Two Golden Rules To Win Every Time With Bitcoin
The key is to be confident in Bitcoin’s long-term potential.
Bitcoin is frequently compared to gold. Many even describe Bitcoin as digital gold. Nevertheless, there is a first fundamental difference between gold and Bitcoin.
Gold has established itself as a global store of value for many decades now.
While Bitcoin is strengthening its position as a global store of value block by block, it is still very young, having been in existence for just over 11 years.
This youthfulness of Bitcoin largely explains the very high volatility of its price.
Bitcoin’s volatility will decrease as Bitcoin is more adopted by the general public.
In the meantime, many people advise against buying Bitcoin because they consider Bitcoin to be too dangerous due to its high volatility.
In my opinion, I think that buying Bitcoin is not dangerous if you take the time to understand how it works and what its goals are for the future.
If you make this obligatory learning effort, and then make the decision to buy Bitcoin 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 Must Buy Bitcoin
The people who are going to win every time with Bitcoin are the people who really believe in Bitcoin. In order 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 Bitcoin’s lower prices to buy more.
This is not an easy thing to do because when Bitcoin price drops sharply, panic seizes the market and FUD (Fear, Uncertainty and Doubt) sentiment tends to spread.
Many people give in to this FUD feeling and make the mistake of selling their Bitcoin when the price drops too much.
The example of the prolonged strong bear market of 2018 shows that the majority of people didn’t 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.”
— Warren Buffett
When Bitcoin price goes down, or even collapses, you should consider this as an opportunity that you absolutely must seize.
If you are still in doubt, take a look at the price of Bitcoin in 2018 at the height of the prolonged bear market:
Bitcoiners’ belief in Bitcoin is being rewarded today as the price is back in the $10K range.
So the first golden rule is to take advantage of Bitcoin’s falling prices to buy more and play for the long term.
Rule #2: When the Price of Bitcoin Rises, You Must HODL Your Bitcoins
Since the beginning of the year 2020, the price of Bitcoin has risen from $6,900 to nearly $10K. The price of Bitcoin has risen 45% in just over a month.
Bitcoin’s performance since the beginning of the year has been excellent while progressing step by step.
Bitcoin price’s growth is slow but steady, 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 price increase started even though the third Halving, scheduled for May 2020, did not take place.
Following the return to $10K, I see more and more people questioning the sale, even partial, of their Bitcoins.
People who ask themselves these kinds of questions are clearly not going to be able to win every time with Bitcoin.
Even when Bitcoin increases by 40%, don’t think short-term by looking directly for profit.
Trust Bitcoin and play for the long term.
Ask yourself the right questions about the fundamentals of Bitcoin.
There’s a Halving coming up in a few weeks now. Previous Halvings in 2012 and 2016 each resulted in strong bull markets for Bitcoin over the following 18 months.
With this third Halving, there is a high probability that the situation will happen again.
So the best thing you can do when Bitcoin price goes up is HODL.
If you are in doubt, keep in mind that HODLING has been proven to be the best strategy in 90% of the cases with Bitcoin.
Don’t take any risks and keep your Bitcoins safe on your hardware wallet when the price of Bitcoin rises even sharply.
These Two Golden Rules Are Based First and Foremost on a Belief in Bitcoin
All in all, you must have understood that the two golden rules for winning every time with Bitcoin are based on the same thing.
The belief in Bitcoin and its potential is what makes it possible to win every time with Bitcoin.
By truly believing in Bitcoin and the revolution it embodies, you’ll have no trouble playing long-term like Bitcoiners.
You’ll take advantage of its lower prices to collect more and more Bitcoins.
When its price goes up, you will benefit for HODL Bitcoin while remaining patient and calm because you know that Bitcoin’s goals are to be successful in the long term.
If you still have a doubt in your heart, I let you analyze the evolution of the Bitcoin’s yearly lowest price since 2010 :
The year 2020 is not over, but there is a good chance that the lowest price in 2020 will remain the price at the beginning of January, namely $6,950.
As you can see, Bitcoin’s yearly lowest price is constantly rising.
Proof if any were needed that Bitcoin rewards above all those who believe in it in the long term.
These people answer in the name of Bitcoiners and apply to the letter the two golden rules that I have just presented to you in this story.