The biggest cryptocurrency, or virtual currency, out there – Bitcoin is physically stored in a virtual wallet. Basically, it is a digital currency for payments and other transactions. Bitcoin-related transactions occur in the network called blockchain. Each Bitcoin is stored in crypto wallet or virtual wallet and a transaction of Bitcoin involves the transfer of the cryptocurrency from one crypto wallet to another.
These are some do’s and don’ts of Bitcoin investment that every crypto newcomer and beginner investor in Bitcoins should know about.
Do’s of Bitcoin Trading
These are the things that you need to take care while trading in Bitcoin.
Get knowledge about the cryptocurrency before investments
Before you buy any digital asset out there, you have to do proper research on what you actually plan to purchase. Hence, you must avoid investing in those things in which you have less knowledge.
Therefore, you must know how blockchain technology and cryptocurrencies work. Also, you should know the differences are between various popular digital assets out there. In that way, you will be able to understand the existing and potential future of each token. Also, coin that you are thinking of purchasing.
Buy only from reputed exchanges
Secondly, you can acquire digital assets in many ways. Once you have a proper idea about which assets you really want to purchase, you will be able to make the right decision. Therefore, it is essential for you to transact only on secure and reputable platforms.
It is possible to find many Altcoin and Bitcoin exchanges out there, but only a few of them are actually regulated.
Invest Only when You Know the Loss
It is a wise idea to invest only as much as you are able to afford to lose. Therefore, only invest when you know the intensity of the risk and how you can overcome. I, Moreover, the price of Bitcoins is constantly on the rise over the last few years. Also it is believed by many experts that it will break all records in the times to come. You must remember that as an asset it is highly volatile and within a short time period it can lose about half of its present worth. Thus, in case you actually want to make investments in this class of assets. Naturally, according to experts it is best to invest only a small amount of investment portfolio into such kinds of digital assets.
These are the important tips to avoid while trading.
Do not get scared by the volatility of prices
While it is true that digital assets like Bitcoin are volatile investments, the price of Bitcoins can rise and fall 10% in just a matter of a few days. It is essential to not get scared by this fact. Bigger intra-day price swings are experienced in this market and that is normal.
In case you get anxious with volatile assets, it is probably better that you should not check your digital asset portfolio value every day.
Never leave your Bitcoin on exchanges
In the crypto asset markets, hacking of crypto exchanges are quite widespread and it happens even today.
Naturally, it is better that you transfer your digital asset holdings from crypto exchanges and store the same into your personal digital wallets, right after executing the trades.
In case a crypto exchange gets hacked and your funds get impacted. As a result, getting back your funds can take many weeks- even in case the security breach is compensated by the exchange in question. Otherwise, you will end up losing all your funds without any, or possibly only little, legal options to recover them.
Do not believe the mainstream media that much
Mainstream media often writes the obituary of Bitcoin and loves to do so, for vested interests, to grab more eyeballs and create sensationalism. Even when the truth is exactly the opposite and the prices of the cryptocurrency are skyrocketing. Naturally, you should be cautious about mainstream media reports and get information only from reliable crypto media sources. For that, Trading platform is a reliable that you can use for trading
Henceforth, now you know what to do and not to do for investing in Bitcoin. Also, take necessary steps and be sure to invest the right way.