5 Strategies For Investing In Bitcoin

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*This post is in collaboration with Media Buzzer*

You may be wondering whether or not bitcoin is a bubble. It’s a question often put forward between investors or on online forums. The answer isn’t as clear cut as you may think. In fact, nobody really knows at the moment, and if anyone tells you they have the answer, run.

An underlying question on many people’s minds, though, is how to enter emerging uncertain markets without getting fingers burned.

The trick, of course, is to have a strategy for bitcoin investing. Once you’ve acquired your bitcoins, here are a few strategies you might want to consider using.

1.    Diversify within asset classes

One strategy you might want to consider is buying different cryptocurrencies. So, buy your bitcoin from trusted dealers and then diversify and buy a variety of different crypto and mining contracts and don’t be scared to try out a few different platforms.

As for an asset class, well, it is a group of investments that display similar characteristics and behave somewhat similarly in the marketplace. For example, tokens, bitcoin and alt coins.

2.    Always strategize, test and track the methods you use

An important part of cryptocurrency investing is to stop waiting for tips. In fact, if you do get a tip, be sure to run it through several different scenarios to figure out what could happen. Check the charts for bitcoin cash and bitcoin and find yourself a winning formula. If you’re serious about investing in cryptocurrency, develop a passion for learning so that you can continue to prosper.

3.    Get excited about learning

Speaking of learning, if you really do want to successfully grow your portfolio, it’s best to leave the emotions at the door. However, you’ll quickly discover that the best investors are those who are incredibly curious about learning as much as they can - through platforms such as SoFi - about the market, the dynamics, the drivers and of course the deciding factors.

4.    Don’t be afraid to diversify asset classes

Bitcoin are certainly game changing, but they are not yet everything. So, get some cash savings, some bitcoin, some shares, some property, a couple of business revenues, a few other cryptocurrencies, a couple of precious metals and even some managed funds. The strategy here is to diversify. It gives you a safety net and protects you to a degree from markets not going quite as you hoped. When you decide to do this, make sure that you only do secure transactions with reliable traders.

5.    There are two important types of investments

There are two key types of investments: cash flow and capital gains. Be sure to play both to your advantage. Try to avoid getting addicted to just one kind of cryptocurrency investing. Also, don’t just invest in bitcoin and have a holding strategy. Instead, find a way to invest that actually generates crypto for you.

Overall, aim to position yourself to win. If you hedge yourself well enough, it can only be to your benefit and the issue of the bitcoin market being a bubble will not matter to you one bit.

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