6-Six Investment Strategies to Make Bitcoin Less Stressful

Investment Strategies to Make Bitcoin

Yes, we're in the midst of a bull market, but investing in cryptocurrency isn't always easy — it can be downright stressful. Even when things are going well, it is possible to become obsessed (does checking your bitcoin balance every half hour sound familiar?)

However, there are a few strategies for extracting emotion from the investment process. Not least by delegating: that is, entrusting decisions and procedures to others so you can go about your day without thinking about the price swings that make the cryptocurrency industry so exciting.

Never Invest More Into Bitcoin Than you Can Afford to Lose

This may seem self-evident, but it bears repeating, particularly during a bull run. People do insane things when they think they can make a lot of money, such as taking out mortgages to buy Bitcoin. However, this is unwise and can lead to excessive stress. As a result, you can only invest what you can afford to lose.

Money that could otherwise be used for emergencies would be jeopardised, putting you in a high-stress situation. Never spend more than you can afford to lose, whether it's Bitcoin, Ethereum, or Tesla stock.

Consistent Recurring Buys of Bitcoin

This is a fun one that can help you relax a lot. Since it's difficult to predict when to buy and sell in the market, a cryptocurrency exchange has devised a solution: recurring buys. On their website, bitFlyer USA has added recurring buys, allowing users to keep stacking their satoshis.

It takes the edge off by using dollar-cost-averaging (DCA) to invest a fixed amount at regular intervals — for example, $50 a week. The automated programming allows investors to let their portfolios grow over time and not have to worry about making stressful decisions.

Don’t Borrow To Buy Bitcoin

This is another one to stop like the plague, much like not spending more than you can afford to lose. Taking on debt in order to end up with even more debt is a bad idea. And we all know how volatile cryptocurrency can be. Borrowing boosts your winnings when you win, but it also magnifies your losses when you lose. It's not worth it — taxes and interest can be expensive in the long run, and the risk is too great.

Vary From Bitcoin into Other Cryptocurrencies

This can also help to relieve tension. You will reduce risk by diversifying your portfolio. Risk can be distributed through Bitcoin, Ethereum, and Polkadot, rather than placing all of your eggs in one basket with Bitcoin, for example. It can also help you conserve capital by allowing you to diversify your investments so that when one of those volatile coins crashes, you can concentrate on others.

Set Up A Cold Storage Wallet for Your Bitcoin

The way you store your cryptocurrency is also crucial for reducing stress. Carrying your investments on your phone, for example, is a bad idea — particularly if you've made a significant investment. It will ease your mind to have it spread out in cold storage (which is safer), particularly if you lose a computer.

Have A Trusted Institution Do The Heavy Lifting For You

This one is becoming more popular: you might simply put your money in the hands of a different company. Grayscale is becoming the go-to for those who don't want to think about storage as institutional investors become more involved in digital assets like Bitcoin. When the stress of private keys, buying crypto, and selling is removed from one's shoulders, stress can be reduced as well — particularly if you're new to the game.