There’s little doubt that day trading any crypto currency such as Bitcoin (BTC) is a risky business. Maybe BTC is considered by some to be a risk-off digital asset in 2024, but it is still prone to nasty pullbacks of 30 percent or more. When you consider that a 30 percent pullback on the NASDAQ would be considered a catastrophic financial event, as opposed to the cryptosphere where it’s simply thought of as just another day, you get the idea of how volatile the popular digital gold is.
The dangers of owning BTC do not begin and end with its volatility. Scammers are constantly seeking newer and more inventive ways of stealing your crypto from you. Even the most savvy of investors have been known to fall victim to crypto scams every now and again.
If you should happen to be unfortunate enough to be robbed of your BTC, you need to realize all is not lost. You should immediately contact a reputable attorney who specializes in crypto assets and who maintains a track record of winning crypto scam cases.
Says the professionals at Silver Miller Law, a cryptocurrency lawyer, if you’ve been scammed out of your Bitcoin and other crypto, you need to work hand in hand with lawyer whose sole focus is on representing aggrieved investors and crypto users from around the world who are seeking to recover their financial losses. It also pays to work with an attorney who has skin in the game. That is, they do not charge on an hourly basis but instead will accept your case on a pure contingency-fee basis.
That said, while safeguarding your BTC with protections like a cold storage wallet or at the very least, two-factor platform authentication and biometric verification, you should also learn how to safely invest in BTC. While day trading, which can involve leverage, is a dangerous game where you can be liquidated in a matter of seconds, dollar cost averaging (DCA) is said to be the safest way to grow your wealth not over the short term necessarily, but over the long term.
According to a recent report by Business Insider, dollar-cost averaging has evolved into a powerful way to invest in BTC or, what’s considered the world’s leading digital currency. Here’s how DCA can work for you in both the short and long term.
Defining Bitcoin DCA
Dollar-cost averaging is a conservative investment strategy where you purchase a fixed amount of BTC at regular, pre-set intervals no matter what the price happens to be. You can DCA by setting up a specific amount of cash to invest periodically such as daily, weekly, or monthly, and then you stick to the schedule over a long period of time.
The beauty of DCA is that you reduce the impact of short-term market volatility, since your pre-established amount buys more BTC when the price is low, but less when the price is high. What happens is that, given time, you average out the cost of BTC. Thus, the notion of dollar cost-averaging.
DCA also has its emotional benefits. While day-trading large and leveraged amounts can be super stressful, DCA is said to be both a disciplined and low-stress investment approach to purchasing BTC. Since you are eliminating the need to make quick decisions based on short-term prices movements, and therefore attempting to time the market (an almost impossible task), you do away with the emotional reaction to market swings while growing your investment bit by bit over time.
How Bitcoin DCA Works
–Set your budget: Not everyone makes a lot of money. In fact, most people don’t have an additional $500 in the bank to cover a basic emergency like a broken household appliance or a car repair. But it’s likely everyone can figure out how much they are comfortable with investing on a regular basis. There are BTC apps that allow you to start with as little as $10. That’s less than a meal at McDonalds these days. Remember, it’s entirely up to you how much you wish to invest in BTC each day, week, or month.
–Choose your intervals: The choice is yours. You can invest every day, every week, or once per month. If cash is tight, you might want to give something up, like heading out to the bar every day for happy hour beer or spending $10 per day on Starbucks coffee.
–Find a BTC exchange you’re comfortable with: As a retail investor, you need to find a place to purchase your BTC. This is why it’s important to find a reputable BTC exchange or app that will allow you to automatically grow your BTC holdings utilizing recurring payments. While Coinbase is the king of all platforms, some people prefer simpler apps like the Cash App or Robinhood.
Begin stacking your sats: Once you’ve completed the process of registering for a BTC DCA platform and set up your prearranged bank transfers, your app will automatically invest on your behalf at regular intervals. If you don’t wish to look at the price of Bitcoin, you don’t have to. Just allow your sats to stack and grow. With BTC appreciating an average of 170 percent per year, you will, over the long term, build significant wealth. With that in mind…
Stay calm, stack, and HODL: With your crypto app buying BTC on a regular basis, make certain your exchange account is secure. If you’re storing your BTC in a non-custodial wallet in which only you own the private keys, you will be able to safely “HODL” (or HOLD), your BTC investment for as many years as you choose. If you like, you can also shave profits from your BTC investment. Like the old saying goes, no one ever went broke taking profits.
In the end, BTC investing is still in its toddler stages and has a long way to go before it becomes one of the top dominant financial investments on a global scale. However, with spot ETFs having been approved by the U.S. federal government in January of 2024, Bitcoin is on track to replace silver and gold one day in the not too distant future as a viable hedge against an ever devaluating fiat dollar.
But keep in mind, BTC is not without its volatility, and it is still prone to scams and scammers. If you should happen to fall for a scam, immediately seek out a reputable crypto attorney who can help you get your assets back.
