Important tips for trading bitcoin

Bitcoin once again left us with an open mouth last week. The world’s most popular cryptocurrency reached for an all-time high of $19,000 per unit, despite it later corrected downwards to about $15,000 per BTC.

If you (unfortunately) work in an office environment, then it is likely you have heard people around you expressing their thoughts about Bitcoin. Even some of your colleges might have bought some as optimistic views over Bitcoin piled up all across the media.

And of course, you were no exception. You have also felt that deep need to get buy Bitcoin when so-called market gurus advertised quotes like 50,000 per BTC for as soon as 2018.

But we are not here to talk about forecasts. We would simply like to present you three easy-to-apply tips that will help you invest in Bitcoin in a more secure, less stressful way.

Be ready to study

Cryptocurrency, blockchain, token,... what!? No worries. Most people who today trade Bitcoin or any other cryptocurrency have been there too. The idea of a digital currency is pretty hard to understand when for hundreds of year society has been attached to physical bills and coins.

The more you understand, the more you advantage you take from others. A good place to start would be the original white paper written by Bitcoin creator Satoshi Nakamoto in 2008.

Stop being scared of volatility

If you are familiar with Forex, you know currencies are VERY volatile. But it comes to cryptocurrencies, we can say EXTREMELY volatile. Is that a bad thing? Not exactly. Unless you are focusing in super short periods of time, Bitcoin will drive waves up and down and correct adequately all by its own. Cryptocurrencies are not like other assets out there. In fact, most people who tried buying high, selling low have underperform those with buy-and-hold strategies.

Passive investment for a highly volatile market seems to be the right formula at the time: less risk, less fees and considerably more easy to administrate.

Do not forget to diversify

When operating with highly volatile assets like Bitcoin or Ethereum, finding the right balance with more stable assets is key for success. Traditional safe havens might be a good place to start, but there are many assets that could work for you. Keep your crypto percentage low at first, at least until you feel more confident about what are you actually doing.