How to Invest in Bitcoin? Investing approximately 5 to 30% of your capital investment in Bitcoin is best. I believe 5% is very secure while 30% is risky. I tend to be most times between 50%.
This is because I’m a veteran of betting (a former pro-level poker player) and am comfortable with losing money. I wouldn’t recommend anyone put in 50% or more.
In the end, the choice is yours. Although it’s based on market conditions, it is also influenced by personal factors, such as your tolerance to risk and the amount you are willing to risk.
Still, Worrying About Making The Wrong Decision?
If you’re still hesitant about investing your first piece of Bitcoin, Follow these tips to start with ease:
- Make a small investment of just $10 to any cryptocurrency exchange you like or broker. It will help you begin and gain a greater comprehension of what it means to become an investor in cryptocurrency.
- Divide the amount you plan to use and put it into a specific period. 1 month 3, 6 months 12, 12 months, it’s entirely up to you. Doing this will keep the possibility of costly errors and also save you money.
- You can always review your decision in the future.
- Pick the most reliable platforms to purchase Bitcoin, such as the well-known KuCoin.
- Risk tolerance
The crypto market is highly unpredictable.
Imagine how much you’d like to invest. Imagine this amount and then imagine you in the future.
- Do you feel confident losing all your investment, for example, $12,000?
- Are you going to judge yourself harshly since you decided to invest? Are you going to lose sleep or think about suicide?
The answer to one question is “maybe yes,” you should reduce the amount of money you had in mind and then ask the same questions repeatedly. If you’re unsure of the answer, you can ask your family and friends.
Investors who put too much will be enticed by the idea of a ‘panic sale and make a loss. Selling at a loss could be the best option in certain instances but only in the case of a rational decision and not based on emotion.
If you’re considering the amount you can invest in Bitcoin, consider an amount you are at ease losing completely.
- Profit tolerance
While it might appear like a stupid suggestion initially, consider it: if you put in the amount that could make you highly emotional when it goes down, what will happen If you decide to exchange your money?
This was the case for several investors in the latter part of 2017 when cryptocurrency was rising. They made millions because they took the (poor) choice to invest their savings for the rest of their lives.
If they were eager to take a sensible approach to their investments, do you believe they would have sold their shares and recouped their losses? This is not the ideal method of investing in Bitcoin. Most of them returned to the same position they were in before the market crash of 2018.
I’m sure you’ve heard more about Bitcoin’s price being at its peak, not when it’s slowed down or stabilized. This is because media and people alike tend to observe trends that are already in place.
Do you realize that cryptocurrency markets are composed of cycles that repeat in the market? These cycles usually last between 1 and 2 years. Bitcoin Prices rise quickly, causing bubbles. BIG bubbles. Then, the bubbles explode badly.
Cryptocurrencies must be timed precisely for this reason. It could alter your path and the way you look at it.
Ultimately, it is essential to decide what amount to invest in Bitcoin. Consider the current state of affairs within these market cycles, and you’ll determine the most effective option for you to make a bet on Bitcoin.
- Change of mind
I’ve never heard a cryptocurrency investor tell me, “I’ll invest $X in cryptocurrencies,” and stick to their statements. People’s minds change through their nature, even more so when confronted with a constantly evolving market.
Therefore, before deciding the amount you will invest in Bitcoin, be sure to leave enough room to reconsider your decision later on. Please choose the amount in mind and invest it in the next 3 to six or twelve months.
Suppose you wish to put aside $12,000 over the next twelve months. However, the market is close to hitting its record high. If you cannot invest $1,000 per month, you could adjust the amount to $400 per month and increase your investment to make up for the bitcoin price drops, and that’s the way to make money investing in Bitcoin.
The concept of diversification is a method that any veteran investor employs to decrease the impact of luck. This means that you won’t just invest in cryptocurrencies but also invest your money in other investment vehicles, like stocks, real estate and gold, and stocks.
You can also keep some of your funds in your bank for some interest at a modest rate. All in all, make sure you don’t put all of your eggs into your cryptocurrency basket. It’s like playing roulette with a martingale. You’ll win and win, and then win, but if you lose, you’ll lose everything.