If you plan on jumping onto the cryptocurrency bandwagon and have money to invest in Bitcoin, simply continue reading to discover how to safely invest in Bitcoin.
Only invest money which you can afford to lose
Before investing in Bitcoin it’s important to understand that no investment is 100% safe and there is always a risk that you may lose some or all of your initial investment. So while it’s definitely worth investing some of your disposable income in purchasing Bitcoin, never invest money in Bitcoin, which you can’t afford to lose.
As an example, it’s not a wise idea to withdraw all of your money from your long-term bank account and to invest the money you withdraw in Bitcoin. However, if you have a few hundred or few thousand dollars which you don’t require in the long-term, it may be a great idea to invest it in Bitcoin. Especially as Bitcoin’s return on investment is higher than that of any other digital currency.
Make sure to purchase your Bitcoin through a legitimate broker or website
Unfortunately, there are a wide variety of fake websites which pose as Bitcoin brokers, so it pays to conduct due diligence before signing up to a website, which offers clients the opportunity to purchase Bitcoin. Examples of some reputable websites which you can purchase Bitcoin from include Robin Hood and eToro, both of which have been certified by the Better Bussiness Bureau. No matter which company, you plan on doing business with, it’s well worth ensuring that the business in question has been accredited by the Better Business Bureau. Who’ve been set up to stop internet users from being scammed by questionable businesses, who are looking to fleece unsuspecting victims.
Test the waters by making a small initial investment
Once you’ve signed up to a reputable site, it’s well worth limiting your initial investment in Bitcoin to a maximum of $1,000 as you don’t want to invest several thousand dollars, only to find that a website which you thought was legitimate is a scam. It’s well worth finding out what the minimum investment is and transferring the minimum amount of money to your account, to purchase Bitcoin, before making further investments.
Keep an eye on what the top traders’ are doing with their Bitcoin shares
Some websites such as eToro allow their clients to browse their top traders’ open trades. So if you’re curious about whether you’re better off holding on to your shares or if you’re better off selling your Bitcoin shares, it’s well worth checking the open trades of at least 10 high performing traders. However, before taking the advice of other traders, make sure to pick traders who have at least 10 profitable months per year and have been an active member of your site for a minimum of 12 months. As some fly by night traders make huge profits only to make a huge loss, several months later.
So if you’re excited about the prospect of investing in Bitcoin, simply follow the 4 helpful tips listed above, to decrease your chances of losing your initial investment!