The impending Bitcoin halving might cause a big ruckus in the cryptocurrency market if past events are any guide. However, how can investors get ready for it? Investors are preparing for the price turbulence that has come to characterize the impending next halving of bitcoin. BTC volatility index exceeded 9% during the most recent halving, which occurs about every four years and divides rewards for mining a block in half. There have been three halvings thus far: in 2020, in 2016, and 2012. The upcoming halving is anticipated to take place in the middle of April.
Controlling Your Expectations And Self-Education In Bitcoin
The volatile nature of BTC may appeal to those seeking quick profits. Even if historically, price increases have followed BTC halving occurrences, every expert will caution investors that previous performance does not guarantee future results.
Analysts frequently state that “time in the market beats timing the market” when discussing the stock market, and the same is true of Bitcoin. According to Lane Kasselman, president of Blockchain.com, timing the market in the Bitcoin realm is “generally not recommended,” as he stated to Cointelegraph. “A great deal of past predictive models have proven to be completely inaccurate,” claims Kasselman. A better approach would be to dollar-cost average, which entails consistently purchasing a set, of tiny quantities of Bitcoin at all times, independent of the market price. Investing can be less emotionally charged when one uses dollar-cost averaging, which lets investors stick to a set timetable.
