How to play safe when investing in bitcoins or in another Cryptocurrencies

Like it or not cryptocurrencies are making lots of stir now and everyone is talking about it. I did invest in bitcoins and sold it on high and made good returns. But its high risk and high returns game and not for everyone.

Many people tell you bitcoins are digital gold and can make quick money, but we can’t compare cryptocurrencies with gold, gold is much safer commodity to invest and cryptocurrencies are not commodity, but they are mined.

These things I followed, and I tell the same to my friends who are interested in cryptocurrencies.

1.      Never invest more than 5 percent of your total wealth in bitcoins or other cryptocurrencies. And you should afford to lose of this investment. Because cryptocurrencies are highly volatile, and the price could go down as well as up, 1 bitcoin can be $100 or $50,000 in 5 years from now and so its highly risky.

2.      When already invested in cryptocurrencies, be gutsy to sell when the price of bitcoin or cryptocurrencies is increasing and buy when the price is falling. Don’t fall for FOLO (fear of losing out) with others and wait for further increase in price to sell and drop in price to buy. I recommend buying in chunks when price is falling and sell in big chunks when price is increasing than your investment price.

3.      Never take loans to invest in cryptocurrencies thinking of making quick money, I have friends who invested in bitcoin @ $15000 per 1 bitcoin taking loans and now 1 bitcoin is floating at $9000. You could end up paying more interest on loan amount if bitcoin price is not increasing anytime soon.

4.      If you don’t understand about cryptocurrencies, then don’t invest. As you need to monitor when to sell your coins.

5.      Don’t buy when you are on happy mood or sell when in sad mood, chances are more for you to make mistakes please assess risks before investing in cryptocurrencies.

6.      Don’t get addicted to watching your cryptocurrencies portfolio status on smart phones every hour, its normal for cryptocurrencies to go up (Green) down (red) and monitoring them all the time on smartphone will cause emotional and mental health problems.

Would like to hear your bit coin or cryptocurrencies experiences. Will you invest in cryptocurrencies or not? How do you think cryptocurrencies will fare in future?