Are you ready for a Bitcoin Bull Market? Bitcoin has historically gone through cycles on roughly a 4 year basis. Based on the recent run back close to all time highs in USD terms, many in the community are bullish. But if you’re new to all this, how should you get ready?
1. Hold your keys
In Bitcoin, we have a saying, not your keys, not your coins. This means you have to be the one holding and securing your bitcoin private keys. i.e. Don’t leave your bitcoins on the exchange that you purchased them from.
For most people, this means using a hardware wallet or a multi signature set up to stash their coins in self custody. Once you’ve created your own set up, instruct your exchange that you want to withdraw to your own bitcoin receive address indicated on your hardware wallet.
During a bitcoin bull market, crazy things can happen and exchanges can go fractional reserve or go busto. Don’t risk it!
2. Do backups and importantly: test your backups
Backups might not be the first thing on your mind when Number Is Going Up, but they’re very very necessary! So for most people using a single signature hardware wallet, this will be your 24 word seed and a passphrase (if you are using one).
Ideally you have this backed up on a metal backup product, or at least the paper that comes with your hardware wallet. You might also have it encrypted on some microSD cards.
It’s important to also test your backups periodically just to make sure that you are able to recover in the event of losing or breaking your hardware wallet. For example, Coldcard has an ‘Import existing’ feature:
Ideally when you first set up the wallet, you put a small amount of bitcoin in to test wiping it, and recovering from the 24 word seed + optional passphrase. Then, once you’ve proven it to yourself that you can recover from a loss of the device using your 24 word seed, you can now go ahead and load the rest of your bitcoins on.
Now what do you do if you’ve already loaded funds on your hardware wallet and have never tested it before? This might be a good time to order an additional hardware wallet and test out recovering your seed + passphrase into that wallet, and testing that it still recovers the same wallet. Obviously, be careful here because this second device will now be another device to protect, unless you wipe or destroy it afterwards.
3. Learn how to run your own Bitcoin node
As we’ve said before, your bitcoin node is like a fake bitcoin detector. It checks the rules of bitcoin to make sure you’re not being cheated when you want to receive bitcoins.
You can use various node packages such as myNode, umbrel, RaspiBlitz, Ronin Dojo, nodl to run your own bitcoin node.
We also offer a (paid) video guide product on doing your own Bitcoin Core, Specter Desktop & Coldcard on our web store here:
Don’t make the same mistakes others have made with bitcoin storage. This guide is how you can take advantage of our years of experience and learn from the insights that we bring.
4. Stay up to date with what’s going on during the bitcoin bull market
Get a Twitter account and follow some of the top accounts listed on hive.one – an algorithmic listing of bitcoin influencers. Keep up with the latest Bitcoin Twitter drama, see who got rekt and who is feuding with who. But more importantly, see product updates, vulnerabilities, announcements and get that continual bitcoin wisdom.
5. Don’t let up on stacking during the bitcoin bull market
Remember, some of the best gains come in a small period of the year, so don’t try to time the market. A more disciplined approach is to regularly accumulate with savings.
A good way to do this is to set up an auto DCA with your exchange e.g. Swan Bitcoin (disclosure: Swan is a sponsor of SLP and I hold a small ownership stake), Coinfloor in the UK, Relai.ch for Europeans, or for Australians, look into Bitaroo or Amber.
Still need help?
We offer zoom call consulting for people who still have questions or need guidance. It is donation funded, but we do recommend you’ve gone through some of our Bitcoin Starter Guides first to save time. Get consulting help on our page here.