Bitcoin is considered to be the most sought-after investments option of recent times. High volatility in price range and ease of buying has attracted various customers around the world. Due to its digital and decentralized nature, investors classify Bitcoin as Fundamentally strong, which means it has a lot of scope of growth in the long run. Bitcoin prices are gaining steadily and are offering huge profit bookings.
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While everyone is positive and confident about Bitcoin due to high price volatility, often traders and investors lose their money for the same reason I.e., high price volatility.
Here are 5 Tips for successful investments in Bitcoin
We at cryptobtcmoney.com totally believe in the famous quote by Warren Buffet that “Don’t Keep All of Your Eggs in One Basket”.
We also advise our readers to follow the same. Never invest all of the money only into Bitcoins. Try to diversify it in other cryptocurrencies like Ethereum, Dash, Monereo, Ripple, etc, or the traditional investment options such as Mutual Funds, Stocks, Bonds, etc. Never invest the amount that you cannot afford to lose!!
Mind the Currency Exchanges rates
Bitcoin is traded globally on different global bitcoin exchanges. Local exchanges offer bitcoins in local currencies. Hence, the possibility of price variation of Bitcoin at the same time in different locations will necessarily arise due to differences in currency rates. Indian Bitcoin exchanges will offer Bitcoins in INR but the United States Bitcoin exchange will offer Bitcoin in USD. As a result, in India price of Bitcoin may be higher than that in the United States.
Keep safe and secure your wallet Private Key
As bitcoin is a digital currency and is stored in digital wallets, a private key is used to access the wallet. It is said that if the wallet is lost, all the balance bitcoins in it are also lost and cannot be retrieved back by the user. In this case, only the private key can help out the user to get the wallet back and thus, the lost bitcoin balance. So always note down the wallet key and keep it safe and secure. Also, don’t let any non-trustable person get access to the key as he/she may misutilise it and transfer your balance bitcoins.
Price chart Analysis
Always keep a log of your investments and study them carefully. Observe the price charts and examine the trend in order to make future investment decisions. If possible hire a technical analyst in order to get expert advice.
Slow and steady wins the race
Last, but certainly not least, always aim for making money by long-term investments and not short-term trading. Those who wish to multiply their investments can only do by purchasing Bitcoins at a lower rate and holding it for the long term in order to book supernormal profits. Short term trading may also end up you in losses and thereby losing your confidence in one of the world’s highest return giving investment options, i.e Bitcoins and Cryptocurrencies