Top 5 Tips For New Bitcoin Investors

Hi Everyone,

As Bitcoin continues to be a hot topic with people making so many predictions about its value, after buying and selling Bitcoin and being in this market for so long, I have compiled a list of 5 mains things for new Bitcoiners Investors.

Here is my list in no particular order:

1) Before buying Bitcoin, do your homework
In a short message, "the more you understand the better off will be". We all know that bitcoin offers a unique and rare opportunity for new investors. However, if you don't have a high level understanding of how a blockchain stores secure data (such as coins), then you are investing in the equivalent of tulip bulbs. Find a trusted person or resource that you can engage with to ask questions in order to understand the nuances of your investment in a safe environment.

2) Proceed with Caution
Risk is inherent to investment, and new investors should keep in mind that digital currency is in a very early stage of development when compared to similar asset markets like the stock or bond markets. Start small, and invest a small portion of your capital. Don’t chase Bitcoin prices. Decide on a entry point and stick with it.

3) Diversify Effectively
We all know by now that over the last several years, Bitcoin has produced some very impressive gains. While these gains may tempt an investor to put all their money in Bitcoin, keep in mind that no individual should put all their eggs in one basket. This is a well-known fact. Be wise when making your choices.

4) Keep Your Coins In Wallets
While exchanges are a great place to purchase digital currencies, they may not be the best place to hold such assets. Don't store coins on an exchange as in the past, many of them have got hacked. So keep your coins in wallets.

5) Prepare for Volatility
The digital currenct markets are notoriusly volatile, and there are several strategies that investros can use to manage the inevitable price fluctuations. One strategy is diversification.

Many people believe that a passive investment style will outperform active strategies in the long term. Not only is passive investing inexpensive and simple, it also lowers trading fees leading to much lower operating expenses.