Bitcoin is being talked about more and more in the heart of the economic crisis that is shaking the world. By dint of hearing about this formidable bulwark against inflation that is Bitcoin, you want to get started. However, you are still hesitating when buying. In this article, I try to help you by presenting 5 things to know if you are hesitant to buy Bitcoin for the first time.
Bitcoin’s Halving, an extraordinary marketing campaign
The third Halving of Bitcoin just happened. This event, which has been awaited for months by everyone in Bitcoin, came to the fore from mid-April 2020, as is clearly shown by the analysis of the volumes to search for the term “Bitcoin Halving” on Google.
Like always, the Halving played the part of a great marketing campaign for Bitcoin.
This wide media coverage made it possible to see the arrival new people in the Bitcoin world. These people have so far put one foot in this universe, since many of them have remained at the stage of high interest without taking action by buying their first Bitcoins.
If you are in this situation where you are still hesitating to buy Bitcoin for the first time, I will explain 5 things that could tip the scales. My goal is to help you take the best decision for your future.
From my point of view, this is about buying Bitcoin, but this remains my opinion. You have to come to this conclusion for yourself before you act. Here are a few things to add to your thinking.
1. Everyone thinks they are arriving too late on the Bitcoin market
I often hear people tell me that they are interested in Bitcoin, but they think they have missed the right opportunity. These people regret not having bought Bitcoin when it was still worth $ 100 in the middle of 2013.
They also regret missing the opportunity to buy Bitcoin in 2016 when its price was around $ 600.
The people I’m talking about are probably the ones who gave in FOMO feeling that formed at the end of 2017. They had to buy Bitcoin well beyond $ 15K.
Lack of knowledge on why Bitcoin, and de facto of confidence in his revolution, these people then had to panic in 2018 by selling all their Bitcoins when its price fell sharply to go under $ 3,500 at the end of the year.
Today, they hesitate again saying that with a Bitcoin to $ 9K, they once again missed the mark in the middle of March when the price of Bitcoin fell around $ 3,800 following his Black Thursday.
The essential thing to understand with Bitcoin is that everyone thinks arriving too late.
If you’re waiting for the perfect time to buy Bitcoin, you’re going to wait a long time. Indeed, it is a utopia. Now is the perfect time to take action.
Rather than waiting indefinitely, you need to take action by buying Bitcoin. Buying Bitcoin for the first time will really get you into this world, and will help you learn more than all the books and articles you can read.
2. You can buy fractions of Bitcoin
As of this writing, the price of Bitcoin is $ 9,600. Some people say they would like to buy it, but with such a high price, they simply cannot afford to buy Bitcoin.
These people lack basic knowledge about Bitcoin, and that’s why a booster bite is needed:
Bitcoin is divisible up to 8 digits after the decimal point. The smallest subdivision of Bitcoin is called Satoshi.
A Satoshi is worth 0.00000001 BTC.
So you can start buying Bitcoin for the first time from 1 Satoshi in theory. This great divisibility of Bitcoin is one of its many advantages which make it a much better store of value for populations than gold.
Movement “Stacking Sats” developed in the community throughout the year 2019 in order to highlight the importance of reasoning in Sat when you want to accumulate Bitcoin but you have a limited budget.
Remember what Lao Tzu said:
“A journey of a thousand kilometers always begins with a first step.”
Your journey to reach possession of 1 Bitcoin in full begins with a simple first step which is the purchase of a Satoshi.
By accumulating Satoshis daily, you will sooner or later achieve this goal. In the future, when speaking in Sat becomes the norm, you will thank the people who started this “Stacking Sats” movement in the community.
Finally, I’m going to tell you some good news. If you already own 0.01 BTC, you are already a millionaire with Bitcoin. Right now, more than 8 million addresses are millionaires with Bitcoin.
Indeed, this represents 1 million Satoshis. You have to change your way of thinking to adopt Bitcoin codes which is a total paradigm shift.
3. Smooth your costs with a DCA strategy
The idea behind the “Stacking Sats” movement is also to be regular in your Bitcoin purchases. Great successes are built day after day by will and patience.
With Bitcoin, patience is always rewarded.
To accumulate a maximum of Bitcoins, while smoothing your cost prices, a good strategy is that of Dollar Cost Averaging (DCA), also known as periodic fixed sum purchases in the language of Molière.
