3 Common Bitcoin Investing Mistakes and How to Avoid Them

So, you’ve finally decided that now’s the time to begin investing in Bitcoin!

But before you trade your useless fiat for the benefits of Bitcoin, you’ve got to prepare a Bitcoin investment strategy. No strategy is complete without realizing the common Bitcoin investing mistakes and how to avoid them!

You want to make sure you take advantage of the popularity of Bitcoin and use it to achieve financial freedom.

Here’s what you need to know about investing in Bitcoin:

1. Trading Bitcoin for Fiat

Many investors accumulate Bitcoin with the hopes that the price will skyrocket.

After all, many people have become millionaires from selling their Bitcoin after the dollar value increased. It’s an asset with one of the best returns on investment in recent history.

There’s nothing wrong with this, but this is not the main reason why one should consider buying Bitcoin. You want to buy Bitcoin as an alternative to the inflated fiat currencies we have to contend with.

If your fiat currency loses its purchasing power due to hyperinflation, you should have Bitcoin as a backup currency.

2. Buying Bitcoin From the Wrong Place

Many newcomers to Bitcoin will depend on an online exchange to accumulate it. 

But in most cases, these online exchanges work the way that a bank works. You don’t hold your Bitcoin — rather, it’s held by the exchange in the same way that a bank holds your fiat currency.

The best thing you can do to buy Bitcoin is to search for “Bitcoins ATM near me.” A Bitcoin ATM is a great service for buying Bitcoin using fiat currency. 

The Bitcoin gets stored on a paper wallet that gets dispensed by the ATM. This is the safest way to protect your Bitcoin Private Key from potential threats.

3. Don’t Go All-in (For Now)

There are Bitcoin maximalists who see Bitcoin as the only true cryptocurrency. Many of these investors might trade all their fiat for Bitcoin.

However, for now, this isn’t ideal for a beginner investor. Likely, you’ll still need fiat to pay your bills. Focus on making Bitcoin a part of your financial portfolio.

For now, you might want to supplement your Bitcoin purchases with buying precious metals or even foreign fiat currencies. 

If you find that your fiat currency continues to lose its purchasing power, then you might want to increase your Bitcoin supply.

While Bitcoin’s future looks bright, you want to be aware of the investment risks and rewards as you accumulate the cryptocurrency.

Avoid These Common Bitcoin Investing Mistakes

Now you can avoid this common Bitcoin investing mistakes so that you’re better prepared for achieving financial freedom.

It’s better to think of Bitcoin as an alternative form of currency rather than an asset to sell for fiat currency. Consider buying Bitcoin as a hedge against inflation.

You should also stick to Bitcoin ATMs for buying Bitcoin. This offers you a paper wallet which is the safest way to protect your wealth. It’s also best to not go all-in on Bitcoin as it’s still in its infancy.

You can find more tips on investing in Bitcoin on our website!