3 Things to Know Before Buying Bitcoin

Everyone around you started commenting on Bitcoin. Some have already prepared themselves for the financial future by purchasing Bitcoin, and some are about to enter the Bitcoin and other cryptocurrency universe soon. So, what are the things to know before buying Bitcoin?

Bitcoin Is Much More Than Money.

Bitcoin is the peer-to-peer digital currency that Satoshi Nakamoto originally intended. As a result of how the market reacts to it; Bitcoin is like digital gold. People treat it as a store of value. But Bitcoin is much more than money. It can be both a form of digital currency and a store of value. Of the people who bought Bitcoin years ago, there are a lot of people who got lucky and got rich.
Community; It consists of crypto traders (Hodler), tech geeks, politicians, people interested in philosophy and much more. Also, most communities are looking for ways to apply what has been learned from Bitcoin to areas beyond currency. It takes more than just an interest in making money to truly be a part of the community and get involved in Bitcoin.
There are three important things to know before buying Bitcoin: hoarding your cryptocurrency, how you store it, and your trading strategy.
  1. Hodling Is A Real Strategy: Data from early 2020 shows that close to 60% of Bitcoin has not moved in their wallets in almost a year. Moreover, about 50% of Bitcoin had not moved for two years. It has also begun to appear that the number of Bitcoin wallets holding one or more BTC continues to increase. Despite the volatility in price, the rapidly increasing Bitcoin holders continue to hod their cryptocurrencies.
    What Does It Mean to Hodl? Basically, it means buying and sticking with Bitcoin, and those who are interested in buying Bitcoin are probably interested in increasing the amount of BTC they own.
  2. Storing Bitcoin Should Be Simple and Easy: A known and popular wallet provider should be chosen. This is very important when it comes to storing Bitcoin. It would be correct to store the information created to access the wallet in a safe place.
  3. You Should Have a Cryptocurrency Trading Strategy: Owning cryptocurrency requires more than just an interest in making money. Before you start trading, you should have a buying and selling strategy. While there may be those who determine this strategy according to technical analysis, there are also those who determine it according to market data. The most accurate trading strategy is to buy or sell at the price determined by considering both.

Result: Since there are financial incentives to accumulate more Bitcoins, it is necessary to learn in detail how to hodl and store digital currencies. As more and more Bitcoins appear to be waiting longer in wallets, communities are focused on bullishness over the long term. In fact, some communities predict that one Bitcoin will soon reach $1 million. Whatever the sentiments about the future price of Bitcoin, strategy is quite important.