Faucets are a great way to get into bitcoin but you’ll soon realize that it is pretty limited. The main limitation is that you need to spend the same amount of time to claim the same amount of satoshi. If only there was a way to grow your bitcoin while you sleep…
Well, there is. It’s called investing, and it’s basically the process of growing money.
Investing comes in many different forms and everyone has their own take on it. Despite what you may have heard or read, there are no ‘bitcoin-specific’ investing techniques; rather, there are some common elements to all forms of investing.
Before you decide on what to invest in, you really need to be clear about why you are investing. If it’s simply to get rich quickly then you are destined to fail. However, if you are prepared to invest the time in working out what is right for you and then setting goals based on this, you are already a long way ahead.
I’m not going to go into what, how, and when to buy just yet. There will be plenty of that later.
For now, just a few basic guidelines to get you thinking:
- The most important rule is to never invest more than you can afford to lose. Really simple! However, you obviously need to allocate some money to start.
- Make a plan. Not just a plan for getting in to an investment; but, make sure you have a clear exit strategy regardless of the expected time frame. The plan doesn’t have to be set in concrete, but it does need to be clear enough in times of heated emotion.
- Never take advice on a particular investment type from someone who is not currently invested in it. Also, be wary of someone who has been burnt by an investment. Try and understand what went wrong for them.
- Always make sure you fully understand the investment – try explaining it to someone – if you can’t explain it in easy to understand language, then rethink it.
- If getting advice from a professional, make sure they are indeed professional and that you fully understand how they get paid. If they don’t answer the question directly – run away!
- There is a difference between investing and gambling so always be clear about the risk of an investment. If you can’t stomach the risk – don’t invest in it.
There is a lot more to it than that, but always remember that fear and greed are far stronger than long-term resolve; so, make a plan and stick to it.
More specific bitcoin investment info coming real soon!