Investing is one of the significant financial goals of a person’s life. Where you invest your money will decide how much returns you are going to get. When it comes to Bitcoins, I admit things tend to get a little tricky, especially when the market is so volatile.
You should have a solid knowledge of how crypto markets work, or you may end up making huge losses. Amid the pandemic, most people had to rethink their investment options in 2021. Bitcoin has stood out and has become one of the most lucrative Bitcoins.
Invest in Bitcoins in 2021?
2021 is probably the perfect time to invest in Bitcoins. Let us rewind a few months back to 2020; while the government imposed a worldwide lockdown, the market of Bitcoin crashed, and the price of Bitcoin fell down to $3000.
This market crashed frightened most investors, and they started selling their Bitcoins, despite facing huge losses. But smart investors started investing more, this trend generated a bullish market, and the prices of Bitcoins kept rising. Not only did it stabilize the market, but it hiked the value of Bitcoins to a whole new level.
All these factors make Bitcoins a very lucrative investment option in 2021. If you think you have some spare money that you want to invest. Visit weed profit to create your trading account.
Top 5 Bitcoin Investing Mistakes to Avoid In 2021
By now, I bet you have already realized how volatile Bitcoins are. The prices of Bitcoins keep changing every second, let alone every minute or hour. As I am writing, the value of one Bitcoin is $31,171.
1. Assuming a 100% safety
Before participating in any investment activity, you must conduct your prior research on the market scenario of the asset you are investing in; bitcoin is no exception. The market of Bitcoin is extremely volatile. Even though bitcoin is decentralized, in no way does it mean it is safe from hackers and other fraudulent activities?
As it is decentralized, the responsibility on your part rather increases. Since there is no government backing, you are solely responsible for your Bitcoin holdings. If you are a newbie, I suggest you use hardware wallets, as virtual wallets are prone to be hacked.
2. Not having the required knowledge
Having the proper knowledge is extremely crucial for investing in Bitcoins. The world of cryptocurrencies can be like the Wild West. People become millionaires in just a matter of moments, while some get completely ruined. There are a few things you must know about Bitcoins: –
It Is Encrypted.
A Virtual Currency.
Stored in Wallets.
3. Knowing the Proper Time to Pump and Dump
Never make any Bitcoin investment decision based on emotions. You should know the times when to buy and sell and hold Bitcoins. Some investors make the mistake of selling their Bitcoins right after a market crash, and that too at a low price.
I am sure you must have heard acronyms like HODL, FOMO, and FUD. All these acronyms are used in the crypto space to emotionally influence the traders. HODL means HOLD; when investors write HODL, it means they are suggesting you hold on to your Bitcoins after a severe market crash.
4. Depending on Only One Crypto
Bitcoin can be the most popular crypto on the face of Earth, but it certainly is not the only crypto. There are a ton of other cryptos like Ether, Litecoin, Stablecoins.
Never invest in only one crypto. When the market of one crypto crash, the other crypto surges. Even though Bitcoin has a bull run in the market, things change in a matter of seconds.
5. Not being attentive to Math
You should take a ken look at the price chart of Bitcoins before investing. You will make you know when to hold, buy and sell.
Now you know five mistakes that you should try to avoid before investing in Bitcoins. I hope you will follow these tips to ensure a brighter future in investing in Bitcoins.