4 Rules for betting on Bitcoin

4 Rules for betting on Bitcoin

It is no secret that bitcoin has proved to be a very popular form of speculation, albeit a very risky one. Its volatility certainly has not turned it’s core supporters off though some it may said are looking to diversify into other crypto coins hoping to get on the ground floor of a get rich quick opportunity. Punters who are looking to get rich in this way must realise and most do that there is the possibility that they could lose their money.

1 Buy Bitcoin with money you can fully afford to lose

Only discretionary spending money should be invested in Bitcoin or other investments which are high risk. There is the chance of your Bitcoin increasing sharply in value but there is also the chance that your Bitcoin will lose it’s value. That is the nature of such investments. Whenever there is the chance of a capital gain there is also the chance of a capital loss.

2 Buy Bitcoin only if you are prepared to lose

If you are not prepared to lose your money then investing in Bitcoin is not for you. It is no secret that Bitcoin’s volatility makes it a speculative investment.

3 Bitcoin is not a substitute for your retirement fund

Investing in Bitcoin should not be done with your retirement savings and neither should you treat your Bitcoin holdings as your retirement fund but rather as an added extra. Call it an extra string to your financial bow.

4 Don’t be greedy

Greed is the downfall of some investors. They see a so-called opportunity offering a good return and place all of their eggs in the one basket by investing most or all of their money in this good thing. Doing this with Bitcoin is only an inviting financial disaster. You need to be sensible and only invest whatever you can afford to lose.

Taking calculated risks with your money is fine just so long as the loss of your money is not going to break you.

If you have some cash to spare which you can afford to lose and are prepared to risk it on Bitcoin then read my article “How to buy Bitcoin” by clicking on the link below:

https://robertastewart.com/how-to-buy-bitcoin/