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Some Think HODLing Bitcoin Is Boring. They’re Right, and That’s Why This Strategy Works

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Don’t miss the point on what makes a winning investment.

Recently, I shared the strategy that I have adopted with Bitcoin for several years now. As I explained, my strategy is nothing exceptional since it is followed by a majority of Bitcoiners. Nevertheless, it has the merit of allowing us to take full advantage of Bitcoin at all levels.

The strategy that I follow is ultra simplistic, and better yet, within the reach of all those who have a total belief in the Bitcoin revolution.

My Bitcoin strategy consists of 4 steps:

  1. Buy Bitcoin automatically with a Dollar-Cost Averaging (DCA) approach. Many applications exist for this.
  2. Program the automatic sending of these Bitcoins to your hardware wallet using one of the applications you will buy.
  3. HODL Bitcoin no matter what.
  4. Iterate from step 1.

This simple strategy will allow you to become a Bitcoin HODLER. You’ll have an essential advantage over Bitcoin Traders: you’ll be able to lead a more Zen life, and more importantly, you’ll be able to focus on the essentials.

What I mean here is that you will have time to learn more about Bitcoin, money, and the economy.

It is by educating yourself that you can take care of your future when it comes to money. The economic crisis of 2020 has brought this essential reality to the forefront.

Following the discovery of this strategy, which I consider to be the best one with Bitcoin, I have had feedback from some who are adopting a similar position to what I read in June and July 2020 when the Bitcoin price was stuck in a range between $9,000 and $10,000.

Listening to these people, HODLing Bitcoin would be something boring.

Many come to the Bitcoin world only attracted by the prospect of large financial profits. This is not unusual when you consider that Bitcoin has posted a +9,000,000% return over the past decade.

Where some people make a monumental mistake is just after they made their first purchase of Bitcoin.

Instead of continuing to learn more and more about Bitcoin and money, they leave their Bitcoins aside. They think Bitcoin is just another asset in their portfolio.

If you did that, you would miss out on the Bitcoin revolution. If you step outside the framework that the education system has always locked you in when it comes to money from a young age, you will be able to discover the ugly truth.

Then you will understand that Bitcoin is a monetary revolution that will change the world of the future. Bitcoin is not a technology like any other that can be replaced: it is first and foremost money. Bitcoin is the money of the people supported by the people.

Bitcoin’s volatility is a feature, not a bug.

This volatility can become your greatest ally or your worst enemy. It is up to you to decide. For the volatility of Bitcoin to be your ally, you must not consider it as a fun thing. It happens in relatively short periods in reality, while the rest of the time the Bitcoin price may seem boring.

That boredom you feel when the Bitcoin price seems to stagnate for long periods is a great thing. During this time, you will be able to learn more about Bitcoin if you choose to adopt my Bitcoin strategy.

The secret behind this strategy is in fact in all winning investments.

In the world of traditional finance, billionaire George Soros summed it up perfectly when he said the following:

“If investing is entertaining, if you’re having fun, you’re probably not making any money. Good investing is boring.”

— George Soros

A good investment is usually boring. This is because a winning investment is primarily a two-step process:

  1. Choice of investment. It can be exciting, but it doesn’t last more than 1% of the time. Be patient, and sign up for the long term.
  2. The investment becomes successful during the second phase, which will last 99% of the time. When we talk about a winning investment, it’s a minimum of 10 years on the stock market.

By choosing to buy Bitcoin, you have already made the right choice. The really exciting part is buying Bitcoin no matter what happens every month in DCA mode.

The next part will be testing your patience to see if you’ll be able to beat the boredom, and HODL Bitcoin no matter what.

Bitcoin helps you develop the patience you need to make a winning investment. The day you understand this, you will never again consider Bitcoin boring when its price is stagnating. On the contrary, you will learn to see the signal rather than get distracted by ambient noise.

This is exactly what I was explaining to you at the beginning of July 2020 when the Bitcoin price was stuck in an increasingly narrow range between $9,000 and $9,400.

At that time, the real signal was to be found in the fundamentals of Bitcoin which had been strengthening for several weeks. I was right, because, between July 26 and 28, 2020, Bitcoin’s volatility hit again, increasing its price by +20% in only 48 hours.

Since then, we have been witnessing a logical period of stagnation between $11,500 and $12,000 before what could be the real start of the Bitcoin Bull Run that everyone is waiting for.

Next time you get the feeling that HODLing Bitcoin is a boring strategy, I invite you to remember that this is why it works so well. This strategy allows you to take full advantage of your greatest natural advantage when investing.

It’s not me saying it, it’s the famous Nick Murray himself:

“Timing the market is a fools game, whereas time in the market is your greatest natural advantage.”

— Nick Murray

Buying Bitcoin and then playing with it on a long-term basis is therefore the best way to enjoy your greatest natural advantage. The more time you spend on the Bitcoin market, the more you will be able to see your reward grow.

It’s up to you not to listen to those who falsely consider Bitcoin to be boring and to adopt the strategy that will allow you to enjoy its revolution.

Source: https://medium.com/in-bitcoin-we-trust/some-think-hodling-bitcoin-is-boring-theyre-right-and-that-s-why-this-strategy-works-50a675d22653?source=rss——-8—————–cryptocurrency

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After exec declares Bitcoin maximalism ‘over,’ XRP price surges

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In a podcast for Lend Academy recorded Nov. 5, Asheesh Birla called Bitcoin (BTC) a “pretty innovative alternative to gold,” but added that 2020 had shown there was room for a lot of tokens in the crypto space.

