Are you planning to invest in Bitcoin? But what exactly are you getting yourself into?
Learning how to buy and store Bitcoin is a big challenge. There’s also the learning curve of understanding cryptocurrencies, which has a whole new language and culture. Bitcoin isn’t just limited to cryptocurrency experts anymore. It attracts everyone, from engineers to students who want an easy way to make money.
In this article, we’ll explain why you should seek out a mentor before investing in Bitcoin.
1. Do not take the plunge without getting equip.
Bitcoin is something that you don’t want to dive into without consulting a professional or doing extensive research. We can tell you from past experiences that the world of cryptocurrency and blockchain technology is tough. It is not for beginners, and no one really knows how to navigate it except for those familiar with it.
You do not want to take the risk of losing your money. Instead, look for a mentor who will help you understand what it takes to buy and store Bitcoin. Another alternative is to read up on a lot of information online, but it will probably be very difficult for you to understand without having experience in the field.
2. Be informed of the risks involved.
Bitcoin is a high-risk investment. It has a big potential to make you rich, but it also has the potential to make you lose money. As such, do not make snap decisions. Before buying any amount of Bitcoin, get informed about all of the possible ways you can lose your money.
Research how to protect yourself from hackers and how to lose your wallet or keys. This way, you wouldn’t feel completely lost once you start investing in Bitcoin.
3. Make sure you are willing to deal with volatility.
Bitcoin is a volatile asset, which means its value fluctuates a lot. As an investor, this means that you have to be willing to deal with swings and dips in the price of Bitcoin. You should also be aware that payment processors such as Coinbase take out one per cent of every transaction made using their platform.
Without someone to guide you, it is possible that you might make mistakes. Do not make the mistake of buying Bitcoin with a credit card or bank account, as you are likely to face conversion fees. It’s even possible that Coinbase will shut down your account if they find out that you are using it for transactions known as money laundering, which is illegal.
4. Have a strategy on how to spend and store your Bitcoins.
How can you create a strategy if you don’t know what to do with your Bitcoin once you have bought some? A mentor can help you create a spending plan, which will make it easier for you to manage your Bitcoin.
5. Educate yourself or seek out further information.
Never stop learning about Bitcoin. Do not buy Bitcoin yet if you don’t know what a block is or how proof of work works. You need to better understand the technology behind cryptocurrencies before you can handle them.
If you learn that mining is a waste of your time, do not buy Bitcoin until you handle the volatility. Learning about how it works and how to store it properly is important.
We recommend learning through YouTube videos and books. Try out the local meetup groups where Bitcoin enthusiasts gather if you want to go more in-depth. There’s also the necessity of getting other people to help you understand what they are doing. Just make sure that they handle your questions with answers appropriate for beginners.
6. Choose one wisely.
For every Bitcoin expert in the world, at least ten others are still trying to figure things out. So, you do not want to rely on a mentor who has no idea what they’re doing or who can’t answer your questions.
Bitcoin is an investment, but it is also an industry and a community, so you should get a mentor who stays up-to-date with the industry and community and has some experience as well. How do you know if a mentor fits the bill? Think about what they do for a living, where they have worked and who their clients are.
7. Always be cautious with your money.
You should never invest in something without having done exhaustive research first. Take the time to learn about the history of Bitcoin and why it is different from other currencies. Do not just know how Bitcoin can make you rich; find out what it does exactly before you invest in it.
There are a lot of risks involved in buying Bitcoin, so if you really want to use it and not just invest it, then you should get an expert to help you learn the ropes first. You don’t want to lose your money, right? Share your comment on this post below.