Bitcoin is the world's only truly free market. Period.
Bitcoin users are free to find the equilibrium price of Bitcoin 24 hours a day, 7 days a week, 365 days a year. There are no circuit-breakers like in the stock market to come in and stop trading when panic strikes.
Thus, volatility is a feature of Bitcoin, not a bug. This is a great thing if you learn to make it your best ally. To do that, you'll have to overcome two feelings that turn out to be the enemies of many investors. You probably understood that I meant FOMO and FUD.
The FOMO (Fear Of Missing Out) feeling will take hold of investors when the price of Bitcoin goes up sharply. Out of fear of missing out on a unique opportunity, investors will lose control of their emotions and buy in a frenzy.
The FUD (Fear, Uncertainty, and Doubt) feeling is seen much more often. It is used constantly by Bitcoin's opponents who seek to scare the general public away from discovering this incredible monetary revolution. It can also happen when rumors spread on social networks. Many investors start selling in a panic and don't even take the time to check the source of the rumors.
Yet Bitcoin's motto has not changed since its early days: “Don't Trust, Verify”.
To help you be stronger than FOMO and FUD feelings, I will remind you of the 6 golden rules to apply in the Bitcoin world. For Bitcoiners, this will be a reminder that is never superfluous. For beginner investors, it will be an opportunity to quickly develop good habits.
Learn the Why
Buying Bitcoin is not just another investment. It is something much deeper. Buying Bitcoin is a vote in favor of an alternative system that aims to give money back to the people. To understand this, you'll need to understand the why of Bitcoin. This is an essential prerequisite for being able to form your own opinion.
A convinced person will then be able to guard against FOMO and FUD feelings.
Just before discovering the problems that Bitcoin addresses, it is crucial to understand how the current monetary and financial system is flawed, but also why it is not fixable. Those who realize this then understand why Bitcoin is our best hope for a better world in the future for the majority of people.
Read, Read, then Read again
You can't succeed in the Bitcoin world if you don't make the effort to constantly expand your knowledge. One of the pillars for me is knowledge. This will allow you to awaken your mind to money, the economy, and Bitcoin. To do this, you need to read more and more.
You will be able to take information from many sources and then decide for yourself.
That's all Bitcoin teaches you: don't take your word for it, but check it out. In the same way, don't take for granted what I tell you about Bitcoin. I am not a preacher as some people like to say in comments. I am simply someone who seeks to share his opinions and ideas.
Use my articles as food for thought, then make your own decisions. If after taking the time to dig into the topics on your own, you don't agree with me, I will respect that. Feel free to tell me in the comments in a courteous manner so we can debate it. It is the debate of ideas that allows us to progress and improve in life.
Define a strategy, then stick to it
When you want to build muscle, you set a strategy and make sure you stick to it no matter what. That's your best chance of success.
Well, with Bitcoin, it's the same thing!
You'll have to define your strategy with Bitcoin, and stick to it. This will be even harder when the price of Bitcoin falls sharply. You will be tempted to give in to the FUD feeling and sell at a loss. It's up to you to remember what your strategy was and stick to it.
When the price of Bitcoin is in a Bull Market, you may be tempted to either buy a lot more or sell your Bitcoin. In either case, the choice is yours, but make it consistent with your strategy.
In December 2013, when the price of Bitcoin reached $1,000, most early Bitcoiners sold their Bitcoin for a big profit. That was their strategic choice. Today, their profits would be much bigger, but they have no regrets if they stuck to their strategy.
That's why you need to think about your strategy with Bitcoin. For my part, my strategy is clear: Bitcoin HODLer one day, Bitcoin HODLer forever. I am betting on the future success of Bitcoin as a large-scale alternative system. So I remain zen and am rather detached from the Bitcoin price in the short term. But it remains my choice. It's up to you to make yours according to your profile and interests.
Avoid looking at the Bitcoin price constantly
Bitcoin is an incredible monetary revolution that will change the world of the future for the better. While what Bitcoin has accomplished since its inception is already phenomenal, you must understand that we are only at the beginning of the Bitcoin revolution.
Bitcoin's goals are long-term.
If you want to avoid the volatility of Bitcoin's price that only plays on its short-term price, you need to stop watching its price constantly. Understanding the why of Bitcoin will give you the confidence to be patient and detach yourself from its price.
Easier said than done, I grant you. Nevertheless, this is the goal you should strive for.
Adopt a long-term vision with Bitcoin
A revolution like Bitcoin takes time. There are different phases, different market cycles to understand. There are ups and downs that you will have to learn to deal with as best as you can psychologically.
In difficult times, remember the long-term goals of Bitcoin: to provide a more equitable alternative monetary and financial system for all the people of the world.
That the price of Bitcoin dropped in May 2021 from $60K to $30K is irrelevant as long as the Bitcoin revolution continues to move in the right direction. I said this back in May 2021 when China banned Bitcoin mining.
What happened next has proven me right. I'm not a mind reader though. I'm just looking at the facts and the fundamentals of Bitcoin which keep getting stronger month after month, block after block. This long-term view is what will help you not get trapped by FOMO or FUD.
Control your emotions
Human emotions are often huge traps. They can lead you to make irrational decisions. No matter how well you know all the rules, there will come a time when you may lose your sense of logical reasoning. This can happen on the upside or the downside in my opinion.
So you have to learn to control your emotions perfectly.
Make a habit of always stepping back when you hear the news that is likely to move the market. Ask yourself if this information is reliable. Check the sources as Bitcoin teaches you.
Then ask yourself if it is likely to challenge the Bitcoin revolution. If not, there's no need to worry more than you should. Stay confident, and it will pass as it always has since Bitcoin's inception.
Final Thoughts
Bitcoin is a world of its own, and you'll need to learn how to evolve to take full advantage of the incredible monetary revolution that is unfolding before your eyes every day.
The 6 golden rules I've just shared with you are to be applied daily so that Bitcoin changes your life for the better rather than you losing the fruits of your labor due to mistakes on your part.
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