Bitcoin, the star player in the crypto game, has been flirting with new record highs as it slid past the $63,000 mark on Tuesday. This new surge comes as no surprise as the digital asset had been enjoying a bull run since the beginning of this year.
This recent push in value came just a day before the launch of the largest cryptocurrency exchange in the US, Coinbase, on Wall Street’s tech-heavy Nasdaq stock exchange. But, for quite some time now, Bitcoin has been in the limelight, racking up headlines, hitting new records on the regular. In fact, Bitcoin has soared by almost 450% in just the last six months.
However, this virtual currency hasn’t only been registering sky-high surges. While the price always managed to recover, it has had its fair share of stomach-churning declines. This comes as a result of Bitcoin’s extremely volatile nature which causes its value to fluctuate constantly. This has also landed Bitcoin heavy criticism with many calling it a swindle scheme and even making comparisons to the tulip-mania in the Dutch Golden Age.
And while Bitcoin may be on the path to cementing its position within the financial society, it continues to be a highly risky and uncertain space where you could lose a significant amount of savings in just a matter of minutes.
Hence, taking your first few steps in the crypto world can be somewhat of a daunting experience but you may still be determined to dip your toes in the risky waters of the crypto sea. Therefore, here are 4 things that are essential to keep in mind before entering such a volatile and dynamic market:
Don’t Give In To FOMO
Many of the popular cryptocurrencies, especially Bitcoin, are observed to be on a bull run from time to time, reaching sky-high values each time around just like it did recently. This drives a lot of investors that are looking to get in on the action.
However, the bull market can be extremely volatile with prices skyrocketing one minute and registering mortifying lows the next. Therefore, it is recommended to proceed with caution when making the decision of investing in a particular crypto coin and instead of focusing on the hype and “noise”, making calculated, informed decisions.
The Bitcoin bull run of 2017 is a great example where many novice investors bet significant portions of their savings as the price soared. However, many of them soon ran into huge debts when its value plummeted just a few months later in 2018.
Do Your Due Diligence
Diving into the vast crypto ocean headfirst without any preparation could land you in a tough spot. Hence, if you would not like to lose big when investing in Bitcoin or any other cryptocurrencies for that matter, it is crucial to carry out a deep study on your crypto coin of choice, its workings, and how volatile it actually is. For the ease of crypto investors, such details are available over the internet, and in fact, you can even access the whitepapers of relevant coins online which can provide you the necessary insight you may need.
Having adequate knowledge will help you make more informed decisions in relation to your investment. It will allow you to enter and exit the market at the right time. It may also help you in avoiding any major pitfalls that you may face on the way to a lucrative crypto future.
Only Use Reputed Trading Platforms
Trading platforms, systems, and tools have become all the rage as the Bitocin frenzy fires up even more. These employ advanced technologies including Artificial Intelligence (AI) and Machine Learning (ML) and powerful algorithms to take advantage of short-term crypto booms resulting from their highly volatile nature.
These have proved to be a safe haven for novice investors and traders, allowing them to make profits without having to be active traders with their eyes glued to screens, waiting for the slightest change in value.
However, several of such programs have been uncovered to be fake or misleading, having hidden fees that are not initially disclosed. Hence, it is best to use the services of a trusted and well-reputed platform, such as bitqs, so you can benefit from higher returns without having to worry about losing your investment.
Watch Out For Crypto Scams
The crypto market is capped at over 1 trillion, with Bitcoin contributing to more than half of the market value. Thus, it’s no surprise that scammers are working hard to exploit such a lucrative sector of the financial market.
The crypto space is extremely murky and riddled with fraudsters and scammers, waiting at each corner for an investor that would fall prey as a result of their naivety. And so it is important to keep clear of any websites that make promises of exceptionally high returns or offer get-rich-quick schemes.
Image Source: BigStockPhoto.com (Licensed)