Birla said that he believed Bitcoin had not “gone after” payments, and because different projects had different use cases, the coin’s overwhelming dominance was no longer a certainty:

“I think that the days when folks believed that there’s only going to be Bitcoin, I think, are over. I think it’s clear that there’s gonna be a lot of digital assets and there’s gonna be a lot more traditional assets that are gonna be tokenized as digital assets.”

The RippleNet GM made the comments when the price of XRP was roughly $0.25. It has since tripled, surging to $0.92 last week before crashing 30% amid a wider market rout.

Despite the lack of movement in XRP at the time, Birla added he was feeling bullish over the crypto space coming back “red hot again” after the 2018 crash.

“I don’t see the traditional venture capitalists as interested as they were in 2017,” he said. “But in my mind I couldn’t be happier in terms of innovation in the space.”

Both Ripple co-founder Chris Larsen and CEO Brad Garlinghouse have recently expressed frustration at the lack of regulatory clarity for Ripple in the United States. Last month, SBI Holdings CEO and Ripple board member Yoshitaka Kitao said that the blockchain-based payments may be considering relocating its headquarters to Japan. Larsen believes authorities in the U.S. have a “regulation through enforcement” policy and are “woefully behind” in preparing for the cryptocurrency-based next generation of a global financial system.

At the time of publication, the price of XRP is $0.61, having dropped 3% in the last 24 hours.

Source: https://cointelegraph.com/news/after-exec-declares-bitcoin-maximalism-over-xrp-price-surges

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Why DeFi Flash Loan Attacks Will Keep Happening: Chainlink CEO

Sergey Nazarov told Decrypt that hackers will continue to target DeFi protocols unless they reconsider the way they get data.

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In brief

  • Over $100 million was lost when hackers targeted a number of DeFi projects.
  • They were able to manipulate prices and walk away with the money because the DeFi protocols get their data from one source, which is risky.
  • The founder of top DeFi project Chainlink told Decrypt that this will continue to happen unless DeFi projects get their data from a number of sources.

Chainlink founder and CEO Sergey Nazarov has said that hackers will continue to come after DeFi protocols unless they change the way they get their price information. 

His comments on the Decrypt Daily podcast, published Friday, come after DeFi protocols lost over $100 million in a string of flash loan attacks that attacked Compound ($89 million), Harvest Finance ($34 million) and Cheese Bank ($3.3 million). 

The projects were hit by hackers who manipulated the price of stablecoins held in the protocols because they misappropriated DeFi protocol Curve as a price oracle. 

Hackers were able to target the projects because they all relied on Curve Finance’s data on the price of crypto held in its liquidity pools. 

Nazarov said on the podcast that all the attacks were “related to using a single centralized exchange as a price source”—and that these kinds of attacks will keep happening, even if protocols start getting their data from two or three sources. 

“I think it’s a serious concern that both developers of these protocols should look into.” 

Nazarov said that Chainlink has been resistant to problems because it uses multiple data sources—getting data from “hundreds of exchanges.”

For DeFi protocols to avoid problems in the future, they will have to think about how they source their data, he said. 

Since the attacks, decentralized exchange Curve Finance warned DeFi projects to use Chainlink, which uses a decentralized oracle network (it gets data from one blockchain to another safely, so it can’t be manipulated.) 

It looks like the hottest new DeFi projects will have to step their game up when it comes to security or millions more will be lost.

Disclaimer

The views and opinions expressed by the author are for informational purposes only and do not constitute financial, investment, or other advice.

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PayPal CEO Dan Schulman Talks About the Value Proposition of Bitcoin

In a recent interview, PayPal President and CEO Daniel Schulman, talked about the value proposition of Bitcoin. As you may remember, on October 21, PayPal announced “the launch of a new service enabling its customers to buy, hold and sell cryptocurrency directly from their PayPal account, and signaled its plans to significantly increase cryptocurrency’s utility […]

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In a recent interview, PayPal President and CEO Daniel Schulman, talked about the value proposition of Bitcoin.

As you may remember, on October 21, PayPal announced “the launch of a new service enabling its customers to buy, hold and sell cryptocurrency directly from their PayPal account, and signaled its plans to significantly increase cryptocurrency’s utility by making it available as a funding source for purchases at its 26 million merchants worldwide.”

Schulman’s comments during an interview last Monday (November 23) with Andrew Ross Sorkin on CNBC’s pre-market news and talk program “Squawk Box“.

Sorkin started the interview by asking the PayPal CEO how he values Bitcoin.

Schulman replied:

“I think all forms of money are based on trust and and set values that come from that trust.

“I think if you take a step back, especially with the pandemic, you’ve seen the use of cash decline precipitously. Something like forty to seventy percent of consumers no longer want to handle cash and just like every industry is digitizing right now, that is also happening in the financial services world.

“There’s no question that people are flocking to digital payments and digital forms of currency, and one of the things that we looked at and we talked to regulators around the world, central banks around the world, and it became clear to me that it’s a matter of not if but when and how you’ll start to see more and more central banks issue forms of digital currencies, and I think you’ll have more and more utility happen with cryptocurrencies.

“One of the things that we allow is not just making it easy to buy, sell, and hold cryptocurrencies, but very importantly early next year, we’re going to allow cryptocurrencies to be a funding source for any transaction happening on all 28 million of our merchants, and that will significantly bolster the utility of cryptocurrencies.”

Sorkin asked the PayPal CEO about JMorgan Chase CEO Jamie Dimon’s recent comment that once Bitcoin’s market cap becomes much bigger, it will get regulated.

Schulman answered:

“Well, I think it’s foundational that we work hand in hand with regulators. I mean our move into the crypto space happened because we worked hand in hand with New York Department of Financial Services — received the first Conditional BitLicense to go and do this.”

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