Simple, Buy Bitcoin when everyone else is panic selling.
You’re going to look like a genius 5 years from now when one bitcoin becomes a million bucks. This one simple rule will help you accumulate lots of Satoshis. (one bitcoin contains 100 million Satoshis)
Bitcoin is a game of accumulation.
Whenever there’s a sale going on, go against the crowd and buy.
Investing is the only thing people run away from whenever there’s a sale going on.
It beats the hell out of me why people would run away when there is an 80% discount.
On Black Friday, people kill each other for such steep discounts for the latest flat screen TVs.
People rush to throw their money at buying cheaply made plastic goods from China.
When it comes to investing in Bitcoin, don’t follow the herd.
Bitcoin’s yearly lows:
2012 – $4
2013 – $65
2014 – $200
2015 – $185
2016 – $365
2017 – $780
2018 – $3200
— Suprateek Bose (@SupraBo_) January 2, 2019
“Human beings do two things incredibly well when it comes to investing:
1. They buy what they wish they would’ve bought.
2. They sell what they’re about to need.
Humans are herd animals, they like the comfort & safety of what everyone else is doing.”
— Neeraj Thakur (@NeerajT4) October 1, 2019
The herd suffers from a disease known as “cognitive bias.”
It messes up their brains.
Cognitive biases make people irrational.
They sell whenever everyone else is selling. They buy whatever everyone’s buying.
Like a large flock of birds. Or a band of sheep.
This forces us to make bad decisions. Emotional decisions.
Especially with decisions that relate to money.
And it’s exactly this flaw with the majority that creates MASSIVE opportunity for the rational FEW.
Understand this and you’ll gain an unfair advantage.
And you can bet that people get irrational all the time. If Amazon goes down 30% within a week, people think it’s dead. “Time to sell!”
But Amazon has been experiencing double digit draw-downs each year for the past 20 years.
And it could have gone down because of something trivial, but people go crazy off the rumor mill all the time.
When is it the right time to sell Amazon? Never.
Who owns it from day one? Jeff, his mum and dad.
I know I went crazy when bitcoin dropped 80% within a week.
So I took my emotion out of the game. I HODLed! I bought more. Because I knew and understood Bitcoin profoundly.
You have the ability to give yourself an upside bet than most people if you take the emotion out of investing.
Investing favors the emotionless.
People often react irrationally.
If you invest Bitcoin in the opposite direction of millions of crazy people, your gains will skyrocket 5 to 10 years down the road. DO NOT INVEST IN BITCOIN if you plan to take it out within the next 5 years.
Whatever fractions of bitcoin (Satoshis) that you own today, will be worth a ton.
It would be life-changing wealth.
What gives Bitcoin value?
You see, Bitcoins are extremely rare.
Even rarer than gold.
21 Million Bitcoins is it’s fixed monetary supply.
It is the antithesis of the dollar you’re keeping in your wallet.
There are approximately 7 billion people on earth.
For every individual alive and well, that would mean 0.00225764 Bitcoin per person.
Bitcoin is a commodity. A revolutionary new digital asset.
The other day the NYSE chairman reaffirmed this belief that Bitcoin is here to stay.
Just think about it.
Bitcoin is not some pyramid scheme. It solved a real-world problem of trust, non-sovereign store of value and double-spending in computer science, including traits like:
- Self-sovereignty of your assets (you control your assets, not some bank).
- Tamper-proof accounting (data on the blockchain can’t be corrupted or falsified).
- Censorship resistant (governments cannot stop you from sending your assets in anyway).
- The ability to verify authenticity (without the need of a “trusted” third-party).
- The ability to transfer assets worldwide and records nearly instantaneously and at low costs.
These are massively valuable attributes. And Bitcoin developers have barely scratched the surface when it comes to building new layers of application on top of the Bitcoin blockchain.
Lightning Network is just one of the many applications that’s enriching Bitcoin’s value.
What’s more the Bitcoin network has had a decade-long track record and trialed by fire.
