Bitcoin Blogger Sylvain Saurel has published a thoughtful piece about the essential properties of a “real Bitcoiners”. It is a revealing Text, rich – however, there are other factors that should be taken into account when deciding whether to invest in the flagship crypto-currency and it holds.
Understanding of the technology
The decentralized architecture of the Blockchain technology is revolutionary, but also complex. They are fraught with significant risks for those who do not grasp their function. Seemingly simple tasks such as the Setting up of Wallets, and the Sending of transactions can lead to a disaster if not correctly performed.
Prior to the purchase of Bitcoin should be in the Know of the Blockchain technology, investing. Their history, functionality, and defects should be thoroughly investigated.
This Research should also be on competing platforms carried out. New users should strive to inform themselves about the major exchanges, Wallets, and procedures for safe storage. You should also learn the meanings behind common terms such as “Proof of Work” and “block time”.
Virtually all of the unexpected crypto losses are due to easily avoidable user errors caused by lack of technical Knowledge. This includes lost keys, or the use of exchanges for the storage of funds belonging to often. To avoid losses, one must understand the inner workings of Blockchain platforms.
Skepticism and vigilance
Given the revolutionary nature of the Distributed Ledger technology, a healthy dose of skepticism is a Must. Wild promises of quick profits are usually just scams. Also, the respective stock exchange and the Wallets should have been tested prior to the use of trusted sources.
This attitude should go hand in hand with a conservative and sensible investment approach. The most successful crypto-investors in the last ten years were those who are too gone to risky platforms or services out of the way.
Instead, you have expanded your crypto-Portfolio regularly and your keys safely in your own Wallet stored. It is worth noting that such a simple approach in the last ten years would have been nearly everywhere remarkably profitable.
Up to date Knowledge about the latest events in the Bitcoin world
The Blockchain-space, developed a technically, legally and socially at a rapid pace. All owners should keep track of news and developments routinely and without exception.
The platforms change, the Wallets are updated and Exchanges come and go. To stay In this environment, up to date, can thus have a decisive influence on the security of the funds.
The tracking of legal and regulatory developments is particularly important, since the governments are now much more accurate with Blockchain Assets. Some require that crypto-currencies must be reported on tax forms.
Others try to hinder the Blockchain-proliferation. These aspects are important for anyone who has invested in Bitcoin, is of great importance.
An important insight from the Lessons that can be drawn from the proper Hodln of Bitcoin: A sensible, traditional approach is the best way to keep money safe.
No investment should ever be made without a careful examination made, and safety is based on maturity and vigilance.