What is Bitcoin?
Bitcoin was first introduced in 2009 as a digital currency, and it is operated by a decentralized authority. The creator of bitcoin is believed to be Satoshi Nakamoto, who is still a mystery.
Bitcoin is a type of cryptocurrency that doesn’t have a physical form. A decentralized ledger called blockchain is used to create, distribute, store and trade bitcoin. Every transaction is recorded in this blockchain, and it offers lower transaction fees than traditional online payment methods.
The price of bitcoin kept rising in recent years because of the high demand, and it hit a new all-time high (ATH) of $64,863.10 in April 2021. In the same year, El Salvador became the first country to adopt bitcoin as a legal tender. Therefore, many people believe that bitcoin is the future of money.
Who is Brendon Shanil?
Brendon Shanil is a Sri Lankan entrepreneur, investor and businessman. He is an owner of the renowned RB Organization, which is mainly located in the United States, France, United Kingdom and Sri Lanka. This erudite entrepreneur loves cryptocurrencies and stocks because he believes that they are a great way to earn passive income.
Brendon has years of experience dealing with cryptocurrencies. Now, he is ready to share his valuable knowledge on smartly investing in Bitcoin.
- Only Invest What You’re Willing to Lose
This is a crucial fact that every investor should remember. You should keep in mind that the crypto market is extremely volatile. It can make millionaires overnight, and it can make people bankrupt overnight. Therefore, every investor should be well aware of the risk.
The primary target of investing in crypto is to grow our wealth and not to lose it entirely. So, we should only invest the amount of money that we can afford to lose.
- Maintain a Healthy Crypto Portfolio
Bitcoin is indeed the king of the cryptocurrency kingdom, but there are many altcoins out there that have huge potential. Since the market is highly volatile, investing only in one coin might not be a smart choice.
Investing in more than one coin will help you to maintain a healthy portfolio. Moreover, it helps to maximize profits while minimizing losses. Diversifying your crypto portfolio is an intelligent way to manage risks.
Diversification is followed by professional traders since winning some and losing some is better than losing everything.
- Don’t Invest Based on Hype
Following hype is not the smartest thing to do when it comes to bitcoin. Unfortunately, many people follow the hype and invest money because of the fear of missing out (FOMO). But what really happens is when the hype is over, people start selling, and those who invested with the hype loses their money.
Buying on hype isn’t really investing, it’s called gambling. Therefore, an investor should stop making decisions on hype and FOMO. Hype is too risky because you never know when it is going to end. When the hype is over, the price might crash suddenly, drawing investors to a terrible loss.
Patience and knowledge are essential in making profits in the market. Therefore, before investing in cryptocurrency, it is important to study the market, calculate risks, keep updated with the latest news and do technical analysis. Doing so will help you to find the best time to invest and make profits.
- Keep Your Assets Safe
Security should be one of your primary concerns because it takes just a second to lose everything we own. Many crypto exchanges were hacked during the past years. So, it is vital to ensure the security of the cryptocurrency trading platform that you’re going to invest money in.
Additionally, you can buy a hardware wallet and keep it in a safe place. Some investors store a backup of their seed phrase in a place where no one else can access. Also, don’t fall into scammers traps and never share your credentials with third parties.
These advices of Brendon Shanil are precious to every investor in the market, and they will help them to maximize their profits by working smartly.