The impending approach to the Bull Run Bitcoin is pushing more and more people to make their first Bitcoin purchase. Once this step is taken, many find themselves lost. After this first purchase, you will absolutely have to define a strategy with Bitcoin. Thereafter, you will have to absolutely stick to it in order to be able to make the most of the Bitcoin revolution.
Your first steps with Bitcoin
You hesitated for a long time. And then, by dint of hearing and reading that Bitcoin was a real revolution with incredible potential for the future, you started to think. The third halving Bitcoin has caught your eye.
As the current monetary and financial system shows its limits like never before in the midst of this 2020 economic crisis, you were amazed to discover that Bitcoin’s monetary policy was planned in advance.
The US Fed and other central banks can increase the money supply in circulation at any time by the simple arbitrary decision of a minority of people who are not representative of the people. At the opposite, bitcoin obeys only its source code.
Bitcoin’s complete issuance schedule has never changed since its inception by Satoshi Nakamoto over 11 years ago.
However, this was not enough to make you buy Bitcoin. You needed something stronger. This thing is simply related to the natural greed of human beings.
The possibility of a big financial gain made you buy Bitcoin
You have read that Bitcoin has been the best performing financial asset of the past decade. Indeed, Bitcoin has transformed $1 invested in 2010 in $90K at the end of 2019. A performance of +9,000,000% which had never been seen in the history of investing. Between July 26 and July 28, 2020, the price of Bitcoin saw an increase of nearly 20%. In less than 48 hours, Bitcoin went from $9,600 close to $11,400.
Very quickly, the sentiment in the Bitcoin world went from fear to extreme greed. The return of a sentiment FOMO in the world of Bitcoin has come to you. You are now afraid to miss The Next Big Thing.
This fear pushed you to take the plunge, and to buy your first Bitcoins, or perhaps more modestly your first satoshis.
In fact, I invite you to quickly buy a hardware wallet. Once this step is completed, you will need to get your Bitcoins out of these exchanges as quickly as possible to send them to your hardware wallet. From then on, your Bitcoins will actually be yours.
Never forget the golden rule of Bitcoin:
Not your Keys, Not your Bitcoins.
If you want to join the Bitcoin club, you will have to follow this golden rule.
After that first Bitcoin purchase, you don’t know what to do
Gone are the excitement of buying your first bitcoins, now you are wondering what to do next. A lot of people make a monumental mistake after that first Bitcoin purchase.
Instead of seeking to learn more about the Bitcoin revolution, these people will simply think that Bitcoin is a financial asset like any other.
In fact, they will leave their bitcoins in a corner, without understanding that Bitcoin will change the world of the future.
Those who make this mistake will not define any strategy with Bitcoin.
Then, at the first sharp drop in the price of Bitcoin, you might panic. This often leads to the sale of your bitcoins at any cost. A majority of beginners lose a lot of money as well.
This happened in 2018 when Bitcoin entered a strong bear market after its euphoric year-end in 2017 when its price hit. $20K.
You need to stay focused on the big picture
Others will find Bitcoin boring when its price stagnates. These people get blinded by ambient noise rather than seeing the real signal in the world of Bitcoin: the Bitcoin revolution advances day by day. You just have to take a step back to see the bigger picture, the larger overall motif.
If you find Bitcoin boring, you will eventually let your greed get the better of you. At that point, you risk listening to those who tell you that their Altcoin is the next Bitcoin. Or, you will listen to those who advise you to diversify in the face of the risk of owning only Bitcoin.
Keep in mind that greed is the number one enemy in the Bitcoin world.
Only Bitcoin matters. Bitcoin is not a technology that can be replaced, because Bitcoin is money.
If Bitcoin were to fail, all Altcoins would fail. When Bitcoin has successfully revolutionized, the value of the majority of Altcoins will have reached zero. Diversification in the world of Bitcoin is therefore a total illusion..
Define a strategy with Bitcoin, and stick to it no matter what
Once this is understood, you will be able to define an effective strategy to take full advantage of Bitcoin.
Here is the one I use, and a majority of Bitcoiners follow the letter:
- Buy Bitcoin automatically with an approach DCA (Dollar-Cost Averaging). Many applications allow this to be done.
- Schedule the automatic sending of these bitcoins to your hardware wallet using the application chosen for your DCA strategy.
- HODL Bitcoin no matter what.
- Iterate from step 1.
This simple strategy will allow you to become a Bitcoin HODLer. You will have an essential advantage over Bitcoin Traders: You will be able to lead a more Zen life, and more importantly, you will be able to concentrate on the essentials.
I mean here that you will have time to deepen your knowledge of Bitcoin, money, or even the economy.
It is by educating yourself that you can really take care of your future in matters of money. The economic crisis of 2020 has brought out this essential reality in my opinion.
You may doubt the strategy that I have just revealed to you.
If so, here is an eloquent graph to show you that this is by far the safest strategy to profit from Bitcoin serenely:
This graph shows you that HODLing Bitcoin has been a profitable strategy over 97% of the time since Bitcoin’s inception.
Signing up for the long term with Bitcoin is therefore obvious.
The hard part is going to be to stick to this strategy no matter what in the future. HODLing Bitcoin has been difficult some times so far. However, that’s nothing with what awaits you on a psychological level in the months and years to come.
As Bitcoin sees its price soar to constantly break its records, you should keep in mind that if you were to sell your Bitcoins then you would regret it sooner or later in the future.
Be strong, and stay a Bitcoin HODLer no matter what. The Bitcoin revolution will take time, but if you know how to be patient, you will be greatly rewarded when its price reaches heights that many thought were unimaginable when it was created.
A 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 took a more in-depth look at it from the start of 2017 and since then I haven’t let go.
Passionate about Bitcoin and the new system it is trying to build for the future, I decided to participate in its evangelization at my modest level by writing about Bitcoin, Blockchain and crypto currencies on different media.
It is with pleasure that I publish some of my texts in French on The Coin Tribune.
I also write quite a bit 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 any questions concerning my articles.