This amounts to buying Bitcoin each month with a fixed sum in fiat currency. By doing so, you will slowly but surely get closer to the goal of having at least 1 whole Bitcoin.
If you fundamentally believe in Bitcoin, you will be able to become a Bitcoin HODLER. You will be able to keep your Bitcoins no matter what.
Better yet, you will take advantage of its price reductions to accumulate more. Bitcoin volatility will become your biggest ally.
For this, I advise you to always keep a little cash available so that you can seize any good deals that may arise.
We had the recent example of this in March 2020 when the price of Bitcoin fell below $ 4K.
All Bitcoiners took the opportunity to accumulate more. It’s up to you to be ready for those moments that are always advantageous when you fundamentally believe in Bitcoin.
4. Market time beats market entry timing
Bitcoin is a relatively young market. With only a little over eleven years of existence, it is normal that the price of Bitcoin can still be extremely volatile.
Bitcoin volatility can be your best ally, or your biggest enemy.
It’s up to you to know how to use the volatility of Bitcoin to your advantage. The best solution in my opinion is to be a Bitcoin HODLER.
For this, you will have to really believe in Bitcoin. It means keeping your cool when Bitcoin drops below $ 4K and loses 50% of its value in one day as was the case during its Black Thursday in March 2020.
These particular moments should be seen as a unique opportunity to accumulate more and more Bitcoins. To convince you, I invite you to take a look at this graphic:
This graph shows the number of days HODLING Bitcoin has been profitable. As you can see, keeping your Bitcoins firmly at whatever cost has been profitable 92.1% of the time since Bitcoin was created.
Time in the Bitcoin market beats trying to get the best timing to enter the market.
If you want to limit your risks with Bitcoin, you have to follow a fairly simple strategy which is limited to 3 steps:
- Buy Bitcoin
- Bitcoin HODL
- Return to step 1
5. Become a Bitcoin HODLER rather than a Bitcoin Trader
This last point is an extension of point number 4. In the world of Bitcoin, there are two categories of people: HODLERS and Traders. For me, HODLERS Bitcoin have an essential advantage over Bitcoin Traders.
Bitcoin HODLER has total confidence in Bitcoin which allows it to be much more Zen.
Bitcoiner supports Bitcoin over time. It remains on the market as long as possible by simply seeking to accumulate always more Bitcoins, while taking care to put them in security on a hardware wallet.
The Bitcoin Trader is going to waste a lot of time trying to enter the market in the best time to make frequent purchases / sales. If some manage to make big profits like this, they are a minority. As a beginner with Bitcoin, this strategy will prove to be losing for you for sure.
The volatility of Bitcoin will then likely become your worst enemy, and you will be constantly under stress watching the price of Bitcoin frantically.
The best thing you have to do is become a Bitcoin HODLER. This simple strategy will prove to be terribly effective. It will allow you to be rewarded in the future when the Bitcoin revolution has reached its full potential.
But before you consider becoming a Bitcoin HODLER, you need to get started and buy Bitcoin for the first time.
When buying Bitcoin for the first time, many people have doubts. They think they have to buy a whole Bitcoin, or are afraid of getting too late on the market.
This last impression is totally false, and everyone has had it at least once in their life. In reality, no matter what price you buy Bitcoin below $ 10K, you will be seen as a visionary in the future.
Becoming a Bitcoin HODLER will allow you to fully benefit from the Bitcoin revolution while remaining completely Zen throughout the wonderful journey in which you decided to embark. Finally, to benefit even more, you can regularly accumulate a little more Bitcoins by applying a DCA strategy that will allow you to smooth your cost prices.
Developer by training, I discovered Bitcoin in 2014 but I did not immediately understand the importance it could have for the world of tomorrow. I got into it more deeply from the start of 2017 and since then I haven’t given up on the business.
Passionate about Bitcoin and the new system it is trying to build for the future, I decided to participate in its evangelism at my modest level by writing on Bitcoin, Blockchain and crypto currencies on different supports.
It is with pleasure that I publish some of my texts in French on The Coin Tribune.
I also write a lot about personal development and self-improvement.
Do not hesitate to exchange with me via social networks or in comments on my articles if you have questions about my articles.