So… You Want to Invest in Crypto, Huh?
If you want to determine whether or not Bitcoin is a good investment opportunity for you, keep reading. Let’s get started!
First of all, there’s no concrete right or wrong answer to this. Bitcoin will be a good investment for one person, but not another person. For example, just know that people have sold their houses to invest in Bitcoin. For some people, the market went up and their very risky investment strategy paid off. For others, the market crashed and stayed there for awhile, and the investor was struggling to fight for financial survival.
Therefore, approach your cryptocurrency investing (no matter what coin) rationally and with a level head.
Having a Strong Opinion is Absolutely Necessary!
Before you decide if Bitcoin is right for you, you must form a strong opinion on it. Most Wall Street investments are paper-thin relationships; an investor sees a trend, they put in their money, and more often than not they are right. These Wall Street investors don’t have a relationship nor opinion with their investments. They simply follow very strict guidelines to succeed more often than not.
Bitcoin is a bit different. It represents a potential new financial future. It represents the elimination of hefty transaction fees and wait-times. Sure it has its bugs, but it’s going in the right direction.
You have to form your opinion on this currency. If you don’t you’re liable to make foolish decisions based on Fear, Uncertainty, and Doubt (FUD).
Do Your Research … Be Informed! Don’t Be Played Like a Fiddle By the Media
If you’re fairly new to this world of digital currency and cryptographic currency, do your research! I can confidently say that it’s not worth investing in any digital currency if you don’t at least know the basics. Spend an hour or three on Google (or on this website!) asking questions. There are tens of thousands of different opinions, but the digestion of these opinions will keep you informed. You’ll have several opposing viewpoints (for example, where you see Bitcoin in the future) and you choose your stance.
What’s Your Investing Stance? Choose Your Class!
There are two main stances to take. Are you a short-term money-grabber who seizes public hype to your advantage? You may be looking for a more day trading position. It’s volatile, but people have had a great success with it. Or, are you a mindful long-term holder (or “HODLer” as Redditors and forum users like to call them). If you’re the latter, you’re not thinking of making a quick profit; you’re thinking of retirement and beyond.
Your stance will determine how you should invest. I won’t be speaking to the former, the money-grabbers, because it’s very difficult to give advice regarding a market that changes as often as the sun sets. Therefore I’ll speak more to the long-term investors. These people will set aside a set amount of money each week or month and invest. Sometimes they’ll invest a lot if the market trends are showing upward movement, or they’ll invest a little if they feel the price is bloated. The common theme between these successful long term holders is that they do not let their emotions get in the way of their investing.
Don’t Panic! Hold Your Towel and Say 42
You see… there are too many people out there who freaked out when Bitcoin started crashing. They panic sold. That’s right; the price started spiking downward, and they sold all before it was too late. By doing so, many of these frantic sellers took the bait of a false alarm and the price went back up before they could re-invest.
If you’re letting your emotions (or FUD) determine your actions, then Bitcoin is probably not best for you. I recommend that you take the stance of a long term investor who holds onto their coins no matter what the media headlines say.
Predict the Future. Hold Strong.
Even then, if you do that, you still have to have a strong opinion about Bitcoin’s future. You need to be confident that it’ll be heavily used and sought after. You need to believe that Bitcoin (or any other currency you invest in) will be heavily integrated into how members of society buy and sell goods.
After doing some research, you may come to realize that there’s another digital currency that is more in line with your future vision.
The path is bright for cryptocurrencies as a whole. In my opinion, I see Bitcoin succeeding as the pioneer into this brave new world of currency. However, I see huge potential for other currencies as well. You must take your own stance in this exciting new world. Only invest what you’re willing to risk, have fun, keep informed, and brace for the wild ride.