TIPS ON SUCCEEDING AS A BITCOIN INVESTOR

We know a little about bitcoin as a form of cryptocurrency and we know how the price fluctuates in the market. This is why it is necessary to be conscious before being a Bitcoin investor. Since the inception of Bitcoin in 2009, many people have made lots of money over night while some have lost quite a fortune due to so many factors that will be discussed later in this article.

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Typically, every investment is termed “gambling.” You either gain or lose - this is applicable to Bitcoin and other altcoins. Everybody wants to make profit from their investment, this is why it is necessary to do the right thing at the right time to make that possible.

First, let us start with a little introduction about Bitcoin before getting to tips on succeeding as a Bitcoin investor.

After the little introduction, it is important to know the reasons why you should invest in Bitcoin today.

1.) It is the most popular and successful cryptocurrency:

Many believe this is because it is the first successful cryptocurrency. Apart from that, it is the biggest cryptocurrency in terms of market capitalization – it stands at $254.2 billion with the second, ripple, at $96.46 billion. Bitcoin is really dominating the market.
Success stories of others: The success stories of others are like reviews we read about a product on Amazon. Bitcoin has made a lot of people rich and I will write about some of them.

Eric Finman: He was 12 years old when his grandmother gave him $1,000 gift. He put all the money in Bitcoin in 2011 as suggested by his brother. Two years later, his fortune rose to $100,000 due to increase in the price of Bitcoin. He used part of the money to start his company – Botangle which he later sold for 300 Bitcoins instead of $100,000 offered to him by the investor in 2015. He became a millionaire at a young age of 18. He presently owns 403 Bitcoins which is worth more than a million dollar.

Eddy Zillan: In 2015, when Bitcoin was valued at about $215, Eddy invested $1000 in it. He was extremely happy with his investment and later invested another $5000. In his latest interview, he said he has made close to a million dollars since he started trading in Bitcoin. Currently, he is a cryptocurrency consultant.

Olaf-Carson Wee: Olaf is regarded as a risk taker. He was employed by Coinbase in 2013 and he told them he wants his salary in bitcoins instead of real money. A decision that made him a millionaire when the price of bitcoin soared above $10,000.

Dee Heath: This is another interesting success story from Sydney, Australia. Dee, pole dancing instructor, started investing in Bitcoin late in 2017. She said cryptocurrency is her passion and that is another reason why she has made it big in it. She presently owns a website that talks about cryptocurrency and offers consultancy to her audience.

Jered Kenna: If Jered’s story doesn’t influence you to believe in Bitcoin then nothing can. He firstly lost an undisclosed amount to hackers then in 2010, he lost 800 Bitcoins when his computer was formatted. He never gave up and continued investing in Bitcoin. Presently, he is a Bitcoin businessman and has a company – TradeHill.

2.) The price fluctuation is a blessing:

Cryptocurrency’s price is never fixed, it fluctuates every time but it can be a blessing to an investor. When the price gets low, investors quickly buy in large volume and save in their wallet till it rises again then they sell which is quite profitable. It takes patience but it is worth it.

3.) Decentralization:

Since there is no central bank or server to value Bitcoin, it is an added advantage to investors because there won’t be any form of manipulation.
Bitcoin as a form of payment: Bitcoin is a secured peer-to-peer mode of exchange. This is why it is currently accepted as a mode of payment. This is another advantage to entrepreneurs and investors.
It is global: Bitcoin is global now. For a small country like Burma to trade in Bitcoin shows Bitcoin trading has spread like a wild fire.

4.) Accepted by big companies:

Big companies such as Microsoft by Bill Gates, IBM, have all accepted and invested in Bitcoins. Other companies that accept bitcoin includes KFC Canada, Reddit, CheapAir, Expedia, Alza, The Pirate Bay, Bloomberg, Etzy Vendors and others. If big companies like these can accept and invest in Bitcoin, why can’t you invest in it?

5.) Bitcoin is a form of cryptocurrency:

It is a decentralized digital currency that is used electronically. It was created by Satoshi Nakamoto in 2008 but became official in January 2009. Bitcoin – A peer to Peer Electronic Cash System is a white paper posted on a cryptocurrency forum by Nakomoto to create awareness for the coin. Today, Bitcoin is the most successful electronic currency in the world.

These reasons are enough to interest you in investing in Bitcoin but that is not the only thing to know. Every investment is a risk because you cannot predict what will happen eventually to your investment. It is not about investing alone, it is about making profit or succeeding in your investment. There are steps to take and also tips. For the sake of this article, I will now write on tips on succeeding as a Bitcoin investor.

• Read everything about Bitcoin: I know this sounds like a lot of work but this is very important before you invest. Apart from the information I have provided above, you can go online to read more about Bitcoin. Read the white paper by Nakamoto so you can understand how the process works. It is just 8 pages and it should not take much of your time. Reading will let you know which broker to work with or which mentor to consult.

• Get a good broker: Brokers are very important to investment. A good broker guides and lecture an investor on how the investment can be successful. Getting a good broker will take time and patience because there are a lot of greedy and evil brokers everywhere – they are after making money and are less concerned about the investor. This is why reading and research is important – you tend to read reviews about different brokers before contacting one or just go to Localbitcoins to get one. There are exchanges and there are brokers doing the same thing but brokers have added advantage, they offer additional mode of payment such as debit and credit card.

• Be Cautious: You should know by now that investment is risky especially Bitcoin investment that has been tagged gambling by many financial advisors. This is why you should proceed with caution and not be greedy. It is advisable to start with what you don’t fear to lose. You can also key in to the “Gradual process.” The gradual process is investing small when you start then you watch as your investment fare before investing more. Eddy Zillian started with $1,000 then watched his investment soar before he invested additional $5,000.

• Effective Diversification: This tip is very important and you must understand it perfectly before proceeding to invest. Diversification has to do with investing in Bitcoins and other cryptocurrencies or other form of investment. Let us take for example, I have $10,000 I want to invest. It is wrong to put all the money in Bitcoin (What if it drops and never rise? Yes, it can happen). I can invest $2,000 in Bitcoin, $2,000 in Ripple and the rest in other coins. If Bitcoin fall, Ripple can rise or any other can rise to consolidate for the loss of the other.

You should not just diversify blindly, conduct proper research on coins or tokens you want to invest in and carry out feasibility study before you actually continue. Diversification is majorly to reduce risks, increase R.O.I and invest more.

• Be patient: Patience is necessary in cryptocurrency trading and investment. An investor should be patient – patience is holding on to your bitcoins by saving them in your wallet and wait/monitor before selling. One of the risk of Bitcoin is that it never informs anyone when it wants to drop. Bitcoin value can reduce as soon as you invest in it. Do not panic, just keep monitoring and wait till the price soar before you can start selling and making profit.
  Another smart move is to sell only small amounts when you need to and leave the rest in your wallet as you continue to monitor.

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It is never too late to start investing in Bitcoin, you can start now. It may take time but you will eventually get successful. The most important thing is reading and researching more about Bitcoin – this gives you the opportunity to understand how it works, when to invest, when to sell and when to invest more. As long as you are patient and careful, you can never lose because Bitcoin has come to stay. Never forget, start with what you can afford to lose.

REFERENCES

• Coin Speaker.

• Hackernoon.