As Bitcoin is only $1k short from surpassing its all-time high, many people are starting to become more interested in investing. However, Bitcoin is a cryptocurrency, and cryptocurrencies are known to be very price-erratic. This may cause many people to lose money instead. But is it possible to earn money from Bitcoin without fail? Here we’ll give tips on how to invest in Bitcoin without getting broke.
Firstly, you need to realize that cryptocurrencies are too volatile compared to older assets such as gold and the US dollar. So you might not see potential profits in the short run if you’re not a good day trader. But if you want to learn how to invest in Bitcoin correctly, then you need to know its previous all-time lows and all-time highs. Technical analysts take careful note of these, as they believe that an asset’s value ebbs and flows like ocean waves.
With this, you should look at Bitcoin’s price and it’s relative strength index (RSI). If the RSI indicates that Bitcoin is overbought, it would be unwise to buy in at the moment. Wait for the RSI to go down until the indicator says that it’s oversold.
Secondly, people who know how to invest in Bitcoin are aware of whales. These are people who hold a massive amount of assets. You should follow whale alert platforms and see what the whales are doing. But this is only for those who intend to make money in Bitcoin for the short term.
Lastly, for those who want to learn how to invest in Bitcoin for the long term, try the hodl mentality. Regardless of any price fluctuation, hold your ground and never sell your BTC. As far as the experts are concerned, Bitcoin will become the digital gold this 21st century, and that it’s only a matter of time before it skyrockets to cosmic proportions. Even financial institutions like Citibank are recommending that their clients learn how to invest in Bitcoin for them to take advantage of this rare opportunity.
Also Read: Impact of FPI Inflows in Stock Market
However, make sure to store your BTC in the safest way possible. Also, do not invest your money in BTC if you are not open to the possibility of losing your money altogether. There are no risk-free investments, most especially Bitcoin.