The whole world was filled with envy when in 2017 certain Bitcoin investors became millionaires overnight. Other investors couldn’t see the possible potential the cryptocurrency had and hence missed out a chance to make decent profits. Now the past can be changed, the only thing which can be controlled is the present and future and hence before investing in the Bitcoin for the next time, some tips might prove to be very helpful. So here are 10 tips that can be used as a guideline to make profits out of the next Bitcoin surge.
We must be able to clearly assess ourselves that how much risk can we take or amount are we willing to lose and that which would not hinder on your way in achieving personal financial objectives and goals. If we can’t assess ourselves at the bottom lines then clearly we are not ready for the game. We mustn’t be vague in our decisions. Keeping a certain amount of money for the investment without caring about the returns will lift you above the other investors who would be in a constant fear of losing their money. It simply means that you have calculated and accepted the risks.
When the investment turns out to be fruitful at the initial attempts and the market to conditions are at the pinnacle, it is our human nature that we put on the greedy goggles and forget to use our brains. This is when a lot of investors suffer losses through their hasty decisions taken in this mood. It is only after the loss that the greedy goggles come off and the investors realize their mistakes.
Even in this modern world many of them still consider trading as well as Investments as gambling. It is to be understood very clearly that when the risks are calculated properly along with the market conditions, profits become inevitable.
In order to make informed choices while investing in Bitcoin and not getting carried away by the market conditions. It is better to write our personalized goal on a piece of paper, like what are we trying to achieve from that investment. This is very crucial and proves to be very handy at times when we subconsciously put on our greedy goggles. During such times it reminds us of our goals and helps us stay within our limits. Also, studies suggest that writing down our goal makes it somewhat tangible and help us achieve it easily. Sometimes ideas we have in our minds may be very ambiguous, writing it down may give us a clear picture of it. This might prevent us from making bad decisions when today’s trading facilities are just a click away.
Along with writing down our goals, extensive research is needed on the current Bitcoin market as they are very fluctuating ones. One must also keep an eye on the news related to Bitcoins as they are one of the major market influencers due to FUDs. Keeping a close watch on the market trends may help us to cash out some amounts of money continuously.
At intervals of time, it is better to step back and take a look at the overall situation of the market and try to gain insights into it. If it seems to you that the bubble is about to burst then take necessary action. It is evident that almost all the bubbles have the same pattern.
Having written financial goals are not enough to prevent the investors from taking decisions out of fear as well emotions during the market rise or fall. The discipline to stick on to the personalized goals is a challenging task but is definitely worth it.
After each Investment, we must look behind and evaluate oneself. We must have a clear picture of the reasons we make profits or losses respectively.
Investing in Bitcoin on different platform divides out the risk of losses due to hacks and frauds. These days most of the cryptocurrency exchanges are Centralised in nature and its hack will result in its complete breakdown.
After doing an extensive research on the market conditions according to our investment capacity we must be able to set the limits. When the actual price conditions reach either the upper or lower limit the sell and the buy trades must automatically get executed.
Although the great financial investor, Warren Buffett considers Bitcoins and Cryptocurrencies has no intrinsic value, there is a pinch of regret when we observe that the whole world is exposing themselves and gaining some profits out of them anyways.