Mistakes to Avoid When Investing in Bitcoin
As the crypto market had a pretty rough 2022, 2023 might be the year that could be a good opportunity investing in Bitcoin. People still believe Bitcoin is a viable investment asset.
With opportunities do come risks as well and this is what people need to identify and avoid mistakes.
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Here are a few mistakes to avoid while investing in Bitcoin:
Investing Blindly
Investing blindly in Bitcoin or any other cryptocurrency is one of the biggest mistake one could make.
That means you don't take time to learn and understand what Bitcoin and investment are.
Even with the growing information about Bitcoin and cryptocurrency, these still are new and not much people know about it and some people may be too lazy to do their own research about these concepts.
Investing without paying attention could be a loss for you in terms of your investment.
Decisions That Are Irrational
Irrational decisions about investing in Bitcoin could make you regret. Rational decisions are important while investing in Bitcoin.
Emotions are something that could make you take irrational decisions and this is why it's critical to not let your emotions drive your decisions.
Don't make decisions that are based on your feelings about the market or something else.
This is why, the Fear of Missing Out (FOMO) may effect your investment.
Investing All Your Money
In the past, Bitcoin has proved to be a good investment asset. You may have come across stories of people becoming millionaires overnight by investing in Bitcoin.
The investments in Bitcoin do indicate that it is a lucrative investment, but that's not the entire reality of Bitcoin.
People have lost investing in Bitcoin. As Bitcoin is a highly volatile asset, the price crashes and drops are common which could make investors suffer losses.
Taking into consideration the volatility of Bitcoin, being an investor, you should take it as a high risk investment.
This is why it's important to not put all your money into Bitcoin as with the price crashes, you may lose everything.
Not Diversifying Your Investment
One of the mistake is when you don't diversify your investments. There are different investment opportunities like Bitcoin EFTs, Bitcoin trading, Bitcoin mining etc which could help spread investment risks for you.
You can also diversify your investment into other cryptos and assets.
Note: This is not a financial advice. Do your own research before investing in Bitcoin or any other crypto or asset.
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This is by the way... I love the cover image for this post. .... That's a lot of creativity there. Well done. ❤️
Thanks
One very important, but highly undervalued rule is:
Invest no more, than what you can loose next moment, and without any sweat.
If you do that, HODLing for a year, or 3 years, or 5 yr, or 10 yr, or 25 YEARS - become EASY. No worries. No matter how BAD the market crashes are.
It is your "lost money" anyway
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The thumb rule.
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