Business • Crypto
5 Costly Mistakes to Avoid When Buying Bitcoin
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Cryptocurrencies are a way of life. Their volatility made them merchandise that’s not for everyone. But, it’s a mistake to believe that you shouldn’t get invested in crypto. You should. Bitcoin, for example, is making strides since 2009. We are taking BTC as an example as it is the oldest and the most valuable digital currency. Even people who are not into an investment, and do not work in the financial domain know about them. They’re as common as Pokémon cards. Not only that everyone heads about Bitcoin, but many people also invest in it.
Are you one of those people? If not, it doesn’t matter. We’re not here to convince you to get into digital currencies. No. We are here to give you some advice for when you get the idea that you should buy BTC. This time will come sooner than later, as we live in times when digital coins can’t be avoided. Even if you’re not into BTC you’ll get in touch with Dogecoin, Ethereum, or Ripple. It will happen. Just like Thanos from Avengers. They’re inevitable. So, when the time comes, and you want to invest in your first Bitcoin or even the smallest of Satoshi, remember this article. Why? Because we are going to give you the five costly mistakes to avoid when buying Bitcoin. Let’s start.
1. Don’t Buy When It’s High
One of the main traits of cryptocurrencies is their volatility. What this means is that their value can skyrocket at one moment, and fall into the pit of despair onto the next one. Bitcoin is one of those currencies that in recent times have offered at least some stability. But, this can cause a mistake on your part. When you are a first-time buyer you know little about how these currencies work. You’ll probably get interested because it is trending. When it’s trending it’s usually because it reached another all-time high in its value. Just a few months ago BTC was worth $33 thousand per coin. Then all of sudden it reached the heights of almost $70 thousand per coin. In recent times it is once again trending around $40 thousand with the current value being set at $38 thousand. Do you see what we’re talking about here?
It can go up, and it can come back down. It is vital not to buy when everyone is talking about it. No, but when the tides are clam. The time could be right now, as BTC was calm for a while now. It can only go up from here as its popularity isn’t veining. Just make sure that you remember the lesson we give you right now if you’re buying when BTC starts soaring up to the sky once again.
2. Don’t Blow When It’s Low
These two lessons always go together. Buying when it’s high is a big mistake. But, selling when it’s low is even worse. Why do people remain skeptical about the digital currencies they are here to stay. We don’t even see a goal of reassuring you over this anymore. Many people buy BTC and expect immediate returns. This might happen but it is more likely it won. Everything takes patience. People who don’t possess this trait should stove away from digital currencies. If you are a first-timer, and things go wrong, you’ll want to cut losses and get away from crypto as far as you can. Don’t do this. They’re volatile and in the case of BTC even if it drops in value it will jump right back once again. Just play chess and not checkers. Always wait. Sell when it regains value, or doesn’t sell at all. With enough patience, you could sell it at a record price.
3. Using the Wrong Software
Internet is a big place. A vast pond full of crocodiles. If you’re swimming in the wrong place you could get eaten. It happens. When BTC raised in popularity everyone jumped on the bandwagon and wanted to connect with it one way or another. So, we have various applications, software, and hardware for buying, selling, trading, or mining BTC and other digital currencies. Some of them are high-end state-of-the-art technologies. Others aren’t. some of it can just be spam or scam intended to take your money. This is why it’s essential to have all the right tools on your side. When you’re a rookie it’s easy to have your pass intercepted as one Payton Manning could tell you. With time you’ll get more experienced but don’t fall prey to scammers from the get-go.
4. Misunderstanding The Investment
This is an easy mistake to make. Every day someone makes it. People hear that BTC is trending and they see an opportunity to make an easy cash grab. It doesn’t work like that. This is investing, not gambling. It’s easy to get lost between the two because Bitcoin is tied to online operations. But, this is not a parlay you can make on Boston Celtics as Adam Sandler did in Uncut Gems. No, you need to understand how cryptocurrencies work. Investing is s serious business. A bad investment in the crypto segment can be lethal for your finances. Don’t take it lightly. Before you make your move make sure that you understand what investing in digital currencies means and how you should approach it.
5. Not Diversifying The Portfolio
Investing in digital currencies is a good investing move. But, you were in the world of investments before right? You didn’t? Well, Bitcoin is an amazing tool for investing success, but not as a starting point. Before you move onto the highly volatile digital currencies you need to have an open portfolio with other investments. If you don’t have it, putting all of our money into one basked, highly volatile one is not wise by any stretch of the imagination. The highs and lows of the crypto world can pull anyone inside, and you’d be wise to have your assets spread around before you start swimming with crypto sharks.