Bitcoin has piqued the interest of many potential investors over the years, especially in recent months, as its value has essentially quadrupled. However, the process can be intimidating, even for seasoned investors of other commodities. To help eager but nervous potential Bitcoin investors feel more comfortable about the investing process, here are some tips for getting started.
1. Check Out the Investment Options for Bitcoin
2. Start Small Rather Than Make a Large Investment
While you might be tempted to make a large investment in Bitcoin after hearing all of the prosperity others have been having, make sure to start small. Bitcoin, while looking to have a promising future, is still new, and its value has risen and fallen greatly over the past decade or so. Like with all other investments, buy only what you can afford to potentially lose and not get swept up by promises of gigantic upswings.
3. Do Your Research and Go in With an Open Mind
The famous philosopher Socrates once said, “Smart people learn from everything and everyone. Average people from their experiences. Stupid people already have all the answers.” With this in mind, don’t go into investing in Bitcoin thinking you have all of the answers, even if you are a seasoned investor. Have an open mind, and make sure you do your research beforehand. Read about Bitcoin trends and other people’s experiences. It also never hurts to learn more about the history of Bitcoin. Like with any other type of investment, one should develop a nuanced understanding of the field before making venture-style investments.
4. Stick With Bitcoin
As you do your research, you will learn that there are other digital assets that one can invest in. In fact, there are multiple variations that exist throughout the digital asset ecosystem, and investors are encouraged to educate themselves on those variations. However, those who are unfamiliar with these assets, consider Bitcoin to be the digital equivalent of gold. Bitcoin is a technological solution to a monetary problem that has existed for centuries. We view everything other than Bitcoin as a venture deal. So, when getting started, Bitcoin is the way to go.
5. Keep Your Investments Safe With a Digital Wallet
While digital assets like Bitcoin suffer less theft than other forms like cash, it is still very important to keep them secure. So, as you are considering your investment, make sure to also invest in a digital wallet. A hardware wallet is a handheld, offline device that securely stores the private key necessary to transfer your Bitcoin holdings from one place to another. Some reputable brands include Ledger and Trezor.