Prep Yourself For The Upcoming Bitcoin Halving: Investment Tips

With the next Bitcoin halving expected to take place on April 20, 2024, it's most likely that Bitcoin price will go up-and-down even more than it already does. Here are a few tips to stay on top of your Bitcoin investment game.

Volatility First, Then Up Only

Similar to what's been happening with the spot Bitcoin ETF approval in the U.S., there will be opportunists who practice 'sell the news' and dump their Bitcoin holdings on those who FOMO-buy Bitcoin. Therefore, the first tip for anyone who wants to benefit from Bitcoin for mid- and long-term is to refrain yourself from emotional trading: you should only make well-informed decisions when you're in a good state of mind.

For anyone new to trading, please refer to our series on trading psychology: How to Trade Crypto Responsibly | The Trap Of Trading Temptations | Dealing With Temptations | Navigate Loss and Profit | Stick to Your Personal Ideal Prices to Maximize Profit and Minimize Loss

That's not to say we should skip out on Bitcoin halving. Three halving events have already taken place, after which Bitcoin prices always achieved a new peak:

• from a closing price of US$12 on November 28, 2012 to the new all-time high of US$1,147 on December 04, 2013 (+9,458% after 372 days),

• from a closing price of US$661 on July 08, 2016 to the new all-time high of US$19,783 on December 17, 2017 (+2,893% after 527 days),

• from a closing price of US$8,636 on May 11, 2020 to the new all-time high of US$68,925 on November 10, 2021 (+698% after 548 days).

The main purpose of Bitcoin halving is to put a limit on the circulating supply of Bitcoin, both from a miner's point of view (harder to mine new blocks to get rewards) or investors' (less new Bitcoin in circulation and more scarce over time). We have every reason to believe that Bitcoin will reach a new all-time high this time as well, especially with the mainstream adoption that shall come following the spot Bitcoin ETF approval in the U.S. If you want to invest in Bitcoin as an alternative store of value, it's best to do DCA (or try to acquire Bitcoin bit by bit with Bitget Dual Investment) as soon as you can and don't look back, don't let the noises bug you no matter what. Be the diamond hands or be like the pizza guy in 2010.

How To Ride The Waves

Here are some basic tips that can be of great use for newbies or serve as good ol' reminders for veterans:

1. Set a goal and stick to it: how often it is to hear people say 'oh I wish I waited some more time before taking profits' or 'If I had decided to sell it earlier, I could have minimised losses'. You'll always want to earn more or cut your losses shorter; it's normal human thinking, but don't ever let it ruin the whole game. It's important to have discipline - especially in this period of extreme volatility - and so, setting your desired profit levels or maximum losses and executing orders regardless will benefit you greatly.

2. Keep track of the market: The crypto market never sleeps, hence it's your job to stay updated everyday to adjust your strategies where needed. Subscribe to various news sources, join peer communities such as Bitget Insights, and monitor market indicators such as the Fear & Greed Index are all good ways to prepare your moves.

3. Diversification: Asset-wise, this is definitely not for Bitcoin maximalists. We recommend you DYOR and allocate some of your capital to other cryptocurrencies (if you are into crypto only) and/or other TradFi assets, but also think about how you can make profits in the short-term, for example via Bitget Range Sniper, Bitget Snowball or Bitget Shark Fin, and how to put your idle Bitcoin holdings to work, for example with the low-risk Bitget Savings.

4. Consult with an expert: You do not have to figure things out on your own. If you're new, haven't mastered the basic operations like setting up a new wallet and emotional control yet, getting professional help can significantly reduce the stress. Then it's always your choice whether to continue to rely on experts' advice. If you still want to be your own expert, check out the high-quality guides on Bitget Academy.

Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.