3 Essential Advice for Bitcoin Trading Newcomers

Bitcoin is a booming new world. Everybody has been talking about Bitcoin since the beginning of its bull rally in October 2020. As the price of Bitcoin gets closer to $100K, we can see more and more people wanting to board the Bitcoin revolution train.

This never-ending increase in the price of Bitcoin in U.S. dollars is at the origin of the Bitcoin Positive Feedback Loop that began in November 2020.

The more the price of Bitcoin increases, the more the media is talking about Bitcoin. This growing media exposure is attracting more and more investors. These are institutional investors, large companies, and finally retail investors.

At the slightest drop in the price of Bitcoin that is more than 10%, many new entrants sell their newly acquired BTC. These people are called weak hands. The volatility of the price of Bitcoin starts to take off. The strong hands, those who fundamentally believe in the revolution, take advantage of these falls to strengthen their positions.

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Advice for Bitcoin Trading

This causes the price of Bitcoin to rebound sharply, and the loop continues:

Advice for Bitcoin Trading
Illustration by Sylvain Saurel

This positive loop has been working for more than twelve years. It has allowed the price of Bitcoin to rise from a few cents in 2010 to more than $50K at the time of writing. This phenomenal increase is clearly only the beginning of what lies ahead for Bitcoin in the months and years to come.

Like the Winklevoss twins, I see Bitcoin poised to surpass the gold market cap in the coming decade. This implies that the price of Bitcoin would then be very close to $500K.

You’re not dreaming when you read this. Bitcoin’s upside potential is still phenomenal even though its price is already $50K. Those who realize this tell themselves that there is still time to take advantage of this unique opportunity that is Bitcoin.

For those newcomers to the world of Bitcoin, I think it’s important to start off on the right foot with 3 essential tips that I will reveal in the following.

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1. Bitcoin is a total paradigm shift that requires an open mind

Bitcoin is the first human invention to combine the following 3 properties simultaneously:

  • Decentralized
  • Digital
  • Scarce

Bitcoin invented digital scarcity by reaching the maximum of what a decentralized digital currency can offer.

This unique invention is a total paradigm shift from the current monetary and financial system. Once you open your eyes to the flaws of the current system, you must have an open mind to truly understand the liberating power of Bitcoin.

Don’t try to classify Bitcoin into existing categories. Bitcoin is unclassifiable because it has created its own category. It adapts to the needs of each of its users around the world.

Bitcoin has the following motto: “Don’t Trust, Verify”.

This means that Bitcoin pushes you to be critical. Don’t take anything at its word. Do your research to make up your own mind. Don’t blindly listen to those who criticize Bitcoin and those who sell it.

Learn more about money, economics, and Bitcoin to understand for yourself how Bitcoin responds to the flaws of the current system. Be skeptical, but always remain curious.

Those who follow this path always end up becoming Bitcoiners. It is only a matter of time.

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2. Step out of the Western vision of Bitcoin to better see its potential for the rest of the world

In the West, Bitcoin is seen mainly as a store of value. A version 2.0 of gold. It is true that the fact that Bitcoin price has risen so much since its creation makes it a tremendous store of value.

Bitcoin is the best hedge against monetary inflation and censorship.

Opponents of Bitcoin take advantage of the fact that Bitcoin is mainly used in this way in the West to say that it is not really used. These critics forget that Holing Bitcoin is using Bitcoin.

That being said, you need to get out of your Western comfort zone and see what is happening elsewhere in the world. You will arrive in less wealthy countries where hyperinflation is wreaking havoc and where regimes are mostly authoritarian. In these countries, Bitcoin is already a Plan A for millions of people.

A recent survey by Statista clearly confirms this:

Advice for Bitcoin Trading
Source: Statista

The countries where Bitcoin is most used in the world according to this survey are:

  • Nigeria
  • Vietnam
  • Philippines
  • Turkey
  • Peru

This survey probably did not provide an exhaustive list of all countries in the world. Otherwise, we would also have found here Lebanon, Iran, Argentina, Venezuela, Zimbabwe, …

In short, most of the countries where the indigence of corrupt rulers leaves no respite for the populations.

For these millions of people, Bitcoin is the only hope for a better world. Those who continue to say that Bitcoin is not being used should leave the comfort of the Western world.

3. Patience is the key to success in the Bitcoin world

I repeat this constantly, but it’s because it’s something fundamental. Patience is the key to success with Bitcoin. Those who hope to get rich quickly with Bitcoin will sooner or later lose a lot of money.

In the Bitcoin world, greed is the number one enemy.

The best way to take full advantage of the liberating power of Bitcoin is to understand that it is not a get-rich-quick scheme. Bitcoin is there to give you back the power over the fruits of your labor. As such, you must keep in mind that Bitcoin is the best savings technology in the world.

Place the money you want to protect from the ravages of monetary inflation in a censor-proof manner in the Bitcoin network.

Then all you have to do is be patient. Your money is safe in the world’s most secure decentralized network. When you really need it in the future, you can get it back. You will be surprised to see that it has appreciated considerably against the U.S. dollar.

This is where the difference between hard money like Bitcoin and weak money like the U.S. dollar comes in.

Conclusion

Bitcoin is here to stay. Advice for Bitcoin Trading – There are no shortcuts with this new system. You’ll have to be patient and go step by step. Constantly deepening your knowledge is the key to gaining the confidence to take full advantage of Bitcoin.

Indeed, by having confidence in the Bitcoin revolution, you will be able to demonstrate the patience that is essential to be among those who fully enjoy Bitcoin. Those who are impatient and only think about getting rich quickly always end up losing a lot of money with Bitcoin.

It is up to you to act accordingly to make your adventure in this incredible world as positive as possible for your future regarding money.

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