How to succeed in Bitcoin? This article gives a summary of 10 secrets to success in Bitcoin investing.
Probably you already have heard something about Bitcoin or cryptocurrencies and are impressed by its massive growth this exciting technology is experiencing. Want to get into the markets but having doubts or thinking it’s maybe too late? In my opinion, it’s certainly not too late and I will cover the secret to success when investing in Bitcoin. Just like the start of the internet in the ’90s, this Blockchain technology has a bright future ahead!
1. Become an expert in Cryptocurrency Technology
It always starts with proper education. If you want to be a successful Bitcoin investor you first have to invest in time. Moreover, it’s very wise to do an online trading course in technical analysis or Bitcoin programming languages. Also, this cryptocurrency technology is brand new and has a disrupting force. As a result, it’s very wise to learn all aspects of it starting with reading the Bitcoin Whitepaper. Other famous subjects are Bitcoin mining, which can be divided in :
If you commit yourself to DYOR and know something about all aspects listed above you are on the right path of finding a successful strategy as a starting cryptocurrency investor.
2. Spend money you don’t need in the near future
Investing, in general, is about finding the right opportunities with low risk and high reward setups. When doing this right it’s very important NOT to get into a financial crisis in the first place. This being said, invest only what you can afford to lose and also expect that you might lose it all.
This changes your mindset and reduces your fear of FOMO by taking profits way too early!
Investing should never be a way to pay your monthly rent or other expenses, it’s rather a vehicle to accumulate wealth in the long term. Bitcoin being around for almost a decade is here to stay and has a bright future ahead!
3. Getting to know about Boom and bust Cycles
When investing in cryptocurrency one has to deal with pump-n-dump coins, crypto scams, and whales trying to manipulate cryptocurrency markets. It’s all in the game and this is what makes investing in this kind of asset very exciting. The Bitcoin markets are very young and this kind of decentralized technology has disrupted centralized governance or regulation. This is the main secret to success behind Bitcoin. Its decentralized nature is the main reason why big corporations haven’t entered this kind of markets yet. Like I explained earlier, this could be a risk but at the same time big profits could be made and the sky is the limit.
To start getting profitable as a cryptocurrency investor one should know the boom-bust cycles very well. For example, if you are feeling euphoric and be able to conquer the world, just keep in mind that this feeling isn’t going to last forever. At these moments it’s better to take some profits off the table. On the other hand, if the cryptocurrency markets turn against you which results in heavy losses or bags being in the red for a very long time. As a result, many investors would sell out of fear and run, or being angry and feeling depressed. These moments, according to the Wallstreet cheatsheet, are best for buying new assets.
|Getting started with Bitcoin or any other cryptocurrency could be a real challenge! As a result, I wrote an extensive guide for aspiring cryptocurrency investors to give you a headstart in this volatile market.
4. The secret to success in Bitcoin is all about diversification
The number one rule when investing in cryptocurrency projects is not to get too emotionally attached or involved. You must remember that you are an outsider, e.g investor. So, keep in mind that your money comes first! Also, never bet on 1 horse, but put your money in several different projects. Investing means that there also will be losses or in other words, you can’t be right 100% of the time. Always keep in mind that one of your investments just won’t get the expected results. Just make sure you find some good ones as well. In my opinion, when investing in cryptocurrency or Bitcoin, always keep a certain amount in the mother of all coins which is BTC. In the end, the secret to success behind cryptocurrencies and its disrupting blockchain technology comes from founder Satoshi Nakamoto.
5. Always have a plan and focus on it
It’s very important to have a proper plan in place before getting your money into Bitcoin or other cryptocurrencies. Maybe you are in the assumption that investing in crypto will get you rich overnight. If so, then I have to disappoint you. It just doesn’t work that way. Being a profitable investor means that you have to work for it and be patient. In fact, the secret to success with investing in cryptocurrency is that it’s a long term game.
With that being said, it just takes time and to avoid getting distracted or feeling overwhelmed, it’s very wise to have a clear end goal or target being setup. Investing in Bitcoin could also be a ticket out of job slavery and a start to financial freedom. Never forget your goals!
6. Learn how to do proper altcoin reviews
The first thing you can do is to visit their code base on Github. By doing this, it’s very wise to learn some proper coding skills(see point 1). If for example, their codebase is private or doesn’t have recent commits then the project or altcoin should raise a red flag immediately.
How to succeed in Bitcoin with proper research
Other things you could check for is:
- the size of the community
- how active are they on Reddit
- on how many exchanges is the altcoin listed
- what are they using for marketing strategy.
To summarize, finding the best altcoins takes time but it can be very rewarding!
7. Keep it simple and stick to one or a few cryptocurrency exchanges
Besides the thousands of altcoin projects out there, there is also the overwhelming supply of cryptocurrency exchanges. When visiting the Coinmarketcap website you also might have noticed the huge amount of exchanges. Stick to the exchanges with the highest volumes first. Besides, if you are more confident about a certain project you can try the smaller ones also. Exchanges which are very popular among cryptocurrency investors are:
8. Be able to handle the volatility is also a secret to success
The cryptocurrency markets are feared and loved for its high volatility at the same time. When you enter these unregulated markets, it’s very wise to be very patient and with a long term mindset(see point 5). The secret to success in the cryptocurrency markets is also being able to sit on your hands for a very long time. Patience will always be rewarded. The cryptocurrency markets will be in accumulation phase for most of the time, instead of being volatile daily.
9. Knowing what it feels like to HODL
Patience will always be rewarded was the point being discussed above. Also, being a profitable cryptocurrency investor in the long term you should HODL some of your crypto assets. The real secret to success with Bitcoin is being able to HODL. All bitcoin investors who are successful these days have been holding on to Bitcoin for almost a decade. By doing this, profits on the scale of 100x, 1000x or even 10000x will be the reward. So what is the best way to do this? In my opinion, you should store at least 30% of your Bitcoin investments offline in cold storage.
10. Find like-minded individuals
It’s one of the famous quotes of successful millionaires from the popular book called The Intelligent Investor. The secret to success comes from surrounding yourself with like-minded people or investors. This also goes for investing with Bitcoin. Of course, you shouldn’t get rid of your old friends, but it’s very wise to find some real crypto OG’s who know how to play this game already. Where to find them? Most of the famous people within crypto have accounts on Twitter, so it’s wise to start there. Also other social media channels like Telegram, Slack or Discord will do.
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