Back in the early 2010s, Bitcoin was arguably the hottest topic in the world. While some people looked at it with hope and excitement, others regarded it with extreme skepticism. For better or for worse, the people in the former group seem to be enjoying a lot of benefits for putting their trust in the new technology.
In the past decade, Bitcoin has undergone quite a journey. It spiked, crashed, then spiked again, and crashed again, only to see its price peak in 2021. In doing so, it also became the first official cryptocurrency in the world. If you’re hoping for the currency to crash again so you can invest before the next hike, you may end up having to wait a very long time.
According to Bill Schantz, bitcoin isn’t the only cryptocurrency anymore. In fact, cryptocurrency is on fire at the moment, and many digital currencies are climbing up the market. While all of this is great news for someone who has been analyzing and monitoring the market over the years, things can get confusing if you’re just starting to dip your toesin the crypto market.
To make things easier for you, Schantz has created a list of tips that will help you enter the cryptocurrency market.
1. Educate Yourself About Crypto
First and foremost, it is important to learn about what you’re investing in. If you do it just because everyone else is doing it and making money, you may be setting yourself up for failure. Study the market thoroughly and try to get a better grasp on how things work.
For this purpose, you can also start by surfing our website, as Bill Schantz has a lot of information available about cryptocurrency and how it works. Either way, it is important to be educated about crypto before you start investing.
2. Watch the Volatility
As you study cryptocurrency, one of the first things you’ll learn is how extremely volatile it can be. A baseless rumor can cause the price of an asset to drop within mere seconds. While sophisticated investors can predict this fall and reinvest their assets according, newer investors might find this volatility to be the equivalent of walking in a minefield.
A good crypto investor knows how to “buy low and sell high.”Sadly, a lot of newer investors end up making the mistake of buying high and panic-selling at low prices when the market seems to be crashing. It can take a little time to learn how to predict the rise and fall of the market. Therefore, it is necessary to take things slow and not panic when things seem to be going south.
3. NEVER Invest More than You Can Afford to Lose
When it comes to cryptocurrency, it is crucial that you don’t place all your eggs in the same basket. As we’ve already learned, cryptocurrency can be extremely volatile. Therefore, it is never a good idea to invest all your money in something that can crash overnight.
Schantz recommends that you only invest the money that you don’t need for other important things, such as loan payments, mortgages, or paying off other kinds of debt. Cryptocurrency is a long-term investment. If you’re looking for immediate returns, it may not be the best market for you. So invest what you can and be patient if you want to see sizeable returns.
If you need further assistance with investing in cryptocurrency, consult Bill Schantz today.
