Posted by Xoken.org – There are many ways to buy Bitcoin that can be done for beginner investors. Currently, Bitcoin has become an investment instrument that is popular with young people. However, before buying crypto assets such as Bitcoin, etc., there are several factors you must know.
Even though Bitcoin has now reached many people in investing, because of the tempting price increases and the shadow of profits that will be obtained, you also have to be aware of the risks before starting.
Therefore, for those of you who want to start diving into the world of cryptocurrency investment, it is recommended that you always read today’s crypto news. This aims to ensure that you know exact information about events that influence the price of Bitcoin today, whether it rises or falls.
Tips for Buying Bitcoin to Make Big Money
If you already know and consider the advantages and disadvantages of investing or trading Bitcoin, then there are several factors you should know before buying cryptocurrency assets, in this case Bitcoin, including:
1. Don’t invest more than you can afford
Crypto assets are riskier than most other conventional investments. There are no guarantees other than volatility. Additionally, in most cases, crypto assets are not regulated. There is no insurance for these items.
However, what should be noted by prospective novice investors is that the price of crypto assets such as Bitcoin always fluctuates wildly from minute to minute, has experienced painful and prolonged corrections and sooner or later it is likely that this will happen.
Bitcoin, as the first crypto asset in more than a decade and less likely to be lost than many other coins, is also not free of risks. So don’t bet all your money on Bitcoin assets.
2. Do your research properly
Before spending large amounts of money on Bitcoin assets, it would be wise to spend hours researching the technology. So, you understand the benefits of the plan and the risks.
Visit developer forums and mailing lists. Listen to the podcast. Search the internet for references not only about the Bitcoin asset, but also related fields such as cryptography, game theory, and economics, terms, and market movement charts.
Even if you are not sure, you can look for or join a group of people who have experience in crypto investment, so you can find out more about Bitcoin trading strategies, etc.
Once you feel you have explored everything there is to know about Bitcoin and other crypto assets, then you can make a Bitcoin purchase.
3. Resist the fear of loss
If the only reason you invest in something is to avoid loss, the only thing that is certain is the possibility that you will suffer a loss and lose everything.
Fear of missing out (FOMO) is a sure way to destroy the wealth you have accumulated over the years. The problem is that this is a knee-jerk reaction to something that should be asked first.
Shopping based on AC will quickly cause you to suffer losses. suggests you understand what you are buying. You should know the market movement charts and seeing a value increase by 30% or more in the last 24 hours is not research.
It could be that you are the one who is unlucky because you sold a Bitcoin asset that was experiencing a decline.
Each crypto asset has its own strengths, including Bitcoin. Don’t give up on always learning. Pay attention to every market price movement, and you can decide whether you want to sell or buy Bitcoin.
4. If it sounds too good to be true, it will be true
Like Wall Street, cryptocurrencies are also heavily manipulated. There are many people who promise that their services will surpass Bitcoin. But is this true? There is only one way to find out, you have to do research.
Buyers beware, and so are borrowers. Some crypto exchanges offer leverage of more than 100x. This means you can borrow up to 99% of the investment amount. This will eat into your profits if the value of crypto assets increases. And if it’s the other way around, then you can easily delete it.
5. Don’t trust easily, always verify
There are many scammers in this market. Last weekend, several fraudsters on Twitter took advantage of Elon Musk’s appearance on the TV show Saturday Night Live (SNL) to scam people. They managed to extract various cryptocurrencies worth nearly 100,000 US dollars through fake donations.
Mimicking SNL’s Twitter account, the criminals asked their victims to send a small amount of cryptocurrency to verify their addresses. If they do, they will get their money back tenfold.
Programs that provide lots of unreasonable lures are a danger sign, you should verify every piece of information like that.
6. Be aware of unit bias
Just because a crypto is trading at around US$1 doesn’t mean it is “cheaper” than Bitcoin, which is US$58,000. Not all crypto coins are created equal.
Today there are thousands of crypto assets, some trying to imitate Bitcoin and others trying to solve other problems. They all have different levels of developer support and releases. Determining the value of a crypto asset means asking how and why the coin was created.
So what? Who did it? What is the biggest producing city? How do repositories work on GitHub, where updates for open source software are stored? Like a building, the code base requires maintenance, and ignoring it can make the structure unsafe.
Most importantly, what is the security model of the coin, proof of work, proof of stake. If it’s the first peg then how does the hashrate compare to other PoW coins? If you don’t know what these terms mean, it means you are not ready to invest in Bitcoin.