While many people may say that the Bitcoin bubble has burst, what that really means that now is the perfect time to get on board if you've never invested in Bitcoin before. However, since now is such a great entry point for beginners, it's also a time in which many people are making unwise decisions regarding Bitcoin.
Fortunately it isn't hard to get started with Bitcoin, and grow your investment. Here are three powerful Bitcoin tips for beginners that will help you to make the most of your investment.
1. Don't Invest More Than You're Willing to Lose
There is always an inherent risk with any investment, and at the end of the day, if you're going to make an investment you have to make sure that you're still going to be okay even in a worst case scenario. Usually a worst case scenario involves you losing everything, but in some cases it can be even worse than that if you go into debt somehow. With Bitcoin you generally don't have to worry about that though.
What helps with this is having the right mentality. When you invest in Bitcoin, put yourself in a mental position to where you'd be okay if you lost your entire investment. If you can't do that, then you're probably investing too much. Fortunately though, losing your entire investment is practically impossible when it comes to Bitcoin.
2. Track Your Data Yourself
When trading Bitcoin most platforms will track a variety of data regarding your trade such as the time, date, and amount that you've traded. However, you should also keep your own spread sheet with info on the trades you make as this will allow you to identify trends in the data that identify critical elements of your trading style. In other words, you'll be able to identify your behaviors that lead to success, and those that have not.
One thing to keep in mind when doing this is that you want to keep your data safe. Bitcoin is a cryptocurrency after all, so exposing your trades, purchases, etc. isn't in your best interest. Make sure that your documentation is password protected, and not left in an obvious location that just anyone could find. You also might want to be careful about what hard drive you store it on, or consider getting a highly encrypted USB stick to store it on instead.
3. Don't Be Afraid to Spend Your Bitcoin
Sure Bitcoin is an investment, but there are many wise purchases that you can make with it. For example, you can purchase items from Shopify stores with Bitcoin, though you would be wise to do a search for "price comparison Shopify" first to make sure you're getting a good deal.
The point here is that your money isn't worth anything if you don't spend it. Don't get too caught up in building wealth for the sake of wealth. Treat yourself sometimes, and take a moment to enjoy the fruits of your investment in Bitcoin. You'll be glad that you did.