ImageAlmost everybody knows about cryptocurrency and Bitcoin. However, some of us are too scared to get involved and start investing as it seems like a risky world that also has a huge learning curve. Sure, there are several things that you will need to make yourself conversant with, but there are also lots of opportunities that you can take advantage of.If you have decided to give it a go, we are here to help you through the journey. One thing you'll need is a strategy, and we'll look at various things that can help you get started on the right foot.Understand the Market DynamicsIf there's one thing that everybody knows about Bitcoin (and crypto in general) is that it is volatile. This also tells you that it is unique from most other investments, so you'll need to understand it and the various factors that contribute to changes in the Bitcoin price.As such, do some proper research. Go all the way back to blockchain. Read up on the technology as it's what crypto is based on. You can then familiarize yourself with how Bitcoin itself operates – things such as the mining process and halving events. From there, you can then move to the factors that affect the prices. These are things such as market demand, regulatory changes, and investor sentiments.Define Your Goals and Risk ToleranceNow, it's time to come up with a strategy that you'll use throughout your investment. And for this, you will need to clearly outline the investment goals you have and the amount of risk you can tolerate. Are you looking for short-term gains, a long-term investment, or a bit of both?The amount of time and the risk you can take on will determine what you do with your assets. Some are high-risk, high-reward, and some are low-risk, low-reward. Some will only need minutes, and others will need you to set and forget them for months or years.Diversify your PortfolioDiversification is always mentioned when it comes to investments, and it's even much more important in cryptocurrency investment. This is because there are lots of risks associated with the market. Even though Bitcoin is the pioneer and most stable cryptocurrency, it is still volatile, so you may want to look at other assets – otherwise known as altcoins.When you invest in altcoins, you protect yourself from adverse effects in the event of a Bitcoin crash. Although these will also come with their risks, your risk will be spread out to protect you from bad financial situations. However, altcoins are not just for diversification – some, such as Ethereum, offer much more functionalities than Bitcoin, giving you a range of investment opportunities.Hodl vs. Active TradingThere's one big decision you'll need to make before you start investing in Bitcoin – whether you are going to adopt a “Hodl” (Hold On for Dear Life) approach or engage in active trading. The basis behind this decision is whether you want to take advantage of the long-term Bitcoin price increments or actively use your assets to trade and make a profit.In the former, you will be seeing your Bitcoin as a store of value. You'll hold it through market fluctuations with patience and discipline, then reap the rewards of Bitcoin increasing in value. If you choose to trade, you will be buying and selling assets with the aim of taking advantage of the quick price fluctuations synonymous with Bitcoin and other cryptocurrencies. However, to go this route, you will need to have a technical understanding of things like analysis and trading signals.Implement Risk Management StrategiesIt doesn't need to be mentioned that there's a huge amount of risk associated with cryptocurrency. As such, you'll need a good plan that will help reduce the amount of risk on your side. If you are planning on trading actively, you can start with stop-loss orders. This is a functionality you'll find on all trading platforms that helps reduce potential losses. When the price of your assets reaches a certain point that you've set, the order is automatically executed. You'll therefore know the amount of money you can lose before you even lose it.Another popular strategy is Dollar-Cost Averaging (DCA). This one helps smoothen the impact of price fluctuations. Essentially, it's about investing your money in regular fixed intervals. You won't need to consider the price, you'll just invest. The price will eventually even out, so you'll get to “ignore” the aspect of volatility in the buying price.Keep Learning and AdaptingThe thing about investing in Bitcoin is that there's a huge learning curve (especially for active traders) and that the landscape keeps on evolving. But if you manage to keep yourself updated about everything concerning the space, you will be able to predict price changes much better. And through your journey, ensure that you keep on adapting your strategies based on your experience. However, don't restrict yourself to learning about Bitcoin, as there's a whole world of blockchain and emerging cryptocurrencies out there.