Bitcoin has been the subject of regular news highlights since early this year, and for good reason. Its value has been on somewhat of a rollercoaster ride over the past 5 months, registering wild fluctuations. Earlier in April, Bitcoin surpassed the $60,000 mark, recording new record highs. However, its price plummeted soon after. The trend followed through into May when Bitcoin lost almost $8,000 in just under an hour.

As a result of such changes, the Bitcoin frenzy has been at a fever pitch, and it is being estimated that it will only get wilder in the future. The high volatility of the crypto market has initially turned a lot of people away from the space, but it has also acted as a major attraction for would-be investors who chase early fortunes and profit from it.

Both institutional and retail investment in Bitcoin has been on the rise recently with many banks also joining in on the crypto bandwagon. But despite the fact that Bitcoin is gaining recognition within the financial community, it is still a highly risky and uncertain environment where you could lose a significant sum of money in just a few minutes.

As a result, taking your first steps in the crypto universe can be an intimidating experience, but you may be still committed to dip your toes into the risky waters of the crypto sea. Therefore, before entering this volatile and dynamic market, here are four things you should keep in mind:

Disregard Hype And Noise

Many prominent cryptocurrencies, especially Bitcoin, are known to be on bull runs time and again, reaching sky-high values as they did earlier this spring. These sudden price movements and dizzying gyrations are attractive to many investors as they see it as an opportunity to make high returns. As a result, many potential investors and traders are still looking to get in on the crypto action despite the price drops.

In the bull market, however, prices can skyrocket one second and hit bone-chilling lows the next. Investing in crypto coins should be done with caution, instead of focusing on the hype and "noise." It's always better to make calculated and informed decisions than to make impulsive decisions.

One of the best examples of how unpredictable the market is the Bitcoin bull run of 2017 when many novice investors invested significant amounts of savings. The value of this asset plummeted just months later in 2018, and many of them soon found themselves in huge losses.

Exercise Due Diligence

You may find yourself in a tough spot if you dive into the vast crypto ocean headfirst without any preparation. Therefore, if you do not want to lose a lot of money when investing in Bitcoin or any other cryptocurrency, you need to thoroughly research your crypto coin of choice, its workings, and whether it is volatile or not. For ease of those investing in crypto, such information is readily available on the internet, and indeed, you can access the whitepapers of relevant cryptocurrencies online which will give you more insight.

When it comes to your investment, a good understanding will help you make the right decisions. Your market entry and exit can be coordinated according to your trading needs. Furthermore, it may assist you in avoiding potential obstacles on your way to a lucrative cryptocurrency future.

Beware Of Cryptocurrency Scams

Currently, the crypto market is valued at over 1 trillion dollars, more than half of which is accounted for by Bitcoin. Consequently, it's no wonder that scammers are trying their best to exploit such a lucrative sector of the financial market.

The crypto space is extremely murky and rife with scammers and fraudsters, who are waiting around every corner for an investor to fall prey because of their naivety. As a result, if you’re not careful, you may find yourself in a crypto scam. Consequently, it is a good idea to stay away from websites that promise excessively high returns or offer get-rich-quick schemes.

Use Only Trusted Trading Platforms

As the Bitcoin frenzy heats up, even more, trading platforms, systems, and tools have become all the rage. These platforms utilize advanced technologies such as Artificial Intelligence (AI) and Machine Learning (ML), specialized software, and powerful algorithms to take advantage of short-term crypto booms that happen due to the highly volatile nature of the crypto space.

For novice investors and traders, these have proved to be a safe haven, allowing them to make profits without the need to spend the day constantly watching their screens for the slightest change in value as they make trading decisions on your behalf.

However, a number of such programs have been found to be fake or misleading, with hidden fees not initially disclosed. Therefore, you should make sure you use the services of a trusted and well-reputed platform, such as Bitcoin Champion, to maximize your returns without having to worry about losing your investment.