Best 7 Bitcoin Investing Rules 2024

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Easy Bitcoin investing rules to help enhance your earnings!

Many who are beginning to invest in Bitcoin are often not aware of simple common sense rules to follow. We outline 7 golden rules that will make sure you protect what you financially have before buying Bitcoin.

The key is discipline.

Of course, everyone is in different financial circumstances, but these golden rules of investing in Bitcoin will apply to most people. If you can be disciplined enough to keep to these rules, it will put you in a good position to invest in Bitcoin.

If investing wisely in Bitcoin is important to you, then please read on.

Rule 1. Debt

Pay off all your consumer debt-home loan, credits cards, overdrafts and the like. Most investment advisers will start with this piece of advice. If you have spare cash, it is far better to get even with the creditors than to invest in Bitcoin. After all, there is no use earning 10 per cent on your Bitcoin when the bank is taking 16 per cent on your VISA or Mastercard. One rule of thumb says debts should be no more than 15 per cent of take-home pay (excluding house repayments) before you embark on an investment program, especially one that invests in Bitcoin.

Rule 2. Insurance

Don’t invest in Bitcoin until you have adequate insurance. You should have adequate life and disability insurance, as well as on your house and car. How much is enough will depend on your circumstances. By having appropriate insurance, you will be able to protect yourself against any unforeseen events.

Rule 3. Limit investments in Bitcoin

Limit yourself to investing no more than 15 per cent of investments in Bitcoin. For some this may sound extremely high, whilst for others this is low. Stay on the conservative side and do NOT invest in any more than 15 percent of your investment portfolio. Having said that, for those who are too conservative, we all know that without risk there is no return. Therefore a sensible amount of a portfolio should be exposed to higher risk assets to ensure you get some above-average returns. Hence, Bitcoin is a perfect investment that has the potential to give high returns. But make sure you do your homework first, and understand Bitcoin and cryptocurrencies.

Rule 4. Keep enough cash savings

Keep three month’s income in a savings account. There is no point having investments in Bitcoin or altcoins and see them see-sawing, if you don’t have savings for everyday living. If too much money is tied up in Bitcoin you could be tempted to sell Bitcoin at the at the wrong time, for the sake of convenience.

Rule 5. Diversify your Cryptocurrency portfolio

This is the golden rule of investing. But is is particularly relevant to risky assets. A broad exposure to all investment possibilities allows you to weather any falls. Spread your allocation of risky investments among cryptocurrencies. Don’t invest all into Bitcoin, rather spread the investment among several cryptocurrencies.

Also keep a portion in the sharemarket. A broad exposure to all investment possibilities allows you to weather the storm. Simply put, it’s the ‘don’t in the one basket’ story.

Rule 6. Buy Bitcoin for the long-term

Hold Bitcoin and cryptocurrencies for the long-term. So far, Bitcoin and cryptocurrencies is a proven performer over long periods but in the short-term it can be volatile. Also, frequent buying and selling can mean paying a lot in exchange fees.

Rule 7. Steer Clear of Trading Options

When investing in Bitcoin and cryptocurrencies you will be bombarded with marketing material. Special offers, promotions, rewards – words that persuade you to enhance your earnings by exotic trading options.  These options may include margin lending and derivatives. In essence, they are high risk high return, and could wipe out all your investments in the click of a finger. Avoid being lured to risky bitcoin plays.


Investing in Bitcoin is not without risk. It can therefore place you in financial stress if you invest with a short term view, have not built a strong foundation to weather a financial storm, use exotic trading options that could destroy your wealth quickly.

The key to investing is discipline. This mantra could not be more appropriate than investing in Bitcoin. Make sure you can diversify your risk, do not trade often because the fees will eat into your returns, be in a position where you will not be forced to sell your Bitcoin if a down turn in your financial circumstances occur.

Finally, please ensure that you understand the basics of Bitcoin and cryptocurrencies. You do not need to be an expert, but it is always important to understand what you are investing in. We wish you all the best within investing in Bitcoin.

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