A investment expert has shared his top tips for Bitcoin success.
Cryptocurrency is still relatively new in the grand scheme of things, as the likes of Bitcoin and Dogecoin were only launched in 2009 and 2013 respectively.
People were hopeful at the time as tech savvy 20-somethings embraced the idea of investing a small amount of money to reap the rewards later down the line.
One person to do this was Kristoffer Koch, who invested somewhere from $22 to $27 on 5,000 Bitcoin tokens.
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Koch ultimately 'forgot' about his small investment and it wasn't until 2013 that he went back and checked his digital wallet.
In the space of just four years Koch found that his measly 27 bucks-worth of Bitcoin was worth an impressive $850,000. Not too shabby.
But, had Koch held on to his investment, that investment would be worth around $593 million today (July 24).
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Such stories may inspire you to have a crack at cryptocurrency and investing yourself — but it's not the safest of bets warns Fei Chen, a seasoned investment strategist and Founder of Intellectia AI.
Chen told UNILAD: "As we know, cryptocurrency is volatile, and individuals need to be mindful of it. Whilst there is the potential for huge returns, there's still a big chance to lose quite a lot of money. So, I always suggest proper research and only investing what you can afford to lose."
In terms of how long a $27 Bitcoin investment would take to become worth $850,000 now, Chen explained: "It's dependent on the cost of Bitcoin, but if it grows in a similar trajectory to the past, potentially years.
"The cost of Bitcoin is very volatile, so it is hard to put a certain timeframe on it. But if Bitcoin continues to grow long-term as it has in the past, even a modest initial investment can potentially become a large amount over the course of time."
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The investment pro went on to urge people to set themselves targets when it comes to their investments — making $850,000, for example — and ride the volatile wave that comes with crypto.
"With Bitcoin and other cryptocurrencies, timing the market is very difficult," Chen said. "But if you’re in for the long-term, holding through ups and downs might be a good strategy as the price tends to increase over time."
He continued: "However, it’s always necessary to set clear goals and know when to take profits. A strategy of taking profits in stages or when a certain target price is met might be super helpful."
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Happy investing, folks.
Topics: Bitcoin, Cryptocurrency, Money
Niamh Shackleton