If you are thinking of investing for the first time and you think you have learned or known enough about cryptocurrencies from your friends. But that is not enough, you know nothing that is close to the cryptocurrency.
But there are some other facts of investing which you must keep in mind before you start investing in the cryptocurrency majorly. Here we will give you the ten key factors that you need to take into account before you invest in cryptocurrency ever.
1. Bitcoin is Decentralised
This is the fast and the foremost thing one should know that bitcoin or any other cryptocurrency is completely decentralized and you can also trade online. But we will also tell you little about the decentralized factor. Like you know the banks are centralized and many of the banks have the involvement of the government in the banks but that is not there in case of the bitcoins. No government or no organization backs the cryptocurrency by any means.
2. Origin of Bitcoin
The origin of the cryptocurrency has not been known properly. Although a name comes in front which is Satoshi Nakamoto and it is believed that this person has actually invented the bitcoin in 2008 when the economy was going through turmoil. It is believed that he did not want to let others know about the inventor of the bitcoin because it was actually a technological mistake that happened.
3. Pseudo Anonymous
Bitcoin is supposed to be anonymous but it is not anonymous in real meaning, it is kind of pseudo-anonymous. It means that one will not know who is transferring money to whom, but people would get to see that someone from a certain address has sent money to someone else.
4. Real Currency
Some people believe that it is a myth that cryptocurrency is a myth but in reality, it is not a myth. It is a practical coin that can be used at the value of dollars and sometimes even higher. Everyone would like to use cryptocurrency as real currency in fact in many countries where the fiat currency has not been doing well, the digital currency has been widely accepted.
Bitcoin is very volatile and the price of the bitcoin is very unpredictable. The value of bitcoin changes every second. The price of bitcoin can rise in a moment and the next moment you decide to do away with it or sell it off the price falls again. It cannot be guessed which time would be a suitable time.
6. Know the buying and selling method
Before you purchase any bitcoin, you must know the purchase and the selling value. It is not enough if you just spend your money and purchase a bitcoin. You must know the market thoroughly; you must know when to buy and when to sell. At what price can you buy and at what price could you sell.
7. Don’t use too much money
If you use too much money and you do not know, or if you are not too confident about it then do not involve too much money into it. You might run into loss and then you will not find any kind of better return from the investment. Only if you are too well aware of the bitcoin then you can invest money into it or else you cannot.
8. You can increase your investment
If you think you are doing well, that you understand how the investment happens then it would be a great idea to increase the investment whenever you want. You can make your investment into it. If you think you can invest some more, then why not? If you think you understand how to invest then you can invest more money in the cryptocurrency.
This is another important factor; there are some professional criminals who are always sitting online to hack your cryptocurrency. So, it is better that you keep your ears and eyes open, some scammers will always try to hack your crypto so you need to be careful as in what to do and what not to do.
Last but not the least, this is something very important. You must have a vault to keep your bitcoins safe from stealing. You must also have a private key that will be used to open the bitcoin vault or the bitcoin wallet.