10 Bitcoin Tips (what you need to know)

^{Read time - 3 minutes / Disclaimer}

People have made millions with Bitcoin.

Since its release 15 years ago, the price continues to climb:

- $25,000

- $50,000

- $100,000

Yet, may still call it a scam.

Is It Just A Fad?

Drops in the Bitcoin price can terrify even its hardcore believers.

Its price has fallen:

- 40%

- 60%

- 80%

Yet it bounces back each time.

I became fascinated with Bitcoin during the pandemic and spent hours studying it.

I figured it would do 1 of 3 things:

1. Go bust.

2. Go nowhere.

3. Go everywhere.

So I bought an amount I was ok with losing (in case it went bust).

And here we are...

^{Bitcoin History: Yahoo Finance}

I sold 75% of it in 2021 (oops).

But held on to 1 Bitcoin for the long term.

If you're unsure how you feel about the digital currency —

Here's 10 tips worth knowing (plus a short animated video explanation):

Tip 1: Bitcoin Was Released In 2009

Bitcoin is open-source software.

This means anyone can review exactly how it functions.

There's no secret to how it works.

Tip 2: Bitcoin Is Decentralized

Bitcoin operates on its own network and isn’t controlled by a 3rd party.

The supply of bitcoin can't be manipulated.

It's considered a digital currency.

Tip 3: Bitcoin Uses Blockchain Technology

Bitcoin transactions are recorded on a public ledger anyone can see.

All transactions are public information.

Transparency is a key benefit.

Tip 4: Bitcoin Is Created By "mining" It

Computers solve complex math problems as they confirm and record Bitcoin transactions.

Miners are rewarded with Bitcoin for their mining efforts.

The digital currency is supported by computers around the world.

Tip 5: Bitcoin Has A Limited Supply

There will only be 21 million total Bitcoins.

This is one of its main advantages.

Unlike the Dollar, the total supply of Bitcoin can’t be controlled by the government.

Tip 6: Bitcoin Can Be Split Into Smaller Units

Bitcoin can be split up just like a dollar can be split up into pennies, nickels, dimes, and quarters. 

Smaller Bitcoin units are called satoshis.

You can buy part of a Bitcoin instead of a whole one.

Tip 7: Bitcoin's Price Can Rise Or Fall Quickly

It’s not uncommon for Bitcoin to rise or fall 10% in a single day.

It’s important to understand and expect volatility.

^{Bitcoin: January 2009 - December 2024 (Bankrate)}

Tip 8: Bitcoin Is Stored In A Digital Wallet

After purchasing, Bitcoin is stored in a digital-based wallet on your phone or desktop.

It can also be stored on a hardware-based wallet like a USB drive.

I bought most of my Bitcoin on Coinbase.

And store it on the ​Ledger Nano​.

Tip 9: Bitcoin Is Highly Secure

Bitcoin transactions are secured using cryptography. 

This makes them resistant to counterfeiting and fraud.

The identities of the sender and receiver is not directly linked to the transaction.

Tip 10: Bitcoin Halving Every 4 Years

Every 4 years the reward Bitcoin miners receive for creating new Bitcoin is cut in half. 

The halving reduces the supply of available Bitcoin.

The last halving was April 2024.

Conclusion

If you don't own Bitcoin.

You're now probably wondering —

Should I buy it?

Before deciding, I'd suggest watching this 3-minute video:

​Bitcoin Made Simple​ 

Also, don't forget the corny (but true) phrase:

"Don't put all your eggs in 1 basket."

Keep building💰

See you next week.