In 2018, the adoption of Bitcoin (BTC,) cryptocurrencies, and digital assets is starting to cause headwinds in the way that people transact business with others.
If you’ve heard about Bitcoin and other Cryptocurrencies and you are wondering whether or not this is a safe investment, this article covers some of the basics you should understand about these digital assets before deciding if it is right for you and your future.
Like all types of financial investment, there is no guarantee on the return you get on your BTC or cryptocurrency contributions.
Cryptocurrency markets are volatile and are known to swing up and down. Depending on your investment strategy, this volatility can work for or against you.
Long-Term Holding Strategy
According to data at Coinbase.com, Bitcoin traded for around $2,817 on May 31, 2017. Fast forward to the present day; this same Bitcoin is getting sold for between $8,500 to $9K +, depending on the day. Basing the gain on the low BTC price of $8,500, this represents over a 200% appreciation in the sales price in about one year’s time.
If you are the type of investor who likes to tuck assets away and check their performance later, holding some BTC is a calculated risk. With a limited number of coins available, the chance for appreciation, especially over the span of time, is likely.
When using a long-term, buy and hold strategy, being mindful of the cryptocurrency markets behooves you. During the 2017 holiday season, Bitcoin reached over 19K per coin, so had you purchased in May, and held on for just a few months, you could have earned a noteworthy return.
Bitcoin that you want to buy and hold for long-term can get stored in your cold wallet, an online wallet, on a USB drive, or even on an exchange if you know that you’re planning on selling it within a specific timeframe.
Actively Trading Coins And Digital Assets
For people who prefer to trade Cryptocurrencies and digital tokens, the volatility on the exchanges provides an opportunity for traders to buy and sell cryptocurrencies, hopefully for a profit throughout the day or night.
If you are new to the Cryptocurrency exchanges and hope to become a trader, it is always a smart idea to do an ample amount of research to understand how the pieces fit together for trading success. Failure to do so can result in mistakes that negatively affect your wallet balances.
Cryptocurrency markets can move fast, upwards and downwards. As a trader, you will need to have the focus to select the ideal purchase price and selling price to keep your trading profitable.
By understanding market indicators, you can align yourself with greater success when actively buying and selling coins and other assets at the correct time.
Protecting Your Assets
Once you’ve acquired a Bitcoin or other cryptocurrency assets, you are going to want to make sure you take measures to protect these valuable digital assets. Failure to do so could put you at risk of losing your coins and other assets with no way to retrieve them.
One protective measure when using cryptocurrency trading platforms is by using 2FA authentication to verify transactions such as website logins, as well as deposit and withdrawal notices. By enabling 2FA, users are safeguarding their account against unauthorized use and access to their account. An SMS message containing a code gets sent to the phone number associated with the account. The account user must then enter the matching code to the website to verify the login or pending transactions.
Another crucial detail that shouldn’t get overlooked is protecting critical data including your public key, your password, and username if required. To avoid loss, you might consider keeping copies of this information on a thumb or external drive for future access.
If you’ve bought or accumulated a significant amount of Bitcoin or other Cryptocurrencies, remaining mum on the subject helps protect you from potentially getting targeted for theft.
Other Considerations
The purchase of Bitcoin, cryptocurrencies, and other digital assets are generally considered a high-risk investment. As with any potential investment and as a best practice, you should never risk more funds than you are comfortable with potentially losing.
Also, availability, eligibility, and legality vary from jurisdiction to jurisdiction. Always do your independent research before investing.
About The Author
Mark Dukas Charlotte is a skilled cryptocurrency trader with years of experience buying, selling, and trading Bitcoin and other cryptocurrencies. Before 2014, Mark Dukas worked as a personal trainer. In his years of experience, Mark Dukas Charlotte has excited and inspired his clients for achieving goals and milestones. Ready to get started? Mark Dukas can help you, too!
This article is not financial advice and is for informational use only!