Top 3 Questions To Consider Before Investing In Bitcoin Crypto Tokens

If you’re brand new to the ever-growing world that is Bitcoin and cryptocurrency, you’re likely considering whether investing in Bitcoin is right for you. There are some brief considerations you need to keep in mind before you make your first purchase in order to ensure that your investment is a sound one. Here are some questions to ask yourself to discover if Bitcoin is a worthwhile investment for you.

1. “Is It The Right Time To Invest?”

Take a look at the price graph over time. You’ll see sharp spikes and steep drops (crashes). You may be looking at a sharp spike today. Many new investors hold off on purchasing their first Bitcoin (or fraction thereof) because they feel that the price is inflated in a “bubble”.

It’s impossible to predict whether or not the price will continue going up or drop to its trend. You should not hold off on investing simply because it’s too late; we may just still be in the very beginning of Bitcoin. You have to ask yourself, “Is this price what I consider the very beginning of something big?” If you can say yes to that, then it may be the right time for you to get involved in the world of digital currency.

2. “How Much Should I Invest?”

Do you have a savings account or an investing budget? If you do then you may be ready to make your first worthwhile investment in Bitcoin. However, if you’re looking to invest simply because you’re panicking about getting in before it’s too late, then you should step back and consider whether or not this purchase is right for you.

A common adage in the investing world is, “Don’t invest more than you’re willing to lose.” That’s because the price of Bitcoin (or any digital currency) can come crashing down at any second without notice. As the past has shown us, the price may stay there for several years. If you happen to invest at the peak and experience a crash, are you willing to remain patient and wait for the market to increase again? This long-term “holding” mindset is absolutely necessary to prevent getting swept up in fear, uncertainty, and doubt (FUD) that the media spreads to the general public.

A safe and secure Bitcoin investment is one that does not put you at financial risk should the market take a turn for the worse. Ensure that you’re ready to weather the storms of severe fluctuations in the market. Equip the mindset of holding on to your purchase no matter what the media says or what the price graph tells you. If you’re not comfortable nor prepared doing so, then you may be what is called an “emotional trader,” one who is easily swayed by popular opinion.

A great strategy to get involved is investing a small sum in frequent intervals. This investment method more closely mirrors that of successful Wall Street traders who put their investing funds into a stock little by little. Very few successful investments happened all at once; consider establishing an investment amount per week, no matter what the market is doing, in order to accrue an impressing Bitcoin savings over time.

3. “Where Do I See Bitcoin In The Future?”

In order to make a worthy investment, you must have faith that Bitcoin will be here to stay. If you doubt the success of the coin long-term, then you may be looking to take a short-term stance and achieve fast profit. This is a risky mindset because it relies on an accurate prediction of whether or not the market will increase in a short period of time.

Therefore, only invest and hold if you trust the technologies involved. You absolutely must do your research before getting involved in any cryptocurrency. Become aware of the basics of how a transaction happens from person to person (peer-to-peer), and learn about how miners verify transactions through a process of computations and problem solving. Inform yourself about the Bitcoin mining network and the latest updates to Bitcoin Core (source code). Keep tabs on the media and news and take them into consideration while not being swayed by what they say.

Use your own critical thinking and make your final decision regarding where you see Bitcoin in 1, 5, or 10 years or more.

After you ask these three questions you are ready to determine how much you’re willing to invest safely, when it’s the right time to get involved in the market, and where you see your investment over time. You’ve just made a well-informed, educated, and levelheaded decision! Now, Bitcoin might just behave quite opposite to what you predicted, but at least you know that you’re in it for the long-term. You’re a holder. You see the storms of today as just being minor bumps in the price history tomorrow. Invest small, invest smart, and invest often.