06 May, 2021 | AtoZ Markets – Are you wondering why many investors are joining the Bitcoin bandwagon? Well, bitcoin has proven to be by far the most profitable investment of the past decade, and this year offers even more promise. The most successful BTC investors have followed a series of smart principles, which will be even more important for taking profits moving forward. Without further ado, let's discuss the three smart Bitcoin investment tips.
3 Smart Bitcoin investment tips you should know
1# Don't try to beat the markets
On the surface, it may appear that traders and market players make the most gains and that trading skills are needed to profit in the crypto space. In fact, the opposite is true. Slow, steady purchases of Bitcoin over the last several years have proven to be by far the best strategy for ordinary investors.
For example, a simple monthly Bitcoin investment of USD $100 per month since January 2013 would now be worth well over $1 million. In fact, beginning this same simple strategy when BTC reached its all-time high in January 2018 would also be very profitable by now.
Put simply, trading requires great skill, and most amateurs lose. Those that work in traditional financial markets have long understood this fact, and it is especially true for the crypto space. Thus, the best move is to be conservative and stay away from the trading game.
2# Diversify your asset smartly
Like conventional investments, a mixed cryptocurrency portfolio is a smart move. Some altcoins have given incredible returns to early investors. Many have amazing long-term potential. Nevertheless, alts are risky, and should only be acquired after a thorough, independent evaluation.
In other words, research is very important. A diverse crypto portfolio should still be conservative. More established altcoins should be a priority. Keep newer, less-popular platforms in only very small amounts, if at all.
3# Secure your Bitcoin funds
Concluding the list of smart bitcoin investment tips, let's look into the security of Bitcoin or other cryptos. As you may have known, untold millions of dollars in Bitcoin have disappeared because of lost keys, forgotten passwords, and theft. Virtually all of this loss is due to human error.
That being the case, smart investors make security a top priority. They never keep their funds on exchanges, and they always fully understand the processes by which their crypto funds are stored in their Bitcoin wallets. The well-known adage “not your keys, not your crypto” should be respected as cardinal truth.
Related: How to Identify a Reliable Bitcoin Wallet?
The future is clearly bright for blockchain technology. Thus, it is incredibly promising for those that seek to enter crypto markets. Nevertheless, following basic, conservative principles is the best means to realize the benefits of cryptocurrency investment.
Although not exhaustive, these are some of the important Bitcoin investment tips you should know before entering the crypto market. If investing or trading Bitcoin is not something appealing to you, then you could always try and search for alternatives like Bitcoin faucets.