Once upon a time… Bitcoin. Bitcoin halving is a fundamental event in our beautiful ecosystem and essential for the proper functioning of Bitcoin and its BTC. This event, which orchestrates the scarcity of the queen of cryptocurrencies, attracts the attention of investors, traders, and crypto enthusiasts worldwide.
Indeed, this mechanism integrated into the Bitcoin protocol halves the miners’ reward every 210,000 blocks, roughly every 4 years. The goal of halving? To control inflation and stimulate the scarcity of BTC, which can increase its value in the long term.
Faced with these pivotal periods that can cause euphoria in the markets, it’s important not to lose sight of the bigger picture. That’s why the crypto platform eToro can help traders optimize their strategy during this time.
Le Journal du Coin offers you this promotional article in collaboration with eToro.
Understanding Bitcoin Halving
Bitcoin Halving, What’s That?
First things first, a definition is necessary. Bitcoin halving is a scheduled event that occurs every 210,000 blocks, roughly every four years. During this event, the reward awarded to miners for each validated block is halved.
This mechanism was designed by Satoshi Nakamoto, the anonymous creator of Bitcoin, with the aim of controlling inflation and stimulating resource scarcity. Indeed, the total number of bitcoins is limited to 21 million, and halving gradually slows down the emission of new units. This programmed scarcity of supply can potentially lead to an increase in the value of Bitcoin in the long term, according to the principles of supply and demand.
Historical Moments for Bitcoin
Since Bitcoin’s creation in 2009, three halvings have already taken place, each having an impact on cryptocurrency prices.
The first halving occurred on November 28, 2012, reducing the block reward from 50 to 25 bitcoins. At the time, the price of Bitcoin was around $11, and it experienced a significant increase in the following months, reaching nearly $1,100 in November 2013.
The second halving took place on July 9, 2016, reducing the block reward from 25 to 12.5 bitcoins. The price of Bitcoin was around $650 at the time. It experienced dramatic growth in the following months, reaching nearly $20,000 in December 2017.
The third and most recent halving occurred on May 11, 2020. It then reduced the block reward from 12.5 to 6.25 bitcoins. The price of Bitcoin was around $8,500 at the time of halving. It experienced a significant increase in the following months, reaching a new all-time high of over $64,000 in April 2021.
The next halving is expected to take place in a few hours, and market expectations and predictions are already numerous. Analysts and traders closely monitor economic indicators and market trends. This is how they try to determine the potential impact of this event on the price of Bitcoin and the entire cryptocurrency ecosystem. This is where platforms like eToro come in.
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Keep Your Head on Your Shoulders During Halving with eToro
Informed Trading
eToro offers a user-friendly and intuitive platform to buy, sell, and trade Bitcoin, as well as other cryptocurrencies. Users can easily access the market by creating an account, making a deposit, and placing buy or sell orders in a few clicks, as you can discover in this tutorial.
To optimize their trading experience, eToro users have access to a range of monitoring and portfolio management tools. The platform offers real-time charts, customizable price alerts, and detailed market analysis.
These features allow traders to closely monitor the performance of their investments and adjust their strategies based on market conditions, especially during the volatile periods surrounding Bitcoin halving.
eToro, the Trader’s Toolbox
eToro integrates with TradingView, a leading technical analysis platform. This provides traders with a plethora of graphical tools and indicators to study market trends and predict price movements.
This integration allows users to access advanced features such as Japanese candlesticks, moving averages, Bollinger Bands, and many more, directly from the eToro interface.
In addition to technical analysis, it is important to consider fundamental analysis when trading Bitcoin, especially during halving. External factors such as institutional adoption, government regulations, and overall market sentiment can impact the price of Bitcoin. Recently, geopolitical tensions between Iran and Iraq caused a drop in the queen of cryptocurrencies.
That’s why eToro offers detailed market news and analysis to help traders stay informed about key developments in the cryptocurrency ecosystem.
All Cryptos at Your Fingertips
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eToro, Virtuous Trading
Trading Strategy
To succeed in Bitcoin trading, it is essential to define clear and realistic financial goals. As eToro explains, traders must determine their acceptable risk level, investment horizon, and return expectations. eToro provides educational resources and guides to help users develop trading strategies tailored to their needs and preferences.
Traders can choose between two main approaches, a short-term approach, and a long-term approach:
Day trading involves frequent transactions, aiming to profit from short-term price fluctuations. This approach can be lucrative but requires constant market monitoring and high responsiveness.
Long-term strategies, on the other hand, involve more sustainable positions. They bet on the long-term growth of Bitcoin. This approach can be less stressful but requires patience and a long-term vision.
A Picture is Worth a Thousand Words
Copy Trading on eToro
One of eToro’s distinctive features is its Copy Trading and Social Trading platform. Copy Trading allows users to automatically replicate the trades of experienced traders, called “Popular Investors.” This feature is particularly useful for beginners who want to learn proven strategies and benefit from the expertise of top-performing traders.
Social Trading, on the other hand, allows users to interact with the eToro community, share ideas, analyses, and trading strategies. This social dimension promotes collaborative learning. It allows traders to benefit from the collective knowledge and experience of the community. In times of halving, uncertainty and volatility can reign in the market. The eToro community can be a valuable resource for gaining insights and diverse perspectives on the likely evolution of Bitcoin prices.
The countdown has begun, and we have only a few hours left before the much-awaited event. It remains essential to prepare by using the resources provided by serious and recognized players in our ecosystem to the fullest. By becoming an informed and competent trader, you may be able to seize the opportunities offered, but above all, to avoid the pitfalls.
With eToro, you can invest confidently in cryptos, stocks, or even ETFs, benefiting from the security of a platform audited and regulated in France. Open your account on eToro.
Le Journal Du Coin
An article by the editorial team. Le Journal du Coin, the leading French-language news media on cryptocurrency, Bitcoin, and blockchain protocols.