Have you ever visited an app store on your mobile phone, only to be greeted by an ad content showing a little man driving the latest Proton X30 SUV? But since you cannot really skip the ad until the ad time has elapsed, you're compelled to watch till the end. But before the ad video closes, you hear the little man boasting about how he's made several thousands of dollars trading or handling cryptocurrencies such as Bitcoin.
At which point, your attention got peaked, and you became interested in learning more about the secret of this little man's success. After scouring the internet for a while and checking out several relevant resources, you came to decide within yourself that you'd like to give Bitcoin (BTC) a shot. And now you're fully motivated to thread the path.
Well, if this has been your BTC discovery story, then I congratulate you on your newly discovered pathway to success. And for those that have learned about the money-making potential of BTC through other channels, I also congratulate you because BTC is, indeed, a pathway to success for everyone willing to give it a shot.
But like everything else in life, you always need a proper guide if you are to become successful. In this light, I've compiled a list of tips to guide you on your path to success. So feel free to read!
Take your time with your homework before you dive in
It doesn't matter the channel through which you've learned about the money-making potential of BTC, if you want to become successful like those BTC-enthusiasts you've seen online, then you need to spend your first few weeks, or months, in the industry learning all the rudiments involved. There are so many strategies to make money off BTC, and the more you know, the better. To better aid your learning curve, you may try to learn or work with a mentor.
By and large, you should invest your time in the learning process of BTC, even if it means that you don't get to make any money in the first few weeks or months.
For instance, taking your time with the learning process will intimate you with knowledge such as the best times to trade, strategies involved in BTC (Holdling, trading, mining, etc.), tips to avoiding scams, and lots more.
Proceed with caution
Do not invest all you've got into BTC at the get-go. Like every other investment opportunity out there, BTC is not without risks. And even more prominent are the risks you tend to face in BTC, due to the volatile nature of the market. For instance, if after learning about the strategies involved, you choose to go with BTC holdling (a situation whereby you buy the coins when the price is low and sell when the price goes up). Now, when you notice that the market value of BTC is going down, you invest all your money and buy as much BTC as you can. Unfortunately, the news of coronavirus hits the Chinese market (one of the biggest consumers of BTC), and as such, the demand for the coins drops drastically and stays this way for as long as you can imagine. Consequently, the value of your investment drops, which means you cannot sell, let alone turn a profit.
My point being? Before you proceed with any BTC strategy, always bear in mind the volatility of the market and proceed with caution.
Prepare for volatility
The last thing you want to do as a newbie BTC investor is not to consider the existence of volatility in all that you do. The world of BTC is still largely unstable, which means that anything can happen at any time. For instance, you might leave the market at night in a downward slope, only to wake up to see that there's been an increase in the demand for BTC, and the market is booming again.
But thanks to the revolution of Bitcoin, investors can fully equip themselves against the volatile nature of the market, by adopting the use of the trading bots on the 10cryptobots website. If you're a bitcoin investor, you can tap into this revolution by seeking out a bot to trade for you.
It doesn't matter whether you're active or away, these bots have the ability to take advantage of any market situation and translate it into success for you, leading to zero losses and lots of gains for you.
Although BTC is still the biggest cryptocoin out there, there are still other investment opportunities. When looking to diversify your portfolio, you could consider altcoins, traditional assets like bonds or stocks, or a combination of both.
Take, for instance, let's say you have a simple portfolio comprising of Ether, Bitcoin, Ripple, Litecoin, and Bitcoin Cash. And suddenly, one of them falls by a magnitude of 15% in value. You wouldn't really feel the significance of this drop on your portfolio because, ideally, when one currency drops, another rises by the same amount.
Never stow your coins away in wallets
Under no circumstance should you leave your coins under the guidance of an exchanger for long. While exchangers are, indeed, a great place to buy BTC, they may not be the best place to keep them. The reasoning behind this logic is that exchangers are hackable.
Regardless of the amount or level of security promised by an exchanger, it is not unusual to find an exchanger's website hacked. To further protect your assets, you can adopt the practice of using hot (online) and cold (offline) wallets. Just the same way you keep some cash in your safe at home, hold some at hand, and stow some away in the bank, you should handle your coins in a similar way.
As an investor, you should keep the bulk of your coins – once purchased – in cold wallets (since they cannot be accessed by the internet).
NB: Hot wallets are like checking accounts, whereas cold wallets are like a savings account.