Bitcoin Halving Day And Things To Prepare For Making Profit

Bitcoin halving day, commonly known as halving, is the event when the reward for Bitcoin miners is cut in half from the previous reward. This event is estimated to occur every four years.

This policy mechanism is written into the Bitcoin mining algorithm to address inflation while maintaining scarcity. Historically, the reduction in the Bitcoin emission rate has led to an increase in BTC price after halving.

Bitcoin Halving Day is a period awaited by Bitcoin investors every 4 years. During this time, the reward for crypto mining will be halved.

This limits the supply of Bitcoin - which will only be 21 million coins. The scarcity of supply and high demand often become the factors behind new rallies.

Bitcoin Halving Periods

Referring to its historical trend, since Bitcoin was first created in 2009, Bitcoin has undergone three halvings:

  • The first halving occurred on November 28, 2012, when the miner's reward, initially 50 BTC, dropped to 25 BTC.
  • The second halving occurred on July 9, 2016, when the block reward was reduced from 25 BTC to 12.5 BTC.
  • The third Bitcoin halving took place on May 11, 2020, reducing from 12.5 BTC to 6.25 BTC.

Currently, in 2024 when the fourth halving is approaching, the market has already begun to respond positively. Bitcoin is experiencing dynamics that are grabbing attention. The price rally of Bitcoin has been happening since January 2024.

Outside of the halving cycle, the rise in Bitcoin prices is also influenced by several factors such as global market conditions, new regulations, the impact of Bitcoin ETFs, and several other factors.

Things To Prepare During Bitcoin Halving 

However, halving is not a shortcut to instant profits. Investors need to remain cautious as there will be times when Bitcoin experiences bearish conditions before a price surge occurs.

Therefore, investors need to make thorough preparations to face this phenomenon.

1. Studying market developments

The first thing to consider is to study the basics of technology, adoption trends, and the potential impact of halving the supply and demand of Bitcoin.

2. Portfolio diversification

Crypto investors need to diversify their coin portfolios to coins other than Bitcoin. Altcoins can provide potential profit opportunities during the halving period. 

Not only that, investors can also diversify their portfolios by investing in traditional assets to avoid focusing their investment portfolios on just one type of asset.

3. Portfolio scenarios

Leading up to and during the halving, there will be high volatility in the crypto market, and the price of Bitcoin can experience significant fluctuations. Consider what risks may occur.

4. Use reputable exchange platforms

Lastly, crypto investors are advised to use reputable and secure crypto exchange platforms, as well as those registered with official crypto exchanges, as this is crucial to ensure the security of funds and personal information.

Apart from the Bitcoin halving, many other sentiments make executives in the crypto industry predict a price surge in 2024.

Standard Chartered recently claimed that the price of Bitcoin is predicted to reach $100,000. Bitcoin has gained more than 200% this year, and many are optimistic that this surge will continue until the end of the year.

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