Investing in highly volatile bitcoins and other cryptocurrencies is risky business. These currencies are all electronic or virtual in nature, and thus have no physical presence. They don’t even have intrinsic value. However, no one can deny that right now these cryptocurrencies are extremely valuable and those who invested in the early days, and held on to their investments, are living the high life now as multi-millionaires, and even billionaires! 

If you want to be like these wise investors sometime in the future, then follow these 4 investing strategies to increase your chances for success. 

1. Volatility

Crypto currencies are extremely volatile. The price can change suddenly within minutes. Take this volatility seriously before entering a trade. Always have a plan about where to place your stop loss to minimize your loss. 

Prepare for volatility by looking at your RSI indicator and support and resistances.

2. Be Careful

Do your research before you start investing in bitcoins and other cryptocurrencies. When you’re dealing with hard-earned money, you don’t want to lose everything in one day.  You’re investing to make a profit sometime in the future. Don’t go all in without studying what you’re putting your money into.

3 – Diversify

Don’t put all your eggs in one basket, so to speak. Don’t just invest in bitcoins. If possible, invest in other cryptocurrencies as well as traditional assets like stocks, bonds, and mutual funds. At least if bitcoin prices drop, then you’re not going to be totally in the red. Your other investments will help keep you afloat.

4 – Keep Your Crypto Safe in Cold Wallets

Investing is a long-term game, and it is not advisable to keep your cryptocurrencies in online wallets such as your exchange’s wallet, or even your mobile app wallet. Keep your private keys in cold wallets such as paper or hardware wallets since these aren’t connected to the Internet. You can keep small amounts in your online wallets, but the bulk of your investments should be offline.