Important things you should know before buying bitcoin (Part Two)

In the last article, we discussed two important aspects of getting started with bitcoin; understanding what it is, and how to store it in your wallet. 

This time around, I’ll be showing you what you can do with bitcoin, how to invest, and what to do during the dip. Stick around!

What you can do with bitcoin

A lot of people approach bitcoin with a trading mindset — buy low and sell high — but it is so much more than that. 

Apart from trading and investing, you can use bitcoin just as you would use your local currency. With platforms like Bitnob, Bitrefill, and others, there is now a wider scope of things you can do. We’ll outline a few. 

Pay bills

With Bitrefill, you can buy gift cards with bitcoin from your BTC wallet on Bitnob and use these gift cards to pay your electricity bills, top up your airtime, etc.

Shop online

Global bitcoin adoption has resulted in a lot of people accepting payments in bitcoin for their products and services. Apart from shopping with bitcoin-backed gift cards on sites like amazon, other service providers also accept payments in bitcoin. For example, Microsoft has been accepting bitcoin payments since 2014. Shopify also allows vendors registered on their platform to accept bitcoin. 

With the recent release of Bitnob for business, businesses registered can also manage their customers and receive payments for their products in bitcoin from anywhere in the world. NGOs can even create donation links and receive bitcoin from people who support their cause anywhere in the world.

Send money to loved ones abroad

Sending money to your loved ones is simpler and faster with bitcoin. With Bitnob, you can use the lightning network to send money anywhere in the world. Your loved ones can also send you bitcoin and you can easily receive your bitcoin to your Bitnob app. Click here to read how your loved one can send you bitcoin from Cash App to Bitnob.

Buy event tickets

Next time you want to buy some concert tickets, try paying with bitcoin. You can do this by getting a Ticketmaster gift card and funding it with Bitrefill. We have a brand new ticketing feature on Bitnob for Business that allows you to create tickets for events and sell them with bitcoin.

How to invest in bitcoin

The most important thing you need to know about investing in bitcoin is that it is a long game. Investing in bitcoin is more than just buying low and selling high. To properly invest in bitcoin, you have to be committed to holding your bitcoin even during phases of a market correction. A market correction is where there is a sustained decline in the value of the asset in the market. This is the best way to ensure that your investment keeps its value and you make the most of your bitcoin in the long run.

One way to do this is to buy fixed amounts of bitcoin at intervals regardless of the price. We call this dollar cost averaging (DCA). You could decide to buy $10, $50, $100, or more worth of bitcoin daily, weekly, or monthly — it depends on what you can afford. This has been proven time and again to be the best way to accumulate bitcoin over time.

With the bitcoin savings plan feature available on Bitnob, you can now do this automatically when you create a plan. To learn more about how you can do this and what it involves, click here. 

What to do during the dip

We use the expression “the dip” to refer to periods in time where bitcoin reduces in value. During this period, people often panic and sell their bitcoin, fearing that they will lose their investment if they don’t. To be a successful bitcoiner, you ought to do the opposite.

Why? First of all, bitcoin statistics have shown that bitcoin appreciates over the years. In fact, bitcoin is the best-performing asset in the last decade. So even when it dips, experienced bitcoiners know that dips are the best time to acquire more bitcoin. But as a beginner, dips might come with some anxiety. Here’s how to handle it:

Don’t panic, prepare

I agree it can be scary, but don’t panic. Dips happen, and we call periods like these “market corrections”. Instead, prepare for it. Read about bitcoin dips, study trends, and learn more about bitcoin in preparation for the market correction.

HODL

HODL stands for “Hold On for Dear Life”. It’s used to refer to buy and hold on to your bitcoin for an infinite period of time. Investing is not a short-term plan, it’s long-term. Most experienced bitcoin investors keep accumulating bitcoin and have been doing so for years regardless of how the price fluctuates. So when the price dips, don’t sell.

Buy the dip

Second to HODL, the mantra for every bitcoiner is “buy the dip”. When the price dips, instead of panic selling, use it as an opportunity to stack bitcoin at a lower price and maximize profits. That’s the bitcoiner way.

Lastly…

Remember that learning is a curve. You don’t have to know everything to start investing, and you certainly do not need to know everything to be successful. If at any point you need any help, I’ll be right here! Download the Bitnob app to get started!