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How Much Should You Invest in Bitcoin? |
Do you know the simple difference between successful cryptocurrency investors and non-investors in 2022?
The winners started.
When you start investing in bitcoins and cryptocurrencies, you are bombarded with questions:
Is bitcoin a good investment?
What is the best way to buy bitcoins?
What is a reliable strategy to invest in bitcoin?
How much to invest in bitcoin?
These questions can confuse you to prevent you from getting started.
So I will share my experience and advice on how much you can invest in bitcoin and show you how easy it is to get started.
How much money should you deposit in bitcoin?
How to invest in bitcoin? You should invest between 5% and 30% of your capital in bitcoin. I think 5% is very safe and 30% is pretty dangerous. I’m usually between 15% and 50%.
This is because I am a gambler (formerly a professional poker player) and I am comfortable losing money. I would not recommend anyone to invest 50% or more.
Ultimately, the decision is up to you. While it depends on market factors, it also depends on personal factors such as your risk tolerance and how much money you can lose.
Are you still afraid to make the wrong decision?
If you’re still afraid to invest in your first bitcoins, follow these tips to get started:
Invest up to $ 10 in a cryptocurrency exchange or broker. This is how you can get started and have a better understanding of what it means to be a cryptocurrency investor.
Divide the budget you have in mind and invest for the long term. 1 month, 3 months, 12 months - you decide. However, it avoids costly mistakes and saves you money.
Please note that you may reconsider your decision in the future.
Choose the best platforms to buy bitcoins.
1: Take risks
The cryptocurrency market is highly volatile.
So when you think about how much you should invest in bitcoin, think about how much you will immediately lose.
Consider how much you want to invest. Think of this amount and in the future imagine:
Say $ 12,000, are you comfortable losing your entire investment?
Do you seriously judge yourself on who decided to invest? Will you lose sleep or think about suicide?
Even if the answer to any of these questions is “probably yes,” you should narrow the circle in your mind and ask yourself the same questions again. If you are unsure of your answer, ask your friends and family.
Investors who put too much money will also be prone to “panic selling” at losses. Selling at a loss can be the right decision sometimes, but if the decision is logical, not emotional.
Keep the amount you invested at a level that will not affect your decision.
2: Get Tolerance
While this may seem like dumb advice at first, think about it: if you invest an amount that will boost your feeling if you lose, what happens when you win 20 times your money?
This happened to many investors at the end of 2017 when the cryptocurrency rose. They became millionaires because they made the (bad) decision to invest their savings.
But if they are too greedy to manage their investments wisely, don’t you think they are selling their positions and making a profit? No, so clearly this is not the best way to invest in bitcoin. Most of them go back to where they were in the 2018 stock market crash.
Only sensible investors make money on bitcoin and cryptocurrencies.
So think again about how much you want to invest. How would you trade if in a year it would be equal to 20 times its original value?
Do you rent a large apartment? Buy a luxury car?
Will you fall in love with your cryptocurrencies and keep them until your death?
So, how to invest in bitcoin? Again, whether your assets are growing or shrinking, it’s important to invest in those you feel emotionally alienated from. This will allow you to make a solid investment that will lose less when the market goes down and win more when it rises.
3: time
I bet you’ve heard a lot more about cryptocurrencies when the price of bitcoin rises, not when it falls or stabilizes. This is because people and the media have an instinct to follow current trends.
But did you know that the cryptocurrency market is made up of repetitive market cycles? These market cycles typically last 1-2 years. Prices rise rapidly and create bubbles. BIG bubbles. And then those bubbles burst violently.
Therefore, time is of the essence when it comes to cryptocurrencies. It can completely change your journey and your outlook.
So when deciding how much to invest in bitcoin, take a look at where we are today in these market cycles and you will find the best way to invest in bitcoin.
Open the CoinMarketCap world market chart to get this information. Take a good look and answer the following questions:
Are we close to the historical high of the market?
How long have you seen an uptrend in the market?
The closer you are to the historical peak of the market in terms of price and time, the less you want to invest. On the other hand, if the current price is $ 5,000 and the two-year-old high is $ 20,000, that should be the best time to invest in bitcoin.
Don’t get me wrong, even if we’re in the middle of a price rally, it’s a good idea to start investing in cryptocurrencies now because you can. Time simply changes your input method and decreases/increases the value you originally had in mind.
4: change your mind
I have never seen a crypto investor say “I will invest X dollars in cryptocurrencies” and keep his word. People’s minds naturally change, especially when faced with the ever-changing market.
So, before you make a final decision on how much you want to invest in bitcoin, leave room for a change of heart in the future. The easiest way is to spread the investment over time. Determine the amount you want and invest over the next 3, 6, or 12 months.
5: Differentiation
Differentiation is a technique used by any mature investor to underestimate the importance of luck. This means that you are not only investing in cryptocurrencies but also investing your capital in various investment vehicles such as real estate, stocks, and gold.
You can also leave some of your money in your bank to earn a small percentage.
In general, don’t put all your eggs in the cryptocurrency basket. It’s like playing Martingale on roulette. You will win and you will win and you will win, but if you lose, you will lose everything.
Where can you buy bitcoin?
I recommend trying a few different exchanges because people show that they have different tastes when it comes to investing in cryptocurrencies.
Anyway, if you haven’t used it yet, here’s the best exchange I recommend you use right now.
What is the lowest bitcoin investment you can make?
There is no minimum amount of bitcoins you need to buy to get started. The only minimum is what determines the platform on which you invest your first bitcoins. For example, Coinbase allows a minimum investment in Bitcoin of $ 2.
However, I do not recommend buying such a small amount of bitcoins because it changes the fees for buying, selling, and transferring cryptocurrencies. If you’re looking for a small investment, these costs will quickly wipe out your investment.
In total, I recommend investing at least $ 50, although you can invest smaller amounts, which should be your lowest purchase of bitcoins.
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