Summary:

• Bitcoin is not a short-term investment; it is a long-term store of value.

• Control is provided by direct ownership, which also eliminates ETF risks.

• DCA steadily increases in value, particularly following halving events.

• Bitcoin's variety and scarcity are valued by wealthy investors.

Since Bitcoin has finally surpassed the $100,000 mark, interest in cryptocurrencies has grown.

However, we should be aware of one issue. Bitcoin is not being treated like a lottery ticket or a stock that can be bought and sold quickly by wealthy investors. We define investing as having a plan with a winning exit strategy. If a person does not have an investing plan when investing then that person is not an investor but rather it is a trader or gambler.

We are handling it as though it were digital gold, a long-term asset that requires time, preparation, and a plan that suits us.

Let's examine the actions of astute investors and how they could help us too.

Consider Bitcoin Like Gold Rather Than Stocks or the Lottery

Long-term planning is necessary for Bitcoin.

Bitcoin's value is derived on its scarcity, much like gold. Consider how it can contribute steadily to our financial future rather than aiming for quick wealth.

It takes time to accumulate wealth, and Bitcoin rewards those who make plans and follow through on them.

Why Invest in Bitcoin Tokens Rather Than ETFs?

We have complete control over our investment when you own Bitcoin directly, eliminating the need for middlemen like exchange-traded funds (ETFs).

This implies that we won't have to worry about counterparty risks or management costs that reduce our profits.

We are the sole owner of it.

ETFs have their own hazards even if they could look like a simple solution. ETFs may become less stable as a result of market manipulation and regulatory changes.

Since Bitcoin is a decentralized network, adoption—rather than intermediaries—determines its value.

Another factor to consider is the limited supply of Bitcoin. Owning even a tiny portion of the 21 million coins in existence can have a significant impact on our financial future.

Owning the genuine thing is preferable to settling for exposure through an ETF.

The Influence of Dollar-Cost Average Following Each Halving

After every halving occurrence, Bitcoin's price has historically risen, which is where Dollar-Cost Averaging (DCA) excels.

DCA indicates that, regardless of whether prices are rising, falling, or moving sideways, we are investing a certain sum on a regular basis.

Suppose that since 2020, we have been DCAing $100 BTC into Bitcoin each month. This indicates that over a four-year period, our average annual investment expenditure would have been $1200.

This implies that we would have invested $4,800 over four years by 2024.

Invested Capital: $4,800 was invested in total.

Accumulated Bitcoin: about ~0.1731 BTC

December 2024 Portfolio Value: about ~$17,372.64.

For this reason, DCAing is more effective than attempting to timing the market. particularly for people who lack the time and expertise to devote to learning how to trade.

DCA prevents feelings from influencing our choices. We are not following trends or responding to abrupt price declines. Following a predetermined plan, we are attracting our return on investment while allowing the rest to develop and grow.

That's how long-term success is achieved.

The Reasons Why Wealthy People Are Claiming to Own Bitcoin

Have we ever wondered why Bitcoin is currently being seized by the wealthiest investors?

Let's examine several major businesses that have made Bitcoin investments:

• MicroStrategy: The business intelligence company has more than $42 billion worth of Bitcoin, or about 423,650 of them.

• BlackRock: In January 2024, BlackRock, the biggest asset manager in the world, introduced the iShares Bitcoin Trust ETF (IBIT), which currently has over 500,000 Bitcoins worth over $48 billion.

• Grayscale Investments : One of the biggest institutional Bitcoin investors, Grayscale Investments oversees the Grayscale Bitcoin Trust (GBTC), which is home to more than 600,000 Bitcoins.

• Tesla: The electric car maker made an approximately $1.5 billion Bitcoin investment in December 2020 and still owns a sizable amount of that original sum.

• ARK 21Shares Bitcoin ETF (ARKB): is a joint venture between ARK Invest and 21Shares, provides exposure to changes in the price of Bitcoin.

• VanEck Bitcoin Trust (HODL): This ETF, which is managed by VanEck, offers investors an affordable option to invest in Bitcoin.

And why do these large corporations and affluent individuals have such a strong desire for Bitcoin?

It is an asset whose worth has grown over time, to start. As opposed to cash, which gradually loses its purchasing value.

Then there is the issue of shortage. The wealthy are aware that there will only ever be 21 million Bitcoin.

Because we can see where this is going—increased demand and greater prices—they are purchasing now.

Diversification is another distinctive feature that Bitcoin offers. It is independent of central bank whims and the stock market.

With an asset designed for the digital era, we can balance our portfolio.

Techniques for Handling $100,000 in Bitcoin

Let's be realistic.

Prioritize the long term first. While cashing out at $100K may seem alluring, consider our plans for the following five, ten, or twenty years. Retaining a key role may yield significant benefits.

Rebalance our portfolio after that. Spend some time making sure our investments continue to support our overarching objectives as Bitcoin's value rises. To maintain diversification, that can entail withdrawing earnings or reinvesting in other areas.

It's important to stay informed as well. Understanding trends, laws, and innovations can help us make better decisions in the rapidly evolving cryptocurrency sector.

Safeguarding Our Cryptocurrency

Remember security. It's more crucial than ever to safeguard our investment at $100K per Bitcoin.

To protect our possessions, use technologies like hardware wallets like Trezor or Ledger.

Dollar-cost averaging on a biweekly or bimonthly basis into Bitcoin via a trustworthy exchange is an excellent strategy. Then, we can move our winnings to a hardware wallet after they reach $1000.

Keep Several Wallets

Having more than one wallet is an additional security measure. For example, ensuring that, in the event of a hack, each hardware wallet has no more than a specific amount.

We can diversify our wallets in the following ways:

Our trading wallet is the one we will use most of the time. It most frequently engages with dApps or trades.

A long-term wallet is one that contains cryptocurrency that we have staked or plan to keep for longer than a year. For people that HODL, hardware wallets can be a fantastic option.

Typically, a Bitcoin wallet is a hardware wallet that is stored in cold storage. We can choose how much to keep on each of these if we have more than one. Remember that hardware wallets might cost up to $75 or even more.

Concluding remarks

Without a question, Bitcoin reaching $100K is a significant milestone. However, how we react right now counts.

This is not the time for speculation or wagering. Now is the moment to put even more effort into a sound plan that suits us. To improve our knowledge and comprehension in this area, we might experiment with different crypto research tools.

Plan ahead, have a long-term perspective, and, above all, control our risks. The possibilities of Bitcoin are vast, but so are the difficulties.

Be organized, maintain our discipline, and stay focused on our objectives.

(Disclaimer: This information is meant solely for educational purposes and is not financial advice. None of the companies, tokens, teams, or protocols listed in our articles are sponsored or associated with us. It's crucial to carry out in-depth research and only make investments we can afford to lose. See a professional for advisor financial guidance.)

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