This is how you will avoid losing money.
Everybody wants to have bitcoins these days.
Many people are buying them. Youtubers, Instagramers, public figures openly say that they have bought and because “is the future.” This makes us think that maybe we are the only ones who are not in the wave.
But does this mean you should go now and buy some? No.
And the answer is pretty simple; if you don’t know how it works, you should not be sure it will rise just because some influencers told you this.
People are investing in bitcoins only because everybody is doing it, not because they are interested in knowing the market.
And I think the biggest problem people have when they invest in Bitcoin is because they think it is a speculative asset, like buying a house.
But there is a problem; Bitcoin was designed to be a currency, a new medium of exchange that people could use to conduct daily business transactions with each other, not an investment.
Bitcoin is a currency, not an asset or investment.
So buying bitcoins is the same as if you earn in dollars and you decide that you are going to buy euros because at some point it will cost more, and that is why you will have more dollars.
The biggest confusion of having bitcoins believes that it will be a liability that will generate income for you monthly. But Bitcoin is just a way to keep your money, not to generate more.
If you don’t know how money works in cryptocurrency, you won’t earn anything, even if many people say it is an excellent opportunity.
That’s because there are certain movements that you must do if you want to generate the money you are expecting.
I know that many people are currently saying that you should just buy and wait for it to go up.
And you could tell me you will buy it because you have read that it will continue to rise. If this is your case, I have bad news for you; nobody knows exactly what will happen with Bitcoin.
No one can predict what will happen to Bitcoin.
Bitcoin’s price surge in the last 3 to 4 months has been exponential without a doubt. This has made more people believe that it is important to buy now to become millionaires.
But it is not like that.
You can’t predict that something is good just because people told you they double their earnings in the last two months. That something has happened in the past does not mean that it will happen again in the future.
For example, this recent movement is relatively less exponential when compared to the 2017 bull run. The 2017 bull run saw a 228% surge in 34 days, while the current bull run has seen a 125% surge in 27 days.
Even if you think it is a great opportunity now, it is not the best opportunity it has given over the years.
JP Morgan has said that it could reach $146,000 if it consolidates as gold for investors. However, to match this reputation built up over millennia, as something worth owning, with little intrinsic value; otherwise, it would have to become much less volatile.
JP Morgan can tell you what he thinks, but that doesn’t mean it will happen.
Nobody can’t really say what is going to happen.
The recent slump in bitcoin taught us something important: it is not yet stable enough, and nobody knows the movement it will have.
That’s because Bitcoin’s value is almost entirely defined by perceptions.
Its price is not controlled or influenced by any individual or entity. So just as it can go up to $50,000, it can go down to $15,000, and no one can give you a guarantee or speculation that it will rise again.
Until you know the market, you shouldn't buy anything.
The correct way to invest in something you don’t know is learning how it works, starting as a beginner, and increasing your investments once you know how to do it.
When I started learning about investment, I realize why many people lose everything: If you don’t know what you are doing, you are gambling.
Many people believe that they only need to put their money in a cryptocurrency wallet, and with magic, they will double their earnings. But it is more than that.
I wouldn’t put something as valuable as hard-earned money into something I don’t know about.
And from investment, I think a lot of investors will tell you the same:
Buy what you can realistically say you really know.
If you don’t know how the market works, you won’t be able to take advantage of bitcoin's rise and fall. People who have become “millionaires” in bitcoin either entered very early or know exactly when to enter and exit their position.
People who believe that buying bitcoin will be rich will probably lose a lot of money because they will not know when he needs to sell.
Probably, it will reach the $100,000 price. But before that, it will go down many times. If you are not willing to lose your money many times, you are not ready to start.
And one last tip: Keep learning. Don’t believe in everything you see on the internet because an influencer or public figure tells you, do not even believe what I have written here.
I learned a lot about the market by investing, but I also learned a lot by watching it, so you don’t need to buy to learn.