How NOT to invest in Bitcoin (BTC)?

By
Tokeneo
-
1 min reading

You'll find advice on how to invest in Bitcoin everywhere. We'll tell you in what situations you shouldn't do it. Here's what to avoid!

Don't buy BTC if:

  • You have no money
  • You don't know anything about crypto wallets
  • You're only hoping for profits 

No available funds

Although it seems irrational, many people buy Bitcoin with no free money to do so. This kind of investors often borrow from friends or even worse, take loans to buy BTCs while there is an opportunity. It's not a sensible thing to do.

This is how novices usually act. What's more, their appetite for Bitcoin grow when  its course is up. The consequences are always the same. Dazzled by profit rule, they buy BTCs on the hill.  And when it comes to inheritance, they don't wait for a bounce. They sell out at a loss so as not to sink more borrowed funds. 

Lack of knowledge about cryptocurrencies wallets

This is another serious mistake. It's not enough to buy a Bitcoin and put it in any crypto wallet. It is worth taking care of the safety of your funds. Education in this field is essential. 

Take a look at the crypto wallets available on the market, compare them with each other to see which one is right for you. When buying large quantities of BTC, it is worth taking special care of their safety and use the so-called cold wallets. Their advantage is that they operate offline. 

They can be subdivided into the following subcategories: hardware and paper. While you will have to pay for the first ones, second ones, you can generate them for free! However, remember to do this only in a safe (offline) environment. Also take care of your private keys, never share them with third parties. 

Read also: Bitcoin wallets - how they work and which one is the best?

Bitcoin's price is not fixed!

Bitcoin value is not constant. Its price fluctuates strongly. There are many factors involved. If you invest in Bitcoin with the idea that it will continue to grow, you're wrong. At the first better opportunity, when emotions take over, you will fall into FOMO and sell it at a loss. So it's worth looking at what has been happening with BTC in recent years to avoid making rash decisions. 

Read also: How to invest in cryptocurrencies without losing money?