and we see it at $100k in the next couple of months? Yes, technically that’s possible. But it’s also possible that it goes completely in the other direction. We have no real way of predicting how all this will go. With bitcoin, things can happen behind the scenes that you’re not prepared for. For example, one of the cryoto exchanges can suddenly crash away, or a piece of bad news can go viral, talking about the whole thing pulling back and people taking their profits in panic.
So if you’re one of those people who are continuing to feed money into crypto every single month, then just maintain your course. Enjoy the ride and continue on your set plan. This is not a financial advice though and I am not a licensed professional. So if you want professional advice, please look for a financial advisor. But I’m just here to say that I have always found that in both bull markets and bear markets, it is always best to stay the course.
Build your knowledge
Try to brush up on your bitcoin fundamentals in general. I think it’s really important for someone who is investing in bitcoin to understand why he/she is investing in it. If you already understand how bitcoin works, then perhaps you are good to go. But if you are a new investor in the space and are trying to understand what bitcoin is, you must learn about the industry before dumping a large amount of money into the mix. Pick up some fundamentals about bitcoin, read a beginner’s guide to the ‘Internet of value’, and determine for yourself whether you should invest in or not. Don’t let me or anyone else fool you into making blind investments.
Choose your exchange wisely
Make sure that you are aware of the exchange you use. Be cognizant of the fees that are associated with buying, selling and moving bitcoin in the first place. Try to find an exchange that has relatively low fees and gives you some control over the transaction fee you pay. Make sure that you work with a reputable exchange that provides good support. Don’t get into the schemes of fake exchanges or fraudulent bitcoin brokers. Learn what bitcoin brokers won’t tell you. Definitely do your research to avoid getting trapped in a cryptocurrency scam.
Take crypto news with a grain of salt
Don’t read too much into cryptocurrency news. If you go on crypto Twitter or read too much on crypto-related news portals, you will ultimately find yourself in a position where there is no middle ground. Cryptocurrency news is usually about either going to the moon straight away or crashing down drastically. You don’t need to buy into any of that extreme news. The reality is that we all have our own motives and investment portfolios. Take all crypto news with a grain of salt, and try to come up with your own determinations on how you think bitcoin is going to perform in the future.
At the end of the day, the cryptocurrency section of Opinined was created for all of us to come together as a community to discuss the pros and cons, risks and benefits, and personal opinions about the cryptocurrency and blockchain movement, which is probably going to bring about paradigm shifts in the way we do business and transact with one another.
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