Bitcoin blog author Sylvain Saurel has published an article about the basic qualities needed to become a true Bitcoin person. Although insight is needed when investing in Bitcoin, there are other factors to consider when choosing to invest and hold this flagship cryptocurrency. To be a successful Bitcoin holder (HODLer), there are at least three basic qualities.
Do basic technical skills
The decentralized architecture of blockchain technology is revolutionary, but also very complex. For those who don't fully grasp its function, it poses huge risks. If performed incorrectly, seemingly simple tasks such as setting up a wallet and sending transactions can lead to disaster.
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Before buying Bitcoin, you should take the time to learn the ins and outs of blockchain technology. Its history, features and disadvantages should be thoroughly studied. Research should also be conducted on competitive platforms. New users should work hard to learn about major exchanges, wallets and secure storage programs. They should also learn the meaning behind common terms such as "proof of work" and "block time."
Almost all accidental cryptocurrency losses are caused by user errors due to lack of technical knowledge, which could have been easily avoided. These usually include losing keys or using exchanges to store funds. Therefore, to avoid loss, it is necessary to understand and respect the internal operation of the blockchain.
Doubt and vigilance are indispensable
Given the revolutionary nature of distributed ledger technology, there must be skepticism. Any crazy claim touting easy profits is almost certainly a scam. In addition, exchanges and wallets should be thoroughly checked by a trusted source before use.
This attitude should also be combined with conservative and reasonable investment methods. The most successful cryptocurrency investors of the past decade are those who have avoided platforms or services that are extremely risky. Instead, they just add their cryptocurrency combinations on a regular basis and keep the keys securely in their wallets. It is worth mentioning that this simple method will be very profitable for almost every time period in the past decade.
Keep up to date with Bitcoin
Blockchain is developing rapidly in the technical, legal and social fields. All Bitcoin holders should regularly follow news and developments without exception. Platform changes, wallet updates, transactions come and go. Therefore, staying up-to-date in this environment is critical to securing funds.
As governments and governments are paying close attention to blockchain assets, compliance with laws and regulations is especially critical. Some require cryptocurrencies to be reported in tax form. Other countries are trying to curb the adoption of blockchain. These issues are extremely relevant to anyone investing in Bitcoin.
A key conclusion to draw from the lessons of properly holding Bitcoin is that wise traditional methods are the best way to ensure the security of your funds. No investment can be made without careful research, and security depends on maturity and vigilance.