You’ve read all the stories. You have heard about all of those incredible success stories, where someone invested just a few bucks and ended up making millions. While those types of incredible profits are unlikely to be seen again, make no mistake: Bitcoin remains a great investment option in 2020.
You only have to look at the upward trend in Bitcoin’s value over recent weeks, with some even estimating it to jump from around $18,500 today to $100,000 in 2025.
Yet before you jump straight into the Bitcoin world, there are various aspects you have to keep in mind. Even though all signs point to success, you could still come unstuck with an investment if you’re not careful. To help you in that regard, below are four tips for Bitcoin beginners in 2020:
1. Bitcoin is volatile
Yes, many success stories revolve around Bitcoin. Yes, it’s predicted that this cryptocurrency will continue to gain massively in value over a relatively short period. Yet it would help if you remembered that Bitcoin is a volatile investment opportunity.
As of writing, Bitcoin is at the $18,500 mark, which is a big jump from where it is at the start of the year. You may have seen recent stories of Bitcoin hitting an all-time high of almost $20,000. However, it has been at the near-$20,000 mark in the past – and this was back in 2017. So what happened in those three years? It crashed. By late 2018, it had fallen to below $3,500 – still an astonishing amount from its humble start, but a major drop compared to the highs.
As a result, you must remember that the digital currency market, which is new and unpredictable, is a volatile environment. The future looks good, but you also don’t want to invest your life savings just in case.
2. Remain secure
You can move your Bitcoins incredibly easily across the internet, but this does come with some risks. As a result, you should take the right precautions to ensure your digital currency is safeguarded and cannot be accessed by cybercriminals.
Some security tips include:
• Get a hardware wallet
• Don’t hold assets in exchanges
• Choose difficult passwords
• Avoid public Wi-Fi
• Audit your security every three months
3. Gain a helping hand with software
To be a successful Bitcoin trader, you need to possess advanced trading skills and know-how to analyze the financial markets. This isn’t the most appealing situation for beginners. If it is too intimidating, however, don’t worry: there is a solution in the form of specialist software.
One such option is the Bitcoin Revolution. As this Bitcoin Revolution review highlights, the software does all the heavy lifting and analyzes which markets will turn your investment into profit. It can also create and close trades automatically, ensuring performance is maximized.
4. Watch out for trends
Even if you utilize software, you should still take the time to watch out for trends. While Bitcoin isn’t as easy to follow in that regard as a standard business – a CEO won’t suddenly resign, and company statements won’t be released – there are still certain trends which can be seen. By spotting them early, you have a greater chance of investment success.