Average: 5 (1 vote)

The main principles of the Bitcoin market

When buying crypto, you should be ready for this market, because it has a lot of specifics. You don't need to see a lot of surprises.

BTC is very volatile

Yes, it's very active. At some point, you can see even 1-hour change of about 10%. You can buy bitcoin for 1,000 EUR and the next day it will worth it 700 EUR or 1400 EUR. You should be ready for such changes.

You can lose all of your money

It's possible if you make a wrong investment in crypto. It's a must to choose a good exchange, secure your wallet, send coins to a wrong BTC address, or something else.

Owning crypto requires to be well informed.

Only invest what is OK to lose

Do not put all of your money into crypto. You may need it at some point, and if the price is getting lower, you can face crypto loss. Crypto investment is a long-term run for at least 3-5 years.

Twitter is not investment advice

Don't take too seriously all the tweets and social media posts about crypto. Usually, they're just a personal opinion. Sometimes, you can feel confident in someone, but he or she may be wrong.

Don't buy BTC with credit cards

It's highly recommended not to buy crypto using a credit (any type). It's an expensive way, and you can put all of your investment at risk. Credit cards have additional fees, rates, and limits.

Do your own research

There is a lot of information, and you may make decisions based on 3rd party opinions. Sometimes, such opinions and news create FOMO (Fear of Missing Out) which makes the panic buy or sell (because you feel like missing the right moment).

Many people from the crypto sphere have the interest to write false information or to provide too optimistic news about something. It's good to avoid any emotional behavior when you make an investment.

What's the risk with 'Buy the dip'

It's a common phrase which means to buy crypto when the price is low. In some moments, it's a good opportunity if you're a day trader (which means to trade crypto on a daily basis), but you may become addicted to track price changes.

Be careful about price analysis and recommendations when to buy or sell. Your money is your responsibility.

People that offer a promising way to gain profit, usually don't gain profit, and they wish only to sell this information. There are some exceptions, but it can be a trap.

Secure your wallet

The most important thing is to take care of your wallet security. Keep your recovery phrase (private keys) well kept in a secure place.

Right now, you have some of the most crucial advice on how to make wise decisions when you invest in Bitcoin or crypto.