Nobody has been able to hack into it’s network and create chaos, double-spend or spam it.
The network effect ensures that Bitcoin cannot simply be copied & overtaken by some other form of Altcoin.
They can certainly try, but Bitcoin got a great head-start, and many who tried to bet against bitcoin has been severely punished, losing money invested into trying to pick the next Bitcoin.
This is the 2013 & 2015 Marketcap , Take notice of the coins missing in action. pic.twitter.com/mlcvAONmls
— Winson Ng (@WinsonNg12) November 26, 2018
That’s why while retail investors are running away like headless chickens because of the medium term price trends, we’re seeing widespread institutional adoption like JP Morgan, NYSE, Ohio State, Goldman Sachs, Northern Trust, CBOE, Citigroup, Bakkt and so many others.
If you’re a good student of history, you’d notice that mass public reaction always lags for their own good.
In 2011, when Mt. Gox, a giant Bitcoin exchange that traded more than 50% of the Bitcoins in the entire planet was hacked, Bitcoin’s price crashed more than 90%.
Huge media outlets, the ones you’re getting your daily dose of reality, were reporting and calling Bitcoin a pyramid scheme.
It was declared dead by almost everyone.
What happened next surprised even the most ardent skeptics.
It bounced back to new All-time-high prices exposing even more users to bitcoin.
Bitcoin is an entirely new asset class. It’s understandable that most people are in it to make a quick buck. But they don’t understand the underlying purpose of Bitcoin and the importance of the technology it brings.
Hence, they panic buy and sell for all the wrong reasons.
It’s not so easy to comprehend investing via the hive mentality.
Investing requires discipline and long-term mindedness.
Traits that are unique and rare when it comes to handling money.
If you’re in for a quick buck, Bitcoin will efficiently separate you from your money.
The Best Timing to Buy or Sell Bitcoin?
When the prices are sky-high, and the optimism is glowing, that’s when you should back-down.
Last year, when Bitcoin was increasing by $500 each week, people continued buying in at $12k, 13k, 15k and even 19k.
They assumed they could quickly sell and make a quick profit. That’s where it quickly goes south.
Generally, retail investors cannot bear the loss of 50-90% of their investments. That’s because they invested more than they can afford to lose.
Some even took mortgages to invest, swipe their credit cards and completely turned all their fiat into bitcoin.
If you just invested say 5-10% of your savings, that’s easier to bear and ride out the volatility.
If you can ride out the volatility like the investors who hodled from 2011 – 2017, they were rightly rewarded with 100x gains their initial investment.
But it was no easy ride. Within that period, they had to experience two massive crashes like the one we’re experiencing now.
The people who sold during this bear market, will be the same ones who will be buying bitcoin at its new All-time high in a few years time.
— Peter Brandt (@PeterLBrandt) November 21, 2018
in 2013 – 2015, there was an 80% drop in the price of Bitcoin.
It went down from $1300 to ~$200 gradually within a 2 year period.
Many sold out their Bitcoins at huge losses. Today those that kept, made unbelievable returns.
This is not a game of roulette, it is a game of patience.
And people wonder why they were lucky enough to have bought bitcoin when it was dirt cheap.
Make no mistake, Bitcoin is here to stay… And if Bitcoin is here to stay, what are you still waiting for?
Buy some discounted Bitcoin for your future.
Don’t let your government and banks dilute and dictate the terms of your money.
If the mass majority of the people woke up one day and find Bitcoin to be the only thing to have fixed value over time when compared to fiat currency, which one would they instantly switch to?
It’s only logical to switch to the one that preserves it value over it’s supply of 21 million btc.
If I have 0.1 btc today, it will still be worth 0.1 btc in 10, 20, 50 years from now over it’s supply of 21 million btc.
It’s simple. People complicate things all the time.
Remember, don’t invest more than you can afford to lose, because you have to ride out those long hard days when the bears emerge.
If you can survive those ugly days like the one we’re experiencing right now, then you will emerge victorious on the other side.
