Since Cryptocurrency is becoming popular every day to a new height, the number of users is also increasing every day. Therefore, it is important to know the management of your cryptocurrency including Bitcoin. If you are not able to manage your digital assets, then the chances of losses are also not lesser. As you know that cryptocurrency is used or circulated online-only therefore it attracts fraud easily. You need to act smart to safeguard your cryptocurrency like Bitcoin, Ethereum, Uncoin.
When it comes to any kind of your fund, your foremost concern is management to safeguard the fund and we are discussing here the same thing.
Know about Bitcoin
Bitcoin is a digital cryptocurrency and leader in the area of cryptocurrency. Bitcoin was officially launched in 2009, and it is thought to be created by Satoshi Nakamoto. It was released on open source software, and the code of this Bitcoin is BTC, and this is purely based on blockchain technology.
Blockchain technology makes Bitcoin immutable to edit the transaction, peer-to-peer transaction, highly secured, low transaction cost, low time consumption. You require a digital wallet to store the Bitcoin which can either be a hot wallet or cold wallet and it is the choice of users. Bitcoin is used the same as other currencies to buy services, products, or conversion from one currency to another. You can call Bitcoin the king of all cryptocurrencies as well.
If you are new to the cryptocurrency industry, then it is always advisable that you should start with a very minimal amount of investment at inception. Later, when you get all the pros and cons about the product, you can think about the investment of an additional amount. First, you should look at the legit cryptocurrency exchange platform from where you can buy Bitcoin after fulfilling the compliance and KYC. You may need to convert your fiat currency to USDT or you may buy the Bitcoin directly that is equivalent to your fund. There will be a small amount of service cost for buying Bitcoin. After successful buying of Bitcoin, you need to have your wallet where you can store your Bitcoin. Exchanges also provide the facility for a hot and cold wallet that can be accessed by yourself. You can daily check your Bitcoin value with help of the same exchange or other web portals to know the appreciation or depreciation of your Bitcoin value. There are so many fluctuations that happen in Bitcoin. It can either thrill you or depress you, so it is better that you keep yourself aware of this movement and stay away from emotions and expectations.
This is the principle of risk management that you must not invest all your fund in one product or cryptocurrency. You should make a portfolio for your investment capability. Since there are so many digital currencies running, and their values are randomly bullish and bearish. It is difficult to predict which cryptocurrency is better for time being and future prospective. We can say that Bitcoin is the leader of all cryptocurrencies. However, diversifying your capital to other legit currencies is better and it will help to gain the long-term benefits from the portfolio. It is assumed that all cryptocurrencies cannot perform badly at the same time. Therefore, it is highly recommended to make portfolios for cryptocurrency investment.
Keep Coins in your wallet
There are two ways to keep your coins, one is to store coins in the wallet of cryptocurrency exchange and the other is to store the coins in your own wallet. It is advisable to keep your crypto coin with yourself in your wallet rather than to keep it in the wallet of cryptocurrency exchange. It is rarely possible to hack the wallet of a good cryptocurrency exchange. However, we cannot deny that the exchange wallet cannot be compromised because all these are online, and there always lies the possibility of hacks and scams. It is considered as a better option to buy your crypto wallet and after buying Bitcoin, you can transfer your coins to your wallet, and remember that it should be disconnected to the internet. An offline wallet is more secured than an online wallet.
Long Term Focus
Bitcoin performs better if you analyze its price history. So, it is advisable to buy Bitcoin and hold it for the long run. In a short period, it may not give you reasonable returns, but it may enhance the value of your invested capital year by year. If you try to sell your coin in a short term, then there will be transaction costs and service charges, and you will be able to earn only a minimal return. So, it might not look like a reasonable amount of money when you liquidate your Bitcoin. It is a good strategy to buy and hold Bitcoin for years so its value can multiply which has been happened in previous years. Bitcoin was just 1 dollar approximately in 2009, and now it has reached $45000. You can imagine if you have invested in Bitcoin that time for few coins, then how much it would have in your hand now.
Herewith, we have got a clear idea of how to manage Bitcoin, which is an essential factor to know before actually buying any cryptocurrency. Since this type of currency is valuable only online or when you trade off these coins to purchase products or services, and therefore, you have to keep safety majors from being scammed. We always suggest learning the Bitcoin management before investment, and that can be started with nominal as well. Additionally, you need to keep updated yourself with cryptocurrency news which influences the price fluctuation.