Since its humble beginnings around 10 years ago, the value of bitcoin has skyrocketed, making many people millionaires and even billionaires in the process. As a result, you might be thinking about getting in on the action. Before you start, however, there are a whole host of different criteria that you should definitely bear in mind if you want to get the most out of your bitcoin adventures. Most important, keep in mind that bitcoin is a highly volatile asset and is, therefore, highly risky. Another top investing tip is to remember that asset returns represent past performance, and are not a guarantee of future performance.
Read on now in order to learn all about how to buy bitcoin successfully.
Choose a Wallet or Exchange Platform
Before you buy bitcoin, you will have to figure out where and how to buy it. One of the most commonly used ways is to have a bitcoin wallet from which you can make transactions, such as paying for purchases and being paid yourself, essentially functioning like a digital bank. You can also simply buy bitcoin from an exchange platform, like a digital bank, if you don't want to deal with the complications of setting up a wallet etc.
Be Prepared for Fees
Due to the costs of mining bitcoin, there is a whole host of fees involved in buying it. As a result, you should definitely make sure that you factor in the costs involved in the buying process, otherwise it could quite significantly eat into any potential profit margin.
Never Forget Your Details
If you are holding your money in a bitcoin wallet, it is essential that you remember all of your details, otherwise you could end up in a spot of bother like these guys. Whatever you do, make sure that you write your details down and keep them in a safe place, so you will never get locked out of your account and be unable to access your funds.
Accept Market Volatility
The bitcoin market is hugely volatile, with swings of over 20% in one day actually rather common, especially if someone like Elon Musk says he is either buying or selling the cryptocurrency. One way to stay ahead of the pack is to look at crypto signals, which are hints from professional traders who can let you know when a moment of value is approaching. You can either subscribe to a Telegram group — the app of choice for many bitcoin traders — or use a more professional platform.
Focus on Long-Term Strategies
There's a mantra — or a meme depending on who you ask — in the bitcoin industry. A misspelling of the word "hold", it is simply "hodl". What it means is that, no matter what happens, you should hold onto your bitcoin for as long as possible. This has proven to be a great strategy for those who have bought early and held on to their nerve throughout all kinds of market turmoil.
While you can sell for a quick buck, it'll be harder to buy back at the higher price and make more money, effectively losing money in the process. By holding as long as possible, the idea in theory is that your bitcoins will be worth far more in the long run.