Distributed By: James MoField…Founder & CEO of 21st Century Motivation.
Investing in highly volatile bitcoins and other cryptocurrencies is risky business.
These currencies are all digital or virtual, and are not physical coins .
They have no intrinsic value.
Therefore, no one can deny you the right to own these cryptocurrencies some of which become extremely valuable and for those who invested in the early days, and held on to their investments, are living the high life now as multi-millionaires, some of these people are even billionaires!
If you want to be like those wise investors at sometime in the future, YOU can by following these 4 investing strategies increase exponentially your chances for success.
1 – Prepare For Volatility:
It’s basically a given for cryptocurrencies that they are going to be extremely volatile.
One minute the price is sitting at 5 digits, and the next it’s at 4 or even 3 digits!
It is without a doubt an absolutely unpredictable experience.
Therefore, if you don’t take its volatility seriously, you could cause yourself a lot of trouble.
You could panic and sell off your crypto so you can minimize your loss.
However, if you’ve prepared yourself for scenarios like this, then you’d probably just shut off all outside, distractions and at the very least take a nap.
Tomorrow is a wholly different day, the price may go back up, and all will be at peace with the world.
Preparing yourself for volatility may be tough, but it’s definitely doable.
2 – Proceed With Caution:
Do your research before you start investing in bitcoins or any of the other cryptocurrencies.
You’re dealing with hard-earned money here and you don’t want to lose everything in one day.
Remember that you are investing to make a profit at sometime in the future.
Don’t go all in without studying what you’re putting your money into.
3 – Diversify Your Portfolio:
Don’t put all your eggs in one basket, so to speak.
Don’t just invest in bitcoins.
If at all possible, it’s best for you to invest in other cryptocurrencies as well as traditional assets like stocks, bonds, and mutual funds.
At least if the price of bitcoin drops you’re not totally in the red.
Your other investments will help keep you afloat.
4 – Store Your Virtual Coins In Cold Wallets:
Investing is a long-term game, and it is not advisable to keep your cryptocurrencies in online wallets such as your exchange’s wallet, or even your mobile app wallet.
Keep your private keys in cold wallets such as paper or hardware wallets since these aren’t connected to the Internet.
You can keep small amounts in your online wallets, but the bulk of your investments should be offline.