How to Trade Bitcoin
DISCLAIMER: All investment strategies and investments involve risk of loss. Nothing contained in this article should be construed as investment advice. Any reference to an investment`s past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit. Every investment and trading move involves risk.
You should conduct your own research when making a decision.
Guard Your Emotions!
It’s important to get this out on the table from the beginning: cryptocurrency trading can be an emotional investment for traders, causing tremendous fatigue and FOMO (fear of missing out). With the crypto market open 24/7, it provides traders with that neverending feeling of “having to trade.”
Guard Your Wallet!
Another essential piece of advice is that while the methods of investing in cryptocurrency mirror how the traditional stock market and NYSE operates, the crypto market lacks fundamentals and is not regulated. It is a very risky environment, where it’s almost impossible to know whether or not you’re going to make money on your money, or lose it all--overnight.
A blurb from Investopedia summarizes these caveats:
As of Jan. 2020, 18.15 million, or 86.42%, of total bitcoins have already been created. This situation does not guarantee increasing prices. Cryptocurrencies are wildly unpredictable, even ones as popular as Bitcoin. Bitcoin was worth $19,116.98 on Dec. 17, 2017, but the price fell substantially and had yet to recover as of the beginning of 2020. The value of Bitcoin is heavily dependent on the faith of investors, its integration into financial markets, and public interest in using it. The performance of Bitcoin compared to other cryptocurrencies, such as Ethereum, is also crucial in determining its value.
For more information on this, please click here.