Tips for Determining the Number of Bitcoins to Buy

While many people are excited about investing in Bitcoin, they ultimately wonder how much to invest. And this is not unique to Bitcoin investors. Every investor should consider the amount of money to put into a particular investment beforehand. But this is now always easy, especially in the Bitcoin market.  Luckily, you can find these trends easily on the internet. You can also use Bitcoin trading bots like thequantumai.app to get some ideas.

No one wished to invest so much into buying Bitcoins only to lose the investment. Stories of people getting depressed or even committing suicide because of putting too much into a particular investment are not new. Therefore, here are some essential tips to use when determining the number of Bitcoins to buy.

Proper Timing

Timing is among the best ways to determine how many Bitcoins to buy. Bitcoin is a cryptocurrency with high price volatility. Despite this, Bitcoin has a history that one can use to predict or make a better guess about future price movements. You don’t just go into buying Bitcoin because you have won a lottery or have gotten some money.

Proper timing requires that you study the trends in Bitcoin prices. After getting a good idea about the price movements, you can decide whether to buy more or less.

Risk Tolerance

People have different levels of risk tolerance. Some people may not feel anything if they invested so much money into buying Bitcoin, only for the price to plummet drastically. However, some may not withstand losing their investment, especially if it is a significant part of their savings or earnings.

So, ask yourself whether you would be depressed if you lost $10,000 or $50,000 after buying Bitcoins. If you answer yes, you should probably reduce your investment and buy a few Bitcoins. And this is all about the emotional aspect of investing and the risk of losing everything.

Be Reasonable

People make the most significant mistakes in the crypto investment market using emotion rather than reason. And this is understandable considering that Bitcoin prices can shoot up many times, earning investors huge profits. Stories of individuals becoming overnight millionaires or billionaires with Bitcoin are everywhere on the internet and other media.

Such stories are likely to clog your mind, and instead of being reasonable about the number of Bitcoins to buy, you are so excited that you will buy more than is necessary. Always be practical when deciding the amount of Bitcoin to buy. Consider issues like the risk of losing your money.

Spread Your Risks

You have probably come across the phrase “don’t put all your eggs in one basket.” And this is the whole idea behind spreading the risk. Instead of spending your entire amount at once to buy Bitcoins, how about you divide it and buy Bitcoinsafter a certain amount of time? For example, you can decide to buy Bitcoins every four months rather than all at once.

By spreading your money that way, even if Bitcoin crashes after the first purchase, you will still have some money to buy more in the future or invest elsewhere. Moreover, periodic buying will allow you to learn more about the market and position yourself better to decide whether to invest in the future.

Final Thoughts

The final decision about the number of Bitcoins to buy is personal. It will depend on the amount of money you have and other factors. However, experts recommend that you only invest 5-10% of your money into Bitcoins. And this is a high-risk investment. Hence, don’t rush to put everything into it.