With its launch in 2010 Bitcoin became the first cryptocurrency to open the doors to an entire ecosystem comprising of digital currencies. In the wake of its launch it had a steady and of followers who had complete faith in its ability to replace the existing physical monetary systems. This transition is yet to happen because the crypto market is extremely volatile. When people witnessed the dramatic rise and fall of Bitcoin prices they became scared to invest in this crypto asset for fear of losing out heavily.
In the last few years the crypto market seems to have developed with more regulations in place by governments and regulatory institutions. With these measures coming in and more and more investments in the industry, these people have now become hopeful of reducing their risks while getting impressive returns on their investments. Here are some ways to convert your Bitcoins into profits as recommended by specialists:
- Experts argue that it is wise to diversify your risks by investing in the Bitcoin or in other crypto assets. Thinking that you will turn millionaires overnight is being naïve, and, according to Parul Gujral, CEO of Snowball, a recipe for disaster. It is possible to win big returns when the timing is right, but as 2018 has exposed to investors, losing big is equally a possibility. So, it makes sense to mitigate the risks by investing in many crypto coins vetted by financial experts.
- According to Warren Buffet and Tony Robbins, it is better to opt for index investing. When you invest in an index, risks and fees are lower and it is possible to outperform the crypto market, according to Gujral. This means not putting all your eggs into a single basket like most investors had done previously and lost heavily when prices came crashing down in 2018. This policy of diversifying investments is also supported by Paul Veradittakit of Pantera Capital.
- Investing through professionals is another effective way to make profits. But you have to find experts who can do the research for you and recommend the right portfolio of crypto assets for you that will give you a steady ROI. It is best to get in touch with professionals certified by the SEC as an RIA or Registered Investment Advisor. Such experts have the duty to offer solid investment advice to their clients that will always be in their best interest. Veradittakit feels that this RIA designation will be the key to the future of this industry. When you have to handle others’ funds, becoming an RIA will guarantee credibility.
- Finally, according to specialists, it is not enough to entrust your money to financial advisors and rest; you must do your own research. You can choose places like Coinbase Earn, according to Gujral, for learning the ropes through watching video tutorials and doing quizzes. According to Gordy Bal, CEO of Conscious Thought Revolutions, and investor of companies like Bulletproof Coffee and Wax, people must educated themselves about this industry because cryptocurrency is an inevitability. So, people must understand the technologies underlying it to see how they can serve a higher purpose. Bal feels that instead of only focusing on returns, people should focus on projects that can benefit the entire human race in the future.