Smart Bitcoin Investors Make Money With These 3 Steps

Bitcoin has proven to be by far the most profitable investment of the past decade, and the next ten years offer even more promise. The most successful BTC investors have followed a series of smart principles, which will be even more important for taking profits moving forward. Not Trying to Beat the Markets On the surface, it may appear that traders and market players make the most gains and that trading skills are needed to profit in the crypto space. In fact, the opposite is true. Slow, steady purchases of Bitcoin over the last several years have proven to be by far the best strategy for ordinary investors. For example, a simple monthly Bitcoin investment of USD $100 per month since January 2013 would now be worth well over $1 million. In fact, beginning this same simple strategy when BTC reached its all-time high in January 2018 would also be very profitable by now.  Simply put, trading requires great skill, and most amateurs lose. Those that work in traditional financial markets have long understood this fact, and it is especially true for the crypto space. Thus, the best move is to be conservative and stay away from the trading game. Diversifying But With a Hint of Smartness Cryptocurrency is a new asset class, and blockchain technology is poised to revolutionize the global economy. Bitcoin’s ability to remain the top platform remains subject to debate, yet there is no question that other cryptos will find some measure of success. Like conventional investments, a mixed cryptocurrency portfolio is a smart move. Some altcoins have given incredible returns to early investors. Many have amazing long-term potential. Nevertheless, alts are risky, and should only be acquired after a thorough, independent evaluation, In other words, research is very important. A diverse crypto portfolio should still be conservative. More established altcoins should be a priority. Keep newer, less-popular platforms in only very small amounts, if at all. Keeping Bitcoin Funds Secure It is well-known that untold millions of dollars in Bitcoin have disappeared because of lost keys, forgotten passwords, and theft. Virtually all of this loss is due to human error. Smart investors make security a top priority. They never keep their funds on exchanges, and they always fully understand the processes by which their crypto funds are stored in their wallets. The well-known adage “not your keys, not your crypto” should be respected as cardinal truth. To properly store cryptocurrency, establish a clear, consistent methodology. Carefully write down keys and passphrases and store them in a secure location. Do not keep critical information in unencrypted computer files or in the cloud. Importantly, respect the fact that hard drives can crash, and files can become corrupted.  The future is clearly bright for blockchain technology, and thus it is incredibly promising for those that seek to enter crypto markets. Nevertheless, following basic, conservative principles is the best means to realize the benefits of cryptocurrency investment.  Are you a bitcoin investor or a trader?  Image via Shutterstock

Originally from Bitcoinist.com https://ift.tt/37T1yCO