In the past 10 years, Bitcoin established itself as the most profitable investment. In the following 10 years, the promise is even higher. Really successful BTC investors follow smart principles in order to get the highest possible profit. You might want to be aware of them.
Taking It Slow
At first glance, traders seem to make huge gains and many believe that there are no real trading skills necessary when trading cryptocurrencies. In reality, the exact opposite is true in the sense that Bitcoin gains have been steady and slow, not really fast, as many think. The best strategy for most investors was to take things slow. The most successful Bitcoin traders do not want to beat the market.
As a simple example, if you were to invest $100 per month since January 2013, you would now have over $1 million. This is one of the simplest strategies that were used in the past and it was even successful for those that started making such an investment in January 2018.
To put things as simple as possible, most amateurs will lose money when they start trading due to a lack of knowledge. If you work with the same rules that work in the traditional markets and you apply them in cryptocurrency investments, it is much more likely to make money. Being conservative is a very smart idea in the industry.
Being Smart When Diversifying
Diversifying your investments is a core principle, no matter what market you are active in. Cryptocurrency stands out as a new financial asset class. Blockchain technology will surely revolutionize the economy so nobody really knows what incredible new investment opportunity might appear. While Bitcoin is the top platform at the moment, other cryptocurrencies can be used as a way to diversify your investment portfolio.
There are numerous altcoins that have offered very good returns to those that were early investors. There are also many that have a high long-term potential. The problem is that altcoins are pretty risky. You need to buy them only after you conduct a very good research and you are confident that gains will appear in the future.
Having a diversified crypto portfolio is always a good idea but the approach should still be conservative. You need to focus on the established altcoins and the less-popular, newer platforms should only be considered for a very small part of your investment portfolio.
Securing Bitcoin Funds
One of the least-discussed problems with Bitcoin investments is that millions of dollars in BTC disappeared due to theft, forgotten passwords and lost keys. Most of the losses appear because of simple human error. The smart investors always make fund security a priority.
Funds are never kept in accounts on crypto exchanges. Also, the investors know exactly how cryptocurrency funds need to be stored as they tend to use hardware, secured wallets.
In order to properly store Bitcoin, a consistent, clear methodology has to be established. All passphrases and keys have to be written down and then stored in a completely secure location. Critical data should never be kept in a computer that is not encrypt or in cloud accounts. Hard drives can crash and files can become corrupted. This means that backups are also needed.
Final Thoughts
Cryptocurrencies are here to stay, no matter what some people say. This is why it is a very good idea to make crypto investments. However, this does not mean such investments are simple. It is really important to respect the principles mentioned above and always be informed.
