Yes, we’re in a bull run but investing in crypto isn’t always easy — it can be damn right stressful. Even if things are going well, you can become obsessed (does checking your bitcoin balance every half an hour sound familiar?)
But there are a few ways to take the emotion out of investing. Not least by delegating: that is, putting decisions and processes in the hands of others so you can go about with your day — and not worry about those sudden price crashes that make the cryptocurrency industry so fun.
Never Invest More Into Bitcoin Than you Can Afford to Lose
This one may sound obvious but it needs reiterating, especially in a bull run. When people think they can make a lot of money, they do crazy things — like take out mortgages to buy Bitcoin. But this is unwise and can cause unnecessary stress. Therefore, it’s best to only put in what you can afford to lose.
Money that could otherwise be used for emergencies will be at risk and this will dramatically put you in a high-stress zone. Whether it’s Bitcoin, Ethereum or Tesla stocks — never invest more than you can afford to use.
Consistent Recurring Buys of Bitcoin
This is an interesting one that can take the pressure off tremendously. As timing the market can be very hard (knowing when to buy and sell), a cryptocurrency exchange has come up with a solution; recurring buys. bitFlyer USA launched recurring buys on their platform to give those interested a chance to keep stacking their satoshi’s.
Recurring Buy is now available on the bitFlyer app!
Easily build your crypto portfolio by scheduling daily, weekly, monthly, or semi-monthly purchases.
Set up a Recurring Buy by Feb 3 for free cashback and a chance to win $100 in BTC. Details https://t.co/VmYsy18EqN
— bitFlyer USA (@bitFlyerUSA) January 20, 2021
It takes the edge off by using dollar-cost-averaging (DCA) to invest a fixed amount at regular intervals — for example, $50 a week. The automated programming allows investors to let their portfolios grow over time and not have to worry about making stressful decisions.
Don’t Borrow To Buy Bitcoin
Like not investing more than you can afford to lose, this is also one to avoid like the plague. Taking on a debt to possibly have an even bigger debt is a bad idea. And we all know that crypto can be volatile. Sure, borrowing greatly increases your gains when you win, but it also amplifies your losses if you lose. It’s not worth it — even in the long-term, taxes and interest can be costly and the risk is too high.
Vary From Bitcoin into Other Cryptocurrencies
This can make things less stressful, too. By having a varied portfolio, you will minimize risk. Risk can be spread along Bitcoin, Ethereum and Polkadot, for example, rather than just putting all your eggs in one basket with, say, Bitcoin. It can help maintain capital, too, and by varying your what you invest in, when one of those volatile coins comes crashing down, you can focus on others.
Set Up A Cold Storage Wallet for Your Bitcoin
The way you store your crypto is also important for minimizing stress. Carrying your investments around on your phone, for example, is a bad idea — especially if you’ve invested a lot. Having it spread out in cold storage (which is safer) will put your mind at ease, especially if you lose a device.
Have A Trusted Institution Do The Heavy Lifting For You
This one is becoming more popular: you could just put your investments in the hands of another organization entirely. As institutional investors become more interested in digital assets such as Bitcoin, organizations like Grayscale are becoming the go-to for those who don’t want to worry about storage. When the stress of private keys, how to buy crypto and how to sell is taken off one’s shoulders, stress can be reduced, too — especially if you’re new to the game.
News Source from Bitcoinist.com