Last Updated on Apr 17, 2020 by James W
Bitcoin has been in the news, for good and bad, almost since the day it was created. At first, it gained notoriety as a curiosity. Then came a time when it looked like it was nothing more than a way for criminals to hide their financial activity. Finally came the past few years, when people checked the news every day to see how high the price of this once dirt-cheap financial property was going to rise. It’s all been a whirlwind, and it can make investors in the digital coins a bit nervous. Each day they must look between their fingers at the morning newspaper to see if there is anything that is going to take a big chunk out of their account and do damage to their financial standing.
That means, as an investor in Bitcoin, that you must develop a kind of psychological shield against this onslaught of news, many of which are quite negative. No investment is worth losing your state of mind over, so you need to either consider selling what you have right now if the turmoil is too much for you, or you should learn how to practice mind over matter to get over the daily torrent of news. If you want to wash your hands of it but still gain from Bitcoin as an investment property, turn your trading over to a trading program that tracks Bitcoin news for you and makes all your trades accordingly. Otherwise, think about ways to deal with the Bitcoin news cycle.
1. Consider the Source
Bitcoin is at a stage where many people are nervous about what it can do to the financial system that has been in place for a long period of time. If someone belonging to a financial institution has bad things to say about Bitcoin, it could be because they don’t want to see that institution’s position usurped by this technological upstart. Don’t get too worked up about the opinions expressed, because half of them are going to be wrong anyway.
2. Expect the Volatility
A round of bad news about Bitcoin could very well make the price of it take a hit in the short term. But you should have known when you bought into Bitcoin that you would be in for a lot of price fluctuations. The volatility of it is bound to sustain for quite some time, at least until the coins come onto some sort of firmer footing with regulatory bodies.
3. Ignore the News
This might be easier said than done. But unless you’re a day trader trying to get in and out of Bitcoin and make a profit by timing the market, you’re probably going to be holding on to your coins for quite some time. And news that may seem like a big deal right now won’t likely matter too many years down the road, which is what you care about anyway.
The news cycle loves a controversial figure, and Bitcoin fills that bill right now. Don’t let the ups and downs of it turn you off from what can be a wonderful investment opportunity for you.