As the third Halving of Bitcoin arrives, more and more people are becoming interested in Bitcoin. Many even have the ambition to buy Bitcoin in order to profit from its revolution. In what follows, I reveal the 2 golden rules for winning each time with Bitcoin.
Why Bitcoin is a store of value
Bitcoin is frequently compared to gold. Many even describe Bitcoin as digital gold. However, there is a first fundamental difference between gold and Bitcoin. Indeed, gold has established itself as a store of global value for many, many decades now.
If Bitcoin strengthens its position as a store of global value block after block, it is nonetheless very young since it is only a little over 11 years old. This youth of Bitcoin largely explains the very high volatility of its price. This volatility will decrease as the mass adoption of Bitcoin by the general public.
In the meantime, many people advise against buying Bitcoin because they consider Bitcoin to be too dangerous because of this excessive volatility.
From my point of view, I think buying Bitcoin is not dangerous if you take the time to understand how it works and what are his goals for the future. You can even make volatility your biggest ally by adopting the right strategy.
If you make this compulsory learning effort, and make the decision to buy Bitcoin afterwards because you firmly believe in its potential, there are two golden rules to know that will allow you to win every time with Bitcoin.
Rule # 1: When the price of Bitcoin goes down, you have to buy Bitcoin
The people who will win every time with Bitcoin are the ones who actually believe in Bitcoin. To believe in Bitcoin, you must have understood how it works, and what it is trying to accomplish for the world of the future.
If you have faith in Bitcoin, you will join the ranks of Bitcoiners, and take advantage of the price cuts of Bitcoin to buy more.
This is not an obvious thing because when the price of Bitcoin drops sharply, a panic takes over the market and a FUD (Fear, Uncertainty and Doubt) feeling tends to spread.
Many people give in to this FUD feeling and make the mistake of selling their Bitcoins when the price drops too sharply.
The example of the strong, prolonged bear market of 2018 clearly shows that the majority of people do not have enough faith in Bitcoin to win every time with it.
Warren Buffett frequently repeats the following maxim:
“Be fearful when others are greedy and greedy when others are fearful.”
When the price of Bitcoin drops, or even crumbles, you should consider this as an opportunity that you absolutely must enter.
If you doubt it, look who are the big beneficiaries of the drop in the price of Bitcoin under the $ 4K which we attended in March 2020. These are the Bitcoiners who have an unshakable faith in Bitcoin.
Bitcoiners took advantage of the fall in price in March 2020 to strengthen their positions by accumulating more Bitcoins.
Bitcoiners’ belief in Bitcoin is rewarded today as its price is again around $ 9K.
The first rule of thumb is therefore to take advantage of the falling prices of Bitcoin to buy more and play winning in the long term.
Rule # 2: When the price of Bitcoin increases, you must HODL your Bitcoins
At the start of 2020, the price of Bitcoin dropped from $ 6,900 at near $ 10K. The price of Bitcoin has increased by 45% in just over a month. The price of Bitcoin then dropped by almost 50%. Then it rebounded to be around again today. $ 9.5K.
Overall, Bitcoin has therefore shown excellent performance since the start of the year while progressing step by step.
Bitcoin is progressing slowly but surely which protects it from the formation of a speculative bubble around its price as was the case at the end of 2017 for example.
Bitcoin’s Third Halving Approach Gives Up Optimism. See the price of Bitcoin pass over $ 9K reassured many.
Some even wonder if it would not be time to sell their purchased Bitcoins in the heart of the liquidity crisis of March 2020.
People who ask themselves this type of question are clearly not going to be able to win every time with Bitcoin.
Even when Bitcoin increases by 40% in a few days, do not think short-term by seeking directly to take profits.
Trust Bitcoin and Play Long-Term by following these basic golden rules.
Ask yourself the right questions about the fundamentals of Bitcoin.
A Halving is expected in a few days now. Previous Halvings have given rise to strong bull market in Bitcoin. In 2012, it took place over a 12-month period after the Halving. In 2016, the very strong bull market registered over an 18-month period after the Halving.
With this third Halving, there is a high probability that the situation will happen again. A very strong bull market is expected in the coming months.
He could register for up to 24 months after the Halving. So the best you have to do when the price of Bitcoin goes up is HODL.
If in doubt, keep in mind that HODLING has been shown to be the best strategy in 90% of cases with Bitcoin.
So don’t take any chances. Keep your Bitcoins well away when its price increases even very sharply.
These two golden rules are based above all on a belief in Bitcoin
Basically, you must have understood that the two golden rules for winning each time with Bitcoin are based on the same thing.
Belief in Bitcoin and its potential is what allows you to win every time with Bitcoin.
By actually believing in Bitcoin and the revolution he embodies, you’ll have no trouble playing long-term like Bitcoiners.
You will take advantage of the drops in its price to always collect a little more Bitcoins.
When its price increases, you will benefit from it for HODL Bitcoin while remaining patient and calm because you know that bitcoin’s goals are to win in the long run. If you are still in doubt, be aware that the lowest annual price of Bitcoin has been increasing since 2010.
The year 2020 is not over, but there is a good chance that the lowest price of 2020 will remain that of March 2020 with a Bitcoin around $ 3.8K.
With Bitcoin’s lowest annual price going up, it’s in your best interest to play long-term with Bitcoin.
Bitcoin still rewards those who fundamentally believe in its revolution. The latter being able to apply the two golden rules that I have just explained to you. These people are called Bitcoiners. It’s up to you to decide if you want to be part of it.
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.