Over the past decade, Bitcoin has proved to be the most profitable investment, and the next decade promises to be even better. The most successful investors in BTC have followed a number of principles that in the future will have even more value for generating profit.
Don’t try to cheat the market
You may think that traders and market players receive those big profits due to their trading skills. In fact, the reverse is true. For simple investors, slow, permanent purchases of Bitcoin over the past years have proved to be the best strategy.
For example, investment in Bitcoin of $100 per month since January 2013 is currently worth over $1 million. Even implementing this strategy at a time when BTC reached its all-time high in January 2018 would also be very profitable.
In other words, trading requires great skills, but most amateurs lose. Those who work in traditional financial markets or with free Forex signals have understood this fact a long time ago, and it is especially relevant for crypto space. Thus, the best move is to be conservative and stay away from trading games.
Smart diversification
Cryptocurrency is a new class of assets, and the technology of the blockchain is ready to revolutionize the world economy. The ability of Bitcoin to remain the leading asset still causes controversy, however, there is no doubt that other cryptocurrencies can work with the same success.
As with ordinary investments, a mixed cryptocurrency portfolio is a smart move. Some altcoins have given young investors unbelievable benefits, and many of them still have good long-term potential. However, altcoins are unstable and should be purchased after careful and clear evaluation.
The diversification of the cryptocurrency portfolio should be constructive, in the sense that the established altcoins should be in priority. New or less popular tokens should be in very small numbers.
Be vigilant when storing Bitcoins
It is well known that endless millions of dollars in Bitcoin disappeared because of lost keys, forgotten passwords, and hack attacks.
All these losses are caused by human errors.
Sophisticated investors make safety a top priority. They never store their assets on crypto exchanges and are always sorted out in the process of storing coins on the cryptocurrency wallet.
The well-known adage “not your keys, not your cryptocurrency” should be considered a basic truth.
In order to properly store the cryptocurrency, you need to establish a clear and consistent methodology. You should use only crypto wallets developed by experienced custom software development company and record keys and passwords carefully and keep them in a safe place. Keep important information in unencrypted computer files or in the cloud. It is important to take into account the fact that hard drivers can get out of the system, because of which the files will be damaged.
The future technology of the blockchain is quite solid, but one of the best means for realizing the advantages of investments in cryptocurrency is always a reasonable conservatism.