5 tips to keep in mind before investing in bitcoin

The crypto ecosystem is already 10 years old and a lot has changed since that first email sent by Satoshi Nakamoto announcing that the Bitcoin protocol was ready. Since then, there have been updates, new solutions and new problems have appeared (hacks, for example).

Those who have heard about cryptocurrencies recently and want to start investing have a task ahead: learning what they are, what they are for, how they are created (mined or mined), how they are bought, how they are stored and much more. For this reason, this note is intended for those who want to start investing in bitcoin investing in cryptocurrency.

1. First of all, and first advice, research, read, learn

The best investment options are made when you know what to invest in. And since every investment has a risk, it is better that this risk be known. Some ideas to get started can be: read about the technology on which bitcoin is based and discover how the entire crypto ecosystem works, what is a blockchain , what are blocks, how do they close, what different types of crypto assets are there , what is the difference between a cryptocurrency and a token, etc. It seems overwhelming, but little by little you can learn. All information is available free on the internet and very easy to get. There are no excuses for not getting inside the subject if you are really interested in investing in cryptocurrencies. And you have to lose the fear of asking. There are many enthusiastic people in the crypto space who will be willing to help and answer the questions that may arise. In this way you can acquire a lot of information and evaluate the first steps to invest safely and with confidence. And in the same way, you have to take with tweezers cases of exaggerated success or resounding failure. They are usually exceptional

2. Start small, step by step and be patient. Much patience.

Getting informed, researching, reading, and learning doesn’t mean you have to become a crypto guru to start investing. Simply knowing what it is, what the referents are talking about, understanding their speeches, the terminology and the functioning of the ecosystem, is a good and great first step. This leads to a notion of risk. And like any activity that involves one, it is advisable to go slowly, step by step. As we already said, cryptocurrencies are a decade old and the ecosystem is in its development stage. Therefore, the activity is usually risky, and if you invest a lot from the start, the risk of losing everything is also high. With this we do not want to instill fear, but we do make it clear that a great investment, just as it can turn into a big profit, can turn into a big loss with the same probability. So the second tip is to start by investing little, which you are willing to lose in case the price goes down, for example. And be patient. Some specialists recommend that instead of chasing the bitcoin price, let the price reach the investor. That is, deciding on an entry price and waiting for bitcoin to reach that price to enter. And when the time comes, buy in small quantities. And again, patience. Many investors withdraw losing because they entered with a price and when they see that in a month, the price dropped, they leave. The key is to wait. All analysts agree that the future is of bitcoin. It is unavoidable.

3. See beyond the horizon

As the saying goes, it is not advisable to put all your eggs in the same basket. It is known that bitcoin is the main cryptocurrency, the strongest and the one with the most future. But that does not mean that the rest of the crypto assets are worth nothing and will disappear. Unlike. Specialists say that many of these altcoins are going to find different uses that are not going to overlap with BTC and are going to have different applications. The adoption of altocoins is increasing and that is why the third tip is to diversify. Thus, if one of the components of the investment falls, that decrease can be offset by a gain from another component. In addition to Bitcoin, it is a good idea to invest in Ripple (XRP), Ether, Bitcoin Cash (BCH) and Litecoin (LTC), for example. Investing equally in different components maintains a balance, as all of these components are within the crypto ecosystem, and if any one falls by a given percentage, the rest are bound to increase by the same amount. Caution should also be exercised in which cryptocurrency to invest. And here we return to the first tip: find out who created it, how its price evolved, etc. Investigating and keeping up to date with the crypto market is crucial and you have to be aware of price movements and statements by world leaders on the ecosystem: it has been shown that a pro or con discourse can cause the price to drop or rise. Abruptly.

4. Attention to safety

Investing in cryptocurrencies is putting money into digital assets. For this reason, special attention must be paid to safety. Or rather, cybersecurity. It is true that there are many hackers and cybercriminals on the prowl. The best advice to avoid falling victim to their attacks is to use offline wallets, cold wallets. Immediately after buying cryptocurrencies, the best next step is to move them to your own wallet. Keeping crypto assets in custody of an exchange increases the risk of exposing them to attacks. This does not mean that exchanges are insecure. The main exchanges in the region and in the world are safe and take measures against attacks all the time. However, many have suffered hacking attempts by hackers. For that reason, keeping crypto assets in cold wallets is the best way to protect yourself from hacker attacks.

5. Prepare for sudden changes and movements

Few investments are as volatile as the digital currency market. The last month is proof of this: since September bitcoin went from USD13, 000 to UDS 8000 and then touched USD 10,000 and began November established above USD9100. Every new investor needs strategies to avoid these ups and downs and to “surf “these price fluctuations. The last tip is a mix of the previous ones. In addition to diversifying investment, you have to be patient. Maintaining crypto assets and not falling into the temptation to sell for short-term solutions is a big challenge. There is a saying that circulates in the environment that says that passive investment has a greater chance of success than active investment.