Despite all skepticism and criticisms, Bitcoin is projected to the currency of the future. According to many experts, the biggest crypto coin is projected to reach no less than $1 million in the coming few months. In fact, if you check the Bitcoin Superstar Test, the results have been fairly positive and encouraging. Bitcoin trading is here to stay. No wonder, the increasing popularity of Bitcoin is pulling in many aspiring investors to the crypto space. Are you too aspiring to invest in BTC? Well, that’s great and here are some tips that you must follow here.
- Be careful of crypto exchange and wallet
Your Bitcoin journey starts with a crypto exchange as this is where you will buy, sell and store your BTC. Look for a highly reputed exchange backed by cutting-edge security features like multi-factor authentication and cold wallet storage. However, you should not store all your BTC coins into your exchange wallet. The majority of your coins should be stored in a fortified offline cold wallet.
- Focus on market cap
Don’t just look for the coin price while investing in Bitcoin or any other crypto coin for that matter. According to experts, you should rather focus on the coin’s percentage of market cap. Closer your coin gets to the market cap, greater would be its demand in near future.
- How much should you invest?
When you are starting out in a new investment medium, you don’t really know the games of the trade. So, it’s better to start with a minimum admissible amount. It could be even as low as $50. Put simply, invest an amount that you can afford to lose. Fix a budget and make sure to stick to that.
- Be open to diversification
The wise Warren Buffet had rightly said-“Don’t put all your eggs in one basket”.
It’s the same with the crypto space. You will certainly be focused on investing in Bitcoin. But, make sure to allot some of your investment amount to other major crypto currencies. This way, if the price of BTC fails, you will still have other coins to support you.