Have you been bitten by the bitcoin bug? Cryptocurrency is certainly a big deal right now, with its every up and down covered in the news. For some, it’s proved to be a quick way to make some serious money. But be warned; the world of crypto gets more and more complex the deeper you delve, meaning it’s always worth taking a step back to consider the basics. 

And it’s those basics which matter, because it’s a game which isn’t only available to hardened investors. Indeed, traders of all ages, experience levels and genders are looking to get started. Yep, while the world of cryptocurrency has been dominated by males, women like the Bitcoin Bombshell are getting into this space. Perhaps you are, too? So with that in mind, here are 5 IDEAL Bitcoin tips for beginners.k

FIND THE RIGHT WALLET

Before you get started with Bitcoin, you should have a digital wallet on standby. Scrap that, before all of that, you should know what one is. Well, a digital wallet is software which helps you to collect, store and spend digital currency. However, there are many different types of wallet out there, all with different benefits. 

There are, essentially, two types of wallet – hot and cold – and while hot wallets are connected to the internet at all times for ease of access, cold wallets have greater protection against hacking. Take your time and look for an option which suits your needs and interests, but be aware that there have been recent concerns about the security levels of digital wallets. 

UNDERSTAND VOLATILITY & RISK

The first thing you should do as a beginner in Bitcoin is to ensure that you fully understand that there is, of course, serious financial risk involved. There are risks in all kinds of trading and markets, however, cryptocurrency is particularly famous for having large spikes and frequent dips; it’s a roller coaster ride and a half, make no mistake. For this reason, you should be sure to enter into Bitcoin with an open mind but not an open wallet. Don’t plough all of your savings into it, as there’s no guarantee of making money. 

RIDE THE WAVE

One of the hardest things for Bitcoin beginners to do is ‘ride’ the markets. Bitcoin in particular has been known to spike very highly when it’s doing well, only to plummet very quickly afterwards. That’s thanks to the uncertainty of the medium. Experts caution against reading too much into the dips, and in fact, many people make money from bitcoin simply by staying calm and waiting for the next big wave. Often, the worst thing you can do is panic and bail. 

RESEARCH & ADAPT

There are plenty of ways to get more familiar with the ins and outs of the Bitcoin process. You can read testimonials from experienced traders, check the daily ups and downs, or use bots. Bots and AI can help you to make decisions where emotion would normally interfere, meaning that you can program and tweak them to make tough choices for you. It’s another great way for newbie investors to get started, and gives an interesting insight into how to enter the decision making process.  

Do also take a look at raw data. See this article, for example, to help measure bitcoin’s wider value and its potential. Be sure to look at historical performance, too. Simply put, the best thing you can do to prepare as a Bitcoin beginner is to do your homework, immerse yourself in the process, and take your time.

HAVE A PLAN IN PLACE

Once you have a firmer idea of what to expect from the Bitcoin trading experience (goodbye embarrassing ‘beginner’ title!) it’s prudent that you have either a further investment or exit plan. Planning your investments is a much more sensible way to work in the long run than to trade and sell ad hoc.

Setting yourself target levels is a great way to measure a ripe time to buy, the right time to sell, and what you’d like to achieve more generally. Naturally, you’re going to want to make a profit but how are you going to get there? Compare your targets and strategies with other traders, and ask what has worked well for them. What can seasoned pros tell you about riding the market waves with ease, even in the face of uncertainty? Be prepared to prepare, and perhaps to prosper, too.

 

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Rachel is the beauty and fashion director at IDEAL. She loves trying new products and is an avid fan of London's fashion, from the high end to the high street.