Advice for Bitcoin Newbies
If you’re new to the world of Bitcoin, welcome!
The rabbit hole is deep and there is lots to learn but don’t fret, It’s a wonderfully facinating journey.
Bitcoin has a whole language to it that can seem overwhelming for some but It’s important to take the time to learn these concepts. This is about our fianances afterall.
Here is what I have found to be the best advice for Bitcoin Newbies.
1. Don’t trust, verify
The golden rule here is simple.
Trust no one blindly. Verify your transactions, check addresses, and stay vigilant with your Bitcoin management actvities.
The decentralized nature of Bitcoin empowers you to verify everything on your own terms.
2. Not your keys, not your coins
You've probably heard this a lot, but it's the bedrock of Bitcoin ownership.
If your keys are not in your possession, you don't truly own your coins. Consider investing in a hardware wallet to secure your keys offline.
3. You can buy part of a Bitcoin
Bitcoin might seem pricey at first glance, but don't fret.
You can buy fractions of a Bitcoin called Sats
It's like owning a piece of digital gold. This accessibility is one of Bitcoin's strengths – you don't need to buy a whole coin to get started you but sats.Sats, or “satoshis,” are the smallest denomination of bitcoin that is recorded on the Bitcoin blockchain.
One sat represents 0.00000001 BTC, or 1 one-hundred-millionth of a bitcoin.
The name is taken from the pseudonymous creator of Bitcoin, Satoshi Nakamoto.
4. HODL. Bitcoin is volatile
The word 'HODL' means holding onto your Bitcoin through market ups and downs. Volatility is part of the game, and staying calm during price swings is key.
Remember, it's a long-term game; think years, not days.
Bitcoiners are said to have a low time preference. This refers to the concept of valuing future gains and security over short-term gratification. Bitcoin encourages a low time preference mindset.
5. No one knows where the price will go
Market predictions are like weather forecasts – unpredictable.
Don't be swayed by speculative chatter. I don’t check the price daily because it doesn’t matter. Make your decisions based on your research and belief in the long-term potential of Bitcoin.
I focus on mining and all of the great open source projects surrouning Bitcoin and Layer2 technologies. Lots of innovation going on in the Bitcoin space.
6. Use a metal backup for your seed
Protecting your seed phrase is crucial. Consider a metal backup for durability.
It shields your seed from physical damage like floods and fires and ensures that your access to your Bitcoin remains intact, even in unexpected situations.
7. Never type your seed into a computer
This is a cardinal rule. Your seed is your ALL ACCESS PASS to your Bitcoin.
Typing it into a computer, especially online, exposes it to potential risks. Always use secure methods like hardware wallets for transactions.
Remember, the journey into Bitcoin is both thrilling and transformative. I have learned so much over the years and continue to learn new things all the time about Bitcoin.
Stay curious, stay cautious, and enjoy the ride!
Bitcoin is not just an investment; it's a revolution.
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