If you had a friend who wants to invest (or just started investing) in bitcoin for the first time, what advice would you give him?

Don't be Scared!!!

Despite losing almost 10% last week, bitcoin is still up more than 600 percent so far this year. There have always been ups and downs, so don't be too scared my friend!

It soared to an all-time high of $7,888 around 1800 GMT on Wednesday after a software change planned for November 16 that could have split the cryptocurrency in a so-called "fork" was suspended. Many factors and events could affect its movement. Aren't you excited?

Re-evaluate your reasons for investing

Before making another move, sit down and take an honest look at your overall financial situation. More so if you’ve never made a plan before. The first step to learning investing is setting your goals and expectations. – Never risk everything you own, especially before getting the help of a financial professional. There is never a guarantee that you’ll make money from simple investments. Get the facts straight and follow through with an intelligent plan. You should gradually gain financial security over months or years. Most of all, enjoy the benefits of learning this process. Know your destination but don't forget to enjoy the ride. Making money just for the sake of making money will only make you vulnerable and nothing you do will be enjoyable.

Source Article

Always be prepared for changes along the way.

Never let your guard down. Everything has been volatile. If your fund is too small for many experimental moves, making a good start is ideal, but if you're past that stage, consider other investment opportunities, starting small for the second time.

You and your family's financial needs, and the situation may also vary on a weekly/monthly basis, so set aside enough funds to offset any unexpected losses. Consider the normal movement of say, bitcoin price. You may need to cash out anyway, so you'd better do it during a peak. The length of peaks varies greatly. Talk about 'unpredictable'! Identify platforms with lower fees and note the gap between "buy" and "sell" price. No one will tell you exactly what to do. You need to do your homework: the math.

Image Credit

Size-up, create and maintain an emergency fund.

Smart investors set aside enough money in a savings account for emergencies like sickness or sudden unemployment. Up to six months of their income in savings is ideal so that they know it will absolutely be there for them when they need it.

Variety is Key

While bitcoin was sinking, Bitcoin Cash - another version of the original that was generated from a split on Aug.1 - surged, trading up as much as 35% on certain days at around US$850, according to Coinmarketcap.
-This is where you will benefit from investing in multiple currencies across multiple platforms.
By including different cryptocurrencies with those lending websites with consistent investment returns, you will feel more secure. Everything moves up and down under different market conditions within a portfolio, so a beefed-up portfolio helps an investor protect against significant losses. Also, consider buying tokens from well-founded ICOs like UTRUST. Just don't forget to research about the underlying project, actual business operations and people in the team. Watch out for scams.

The bottom line:

Avoid impulse investments, just as we want to avoid impulse purchases. Before you change strategies, consider the pros and cons alongside your present circumstances and long-term goals. When you do – and you still decide to buy/sell, at least, you’ll know that you’ve made an informed decision - even an educated guess isn't bad at all. After all, it's your money. You have the final say on how you will manage it!

Thank you for reading my blog!

---

---

Please upvote, resteem and follow me, thank you.