Ready to Buy Some Bitcoin (BTC)? (A Quick 3-Step Guide)
Step 1: Get a Bitcoin Wallet
COMMON MISTAKE: Buying Bitcoin before getting a Bitcoin wallet.
There are 2 main types of wallets. .
Bitcoin Hardware wallets
I would suggest getting hardware wallets if you have more than $1000 invested.
Free Software and Mobile Bitcoin wallets
Suitable if you’re just playing around with Bitcoin and you don’t have a whole lot of BTC to risk or lose.
These wallets may be free of charge but are considered hot wallets (constantly connected to the Internet), therefore susceptible to all kinds of malwares, hacks or phishing attacks.
Check out some of the Best Free Bitcoin wallets right here: 10 Master Bitcoin & Cryptocurrency Wallets That’ll Instantly Empower You.
Step 2: Buy Bitcoin
With LocalBitcoins, you’re allowed to purchase Bitcoins using all kinds of options like PayPal, Gift Cards, In-person and even cash deposits.Prices listed by sellers on this website remains on the high end. And if you’re looking to buy Bitcoins with Cash, make sure you transact in Public places & make sure no ones following you home. Seriously!
- Find Out more How to buy Bitcoins with PayPal using LocalBitcoins
LocalBitcoins, is a bitcoin marketplace where you can buy BTC from individual sellers.
You should always do a thorough research on the trustworthiness & credibility of the sellers you find on the site and remember not do conduct huge transactions here.
The benefits of an peer-to-peer marketplace is privacy and decentralization.
CoinSwitch is a leading cryptocurrency aggregator that collects rates from all the leading exchanges around the world to give you information on the best rates.
You can use its “Buy with Credit Card” option below to obtain bitcoins as well!
Your first transaction can be anywhere from $50 to $10,000.
- Daily limit: up to $20,000
- Monthly limit: up to $50,000
Verification or KYC is required to begin purchasing bitcoins for the very first time.
Are you looking to buy some bitcoin but end up getting anxious with all the steps, verification and complexities?
Well, One of the Easiest ways to buy or even sell Bitcoin is with Square’s Cash App. *Link works only with your Mobile internet access.
*Only Available in the U.S. Check out this CashApp Quick Start Guide here.
Binance used to be a crypto-to-crypto only exchange.
Now you can purchase bitcoins within your account without exiting Binance.
With this feature, you can instantly use your credit or debit card and purchase Bitcoin (BTC) in USD or EUR.
Meanwhile, If you are into trading cryptocurrencies on Binance, this will be highly convenient for you now.
Buying Bitcoin on Binance allows you to use your Visa or MasterCard which beats buying cryptocurrencies on other exchanges before transferring it to your Binance account. (Doing this extra step would incur additional withdrawal charges!)
Check out this Binance Bitcoin Buying Guide here.
Step 3: Transfer Bitcoin into your Wallet (Conclusion)
Now its time to send your BTC to your Bitcoin wallet.
If you’ve used exchange sites like CoinSwitch, you would’ve noticed the “Bitcoin destination address” that you have to include/fill.
This address is easily obtainable from the receiving end of your wallet. Just tap on receive BTC on any of the wallets your have, copy and then paste that into the “Bitcoin destination address”.
Exchange sites like Coinbase remain susceptible to all kinds of risks internally or externally. No matter how big they’re, always learn to take responsibility for your own money.
Cryptocurrencies like Bitcoin is set to change how we communicate value over the internet. Banks and centralize third party corporations made billions offering us a way to trade over the internet. But they’re highly insecure and rely on tons of B.S. to keep us using them.
With Bitcoin, you now have the freedom to choose one sovereign currency over your country’s failing economy.
At some point in the near future, you may be forced to choose between the bankers and politicians that brought you the Great Depression or the Geeks and Scientist who brought you the internet – I hope you will make the right choice.
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- CoinMama Walkthrough Guide for Beginners: Buying BTC and ETH with USD/EUR Cards