You probably already know that Bitcoin halving is upon us. You may also know that bitcoin prices always rise in the period preceding halving. We guess you already know that BTC has surpassed the $10k halving. Therefore you perceive this to be the greatest opportunity for profit by holding onto BTC and you are wondering what it takes to be a successful trader.
Sylvain Saurel, a prolific bitcoin blogger has published a thoughtful piece on the qualities of a “true bitcoiner”. These qualities are humility, patience, and perseverance. In addition to that, there are several factors that you should consider before investing in Bitcoin. These are;
Understand The Technology
As much as the blockchain technology is revolutionary, it is also complex and carries significant risks for those that don’t fully grasp its function. A simple task of setting up wallets and sending transactions can be a catastrophe when not performed correctly.
It’s important to invest time in learning about blockchain. It wouldn’t hurt knowing more about its history, use cases, as well as its shortcomings. Consider also researching on competitor platforms, exchanges, wallets, safety storage, etc. Meanings of terms such as proof of work, proof of stake and block time should also be at your fingertips. Why?
It has been proved that all unexpected crypto losses occur due to avoidable errors that happen due to lack of technical knowledge. For instance, lost keys and silly mistakes like using exchanges to store funds.
Treat crypto with a healthy dose of criticism. You will come across a wild range of scams, all guaranteeing wild profits. Do not trust anyone, not even the exchanges and wallets. Trust your instincts and couple that with reasonable and conservative investment approaches.
Most of the successful investors in the past decade are those that have avoided risky ventures.
Update Your Knowledge With Happenings
The crypto space is always evolving, socially, legally and technically. Alongside learning the ins and outs of blockchain, traders should also keep tabs with the latest in news and developments around blockchain. Get well versed with the latest wallets and platform updates as such is critical to the safety of your funds.
The government is taking a closer look at blockchain assets, hence it’s vital to follow the legal and regulatory developments. Some require crypto to be reported on tax forms, others oppose blockchain adoption. Such issues are relevant to the bitcoin investor.
If you forget all that you have read here today, remember to always take a sensible traditional approach. Such is always the best means to keep your funds safe. Also, remember to do your homework before taking a position.