2021 is considered to be very much the year for Bitcoin. Its exponential growth is around 1,400%, turning early adopters of crypto into millionaires in the process. Although the value of Bitcoin sank and stabilized a bit later, Bitcoin is still a very lucrative market to invest in. There must be a reason that Bitcoin has been the buzzword on the lips of many economists and financial traders, right?
However, if you are a newbie when it comes to investing in Bitcoin and cryptocurrencies in general, it is vital that you do your research before disposing of your hard-earned money. Our invaluable tips will help minimize the mistakes you make with your cryptocurrency trading. You can buy BTC in dubai online by just following simple steps. Just read the complete article.
1. First, learn how to properly store your Bitcoin
It is important to learn to walk before you can run. Start by learning the basics about the mechanics of buying and selling Bitcoin. You will first need to read our reviews of all the major Bitcoin exchanges to discover the safest platforms to start buying Bitcoin. Now people buy BTC in London online without getting into much trouble.
Coin base tends to be a good starting point for any beginning investor due to its intuitive interface and the ability to start buying other leading cryptocurrencies like Ethereum, Bitcoin Cash, and Lite coin as well. As with all financial investments, it is vital that you learn how to do it. Protect your assets. In this case, you will need to ensure that your digital assets are fully protected against the threat of cyber attacks and scammers.
There are specially designed Bitcoin wallets with security at the forefront. Ledger Nano S is the most secure Bitcoin wallet in the world, while TREZOR is also popular as it generates private keys for your Bitcoin wallet offline, away from prying eyes.
2. Keep your eyes peeled for market capitalization
A common mistake novice crypto traders make is making investment decisions based solely on the price of the coin. In reality, cryptocurrency is only valid once the current circulating supply has been taken into account.
If you are considering buying Bitcoin, try not to focus too much on the current value of the coin and instead consider the percentage of the total market capitalization that you are buying. Because now, you can buy BTC in UK online. The closer a cryptocurrency approaches its market capitalization, the greater the demand to sell at a later date.
3. Is it worth investing in Bitcoin mining?
The Bitcoin mining industry has accelerated at a rapid pace. In the early days of Bitcoin, the average home computer could be used to solve crypto puzzles and earn new Bitcoins. Unfortunately, in 2018, the only way Bitcoin mining is profitable is within specialized data centers. These warehouses are packed with machines built solely for the purpose of mining Bitcoin. A domestic mining operation would cost millions to set up today, which means it’s probably best to consider investing in Bitcoin that is already in circulation.
4. Be prepared to handle FOMO
The dreaded fear of missing something (FOMO) is also another rookie mistake among Bitcoin traders. If newcomers to Bitcoin trading log into their chosen cryptocurrency exchange and witness double-digit growth in Bitcoin in the last 24 hours, they will invest independently for fear of missing out on further price movements. What these investors do not consider is that they have often lost value in the price movement that day – buy the asset high, rather than the old adage of buy low and sell high. The most profitable Bitcoin investors accept that they cannot capture all the positive market movements in Bitcoin. Instead, they will bide their time and attack when market conditions are most favorable.
5. Accept that Bitcoin is a volatile and high-risk opportunity
Finally, if you are going to mentally manage to invest in Bitcoin, you must understand the fact that it will be a bumpy ride. The volatility in Bitcoin is enough to scare even the most seasoned traditional investors.