2020 Survival Quick Guide for Bitcoin Buyers

The year 2020 promises a lot for Bitcoin.You probably already know that the Bitcoin halving is expected in May, that is,halving remuneration for new miningcoins. The approaching economic crisis and political uncertainty in the US and around the world provide ideal conditions for the sharp rise in the price of Bitcoin in 2020 and beyond.

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Do not forget the end of 2017.

This likely increase in the price of Bitcoin, of course, will be accompanied by a significant influx into the market of new people looking for big profits.

Their coming may be favorable, provided that these people will not repeat the mistakes of the end of 2017.

Then the insanity that swept Bitcoin and cryptocurrency markets led to a speculative bubble, the collapse of which plunged the market into a long bear market in 2018.

To ensure that the same causes do not cause the same catastrophic consequences in 2020, today we want to share with you a brief guide from the author of the In Bitcoin We Trust column on MediumSylviana SorelaIf you're a Bitcoiner, this article won't necessarily teach you how to buy Bitcoin.you something new, but you can share it with those in 2020.is going to buy BTC for the first time.

Rule 1: Understand What Bitcoin Actually Is

Too many have entered the Bitcoin market without even understanding what it is. These people simply consider Bitcoin a new and highly effective asset that should not be neglected.

Due to this attitude, limited solely by the investment side, many have lost sight of the main thing about Bitcoin.

Over the past decade, Bitcoin's price has risen from $ 1 to $ 10k. The historical maximum at the end of 2017 on some cryptocurrency exchanges generally reached $ 20,000.

All these figures are phenomenal and dizzy among traders from the world of traditional finance.

However, these numbers do not reflect the revolutionary side of Bitcoin. Price growth figures are not enough to convey what Bitcoin can bring to the world in the future.

If you decide to buy Bitcoins, you should,First, understand how Bitcoin builds a fairer monetary system for everyone. It is necessary to understand why the current monetary and financial system is imperfect and cannot be corrected. When you figure it all out, you will realize thatBitcoin is much more than just an investment..

Rule 2: Take time to learn how Bitcoin works

If you figured out what Bitcoin really is and why it provides a unique opportunity to make the world a fairer future, I strongly recommend not to stop there.

Take the time to find out how Bitcoin works.

There is nothing better than readingpublished in 2009 by Satoshi Nakamoto of the whitewater Bitcoin: Digital Peer-to-Peer Cash. This document contains a complete overview of the internal principles of the Bitcoin blockchain.

After reading this document, you will first of all understand how transactions are related to each other in blocks. You will also learn how blocks get a timestamp before being linked in an immutable way.

The document also presents the basis of the consensus algorithm used by the Bitcoin blockchain: the famous proof of PoW performance, which is at the center of the entire mining process.

The concept is also explained in detail.rewards for miners confirming the blocks of transactions due to the need to motivate people to participate in the Bitcoin network and provide their computing power to ensure its security.

The document also describes the organization of the Bitcoin network and allows you to understand why the nodes consider the longest transaction chain to be correct and one that should be continued.

Finally, in the whitewater Satoshi Nakamotodiscusses the need for transparency of all transactions in the Bitcoin blockchain for the public in order to get rid of trusted third parties present in traditional payment systems.

It’s important to read the whitewater because it will giveyou the technical basis for a detailed understanding of the work of the Bitcoin blockchain, and will also provide key concepts that you need to know for possible further in-depth studies of various topics.

Rule 3: Do not be greedy with Bitcoin

Bitcoin's phenomenal success over the pastdecade drove people crazy. The number of people hoping to become millionaires thanks to Bitcoin is still high. But, as I already explained, these people overlook the main thing because of this attitude.

Bitcoin often acts ruthlessly with those who come to it solely because of greed.

End of 2017is a perfect example of what I just wrote about. How many people have bought Bitcoin based solely on their own greed, only to be disappointed and lose almost everything?

Such misadventures overtook so many. Some became victims of unscrupulous scammers, believing in miracles. Others have lost everything, forgetting the safety of their bitcoins. Finally, some simply gave up, which led to an even faster collapse of the speculative bubble that arose around Bitcoin in late 2017.

Be that as it may, one cannot fall into the trap of greed with Bitcoin. Do not forget that the main investment rule applies to Bitcoin:

“Do not invest money that you cannot afford to lose.”

Rule 4: Make Purchasing Decisions on Your Own

Bitcoin is still very young, and its market remainsextremely volatile. Therefore, when prices fluctuate significantly up or down, social networks begin to fever. If you are not careful, you can catch the fear of lost profits.

Fear of lost profits makes you make bad choices when buying bitcoins. It should be avoided at all costs.

The best advice you can give is to buy bitcoins based solely on your own instincts.

Do not follow other people's advice. Make your own opinion by analyzing the market and make a decision that will not necessarily be true, but it will be yours and all responsibility will be on you.

If you cannot ignore what they say aboutBitcoin in social networks, it is enough to disable your account on Twitter or Facebook, so as not to succumb to the massive effects that arise when the Bitcoin market gets out of control.

Rule 5: Don't Be Emotional When Buying Bitcoins

In any investment you need to make surethat you are not acting emotionally. Emotions are often a bad adviser. Your decisions must be rational. If you are tired, postpone the decision to buy or sell.

Buying and selling Bitcoins should follow a clear personal strategy.

You can buy bitcoins because you wantinvest and make a profit. You can buy them because you believe in the Bitcoin revolution personified and want to join the Hodler camp. Whatever you choose, be fully aware of this and do not succumb to emotions.

You will make better decisions if you stick to your own strategies and act rationally in any situation.

Rule 6: Store Bitcoins in a Hardware Wallet

Strictly following the first rules of this guide to survival in the world of Bitcoin, you better understand how the security of your bitcoins is ensured using a system of public and private keys.

Thus, you will understand the following phrase, often found in the world of Bitcoin:

"Not your keys - not your bitcoins."

So, if you hold bitcoins on an exchangeplatform like Coinbase or Binance, then you don't actually own them because you don't have the keys to them. The unfortunate experience of hacked trading platforms that have marked Bitcoin's history should encourage you to take the security of your Bitcoins very seriously.

To keep your bitcoins safe, there is nothing better than storing them on a hardware wallet like Ledger Nano S or Trezor One.

Be that as it may, it is worth remembering an important rule:never keep your bitcoins on the exchange longer than necessary.

Rule 7: Be patient and treat Bitcoin as a long-term investment.

The last rule is especially important if youare going to buy bitcoins for the first time in 2020. You must understand that Bitcoin is building a more equitable monetary and financial system for the future. The future is not built in one day.

Bitcoin has come for a long time, so you need to be patient and play long-term.

Don't make the mistake of keeping an eye on the price all the time.asset. If you bought bitcoins, put them in a safe place and think long term. Adopt the Bitcoin hodlers strategy that has proven to be the best 90% of the time. Be patient and become Bitcoiners by believing in a better world of the future with Bitcoin at the center.

Conclusion

The coming year promises to be for Bitcoinoutstanding. If you are already a bitcoiner, then it will not be superfluous to recall the rules of survival in the ruthless world of Bitcoin. If you are a new investor in this industry who wants to buy your first bitcoins, then this survival guide will allow you to take the first steps in this world with full knowledge of the facts.

We hope this helps you understand that Bitcoin isrevolution for tomorrow's world, and, most importantly, you will be able to avoid the main traps that the vast majority of investors fall into due to ignorance and greed. So don't remain in the dark about Bitcoin and always strive to deepen your knowledge. In the case of Bitcoin, the following rule is truer than ever: