Bitcoin Halving: Tips for a Successful Investment

Bitcoin Halving: Tips for a Successful Investment



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The 2020 bitcoin halving, It is nothing other than the halving for solving blocks of the bitcoin network, that is, that it goes from 12.5 bitcoin every 10 minutes approximately to 6.25 bitcoin, right in half.

For this reason, this article will express key tips to survive this halving and later analyze how has bitcoin behaved in previous halving?

Bitcoin, Halving 2020

In order to survive this sudden change in terms of the reduction of blocks in the bitcoin network, certain fundamental tips must be taken into account to be successful, therefore they are shown:

"Buy with the rumor and sell with the news"

If the intention is to invest in bitcoin or in any other financial asset, you should keep this phrase in mind. Many investors are somewhat nervous because in the days before the halving, a highly positive event for bitcoin, the price has plummeted about 18% approximately and many people wonder if this decline has been reached by the halving, and no, This is considered a classic in finance where it is expressed that the asset rises as a result of rumors and the previous days or the day of the event the price falls as a coincidence. Therefore, great care must be taken when trading on rumors and news.

FOMO (Fear of missing out) Fear of missing something

This is a factor that you have to be very careful about, because for fear of missing an event or offer it can lead you to make bad decisions when investing.

Currently many are the investors who are waiting for the arrival of the halving, where graphically it can be said that the wait increase is approximately 300%, thus causing a massive publicity scenario, bringing with it an increase in the psychological level of investors and leading them to invest in bitcoin on impulse and these investments in finance are not considered smart.

We are currently experiencing a global crisis, where the economy is playing dirty in each country, causing many people to become unemployed, and it is not the same to face a crisis with $ 20,000 in our pockets than to face it with only $ 5,000. Therefore, if the price of bitcoin is observed to skyrocket, it is necessary to be patient and not make impulse investments.

Invest wisely

In order to be successful in an investment, you have to take this advice into account, it is necessary to carry out good risk management and invest wisely, that is, do not invest your life savings in bitcoin just because you have seen news that it positions bitcoin in 5 years at $ 100,000, for example. Think that nobody has a crystal ball and nobody can predict the future.

This is about investing, learning, not wasting your money saved for years. A very efficient alternative that is considered fundamental is the application of the 1% rule, which consists of investing in any asset between 1 and 2% of your capital, with the aim of not putting more than 1% of your capital at risk. total of your money per operation, this is adapted according to the capital that you have and can help reduce stress.

Another effective alternative would be to divide the money into small packages and thus be able to invest progressively. But, the main idea is always that you do not make a big bet without first studying the market and the possibilities of success.

Analysis of the behavior of Bitcoin in previous Halving.

The bitcoin has gone through two halving, the first was in November 2012 and the second and most recent in July 2016. Each of these will be analyzed in more depth below.

Halving November 28, 2012

On the same day of this halving, the bitcoin ended positive, that is to say that just that same day the bitcoin had a rise of almost 2%, then over the days it continued to rise more than 14%, remaining level for a while. . But then on January 8, 2013, there was a significant rise in the history of this cryptocurrency, that is, after the first halving, specifically 133 days later, it revalued by more than 2000%.

Halving July 9, 2016

In this halving, unlike the first, things were quite different, since on the same day, bitcoin fell by 5.59%, two days later it rose by 5% and then plunged more than 30%.

After this big drop, it remained level for a season until further promotions.

Subsequently, bitcoin reaches its highest peak, positioning itself at 2792.03% which is equivalent to $ 19.060.24 per bitcoin. This maximum occurs 527 days after the halving, more than a year later.

Analysis of the price of bitcoin

Once you know in depth the behavior of bitcoin in these halving, you can learn various things. The most striking thing about this is that the days of these events to date are random, where one day its price has risen and the other has fallen, they also coincide in that in days after its celebration it increases its value, and the value in the subsequent rises they are in the range of 2000% despite the fact that in the first it takes approximately 133 days to reach this peak and in the second a little more, specifically 527 days.

And another fact that must be taken into account is that after these peaks of increases in bitcoin there always comes a collapse of it, where these falls always exceed more than 80%.

Why is it important to know the crash data?

Simply because bitcoin always seems to follow that pattern, there are always times when the price of bitcoin is very strong and there are massive sales up to an 80% loss in value.


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