Bitcoin is still an extremely risky area

There is a risk with every investment, but Bitcoin’s novelty and extreme volatility only increase that risk. Elio Soff stressed:

This is still an extremely risky area. Do not invest money you cannot afford to lose!

It’s tempting to be bold and bold and throw money at Bitcoin after hearing success stories, but especially as a beginner, caution is the best aspect of bravery. There is no reason to pursue it overnight with Bitcoin to become a millionaire, and if you sink huge sums of capital into it right from the start, you will be confronted with more problems than solutions.

Marshall Swatt, a major contractor, suggested investing in crypto currencies:

Start small and invest a small part of your capital.

Tim Enneking, Managing Director of a big Website Management, also advises:

„Don’t chase after Bitcoin prices. Decide on an entry point and stick to it. With Bitcoin, you’re almost always right when it comes to predictable price promotions – it’s your timing that may not be right. So, be patient and let the Bitcoin prize come to you.“

There are a number of investment strategies for investing in crypto currencies that work really well with bitcoin, and those that offer the greatest success are often the most cautious.

Things like – putting the same amount of money into an investment at the same time, every week or every month – is great for Bitcoin as it helps you overcome both lows and highs.

3 Effectively diversify
Most new enthusiasts of digital currencies hear about Bitcoin first. However, in addition, there are thousands of other crypto currencies, and some of them grew much faster than Bitcoin. Diversification makes sense, especially since many of these „old coins“ perform well even when bitcoin falls. Tech entrepreneur Oliver Isaacs writes about investing in crypto currencies:

Protect yourself against volatility and do not put all your money on one horse. Similar to investing in equities or foreign exchange, you should diversify your funds as a risk management technique.

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The famous stick picker Ronnie Moas is a convinced supporter of diversification. It is easy to fall in love with a crypto currency, especially Bitcoin, but it is important that you secure your bets.

Don’t put all your crypto money into Bitcoin,“ Moas warns. You must spread it over at least a dozen of the more than 1,000 names. Concentrate on the names of the top 50.

4 Keep coins away from the stock markets

There is still a lot of hacking and theft in this area, and it is important to take precautions. It’s not too hard to make life hard for hackers. Use file sharing sites only for trading. Once you have bought a currency, move your money from the purse and into your wallet, which only you control, such as a hardware wallet.

Many people burned their fingers in stock market hacks – especially Mt Gox – but even in recent times, stock exchanges like BTC-e and the charges against their CEO have led to many people losing huge amounts of money.

Matthew Unger, founder and CEO of onlinebetrug proposed:

Just as you keep some cash in your wallet, something in your bank account and maybe the really valuable stuff in a safe, you need to manage digital currencies in the same way.

#5 Prepare yourself for a wild ride

Bitcoin is notorious for its volatility, so much so that many traditional investors are afraid of it. A massive slump in Bitcoin’s share price does not mean a permanent disaster. But it’s hard to stay involved in investing in crypto currencies when you’re in the red.

Diversification is a great strategy to help achieve this, but it requires some reflection and effort. Of course, the best known (and most successful so far) bitcoin strategy of all is to keep your investment independent of the volatility of the market.

Investing in Crypto Currencies
You can also „buy and forget“ as it keeps you from worrying about dips and volatility if you don’t watch the market. Many investors use this track and are also very successful with it. No matter what you decide, keep these valuable tips in mind and you will hardly get any negative surprises when investing in crypto currencies.

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