Top 5 reasons why some investors fail miserably at Bitcoin investing
All the criticisms, which are levied against Bitcoins as a form of investment can be turned to work to the advantage of an investor.
There is a saying that investing in Bitcoins is not for everyone. While some seasoned investors have suffered heavy losses, many amateurs with absolutely no prior experience in investing have managed to amass multi-million-dollar fortunes.
While other areas of investments like stocks, gold, commodities, etc. have far more predictability and literature available when it comes to being the best practices of investing, Bitcoin does not.
This makes investments risky, unstable, and prone to suffering from colossal losses. We speak to some successful investors in the Bitcoin space and ask them about the reasons why some investors fail miserably at Bitcoin investing.
List of the Top 5 Reasons why some Investors Fail at Bitcoin Investing
- Lack of Research and Relevant Information
If you read through many manual guides for first-time investors in Bitcoin or any other cryptocurrency, you will always find a comparison being made with gold. While Bitcoin has some properties similar to gold (being a hedge), the two are in fact very different.
It is important that investors understand the peculiar nature of how Bitcoins work before arriving at an investing decision. Bitcoin is unlike any other investment in the market and has its own peculiarities, which make it special, profitable, and risky all at the same time.
- Aiming for Long-Term Gains without a Safety Net
Traditional investments are all about making investments and forgetting about them. This is done with the thinking that any investment in order to shine must be left alone for a long time. While this is true for almost all, in the case of Bitcoin this is not always the case.
If you do not sell some Bitcoins when it’s going through its high Bull Runs, you risk over-exposure. At no point are we suggesting that you need to drop everything? However, you need to get some returns while the time is right. This is truer if you do not have a large safety net.
- Believing that the Volatility is the Major Impediment
Rather than keep saying that price fluctuations are what is preventing me from getting into Bitcoins, it is important to consider the volatility as a strong suit. Every investment has two aspects- growth and safety. When it comes to Bitcoins you can prioritize the former.
You can leave the safety to other investments like gold or real estate. Using the volatility of Bitcoins to your advantage is what some of the most successful investors in this space suggest.
- Not maintaining Private Keys in Offline Modes-
If you are a Bitcoin investor who is not too technologically proficient, you should pay attention to this. Every investor needs to store their Private Keys in an offline fashion, according to experts. Connecting or storing the same in a digital platform or cloud is very risky.
Hackers are using the most advanced and sophisticated techniques to get access to your system as Bitcoin continues to soar. The best way to store Private Keys is by holding them in an encrypted hardware device with great Crypto Code App, which is never connected to the internet.
- Following the Advice of Ten Different Experts
As Bitcoin investing is something pretty new, there are a lot of so-called experts offering multiple suggestions on what they consider to be the best. This will lead to- confusion, chaos, and loss.
Following the advice and suggestions of a few experts like crypto exchange blogs and social media of exchange, CEOs are enough to help you get the best information from the world of cryptocurrencies.
The Final Word
All the criticisms, which are levied against Bitcoins as a form of investment can be turned to work to the advantage of an investor. By following the five points mentioned above, investors can look to create and develop sizable profits from investing in Bitcoins.