Topic: (For Newbie) Want to Start Bitcoin Investment? Do these 4 Considerations first (Read 182 times)

thanks alot mate for this post. it is very informative for the people who are still researching and learning about cryptocurrency. i am appreciating your effort. cheers.

I agree with this no matter what the market is. So hard for some to be in that financial position though.

Yeah, so basically we do not just use bitcoin for investment purposes and seek profit only, we also need to use the bitcoin as it should be.

I do like how you reiterate those important things that newbie as well as experienced but stubborn traders should take note when dealing with bitcoin. Bitcoin is really volatile and we should not believe anyone who said bitcoin will crash or bitcoin will go to the moon instantly since bitcoins value id defined by the market and not by the analysts. Also, I like the last part which can best be described in a saying " do not put all your eggs in one basket"; one common wrong move by traders and newbies is that when they see bitcoin at a low value they will put all their dollars on bitcoin on that value, but after sometime the value of bitcoin drops and they have no dollars left and they are forced to wait for a long time.

Your post are helpful to a newbie like me as I don't have much idea yet in Bitcoin world.

All of the things you posted are completely true and helpful. I would like to add that you should never invest more than you can afford to lose or money you will need in the near future

Yes, this is highly speculative area and "asset". With stocks you are trading as the term says company stocks, although they are imaginary thing which can be compared with cryptocurrency as it really doesn't exist outside of virtual or digital world. I myself first started off with crptocurrency only to start reading some information regarding stocks only to discover the real similarities between both. Let me explain what do I really mean by this. First of both markets are heavily depended on rumors and good or bad news. If there are some great news and if crypto is being advertised heavily well then we can see the surge and pump happening. If we take closer look at stocks it is the same thing, for instance take the April fools joke from Elon Musk this year stating that his company went bankrupt, even because this wasn't true - because it was an Aprils fool joke it's stock price fell like 2% because some people saw this as bad sign and started selling. Among crytocurrencies you don't actually always have some companies but you have main development team, so if they screw something up price will fall and in reverse order.

Please for those of you who want to add your own tips, please write ...

1. Hard to predict

If the value of a company's stock can be predicted by looking at the financial statements and issues affecting the company, it is different with cryptocurrency.

Cryptocurrency such as Bitcoin, its value is strongly influenced by the level of public confidence. Its volatility can be very wild.

Therefore, before you start investing Bitcoin, you should already have a high level of vigilance due to its unpredictable value.

2. High risk

Although the level of security is quite high, Bitcoin is arguably vulnerable to hacker attacks. This is because Bitcoin is stored in an online "wallet" connected to the network, making it quite risky to be harassed by hackers.

Surely already know, if the transaction has happened can not be canceled? In other words, if your digital money has been transferred to another account, you can be sure you will not get it back.

To minimize the risk of losing your money, you can increase your Bitcoin security by storing it in an offline wallet or so-called cold storage. Save most of your digital money in cold storage, just set aside a small part in the wallet online.

3. The advantages of cryptocurrency are highly speculative

No one suspects that the value of Bitcoin can soar at that moment. From the beginning only worth tens of thousands of dollars only, then increased up to hundreds of millions of dollars. However, such things can be likened to winning the lottery, not something that often happens.

It is the same as for example someone invested his money in US Dollars before 1998. Money that was only a few tens of millions directly jumped to hundreds of millions. Just like the case of Bitcoin, this is a remarkable thing and very little chance of happening.

So if you invest in Bitcoin, you should be prepared not to make a profit at all, or even lose everything you invest.

4. Other investment options still exist

Because there are many other investment options, you should not invest all the money in Bitcoin. Just a few. Prioritize investing in which the benefits and risks are clearer. So that the money you invest not just settle.

There are four things you should consider before starting investing in Bitcoin. Cryptocurrency is an investment instrument that can provide extraordinary profits quickly, but you also have to understand the big risks in it. Hopefully this paper can make you more careful in choosing the right investment instrument.


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