Investing in cryptocurrencies, especially Bitcoin (BTC), is a legitimate method for building substantial wealth in 2024 and beyond. Bitcoin has only recently entered its most recent bull cycle on the heels of the Securities Exchange Commission (SEC) approving of the BTC Spot ETF. This single move has caused the price of Bitcoin to explode as dozens of financial institutions compete with everyday retail investors to buy up as much of the finite supply of the digital gold as possible.
What does this mean for investors in the short and long term? It means a new BTC gold rush has only just begun while some overly anxious investors are experiencing severe cases of FOMO. That is, “fear of missing out.” The highly emotional response can lead to BTC investors making mistakes that have dire financial circumstances.
For instance, if you don’t play it safe online by ignoring suspicious emails from scammers looking to steal your BTC stash, you can easily lose your entire portfolio. It’s a better idea to stay level-headed, keep calm, and move all suspicious emails to your SPAM folder while enabling security features on your crypto exchange like Two-factor-Authentication (2FA).
But if you are one of these unfortunate investors who finds themselves scammed out of their Bitcoin, you need to contact the best lawyer you can find who might assist you with getting your portfolio back.
Says the professionals at Silver Miller Law, a crypto recovery lawyer based in Florida, even in 2024, bad players still plague the crypto-sphere. However, that doesn’t mean reputable lawyers can’t fight the bad element and, at the same time, recover your crypto. For example, in 2015, litigation was enacted by a now defunct crypto exchange that resulted in the recovery of over $40 in crypto assets for those who’d been scammed.
But the best way to gain wealth from investing in BTC is to always to simply to play it as safely as possible online. That said, how can you securely build significant wealth with BTC during the 2024 and 25 bull runs? Here are some strategic tips according to a recent report by Analytics Insight that can guide you in navigating the sometimes-complicated, often time perilous waters of Bitcoin investment.
Keep Up with the News
Keeping up with the newest developments in the crypto space is the perfect place to begin your investment journey. Knowledge is power. Therefore, you need to be constantly updating yourself on market trends, BTC news, and SEC regulatory changes. You should also keep a close eye on macroeconomic factors that might influence the price of BTC, such as a new war on the horizon or even another pandemic.
Diversify
Bitcoin is, hands down, the most prominent cryptocurrency on the market. But it’s still risky. You can, however, mitigate some of those risks by diversifying your portfolio with other top level or Level 1 cryptos and assets. By diversifying, you lessen your risk of losing money. You will also increase your potential for growth with numerous tried and true crypto products like Ethereum (ETC) and Chainlink (LINK).
Comprehending Market Cycles
BTC is well known both for its 4-year market cycle and its volcanic price volatility. But if you can comprehend and even anticipate these cycles, you will be able to make better strategic investment decisions. You will find yourself in a good investing position if you better understand the bull markets, the bear accumulation markets, and the many corrections that occur no matter the market.
By timing the market, you can, technically speaking, enhance your returns. But like the old saying goes, “time in the market is better than timing the market.”
Establish Clear Goals
Says Analytics Insight, it’s best to clearly establish your investing goals and to define your risk tolerance prior to entering the crypto market. By writing down your clear investing objectives, you can construct a well-engineered strategy both for the short and long term. It’s important to assess the amount of risk you are willing to take on and, in turn, align your crypto and BTC investments accordingly.
Dollar Cost Averaging or DCA
Investing a fixed amount of fiat currency into BTC at regularly established intervals regardless of its price is called dollar cost averaging (DCA). This is considered a safe investing strategy since it greatly reduces the impact of short-term market dips. It also allows you to accumulate a sizeable Bitcoin investment over a long period of time. Lastly, it removes the emotional component of market fluctuations that can negatively affect your investment decisions.
Technical Analysis is Your Friend
If you wish to DCA while engaging in the occasional day trade, you will want to study some technical analysis (TA) which means keeping abreast of chart patterns and historical price data to make well-informed predictions about potential price movements. But keep in mind, TA is not foolproof, but it can provide some solid investment insight in possible entry and exit prices.
Some investors are calling Bitcoin the new digital gold. They take this a step further by saying we are currently at the beginning of a ten-year BTC gold rush. It is possible to make very good money over the short term, but it is also possible to lose money, or even to be scammed out of your BTC holdings.
Remember to store your BTC “bags” either on a reputable exchange like Coinbase or Robinhood using two-factor and biometric authentication, or even better, you should invest in a cold-storage wallet that’s accessed by your own personalized key-code. Like they say, “not your keys, not your Bitcoin.”
