Bitcoin Investing: Strategies, Risks, and Potential Rewards

BitPinas has listed the risks associated with investing in Bitcoin, the strategies to overcome them, and the potential rewards once we overcome them.

Bitcoin Investing - Strategies Risks and Potential Rewards

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  • In this article, BitPinas has listed the risks associated with investing in Bitcoin, the strategies to overcome them, and the potential rewards once we overcome them.  
  • The risks in investing in Bitcoin include the volatility of the market, susceptibility to manipulation, and security risk.
  • While some tips to overcome risks include focusing on education and research, setting long-term goals and preparing different plans, and ensuring that investments are safe.

Though Bitcoin was made as a purely peer-to-peer version of electronic cash, others still look at it as an investment product, where investors watch the movement of the market to be able to gain yield and earn from it. While others buy Bitcoin while it is at its lowest price, hold it for a long time, then sell it when the price goes up. 

Welcome to the Bitcoin Month Series on BitPinas, where we discuss everything Bitcoin. Please check out the other articles:

However, we cannot deny the fact that there are still risks to investing in Bitcoin. In this article, BitPinas has listed the risks associated with investing in Bitcoin, the strategies to overcome them, and the potential rewards once we overcome them.  

Risks in Investing in Bitcoin


Because of the market’s volatility, Bitcoin’s fiat value always experiences fluctuations. This unpredictability poses both opportunities and risks for investors, as sudden price movements can result in substantial profits or heavy losses.

For comparison, BTC’s all-time high was on November 8, 2021, at about $67,567 per $BTC. However, it closed in 2021 at $46,224.39 per $BTC. This showed that within about two months, the fiat value of BTC went down by 30%. 

Thus, when investing in Bitcoin, one should consider the volatility of the market. Because the investor could lose funds or gain profit from the market’s movement. 


One of the key concerns surrounding the crypto market, including Bitcoin, is its susceptibility to manipulation. Bad actors within the industry may engage in various schemes, such as pump-and-dump operations and wash trading, with the intention of artificially inflating or deflating prices.

As defined by Cointelegraph, a pump-and-dump scheme is a sort of fraud in which the perpetrators amass a commodity over time, artificially inflate its price by disseminating false information (pumping), and then sell what they have accumulated to unwary buyers at a higher price (dumping).

Meanwhile, wash trading, according to Wall Street Mojo, is a type of market manipulation where traders execute buy and sell orders among themselves, creating false trading volume and giving the illusion of market activity. 

These deceptive tactics can mislead investors and distort price information, making it difficult to make informed trading decisions.


One of the key challenges in both the Bitcoin and cryptocurrency space is the lack of a consistent regulatory stance around the world. Of course, different regulatory changes could give a substantial impact on the movement of the market, and most especially, the wide adoption of Bitcoin.

The decentralized and unregulated nature of Bitcoin could potentially expose investors to fraudulent schemes and scams. It is because the absence of a central authority or governing body means that investors must rely on their own due diligence and caution when investing. 

In addition, as one of the new technologies outside the realm of traditional financial systems, there is limited regulation that protects the public. Without clear regulations, the risk of fraudulent activities on the market remains a concern. 

Key Strategies in Investing in Bitcoin


The good thing about the crypto community is that it is doing its best to educate everyone. Currently, there are a lot of web3 educational platforms that will explain even the most basic language in the space, like Binance Academy, Coins Academy, Bitskwela, and more. 

To be able to overcome the risks associated with investing in Bitcoin, one should first understand the history of Bitcoin, why it was created, and how the market has moved under certain conditions in the past. 

Learn to analyze market trends and price movements. Study Bitcoin’s market trends and historical price movements to identify patterns and gain insights into potential future price fluctuations. There are also content creators that create market predictions, like Crypto4Chun

Also, investors should ‌stay informed. Stay up to date with the latest news, regulatory developments, and market sentiment surrounding Bitcoin, and even the whole crypto industry. Be aware of regulatory changes, which can influence market sentiment and adoption. 

For our readers in the Philippines, you may read this article about the regulation and use cases of Bitcoin in the country. 


Once the basics have been learned, investors should set long-term goals. Strategize what kind of trading strategy fits (arbitrage, high-frequency trading, range trading, bot trading, scalping, or technical analysis), or even just HODL. 

Investors should also determine their risk tolerance and how ready they are holistically (emotionally, mentally, physiologically, and even financially). Establish realistic expectations regarding returns and potential risks.


Choose a reputable crypto wallet and buy only on known crypto exchanges to avoid being scammed. To check the list of Bitcoin wallets and exchanges available in the country, check here: 


To make sure that investments are secure, investors must store their seed phrases properly, use a unique password, use two-factor authentication, be wary of phishing attempts, use hardware wallets, and make sure to use the right website/apps.

For more detailed tips on securing crypto assets, including Bitcoin, read here:


Potential Rewards in Investing in Bitcoin (Closing Thoughts)

Of course, everyone in the crypto industry is hoping for a significant appreciation of Bitcoin’s fiat value. WEN BULL RUN? 

But does investing in Bitcoin only give you profits? Or are there other good things that investing in and HODLing Bitcoin will bring? 

Once the world has witnessed that investing in Bitcoin is as good as investing in traditional finance, maybe clearer and better regulations will come; maybe public adoption will happen, making it accessible to all; maybe BTC will also be considered one of the most valuable assets around the globe. Well, no one clearly knows. 

Remember, investing in Bitcoin and other cryptocurrencies carries risks, and past performance is not indicative of future results. It’s essential to do thorough research, make informed decisions, and stay updated with the evolving landscape.

This article is published on BitPinas: Bitcoin Investing: Strategies, Risks, and Potential Rewards

Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.

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