Welcome to the best free guide on investment strategies! Do you want to invest in Bitcoin, but don’t really know how? Are you looking for a strategy that suits you? Or do you just want to avoid expensive beginner’s mistakes and conquer the market like a real pro right from the start? In any case, you’ve come to the right place!
In our bitcoin investing guide, we not only explain where you can invest in bitcoin, but also what methods are available to do so properly. Detach yourself from the buy the dip fantasy. If you want to invest in Bitcoin, do it like a pro. We’ll help you do it right here, right now!
Investing in Bitcoin requires the right mindset
Many newcomers who want to invest in Bitcoin unfortunately have the wrong mindset from the start. It is their own mindset that gets in their way and causes expensive rookie mistakes. Every day, thousands of people lose a small fortune in the market solely due to the fact that they simply do not know what they are doing.
But they are not the only ones to blame. Unfortunately, we are not taught how to handle money at any time during our schooling or secondary education. Most of us don’t know how to make an investment decision and how to approach it properly. The good thing is that for you, at this point, investing in Bitcoin has probably already flashed through your mind as a potentially wise investment decision. Now you just need to learn how to go about it the right way.
That’s what we’re here to teach you today! The methods presented here are strategies that will not only make investing in Bitcoin easier for you and raise it to a professional level. They are strategies that you can apply to all your investment decisions in the future. And with the approach of a true professional. You should want nothing less for yourself! Don’t let other market participants have an advantage over you. Make sure you have an advantage!
But before we teach you how professionals invest in Bitcoin, you need to get rid of a few false assumptions. Throwing money into the market more or less blindly rarely ends well. There is no room for emotion. You don’t know the feeling of having to act quickly because otherwise you could miss something. Everything you do must be soberly calculated. You need a plan and you will stick to that plan.
To invest profitably in Bitcoin, you need a plan
If you enter the market without a clear plan, you are relying on luck. In other words, in most cases you will lose your money. Any kind of investment requires not only the right mindset, but also the right strategy. Investing in Bitcoin is no exception. But the right strategy requires a plan.
How much money do you want to invest in Bitcoin?
Of course, the question of the amount you are willing to invest is essential. You should always keep one thing very clear in your mind: Investing in Bitcoin is associated with a high level of risk. The risk/reward ratio is phenomenal, but the risk is still real and it is not small. This is an important component to consider. In clearer terms, this means that you should never invest more money in Bitcoin than you are willing to lose.
In addition, you should be able to cope in your everyday financial life without the chosen sum. This means that you should only invest the money in Bitcoin that you do not need to pay your fixed and variable costs in your everyday life. You are not doing yourself any favours by investing beyond your means. Just imagine that you are forced to liquidate part or even all of your investment in order to pay any bills. Not only do you run the risk of selling at a bad rate at that moment, but you also cheat yourself out of the future returns you would have made on that investment.
Also keep in mind that you don’t have to own the amount of money you want to invest in Bitcoin right now. For reasons of risk, I don’t mean that you should take out a loan. What I mean is that you can also follow a plan that, for example, provides that you use 200€ from your salary every month for investing in Bitcoin. And that brings us to the next question for your individual investment plan.
What is your investment horizon?
How long do you want to invest in Bitcoin? Would you like to fulfil a personal dream with this investment in 3 years? Is there even a clear price target at which you definitely want to exit the market? Or do you want to invest in Bitcoin as part of your retirement plan when you retire in 30 years?
You can already see that the investment horizon can be very different. It all depends on your personal plan. So make clear what goal you are pursuing with your investment in Bitcoin in the first place. This should not be something vague. It doesn’t matter if you want to stay in the market for a certain period of time or exit at a specific price. Give your plan a concrete number and write it down! This is important because your investment horizon will determine, among other things, which investment strategy is right for you.
How often do you want to invest in Bitcoin?
Do you want to invest X amount in Bitcoin only once and then look at the price again in a few years? Or do you want to deposit a certain amount in Bitcoin every month? If the latter, how long do you want to do this? Over 1 year? For 10 years?
As you can see, here too you need to be clear about what your personal plan actually looks like. So this question could also depend on the amount you choose to invest. How much money can you spend each month on a further investment in Bitcoin? How long would it take to reach your planned investment amount? Does this make sense for you, or does it contradict your investment horizon? It may be necessary to make one or two readjustments here.
Only when you have clarified these three questions for yourself and your answers do not contradict each other will it be possible for you to pursue the right strategy. And this brings us directly to the next topic: you need a professional investment strategy.
Invest in Bitcoin with the most lucrative strategies
After you have clarified how much you want to invest in Bitcoin over what period of time and with what time horizon, you need to select the right strategy. We can roughly distinguish between two approaches:
- You invest the entire sum at a certain point in time.
- You invest the sum piecemeal over a clearly defined period of time.
The former assumes, of course, that you actually have the entire sum at that time. Remember our well-intentioned advice above not to invest more than you can actually afford. Also, get rid of the idea of buying at the lowest price. This will not happen in 99.9% of cases. Even if you have a comprehensive knowledge of Bitcoin, its fundamentals and technical chart analysis.
Buy the dip is just a slogan or rather a myth. Because you will only find out in the future whether it is currently a dip or not. Only beginners still believe that they have this market 100% figured out! Be careful not to be one of them. Therefore, it is important to have the right mindset. This includes admitting that no one can say for sure what will happen next.
The Dollar Cost Average Strategy
Dollar cost averaging is one of the simplest and most efficient strategies for investing in volatile assets. This makes it an excellent strategy for investing in Bitcoin.
With the Dollar Cost Average strategy, you always invest the same amount at fixed intervals. That means, for example, if you want to invest 200€ in Bitcoin at the beginning of each month, you do so and always on the same day regardless of the current exchange rates. So it doesn’t matter whether you feel the Bitcoin rate is low or high at the moment, on the first of the month exactly €200 will go over the counter to be invested in Bitcoins.
The right place to invest in Bitcoin
We really hope that at this point you understand what it takes to invest in Bitcoin like a pro. Whether the Dollar Cost or Dollar Value Average method is the right strategy for your personal plan is entirely up to you. Both have their advantages and disadvantages. But both are very good strategies, so that you are already better positioned than the average with each.
Last but not least, we would like to give you our recommendation for a suitable place to invest in Bitcoin. You always have to be careful when choosing an exchange or broker. Unfortunately, there are still black sheep in this industry that you should not trust with your money. We have listed a list of trustworthy partners in our broker comparison.
