In this post, I am going to share my Bitcoin investment strategy.
[Disclaimer: I am not a certified financial planner. My sharing is purely based on my own research and personal experience. To make the best financial decision that suits your own needs, you must conduct your own research and seek the advice of a certified financial planner if necessary]
The starting point of my Bitcoin journey
My interest in Bitcoin started in 2017. Even though it was a bit late but it is never too late. By 2017, Bitcoin is about 8 years old and had been through a few deep cycles of ups and downs.
Before I started my first Bitcoin purchase, I’d been scouring the internet for information about Bitcoin. And I stumbled upon some very useful sources.
- Bitcoin.org – The original website was registered by Bitcoin’s first two developers, Satoshi Nakamoto and Martti Marmi. Here, you’ll find comprehensive detail about Bitcoin.
- Investopedia: Guide to Bitcoin – This website covers important things about Bitcoin.
- 99Bitcoins – A website created for newbies to learn about Bitcoin and other cryptocurrencies. I find the information, guides, tutorials, and reviews easy to understand for newbies.
At that time, I don’t have anyone to talk to about Bitcoin. It was probably considered something new, and I can tell people don’t bother about it.
But, I have a strong feeling Bitcoin and cryptocurrency may greatly impact the future.
After a few weeks of extensive research, I started my first Bitcoin purchase through Remitano Malaysia. I was both excited and nervous during my first trade. So, I started it small.
From that first experience, I feel more confident. And I completed a few more trades.
Along the way, I sold a portion of my Bitcoin. From those trades, I learned new, valuable, and crucial lessons when selling Bitcoin. Including almost being conned by untrustworthy traders.
I want other Bitcoin owners to be aware of the bad experience. Therefore, I share another post on tips and tricks when selling Bitcoin in Malaysia.
My Bitcoin investment strategy
By 2023, I have known Bitcoin for more than 5 years. And many things happened within these 5 years.
From Bitcoin’s historical price chart, everyone will agree that investing in Bitcoin can be very high risk.
A person can easily make a very good profit within days or hours. Similarly, a person can also easily lose all of his Bitcoin investment within days or hours.
Personally, I find Bitcoin a very interesting investment. I am also optimistic that Bitcoin has a future.
At the same time, I am also aware that Bitcoin’s future is dependent on many other factors. Although Bitcoin has a true value, some of these factors still have negative impacts on Bitcoin.
In other words, I want to own Bitcoin but I don’t want to risk losing my investment.
So, here is my Bitcoin investment strategy:
1. Buy at RMX, Sell half at RM2X
My first strategy is to sell half of the Bitcoin when the Bitcoin price doubled my purchase price.
If you ask me why do I sell half of my Bitcoin? These are the reasons:
- So that I can get back my capital.
- While I can still hodl 50% of by Bitcoin.
- If the Bitcoin price keeps increasing, I still can make another profit (if I want).
For this strategy to work, I really need to be patient and quick at the same time.
Anyone who invested in Bitcoin knows that Bitcoin prices can swing up and down in a matter of minutes.
When the Bitcoin price starts climbing, I make sure I stay near my smartphone. Because I don’t want to miss out on the price alert from my Luno Malaysia account. Also, I check the Bitcoin price every now and then.
2. Buy Bitcoin when the price drops less than my hodl price
One of the tough things about investing in Bitcoin is ‘when is the right time to buy Bitcoin?‘.
So, my second Bitcoin investment strategy is to buy Bitcoin when the price drops less than my previous buy price.
Of course, I must have the fund ready. And most importantly, this fund is the money I am willing to lose.
Similar to other types of investment, it is never easy to eye the right time to buy at the lowest deep. Because you won’t know when is the lowest deep.
Anyway, nobody knows.
But, I have learned to accept buying after the lowest deep as another great opportunity.
Other important things about investing in Bitcoin
Besides the above two Bitcoin investment strategies, there is also a list of very important things to take note of.
Among the important ones:
- Invest only the amount you are willing to lose.
- Have your own Bitcoin investing goal(s).
- Do not rely on others’ opinions. Instead, do your own research.
- Always use two-factor authentication (2FA) for account security.
- Only keep your Bitcoin on crypto exchanges if you know what you are doing and its risks.
- Take security seriously when accessing your Bitcoin investment.
More important measures are available on the Bitcoin.org website, on things you need to know. And always take the initiatives to keep yourself updated on Bitcoin development.
Along the way, I trust I will learn a new Bitcoin investment strategy. I shall update and share my new strategy in this post.
At the moment, I believe more and more people are interested to know about Bitcoin and blockchain technology.
Especially now, when the world stock markets tumble, investors are looking for alternative investments. People start wondering about the true value of money. And I am not surprised that a growing number of individuals start buying and investing in Bitcoin or other cryptocurrencies.
If you are curious about how to buy Bitcoin, do read my step-by-step guide on how to buy Bitcoin in Malaysia. At least you know what the process looks like. And do check out my Bitcoin-related experience under the cryptocurrency investment category.
Lastly, before you start your Bitcoin investment, remember to do your own due diligence research.
Featured Image by Marinefreex from Pixabay
All screenshots were taken by the author