BTC has been the best investment with huge appreciation in recent years. Those who bought a few years ago can now enjoy it today. However, BTC did not make a millionaire out of everyone. There were also those whom BTC ruined. Do you know the basic rules that must be followed if you want to be successful?
Don’t try to dominate the market
Traders may seem to make the biggest profits because of their good business practices and skills. In fact, the opposite is true. Slow and stable purchases of cryptocurrencies over the last few years have proven to be by far the best strategy for ordinary investors.
For example, a simple regular monthly investment of $ 100 per month from January 2013 would now be worth more than $ 1 million.
Simply put, trading requires great skills. Those who work in traditional financial markets have long understood this fact.
Diversify your portfolio – but wisely
Like traditional investments, the diversification of the crypto portfolio is a sensible step. Some altcoins have seen incredible returns. Many of them have amazing long-term potential. However, alts are risky. Everyone should carefully consider whether and which altcoins to buy.
In other words, self-research is very important. The diverse portfolio of cryptocurrencies should still be conservative. Successful and large altcoins should be a priority. Newer and lesser-known cryptocurrencies that are high-risk should be kept to a minimum, or not at all.
Keep your BTC and cryptocurrencies safe
It is well known that many millions of dollars in BTC have disappeared due to lost keys, forgotten passwords or theft. Virtually all of this loss is caused by human error.
Smart investors give top priority to safety. They never leave their cryptocurrencies on exchanges, because they have no power over them there, and in the case of an exchange hack, it is easy to lose them. There is a familiar saying “you don’t own the keys – you don’t own the cryptocurrencies”. Everyone should be aware of this.
To store cryptocurrencies correctly, carefully record keys and passwords and keep them in a safe place. Do not store critical information in unencrypted computer files or in the cloud. It is important that you respect the fact that hard drives can fail and files can be damaged.