Even if you don’t know anything about cryptocurrencies, you must have heard about Bitcoin and how it is changing the world. And since you are here, you probably want to buy Bitcoin or other crypto assets.
But it is not all that simple. Investing in Bitcoin comes with several risks that most experts conveniently omit in their promos.
In this article, we will show you how to buy bitcoin safely in a saturated market. You will also learn how to buy Bitcoin with a foolproof strategy to protect you from losses.
Let’s get right to it!
Why do you need bitcoin?
The first question you should ask yourself before buying Bitcoin is: “why do I need it?”
Am I battling with FOMO (fear of missing out)? What are my long-term plans? Do I view Bitcoin as the future of finance?
These three questions will help you decide if BTC is a worthy investment for you. After all, investing is not for everybody.
If you are just investing in BTC for fun, you should stipulate a specific amount as your investment capital.
Otherwise, you need a strategy if you want to make returns on investment from your BTC assets.
So, determine why you need Bitcoin and use this to craft your investment plan.
Where to buy bitcoin
Once you decide to invest, start looking for where to buy bitcoin. At the moment, you cannot get Bitcoin from regular banks, which means that you need to find a cryptocurrency exchange.
Unlike traditional banks, crypto exchanges enable users to trade in any cryptocurrency of their choice. You can easily purchase Bitcoin with your credit card whenever you want without mountains of paperwork.
Also, you can buy Bitcoin from online traders. But you need to be careful when conducting transactions with them. Use only verified brokers with affordable service fees and commissions.
Ultimately, you can get your Bitcoin via direct transfers from your peers — P2P transfers. All you need is a wallet and a unique address to complete the transfer.
Caveat: Never share your wallet details with anybody!
Do you have a strategy for investing in bitcoin?
Most people jump into BTC investment because it is the hot thing in town. But if you want to gain from your investment, you need a strategy.
Are you in it for the long or short term?
If you have a short-term goal, monitor the market regularly to spot avenues to make profits. You should also stipulate your expectations for every period (weekly or monthly) and monitor them.
If you are investing in the long term, you can just buy BTC and leave it in your wallets without constant monitoring.
In essence, come up with a strategy to keep you on track with the fluctuating marketing.
How do you feel about price fluctuations?
If you are thinking of how much to buy bitcoin, look at the daily market value to see how it fluctuates.
Over the past few months, Bitcoin prices have fluctuated so much that traders can no longer predict the worth.
And external factors affect the value of Bitcoin. During the last bull run, the value of BTC reached $60k. But once Tesla announced that the company no longer accepts crypto payments, Bitcoin has been in a downward spiral.
Besides, government regulations can boost or cripple BTC and other cryptocurrencies. So, these factors make Bitcoin extremely volatile, hence the price fluctuations.
Therefore, if you don’t have the fortitude to stomach the unstable prices, invest in stablecoins like USDT.
Are you ready to lose money?
Since you now know that the price of Bitcoin fluctuates, you should decide if you want to invest. Don’t think of buying Bitcoin as a foolproof get-rich-quick scheme. The truth is that you are probably going to lose money initially.
And when this happens, you either HODL (hold on for dear life) or buy the dip as the price goes lower. The other option is to count your losses and convert your remaining money back to fiat (USD, EUR, GBP).
In essence, you should get ready to lose some of your capital when you buy Bitcoin. But if you stay patient, your assets will multiply when the value rises again.
The choice is yours!
Buying Bitcoin can be a head-scratcher, especially if you don’t know much about cryptocurrencies. But this investment can pay off in the long run and make you a lot of money. All you need is to identify why you are going into the market and monitor market movements. Ultimately, If you don’t like volatile assets, then Bitcoin is probably not the best option for you.
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