8 Things to Consider Before Buying Bitcoin in 2022
Today, many online activities involve cryptocurrencies. And it is not necessary to know about indicators or trends, but it would be desirable to keep cryptocurrency on a wallet or an exchange. Many beginners start as investors with the leading cryptocurrency – Bitcoin. However, you should not make a purchase of this asset in a hurry – you need to study in advance the factors that will help you in this process and give you general knowledge.
Things to Know Before You Buy Bitcoins
Before you buy any cryptocurrency, and especially for the first time, you need to study the buying process and the factors that may affect the future price of the asset. This is where we will focus our attention so that you are armed in advance.
3 Factors to Follow While Buying Bitcoin
In this section, we will look at three things that people who want to buy Bitcoin need to follow. The process, in general, is relatively fast and straightforward – on exchange or on the best crypto casino, but attentiveness is essential here – any wrong step can lead to loss of money.
#1 – Find a good crypto wallet/exchange.
In 2022, there are so many wallets and exchanges that will help you buy Bitcoin. It is crucial to pay attention not only to the design of the application and various features but also to the creators’ reliability. Before downloading, check all the details, reviews, commissions, methods of buying/selling cryptocurrencies.
#2 – Try to choose non-custodial or cold storage.
Many experts and investors advise storing cryptocurrencies in non-custodial or cold storage. The fact is that such services do not store private keys on their servers. And when hackers break into the server, they don’t get access to your private keys. But if the service is custodial, then in the same situation, hackers will have full access to your keys and, as a result, to assets.
#3 – Find a good moment to buy Bitcoin.
Many investors, and even Bitcoin blackjack players, know that cryptocurrency is very volatile. If you want to buy Bitcoin, it is advisable to choose a moment when the price is at a relative bottom. So in a few months, you can get one and a half or two times as much money without doing anything with it. And vice versa – having bought Bitcoin at the peak, you are very likely to lose money during the following correction of the asset.
5 Factors Affecting The Future Bitcoin Price
If you are buying Bitcoin for long-term investment and not to buy other tokens to play play-to-earn crypto games, then it is vital for you to understand what affects the price of Bitcoin. We have already discussed when is the best time to buy Bitcoin now; let’s discuss how to manage your assets afterward.
#1 – Sell on highs and buy on dips.
Now we will discuss one of the most essential rules for making money on long-term investments in Bitcoin. When the price is at a relative peak, selling 10-15% of the total value makes sense. This money is needed in order to buy Bitcoin at a relative bottom later. Thus, even considering the fall, you will be able to increase your capital.
#2 – Don’t perform a panic sell.
Have you ever heard of FOMO? Fear of missing out in cryptocurrency means you buy/sell not because the market shows this but because you panic. This is not very good and usually never brings you any profit.
There are cases on the market when literally, within 15 minutes, all altcoins fall by 15-20%. If you enter and already see this fall but did not have time to sell until this moment to repurchase it later, you should not sell after the fall. You either leave everything as it is or buy it immediately on this fall.
The same goes for growth. If you missed the rise of the coin and it has already fallen, consider whether it is worth selling at this stage. Do not rush – any missed opportunity will return to you in double size in the future if you do everything right.
#3 – Read the news.
Fundamental analysis is just as critical as technical analysis. News significantly affects Bitcoin – some large-scale events can reduce or increase the price of an asset by 5-7%, which is an extensive range for Bitcoin. In addition, it is helpful to read cryptocurrency news at least to be aware of the events and trends currently taking place in the market.
#4 – Don’t listen to everyone.
There are now many services on the Internet that offer signals or investment advice, which, of course, are paid. Not all of these groups are useless, but most are just trying to make money from newbies who don’t know how things work.
If you are looking for some service for regular market updates or investment recommendations, try the paid versions first. There are many YouTube channels and free groups in Telegram or WhatsApp. Do not buy the first available subscription – analyze and evaluate everything in detail.
#5 – Diversify your portfolio.
In order to get a good return on investment in Bitcoin, you need to either buy it in 2013, which is already too late, or invest a significant amount. Therefore, it is worth paying attention to altcoins. Many of them are much cheaper, and they can grow not by 30-40% per year but by 300% or 400%. But altcoins also need to be chosen with high quality. In addition, never forget that you can not only earn but also lose, and sometimes massive amounts.
5 Best Crypto Wallets to Store Bitcoins
We have already talked about the main factors to consider when buying Bitcoin. One of them is to find a good cryptocurrency wallet or exchange. Most often, people choose wallets as they are more secure for storing assets. Therefore, now we will talk about the best wallets for storing cryptocurrencies, including Bitcoin.
Ledger
Ledger is a hardware wallet that looks like a flash drive. It is one of the most secure wallets on the market as all data is stored only on this small device, and it is almost impossible to hack. The only way to get access to the money in the wallet is to steal it and know the password. If you keep everything in a safe place, you don’t have to worry.
Trezor
Trezor is another popular hardware wallet. He is not much different from Ledger, but his popularity is still a little lower. The reason is the price – Trezor is slightly more expensive than Ledger, so not all crypto investors choose it. One of the great benefits of Trezor is having an app to use. That is, you do not have to connect it to your computer already.
Trust Wallet
Trust Wallet is a multi-currency wallet that supports most of the top cryptocurrencies. This is an online wallet, but its security is at a high level – it is non-custodial; that is, it does not store private keys on servers. The trust has a staking feature where users receive rewards in specific coins, keeping the blockchain running.
Exodus
Exodus is an online wallet for Bitcoin and other cryptocurrencies. It supports over 100 different cryptocurrencies and allows users to store, send and receive currencies on the fly. In addition, you can easily exchange one cryptocurrency for another directly from your wallet. What’s more, you can install the app on Windows, Mac, Linux, Android, and iOS devices.
Metamask
MetaMask is an ERC20 compliant crypto wallet that connects users and decentralized applications (dApps). The wallet supports Ethereum and any tokens created on this blockchain platform. Metamask does not support Bitcoin but is suitable for other cryptos. MetaMask supports hardware wallet integration.
8 Things to Consider Before Buying Bitcoin – Conclusions
In this comprehensive article, we have discussed the factors to consider before buying Bitcoin. There are two types of elements – those that relate directly to the purchase, as well as those that affect the subsequent price of Bitcoin and other cryptocurrencies.
It is very important to consider all these factors and remember that safety is the main thing. If you choose an insecure wallet or exchange to store an asset, you won’t have to consider any factors – the money will most likely be lost. Here is a list of legit wallets you can use:
- Ledger
- Trezor
- Trust Wallet
- Exodus
- Metamask